Seadrill increases ownership in Sevan Drilling

Seadrill has purchased an additional 116,934,875 shares in Sevan Drilling to increase the company’s holding in its fellow offshore drilling operator to over 50%. The acquisition of the additional almost 117 million shares cost Seadrill around US$76 million and the company set out its intention to submit a mandatory offer for the remainder of Sevan Drilling shares in the market. A successful takeover of Sevan would increase Seadrill’s semi-submersible fleet by four units and also give the operator an increased presence in the Brazilian offshore market where the ‘Sevan Driller’ and ‘Sevan Brasil’ units are currently operating.

Premier Oil secures 'Maersk Guardian' jackup for Norwegian exploration well

Maersk Drilling has announced the signing of a charter contract for the ‘Maersk Guardian’ jackup with Premier Oil Norge AS (Premier). Premier and Maersk have signed a 62 day drilling contract for the drilling of a single exploration well that will target the Myrhauk prospect on block 3/7 in the Norwegian North Sea. The ’Maersk Guardian’ will begin the contract in direct continuation of the unit contract with Lundin Norway AS which is due to finish in Q3 2014.

EXPLORATION WELL ORANGE COMPLETED

Lundin Petroleum AB (Lundin Petroleum) announces that BG Norge AS, operator of Production Licence (PL) 335, has completed drilling of wildcat (exploration) well 7/7-4. The well is located close to the Norway/UK international border, about 50 km north of the Ula field in the North Sea. The water depth at the well location is 83 m. The purpose of the well was to prove hydrocarbons in the Paleocene Forties unit. Forties reservoir sands were encountered in the well but they were water bearing. The well is the first exploration well drilled in PL 335. The licence was awarded in APA 2004 (Awards in Predefined Areas). The well was drilled to a depth of approximately 3,000 m MD, and was terminated in the top Ekofisk Formation. The well will now be permanently plugged and abandoned. Well 7/7-4 was drilled using the Mærsk Guardian drilling rig. Lundin Petroleum has a licence interest of 18 percent, BG Norge (operator) has 52 percent, Bridge Energy AS has 18 percent and RWE Dea Norge AS has 12 percent.

EXPLORATION WELL PL 292 SPUDDED, OFFSHORE NORWAY

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that drilling of the exploration well 15/12-19 on the Phi-North prospect located in Block 6/3 and 15/12, production license PL 292, in the North Sea sector of the Norwegian Continental Shelf (NCS), has commenced. The exploration well 15/12-19 with a planned depth of approximately 3,100 metres mean sea level will target the middle Jurassic and the Triassic/lower Jurassic reservoir by using the jack up rig Mærsk Guardian. Drilling is expected to take approximately two months. The operator is BG Norge AS. Lundin Petroleum is a partner with 40 percent interest.

LUNDIN PETROLEUM COMPLETES EXPLORATION WELL IN NORWAY

Lundin Petroleum AB (Lundin Petroleum) announces the completion of the exploration well 2/5-14S in PL 006C, in the North Sea sector of the Norwegian Continental Shelf. The exploration well 2/5-14S was targeting the Hyme prospect. The Hyme prospect showed no commercial hydrocarbons and as a result, no coring or testing was performed and the well has now been plugged and abandoned. The jack-up rig Mærsk Gallant was used for drilling. The South East Tor chalk discovery made in 1972 is also located in PL006C and has estimated resources of 22.5 million barrels of oil equivalent.The decision was taken not to proceed at this time with the drilling of the side track 2/5-14A as an appraisal well on the South East Tor discovery, pending further technical and economic analysis. Lundin Petroleum is the operator of PL 006C with a 75 percent interest.Partners are Noreco ASA with a 15 percent interest and Faroe Petroleum AS with a 10 percent interest.

EXPLORATION WELL IN PL400 SPUDDED, OFFSHORE NORWAY

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that drilling of exploration well 3/8-1 on the Barchan prospect has commenced. The well is located in licence PL400 in the Norwegian North Sea. PL400 is located some 12 km east of the Trym Discovery in the Southern North Sea, close to the boundary between the Norwegian and Danish sectors. The well will target sandstones of Permian age in a four way dip and fault bounded structural closure. The Barchan prospect is estimated to contain gross unrisked prospective resources of 150 million barrels of oil equivalent (MMboe). The planned total depth is approximately 4,000 metres below mean sea level. The well will be drilled from the jack-up drilling rig Maersk Guardian. Drilling is expected to take approximately 60 days. Lundin Petroleum is the operator of PL400 with 50 percent interest. Partners are Norwegian Energy Company ASA (Noreco) with 30 percent and Petoro AS with 20 percent interest.

