Double whammy for Vår Energi in North Sea as both wells come up dry

Norwegian oil and gas player Vår Energi has drilled two wildcat wells 200 kilometers northwest of Stavanger in the North Sea, using one of Odfjell Drilling-managed semi-submersible rigs. These exploration activities did not yield more hydrocarbons, as both wells turned out to be dry.

The drilling activities came after Vår Energi got a drilling permit from the Norwegian Offshore Directorate (NOD) for the wells 25/7-12 S and 25/7-12 A in production license 917, which was awarded on March 2, 2018, and is valid until March 2, 2027. These were the third and fourth wells in this production license. Vår Energi holds an ownership interest of 40% and acts as the license operator, while its partners are Aker BP (40%) and Equinor (20%).

The well 25/7-12 S was drilled to respective measured and vertical depths of 2,241 meters and 1,914 meters below sea level and was terminated in the Sele formation in the Palaeocene while the well 25/7-12 A was drilled to respective measured and vertical depths of 2,023 meters and 1,962 meters below sea level. This well was also terminated in the Sele formation in the Palaeocene.

According to NOD, the primary and secondary exploration targets for wildcat well 25/7-12 S were proving petroleum in Palaeocene reservoir rocks in the Hermod and Sele formations, respectively. The well encountered the Hermod formation with a total thickness of 34 meters, of which 30 meters were sandstone rocks of good reservoir quality. However, the well ended up being dry.

On the other hand, the primary and secondary exploration targets for wildcat well 25/7-12 A were proving petroleum in Eocene reservoir rocks in the Balder and Horda formations, respectively. The well 25/7-12 A encountered the Horda formation with a total thickness of 49 meters, of which about two meters were sandstone rocks with good to very good reservoir quality and traces of gas.

Furthermore, the Balder formation was encountered with a thickness of 85 meters in total, of which about 11 meters was a sandstone layer with very good reservoir quality. The Hermod formation was encountered with a total thickness of 36 meters, of which 14 meters were of very good reservoir quality and with traces of hydrocarbons.

The prospects, Hubert and Magellan, were drilled with the Deepsea Yantai rig, which is owned by China’s CIMC and managed by Odfjell Drilling. The water depth at the site is 127 meters and both wells have been permanently plugged and abandoned.

Vår Energi is set on growing its production to around 400,000 barrels per day by end-2025, with additional upside from taking over Neptune Energy Norway. To make this happen, the firm is involved in several development projects on the Norwegian Continental Shelf (NCS).

The upgrade of a floating production, storage, and offloading (FPSO) vessel, which is destined to operate at one of these projects, is getting close to the finish line.