Neptune Energy agreed to acquire a further 5% interest in the Dugong license (PL882) in the Norwegian sector of the North Sea from Concedo AS. Payment will consist of part cash, part future cost carry, and part contingent payment.
Dugong lies 158 km west of Florø, Norway, in water depth of 330 m close to existing production facilities of Snorre field. The reservoir lies at a depth of 3,250-3,400 m. Neptune and partners plan to drill two additional wells in the license, an appraisal well on the Dugong discovery and an exploration well targeting the Tail prospect (OGJ Online, July 6, 2020). Drilling will begin in first-quarter 2021.
Dugong, the largest discovery on the Norwegian Continental Shelf this year, is estimated to contain 40-120 MMboe. Prospective resources for the Tail prospect are currently estimated at 33 MMboe.
Upon completion, subject to approval by the Norwegian Ministry of Petroleum and Energy, Neptune Energy, as operator, will hold 45% interest in Dugong with partners Concedo (15%), Petrolia NOCO (20%), and Idemitsu Petroleum Norge (20%).