LUNDIN PETROLEUM SPUDS CLAPTON EXPLORATION WELL IN SOUTHERN NORTH SEA

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that drilling of exploration well 2/8-18S in PL440S has commenced. The well will target the Clapton prospect, which is situated 10 km north of the Valhall Field, offshore Norway. The main objective of well 2/8-18S is to test the hydrocarbon potential in the Ekofisk, Tor and Hod formations. Lundin Petroleum estimates the Clapton prospect to contain unrisked, gross, prospective resources of 65 million barrels of oil equivalent (MMboe). The planned total depth is 2,718 meters below mean sea level and the well will be drilled using the jackup drilling rig Maersk Guardian. Drilling is expected to take approximately 60 days. Lundin Petroleum is a partner in PL440S with 18 percent interest. The Operator is Faroe Petroleum with 40 percent. The other partners are Dana (20%), Noreco (12%) and Det norske (10%).

LUNDIN PETROLEUM COMPLETES CLAPTON EXPLORATION WELL IN SOUTHERN NORTH SEA

Lundin Petroleum AB's (Lundin Petroleum) wholly owned subsidiary Lundin Norway AS (Lundin Norway) has completed the Clapton exploration well 2/8-18S in PL440S. The well is located about 5 km east of the Eldfisk Øst Field and 10 km north of the Valhall Field in the North Sea. The primary exploration target was to prove hydrocarbons in chalks of the Shetland Group. The well encountered reservoir rocks as expected in the Shetland Group. The reservoir properties were poorer than expected. Data acquisition and sampling have been carried out. The well was drilled to a vertical depth of 2,619 m below the sea surface and was terminated in Creatceous rocks of the Hidra Formation. Water depth at the site is 69 metres and the well was drilled by the jack-up rig Maersk Guardian. The well will now be permanently plugged and abandoned as a dry well. Lundin Norway is a partner in PL440S with 18 percent interest. The Operator is Faeroe Petroleum with 40 percent. The other partners are Dana (20%), Noreco (12%) and Det norske (10%).

LUNDIN PETROLEUM SPUDS EXPLORATION WELL ON THE OGNA PROSPECT IN THE SOUTHERN NORTH SEA

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that drilling of exploration well 8/5-1 in PL453S has commenced. The well will target the Ogna prospect, which is located some 65 km from the Ula Field in the North Sea, offshore Norway. The main objective of well 8/5-1 is to prove the presence of hydrocarbons in Upper to Middle Jurassic reservoirs. Lundin Petroleum estimates the Ogna prospect to contain unrisked, gross, prospective resources of 156 million barrels of oil equivalent (MMboe). The planned total depth is 2,444 metres below mean sea level and the well will be drilled using the jack-up rig Mærsk Guardian. Drilling is expected to take approximately 50 days. Lundin Petroleum, through its wholly owned subsidiary Lundin Norway, is the operator and has a 35 percent working interest in PL453. Partners are Det norske oljeselskap with 25 percent, Noreco with 25 percent and VNG Norge with 15 percent interest.

LUNDIN NORWAY COMPLETES EXPLORATION WELL 7/4-3 ON THE CARLSBERG PROSPECT IN NORWAY

Lundin Petroleum AB (Lundin Petroleum) has, through its wholly owned subsidiary Lundin Norway AS (Lundin Norway), completed the drilling of wildcat well 7/4-3. The well was drilled 24 km north of the Lundin Petroleum operated Brynhild field in the North Sea, offshore Norway, and approximately 22 km east of the UK Everest field. The exploration well 7/4-3 was targeting the Upper Triassic and Upper Cretaceous reservoirs of the Carlsberg prospect. The well encountered no hydrocarbons and is being plugged and abandoned as a dry hole. The primary exploration target of the well was to prove petroleum in Upper Triassic reservoir rocks (the Skagerrak Formation). The Skagerrak Formation sands were not encountered. The second exploration target of the well was to prove petroleum in the Upper Cretaceous chalk reservoir. The reservoir was found at the predicted depth but was water bearing with no presence of hydrocarbons. The well is the first exploration well in PL495 and PL495B. The licenses were awarded in APA 2008 and APA 2011. The well was drilled to a vertical depth of 2,957 metres below mean sea level, and was terminated in the Smith Bank Formation in the Triassic. The well was drilled in water depth of 82 metres by the jack-up rig Maersk Guardian. Following the plugging and abandonment of well 7/4-3 the Maersk Guardian rig will move to the Brynhild field to commence the drilling of the development wells. The costs of the exploration well 7/4-3 and associated license costs will most likely be expensed during the second quarter of 2013. Lundin Norway is the operator and has a 60 percent working interest in PL495 and PL495B. The partner is Tullow Oil Norge AS with a 40 percent working interest.

