Awilco secures new North Sea drilling contract

UK based rig operator Awilco Drilling has announced that the company has been awarded a new three year contract for its ‘WilPhoenix’ semi-submersible drilling unit for operations in the UK North Sea. The contract has been awarded to the operator by Apache North Sea and Taqa Brantani for the use of the ‘WilPhoenix’, with the total value of the contract expected to be around US$424 million. The contract is expected to commence in the second half of 2014. The award of the contract now means that Awilco has secured long term drilling contracts for both of its semi-submersible assets with the company’s other unit the ‘WilHunter’ currently contracted through to the end of November 2015.

Premier Oil extend existing contract for Awilco Drilling's 'WilPhoenix' rig

Awilco Drilling, the UK based drilling contractor that operates two semisubmersible rigs in the North Sea has announced the exercising of a contract option by Premier Oil UK for the company’s ‘WilPhoenix’ rig. The 250 day contract option is related to the contract signed between Premier and Awilco for use of the ‘WilPhoenix’ rig on 7th May 2012 and the extension means the unit will now be contracted to Premier Oil until the 31st October 2014 at the latest. The extension of the existing contract coincides with the extension of another contract Premier Oil has for the same rig, which was originally intended to be for 70 days but has now been increased to 80 days.

Rig Update

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, is pleased to announce that the Ocean Guardian drilling rig departed from the Cromarty Firth in Scotland at 2.00pm on Thursday 26 November en route to Falkland Island waters. The journey is anticipated to take around two months with the rig expected to arrive in the Falklands ready to commence drilling around early February 2010.

Drilling Programme Update

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, is pleased to announce that it has submitted the Environmental Impact Statement ("EIS") Addendum, which is required for the planned drilling programme anticipated to commence in Q1 2010, to the Falkland Island Government for its approval. The update includes details of the Ocean Guardian drilling rig which will be used by Rockhopper and its partners during 2010. It is anticipated that the updated EIS will receive formal approval shortly. A copy of the EIS Addendum will be posted on the Rockhopper website in due course.

Drilling Programme Update

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, is pleased to announce that it has been formally assigned two slots with the Ocean Guardian drilling rig ("Ocean Guardian"), to drill Sea Lion and Ernest, during its forthcoming drilling campaign in the Falklands. This assignment is pursuant to a rig contract between Desire Petroleum PLC ("Desire") and Diamond Offshore Drilling (UK) Limited ("Diamond") and an assignment document between Desire, Diamond and Rockhopper dated 12th November 2009. The Ocean Guardian is due to arrive in the Falklands in February 2010. The first well to be drilled by the rig, due to spud in mid February 2010, will be Liz (Rockhopper: 7.5 per cent interest), located on the western margin of the North Falkland Basin and operated by Desire (92.5 per cent interest). The second well to be drilled by the Ocean Guardian upon its release from Liz will be Sea Lion (Rockhopper: 100 per cent owned and operated). The prospect is located on the eastern basin margin of the North Falkland Basin and is in close proximity to the Shell well 14/10-1, which recovered live oil. Rockhopper will then be assigned either the third or fourth slot to drill the Ernest well. Ernest is located in licence PL024 and has a positive CSEM (Controlled Source Electromagnetic Anomaly). The Ocean Guardian drilling rig departed the Cromarty Firth in Scotland on Thursday 26 November en route to Liz, in the North Falkland Basin. Further information regarding the upcoming drilling campaign is contained in Rockhopper's announcement about the recent share placing dated 26 October 2009.

Liz 14/19-A Exploration Well Spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, notes the announcement by Desire Petroleum PLC (AIM: DES) that the Liz 14/19-A Exploration well, in which Rockhopper has a 7.5% working interest, was spudded on 22 February 2010.

