Area Drilling

Feb. 17, 2003

Nigeria

Statoil ASA reported an appraisal well on southeastern Block 218 off Brass confirmed the Nnwa natural gas reservoir that extends eastward into Block 219, operated by the Royal Dutch/Shell Group.

Nnwa-1 discovered oil and gas in several reservoirs between 2,303 m and 4,457 m MD in 1999 but wasn't tested. Nnwa-2, drilled to 4,984 m TD in 1,191 m of water 6.5 km northwest of Nnwa-1, encountered hydrocarbons in several reservoir levels and was successfully production tested.

Nnwa-2 lies 180 km southwest of Port Harcourt and 10.4 km northwest of Doro-1, the Shell gas discovery on Block 219. More appraisal work is needed to fully characterize Nnwa/Doro, Statoil said.

The partners in the two blocks previously signed a memorandum of understanding with state-owned Nigerian National Petroleum Corp. and the government authorizing a feasibility study, led by Statoil, for possible joint development of Nnwa and Doro. The study is slated for completion by Dec. 31, 2003.

Statoil has 53.85% interest in Block 218 with ChevronTexaco Corp. as its partner.