Significant gas and condensate discovery in the North Sea

Statoil has made a significant gas and condensate discovery in the King Lear prospect in the southern part of the Norwegian North Sea along with its partner Total E&P Norge. Exploration well 2/4-21 drilled by the jack-up rig Maersk Gallant in production licences 146 and 333, has proven a 48-metre gas/condensate column in the main bore 2/4-21 and an additional 70-metre gas/condensate column in the side-track 2/4-21A. Statoil estimates the total volumes in King Lear to be between 70 and 200 million barrels of recoverable oil equivalent (o.e.). “Statoil had earlier defined King Lear as a potential high-impact prospect. The drill results confirm our expectations and show once again that the Norwegian continental shelf still delivers high value barrels,” says Gro Gunleiksrud Haatvedt , senior vice president exploration Norway in Statoil. Data acquisition is currently being finalised in the sidetrack. As King Lear is a high-pressure, high-temperature well, special attention is given to ensuring safe drilling operations. The King Lear discovery is an important contribution to Statoil’s corporate strategy of revitalising the NCS with high-value barrels. “King Lear lies approximately 20 kilometres north of the Ekofisk field. It is encouraging to see that this part of the Norwegian continental shelf – home to the first commercial oil find in Norway – is still delivering significant discoveries,” says Haatvedt. “This reinforces our faith in the exploration potential of the Norwegian continental shelf. Not only does it have a proud past, but also an exciting future,” she adds. Statoil will plan for appraisal drilling of the discovery as well as exploration drilling on other interesting prospects in the licences. Going forward, Statoil as operator will look into an optimal development solution for King Lear and evaluate if the discovery should be developed as a stand-alone or as a tie-in to infrastructure in the area. This area, normally considered an oil province, may on the basis of this discovery and other gas resources form the basis for future gas development. Wells 2/4-21 and 2/4-21 A are the eleventh and twelfth wells drilled in production licence PL146. Well 2/4-21 was drilled to a vertical depth of 5,344 metres below sea level in 67 metres of water, while well 2/4-21 A was drilled to a vertical depth of 5,237 metres below sea level. Statoil is operator for production licences PL146 and PL333 with an ownership share of 77.8%. The licence partner is Total E&P Norge (22.2%). The King Lear discovery is the eighth high-impact* discovery made by Statoil over the last 15 months. The other high-impact discoveries are Zafarani and Lavani in Tanzania, Skrugard and Havis in the Barents Sea, Johan Sverdrup (formerly Aldous/Avaldsnes) in the North Sea, and Peregrino South and Pão de Açúcar (non-operated) in Brazil.

Petrobras awards drilling contract to Sevan

Petrobras America Inc. has awarded Sevan a drilling contract for the ‘Sevan Driller’ for the US Gulf of Mexico. The ‘Sevan Driller’ is currently under construction and the detailed engineering has been underway since March 2006. The rig is designed to include the most advanced drilling capabilities in the industry, based on Sevan’s own patented technology. The ‘Sevan Driller’ will have a capacity of drilling of wells up to 40,000 feet in water depths of up to 12,500 feet, a variable deckload of more than 15,000 metric tons and high storage capacity of bulk materials. It will be equipped with an internal storage capacity of up to 150,000 barrels of oil. The drilling contract has a duration of six years and is expected to commence in the first quarter of 2009. Revenues which could be generated over the six year period are approximately USD880 million, including a bonus arrangement and mobilization fee. In order to satisfy client specific requirements and to further enhance drilling efficiency and rig uptime for deepwater operations in the US Gulf, additional investments of USD50 m will be made to the unit.

'Sevan Driller' completes sea trials and begins mobilisation to Brazil

The ‘Sevan Driller’ completed the sea trials off the coast of China on November 23rd, 2009, and has started its voyage to Brazil for commencement of a six-year contract with Petrobras S.A. The rig has undertaken an extensive commissioning and sea trial program, including speed trials confirming the design speed above 9 knots. ‘Sevan Driller’ was constructed in less than 30 months at COSCOs Nantong and Qidong shipyards in China. The self-propelled rig has an expected transit time to Brasil of 75-80 days including bunkering in Singapore and a crew change in Cape Town, South Africa. Upon arrival in Rio de Janeiro, Brazil, the rig will undergo importation procedures and acceptance testing by Petrobras. ‘Sevan Driller’ will be operating in the pre-salt area with its first location in the Campos basin in a water depth of 1,800 m. The ultra-deepwater drilling rig will be capable of drilling in water depths down to 3,000 m and has a variable deck load capacity of more than 15,000 tons. The ‘Sevan Driller’ is the world’s first cylindrical drilling unit and is based on the same design principles as Sevan’s three FPSOs currently in operation in Brazil and the North Sea.

'Sevan Driller' arrives in Brazil

‘Sevan Driller’ arrived in Rio de Janeiro, Brazil on Saturday March 27th, 2010. The UDW drilling unit will undergo custom clearance and acceptance testing by Petrobras prior to commencement of operation under its six year contract.

'Sevan Driller' departs from Rio shipyard

The 'Sevan Driller' departed Rio yesterday and is currently en route to Macae where formal acceptance will take place. Total transit time to Macae is approximately 24 hours. Following formal acceptance, the unit will relocate to its first drilling location in the Campos basin.

'Sevan Driller' Accepted by Petrobras

Sevan has been informed that the 'Sevan Driller' has been accepted by Petrobras. The rig will be operating in the pre-salt area offshore Brazil under a fixed six year drilling contract.

'Sevan Driller' heads for drilling location

'Sevan Driller' has left Macae, heading for the drilling location. The advanced deepwater drilling unit is the world's first cylindrical rig and will be operating in the pre-salt area under a six year drilling contract with Petrobras.

Petrobras sign firm contract for 'Sevan Brasil'

With reference to the announcement on June 2nd, 2008, Petrobras SA and a subsidiary of Sevan Drilling AS, have signed a firm drilling contract for a newbuild drilling unit intended for operations off the coast of Brasil, in water depths down to 2,400 m. This is the second deepwater drilling unit contracted to Petrobras, and the third deepwater drilling unit to be built, owned and operated by Sevan Drilling, as the company also signed a drilling contract with India’s ONGC in June 2008. The drilling contract will have a fixed term of six years with start-up by end-2011. Revenues which could be generated over the six year period are approximately USD975 million, including a bonus arrangement and mobilization fee. Sevan has awarded a letter of intent (LOI) to the Cosco Shipyard Group for a turnkey contract comprising the construction, equipment procurement and installation, and commissioning of the drilling unit. Cosco shall also provide yard financing. Aker Kvaerner MH has been awarded an LOI for delivery of the drilling package. Also the delivery of other long lead equipment has been secured. The newbuild drilling unit to Petrobras is based on Sevan’s proprietary cylindrical Sevan 650 design, as is the case also for the two other Sevan drilling units. All three Sevan deepwater drilling units are built at the same shipyard and utilize the same drilling package, thus significantly reducing risks to schedule and cost.

'Sevan Brasil' departs China

On the 6th of March 'Sevan Brasi'l departed China on the Mighty Servant I. The rig is expected to arrive in Brazil in the middle of April.

'Sevan Brasil' begins seatrials

'Sevan Brasil' left the Cosco shipyard at 12 pm local Chinese time today and proceeded offshore to commence thruster installation and seatrials. These operations are expected to take approximately 4-6 weeks and following completion the rig will be secured for shipment and loaded on to heavy lift for transport to Brazil.

'Sevan Brasil' accepted by Petrobras

'Sevan Brasil' has completed the acceptance testing and has on the 24 July 2012 commencedwork under its six year contract with Petrobras in Brazil.The rig will now move to its first well location and begin drilling operations under the direction of Petrobras.

Acceptance testing update for 'Sevan Brasil'

'Sevan Brasil' is in the final phase of the acceptance testing for Petrobras. We expect to leave Rio de Janeiro in the middle of next week for sea trials which are expected to take 5-7 days to complete and acceptance of the rig should be before15 July.

'Maersk Gallant' set to drill in PL146 in Norway

Statoil Petroleum AS has received consent for exploration drilling using the ‘Mærsk Gallant’ mobile drilling facility to drill wells 2/4-22 S and 2/4-22 A in production licence 146. The wells are in the southern part of the North Sea, 15 km north of the Ekofisk field and around 260 km from the nearest land at Lista. Water depth at the site is approximately 67 metres. Drilling is planned to begin in June/July 2014 and is expected to take around 189 days, depending on whether a discovery is made. ‘Mærsk Gallant’ is a jack-up drilling facility, built at Far East Levingston Shipbuilding (FELS) in Singapore in 1993. The facility is operated by Maersk Contractors Norge A/S. It received Acknowledgement of Compliance (AoC) in August 2002.

Statoil given go ahead to spud 2/4-22 S well in PL 146

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for wellbore 2/4-22 S, cf. Section 8 of the Resource Management Regulations. Wellbore 2/4-22 S will be drilled from the Mærsk Gallant drilling facility at position 56°42' 58.12'' north and 3°10' 3.11'' east. The drilling programme for wellbore 2/4-22 S relates to drilling of a wildcat well in production licence 146. Statoil Petroleum AS is the operator with an ownership interest of 77.8 per cent. The other licensee is Total E&P Norge AS (22.2 per cent). The area in this licence consists of parts of the 2/4 block. The well will be drilled about 20 kilometres north of the Ekofisk field. Production licence 146 was awarded on 8 July 1988 (12th licensing round on the Norwegian shelf). This is the thirteenth well to be drilled in the licence. The permit is contingent upon the operator securing all other permits and consents required by other authorities before commencing drilling activities.

Statoil set to spud Julius prospect using 'Maersk Gallant'

Statoil is the operator for exploration licences 146 and 333 in block 2/4 in the southern part of the North Sea. Exploration well 2/4-23 is to be drilled in a prospect called Julius. The site is 15 km north of the Ekofisk field and around 260 km from Lista, the closest land. Water depth at the site is approx. 68 metres. Drilling is scheduled to begin in late December 2014 and estimated to last 154 days. A possible sidetrack, designated 2/4-23 A, will take a further 67 days.

Statoil discovers oil at Romeo prospect

Statoil Petroleum AS, operator of production licence 146, is in the process of completing the drilling of wildcat well 2/4-22 S. The well was drilled about 20 kilometres north of the Ekofisk field and 2.3 kilometres northeast of the 2/4-21 discovery in the southern part of the North Sea. The primary exploration target for well 2/4-22 S was to prove petroleum in reservoir rocks in the Permian (in the Rotliegend group). The secondary exploration target was to prove petroleum in reservoir rocks in the Middle Jurassic (the Bryne formation). In its primary exploration target, the well encountered a 27-metre total oil column in the Rotliegend group, 24 metres of which was sandstone of good reservoir quality. In its secondary exploration target, the well encountered oil columns in two intervals in the Bryne formation, where the top interval also extends into the overlying Ula formation in the Upper Jurassic. No oil/water contact was encountered in either of the intervals in the Jurassic. The Bryne formation has a 46-metre total oil column, about 30 metres of which is sandstone of good to poor reservoir quality. The Bryne and Ula formations have a 49-metre total oil column, about 15 metres of which are from multiple thin sandstone layers with good to poor reservoir quality. Data acquisition and sampling have been carried out. Preliminary estimates of the size of the discovery range between 0.7 and 2 million Sm3 of recoverable oil equivalents. Further studies are needed in order to determine whether the discovery can be included as part of a future development of the area. This is the ninth exploration well in production licence 146. The license was awarded in the 12th licensing round in 1988. Well 2/4-22 S was drilled to a vertical depth of 4834 metres below sea level and was terminated in the Rotliegend group. Water depth at the site is 67 metres. The well will now be permanently plugged and abandoned. Well 2/4-22 S was drilled by the Maersk Gallant drilling facility, which will now move on to drill exploration well 2/4-23 in the same production licence.

Statoil granted drilling permit for Julius prospect

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for well 2/4-23. Well 2/4-23 will be drilled from the Mærsk Gallant drilling facility in position 56°41’42.70’’ north and 03°06’18.10” east. The drilling programme for well 2/4-23 relates to the drilling of an exploration well in production licence 146. Statoil Petroleum AS is the operator with a 77.8 per cent ownership interest. Total E&P Norge AS is the licensee with 22.2 per cent. Production licence 146 was awarded to Saga Petroleum in 1988 in the 12th licensing round on the Norwegian shelf. The area in this production licence is located in the southern part of the North Sea and encompasses parts of block 2/4. The well will be drilled about 18 kilometres north of the Ekofisk field. There has been previous drilling activity in the production licence. The permit is contingent upon the operator securing all other permits and consents required by other authorities before the drilling activity commences.

'Maersk Guardian' prepares to drill final well on Brynhild

The Brynhild oil field commenced production on the 25th December 2014 with an initial production rate confirming that the field was capable of producing at the previously announced plateau rate of 12,000 barrels of oil per day (bopd). However due to certain operational issues in relation to the Haewene Brim FPSO, the field has been shut-in since the middle of January 2015. The operational issues which have caused the shut-in relate mainly to a leak identified in the gas injection flexible line and to a damaged connection point between one of the mooring chains and the riser buoy. The gas injection line has been successfully repaired and the damage to the mooring line connection point has been inspected and the process of rectifying the connection point has commenced. Production has now re-commenced with the ramp-up to plateau production expected to continue over the next few weeks. The drilling of the third well of a four well campaign has now been completed. The Maersk Guardian jack up rig has now skidded to the fourth slot and the final well will be drilled before the rig begins simultaneous completion operations.

Lundin to plug former appraisal well with 'Maersk Guardian'

Lundin has received consent to use the Maersk Guardian jackup to permanently plug well 7/8-5 S. The work is expected to take around 18 days. Well 7/8-5 S was an appraisal well for the Krabbe discovery, it was drilled in April 2006, but it turned out to be a dry well.

PSA performs audit of 'Maersk Gallant'

Between 16th and 20th March 2015, the Petroleum Safety Authority (“PSA”) carried out an audit of Statoil and Maersk Drilling concerning HPHT drilling operations at the 2/4-22 Romeo and 2/4-23 Julius exploration wells using the Maersk Gallant jackup. The objective of the audit was to verify Statoil and Maersk Drilling's planning, experience transfer and execution of high pressure, high temperature exploration drilling of the Romeo and Julius exploration wells. The results of the audit found that non-conformities were identified in connection with; working environment committee and working environment measures. The PSA has issued additional improvement points and have given Statoil and Maersk Drilling a dealing of the August 1st 2015 to report on how it plans to deal with the points raised.

Premier receives approval to drill Myrhauk prospect

Premier Oil Norge AS (“Premier”) has received consent to drill exploration well 3/7-10 S in the southern part of the North Sea. Premier is the operator of production licence 539 in block 3/7 in the North Sea. The formation to be drilled into is called Myrhauk and is around 240 kilometres from the nearest mainland at Lista. Drilling is scheduled to begin in August 2015 and estimated to last 62 days, depending on whether a discovery is made. The well will be drilled by Mærsk Guardian which is a jack-up mobile drilling facility. It is owned and operated by the A.P. Møller-Mærsk Group. It was built in Japan by Hitachi and completed in 1986.

NPD approves Myrhauk prospect drilling

The Norwegian Petroleum Directorate (NPD) has granted Premier Oil Norge AS a drilling permit for well 3/7-10 S, cf. Section 8 of the Resource Management Regulations. The well will be drilled from the Mærsk Guardian drilling facility in position 56°27’10.62’’ north and 4°04’46.18’’ east. The drilling programme for well 3/7-10 S relates to the drilling of a wildcat well in production licence 539. Premier Oil Norge AS is the operator with an ownership interest of 40 per cent. The other licensees are Suncor Energy Norge AS (20 per cent), DEA Norge AS (12 per cent) and Ithaca Petroleum Norge AS (eight per cent). Production licence 539 was awarded in APA 2009. The area in the production license is located in the southern part of the North Sea, in the western part of the border block 3/7. Well 3/7-10 S is the first exploration well in this production licence. The permit is contingent on the operator securing all other permits and consents required by other authorities before the drilling activity commences.

Statoil announces discovery at Julius

Statoil Petroleum AS, operator of production licence 146, is in the process of concluding the drilling of wildcat well 2/4-23 S. The well was drilled about 17 kilometres northeast of the Ekofisk field, near the 2/4-21 (King Lear) discovery in the southern part of the North Sea. The primary exploration target for the well was to prove petroleum in Upper Jurassic reservoir rocks (the Ula formation) and Middle Jurassic reservoir rocks (the Bryne formation), as well as to delineate the 2/4-21 discovery (King Lear), which was proven in Upper Jurassic reservoir rocks (the Farsund formation) in the summer of 2012. Before well 2/4-23 S was drilled, the operator's resource estimate for King Lear was between 11 and 32 million standard cubic metres of recoverable oil equivalents. The secondary exploration target for 2/4-23 S was to prove petroleum in Upper Triassic reservoir rocks (the Skagerrak formation). In the primary exploration target, the well encountered 41 metres of gas/condensate-filled sandstone rocks in the Ula formation, with moderate reservoir quality. The petroleum/water contact was not encountered. Preliminary estimates place the size of the discovery at between 2.5 and 12 million Sm3 of recoverable oil equivalents. The well also encountered 30 gross metres of water-filled sandstone with poor reservoir quality in the Bryne formation. In addition, the well encountered a 20-metre thick gas/condensate column in the Farsund formation, in two zones of five metre thick reservoir rocks with moderate/good reservoir quality, which confirmed pressure communication with the 2/4-21 King Lear discovery. Delineation of the 2/4-21 discovery will not lead to any change in the resource estimates. The Skagerrak formation had poor reservoir quality and was water-filled. The well was not formation-tested, but extensive data acquisition and sampling have been carried out. The licensees will assess the discoveries together, with a view toward an optimal development. This is the fourteenth exploration well in production licence 146, which was awarded in the 12th licensing round. Well 2/4-23 S was drilled to a vertical depth of 5548 metres below the sea surface, and was terminated in sandstone in the Skagerrak formation in the Upper Triassic. Water depth at the site is 68 metres. The well will now be permanently plugged and abandoned. Well 2/4-23 S was drilled by the Mærsk Gallant, which will now proceed to PL 018 to do well work on the Eldfisk field in the North Sea.

Premier comes up dry at Myrhauk prospect

Premier Oil Norge AS, operator of production licence 539, is in the process of completing the drilling of wildcat well 3/7-10 S. The well has been drilled about 45 kilometres northeast of the Valhall field in the southern section of the North Sea and 300 kilometres southwest of Stavanger. The purpose with the well was to prove petroleum in the Upper and Middle Jurassic reservoir rocks (the Ula and Bryne formations). The well did not encounter the Ula formation. The Bryne formation was encountered with a thickness of about 110 metres, of which 45 metres with moderate reservoir quality. The well is dry. Data acquisition and sampling were carried out. The well is the first exploration well in production licence 539, awarded in APA 2009. Well 3/7-10 S was drilled to a measured and vertical depth of 3511 and 3464 metres below sea level, respectively, and was terminated in the Skagerrak formation in the Upper Triassic. The water depth at the site is 68.5 metres. The well will now be permanently plugged and abandoned. The well was drilled by the drilling facility Mærsk Guardian, which now will proceed to Fredrikshavn to be laid up.

Maersk Drilling secures 5-year accommodation contract for jack-up Maersk Guardian

Maersk Drilling has been awarded a contract with Maersk Oil for the jack-up rig Maersk Guardian for accommodation on various fields in the Danish part of the North Sea. The firm contract duration is 5 years with commencement in September 2016. The contract includes two 1-year options. The estimated contract value for the firm contract period is USD 142m. “We are pleased that we will get Maersk Guardian back on the water. In this market, it is important to seek out new ideas in order to keep our rigs employed. An accommodation contract like this is a good example of that and it adds to our contract backlog,” says Morten Pilnov, Head of Global Sales in Maersk Drilling. The Maersk Guardian is currently stacked in Frederikshavn where it will be located throughout the refurbishment period until contract commencement. The work entails decommissioning of the cantilever including drilling package, overhaul of auxiliary systems to support accommodation units, overhaul of existing accommodation block on the rig and installation of new accommodation modules. Built in 1986 in Japan, the Maersk Guardian is designed for year-round operation in the North Sea with a leg length of 132 meters.

Expansion of Maersk Guardian

Semco Maritime has entered into an agreement with Maersk Drilling for the expansion of accommodation rig Maersk Guardian, which will be inserted at various fields in the Danish part of the North Sea from September 2016 The DKK three-digit million order for Semco Maritime comprises installation of new accommodation blocks as a supplement to existing quarters on the jack-up rig. Semco Maritime won the order in an open tender with several Danish and foreign participants. Head of Semco Maritime’s rig division, Senior Vice President Lars Skov Christensen, is very pleased with the order for Maersk Guardian, which is strategically important in a market under pressure. - It is very encouraging that an internationally respected operator such as Maersk Drilling chooses us. That confirms that our strategy is competitive in a challenged rig market. Lars Skov Christensen to a large extent ascribes the win to Semco Maritime’s shipyard-in-a-box concept. - Our shipyard-in-a-box concept is a figurative concept of flexibility, which allows us to swiftly relocate our rig engineers to where the work is. We can move out in a matter of a few hours or days, depending on the type of the assignment or the geographical location of where we are going. The concept simultaneously minimizes our fixed costs without compromising quality, Lars Skov Christensen states. Maersk Guardian is currently located in Frederikshavn, where the rig will be situated during the entire refurbishing period. The largest part of the Semco order – construction of the new accommodation blocks – is performed in Gdansk in Poland. The entire accommodation block unit is then sailed to Frederikshavn and installed on the rig, Vice President and main responsible for the project Nikolaj Vejlgaard explains: - We have never constructed an accommodation block this size before. The sheer size makes it impossible for us to perform the work at our own facilities in Esbjerg, and we have therefore placed the assignment with our skilled collaboration partners in Poland, said Nikolaj Vejlgaard. The 142-room accommodation block weighs 560 ton and is set to arrive at Frederikshavn in August with subsequent final installation of the entire block a couple of weeks later. Maersk Guardian has a leg length of 157 meters and was constructed in Japan in 1986. It is designed for all-year operation in the North Sea.

Consent for exploration drilling

Total E&P (Total) is the operator for production licence 618 and has received consent to drill exploration well 1/5-5 using Mærsk Gallant. Mærsk Gallant is a jack-up drilling facility, built at Far East Levingston Shipbuilding (FELS) in Singapore in 1993. The facility is operated by Maersk Contractors Norge A/S. It received Acknowledgement of Compliance (AoC) in August 2002. The Petroleum Safety Authority Norway has now granted consent for the use of Maersk Gallant in accordance with Total's application.

Total E&P Norge A/S takes over jack-up Mærsk Gallant from Statoil

Statoil has cancelled the contract for the harsh environment jack-up rig Mærsk Gallant. A cancellation fee is due to Maersk Drilling, and will be handled in accordance with the contract. Concurrently, Maersk Drilling has signed a new contract with Total E&P Norge A/S for Mærsk Gallant in direct continuation of the cancelled contract. The contract cancellation and new contract will be financially neutral to Maersk Drilling. Mærsk Gallant has been on contract with Statoil since August 2014, and has since October 2015 been sub-chartered to ConocoPhillips. From February 2016 until August 2016, Mærsk Gallant will undertake the new contract with Total E&P Norge A/S.

Sevan Drilling Ltd: Sevan Drilling Ltd amends drilling contracts and secures new employment for Sevan Driller

Reference is made to the Fourth Quarter Earnings Release on February 25, 2016, Sevan Drilling Limited ("Sevan Drilling" or the "Company") amended contracts for the Sevan Driller and Sevan Brasil with Petroleo Brasileiro SA ("Petrobras") and secured short-term employment for Sevan Driller in Brazil with Shell do Brasil ("Shell") commencing in the second quarter 2016. In December 2015, the Sevan Driller contract was suspended by Petrobras as part of the ongoing commercial negotiations for both of Sevan Drilling's units employed with Petrobras. Today, Petrobras and Sevan Drilling executed an early termination of the Sevan Driller contract and reduction of the contract dayrate on the Sevan Brasil. The Company determined on balance that this was the preferred alternative to potentially having both contracts terminated and exposing the Company to a protracted legal challenge with an uncertain outcome. As a result, the Company was able to preserve $220 million of contracted revenue backlog for the Sevan Brasil contract and to allow the Sevan Driller to obtain alternative employment. The Sevan Brasil contract dayrate has been reduced to US$250,000 per day effective 26 February 2016 through the remaining term of the contract, ending July 2018 and a portion of the dayrate continues to be denominated in Brasilian Reals. The Sevan Driller contract was mutually agreed to be cancelled effective from 1 December 2015. Subsequent to the effective cancellation of the contact for the Sevan Driller, the unit has been awarded a well intervention contract by Shell in Brazil for 60 days with two 30 day options commencing in the second quarter of 2016, adding approximately US$11 million in revenue backlog. Daily operating cost is expected to be significantly lower as the rig will perform non-drilling activities for Shell. As of 26 February 2016, the Company's total contracted revenue backlog is now estimated at $509 million, including the extension of the Sevan Louisiana contract amended in November 2014.

Heavy lift completes Semco Maritime rebuilding of Maersk Guardian

A 147-room complete hotel module will today be lifted on board the Maersk Guardian to finalize a major conversion of the upcoming hotel rig. Following design and construction of a turnkey accommodation module with 147 chambers and appertaining facilities for accommodation rig Maersk Guardian, Semco Maritime is now preparing the final installation just 8 months after the order was placed. The module, which has been built and outfitted by Semco Maritime and its collaboration partners in Gdynia, Poland, was loaded onto a barge last week to be sailed to Frederikshavn, Denmark. Here the 1,200-ton module will be lifted and installed on board Maersk Guardian today and tomorrow by a floating crane, which arrived from Kiel Tuesday. According to Vice President Nikolaj Vejlgaard, Semco Martime has never constructed an accommodation block this size before. "The heavy lifting marks the final and intense part of the project, where the modules are to be installed and hooked-up on the rig. Combined with additional modifications of the rig performed simultaneously with the module construction, the former jack-up rig can now be approved and used as a hotel rig", says Vejlgaard.

Mærsk Gallant drills to record depths on Norwegian shelf

With a total depth of 5,941 metres, Mærsk Gallant has beaten the record for deepest well ever drilled on the Norwegian continental shelf. On 31 July, Mærsk Gallant drilled the Solaris ultra HPHT (high-pressure, high-temperature) well to a total depth of 5,941 metres TVD (True Vertical Depth). This means that Mærsk Gallant has beaten the record for deepest well ever drilled on the Norwegian continental shelf. "We have broken a number of records during the Solaris operation. But this achievement is second to none. There was a lot of cheering in the driller's cabin that day," says Sadi Ozturk, Assistant Rig Manager on Mærsk Gallant. He continues: "The Solaris exploration well is one of the most challenging wells in the North Sea. All crew members are very excited about this achievement." In the Solaris project – together with the customer, Total E&P Norge – Maersk Drilling has taken a 15,000 psi rig and adapted the equipment and procedures in order to drill a reservoir section where predicted pore pressures are well in excess of 15,000 psi. The demanding requirements of the customer have led to a wide variety of modifications on the rig.

Dry well northwest of the Ekofisk field in the North Sea - 1/5-5

Total Norge AS, operator of production licence 618, is in the process of completing the drilling of wildcat well 1/5-5. The well is dry. The well was drilled about 40 kilometres northwest of the Ekofisk field and 320 kilometres southwest of Stavanger. The primary exploration target for the well was to prove petroleum in Upper Jurassic reservoir rocks (Ula formation). The secondary exploration target was to prove petroleum in Upper Triassic reservoir rocks (Skagerrak formation). The well encountered about 80-metre thick sandstone in the Ula formation with moderate to poor reservoir quality. The reservoir only contains traces of gas. The well is classified as dry. Data acquisition was carried out. This is the first exploration well in production licence 618. The licence was awarded in APA 2011. Well 1/5-5 was drilled to a vertical depth of 5942 metres below the sea surface and was terminated in the Bryne formation in the Middle Jurassic. Water depth at the site is 70 metres. The well will now be plugged and abandoned. Well 1/5-5 was drilled with the Maersk Gallant drilling rig.