Liz Well - Gas Discovery

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, notes the announcement by Desire Petroleum PLC (AIM: DES) regarding the Liz 14/19-1 well, in which Rockhopper has a 7.5% working interest: The Liz well 14/19-1, drilled by Desire Petroleum plc, in the North Falkland Basin, has reached a total depth of 3,667 metres. Final logging has been completed and the well is now being plugged and abandoned as a gas discovery. The initial log interpretation indicates that 17 metres of net hydrocarbon pay were encountered between 2961 and 3031 metres within a zone of over-pressured, predominantly sandstone, reservoir. A hydrocarbon sample and formation pressures were recovered from this interval. The initial analysis suggests that the hydrocarbon type is wet gas, but its precise characteristics will be confirmed through further analysis. There is no indication from log data or pressure data of a water-leg in this interval. Much work is now required to evaluate the reservoir quality, to determine the trapping mechanism and to assess the potential of this discovery. Dry gas was also recovered from a deeper interval below 3,400 metres indicating that gas pay is present in generally poor quality reservoir but there is considerable uncertainty on the rock type and more work will be required to assess its reservoir potential. This gas is a separate accumulation from that above, in a different pressure regime. Again further work is required to assess the significance of this interval. The Liz fan was encountered between 2,540 and 2,568 metres. Good oil shows were recorded while drilling but logging and sampling confirmed that this reservoir interval was tight. It is believed the Beth fan was also penetrated between 2,654 and 2,672 metres also with oil shows in tight reservoir. In both fans, work will now try to determine whether better quality reservoir may be developed updip. Weak oil shows were also noted in conglomeratic zones between 2,706 and 2,932 metres. The well was not suspended for later testing as the well was not designed to test over pressured gas. Additionally, further technical work is required in order to understand better the reservoirs to ensure any test is designed optimally. Due to increasing overpressure concerns the well did not reach the deepest play type in the pre-rift. Subsurface support is provided to Desire Petroleum by Senergy (GB) Ltd and the results reported today are based on the work of the Senergy operations team. Once Liz has been plugged and abandoned the Ocean Guardian drilling rig will be released to Rockhopper when it will relocate to drill the Sea Lion 14/10-B Exploration well (100% Rockhopper) on the western margin of the North Falkland Basin.

Sea Lion 14/10-B Exploration Well Spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, is pleased to announce that the Sea Lion 14/10-B Exploration well was spudded at 0050hrs BST on 16 April 2010. The Sea Lion prospect is located on Licence PL032 which is 100% owned and operated by Rockhopper. The well is being drilled to an estimated target depth of circa 2,700 metres. Drilling operations are expected to take approximately 34 days and a further announcement will be made once drilling is completed. Sea Lion is being drilled using the second rig slot in the overall drilling programme. The Company currently intends to drill its Ernest prospect (100% Rockhopper) using the fourth slot.

Sea Lion - Oil Discovery

Rockhopper Exploration, the North Falkland Basin oil and gas exploration company, is pleased to announce that well 14/10-2 on the Sea Lion prospect has reached a depth of 2,744 metres. Initial data collected indicate that this well is an oil discovery, which would be the first in the North Falkland Basin. The Company has run a suite of wireline logs and logging data collected thus far indicate that the well has encountered a 150 metre gross interval of sand and shales. The data show that the well has 53 metres of net pay distributed in multiple pay zones, the thickest of which has a net pay of 25 metres. These pay zones have an average porosity of 19%. Rockhopper now intends to collect additional logging information prior to making a decision whether to plug and abandon the well, or to suspend the well for future testing. The Company is also considering whether to drill an appraisal well on Sea Lion later during the current drilling campaign. Further information will be distributed in due course. It remains the intention of the Company to drill the Ernest prospect in the fourth slot of the overall Falklands Drilling programme. Samuel Moody, Managing Director, commented: "We are extremely excited by the results of this well. While we are presently acquiring additional data, current indications are that we have made the first oil discovery in the North Falkland Basin. We will now focus on analysing in more detail the data gathered from the well, in addition to continuing preparations for the drilling of our Ernest prospect later in the year."

Ernest 26/6-1 Exploration Well Spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, is pleased to announce that the Ernest 26/6-1 Exploration Well was spudded at 05.15hrs BST on 23 July 2010. The Ernest prospect is located on Licence PL024. Rockhopper will drill Ernest as operator with a 100% interest. The well is being drilled to an estimated target depth of circa 2,400 metres. Drilling operations are expected to take approximately 30 days and a further announcement will be made once drilling is completed. Ernest is being drilled using the fourth rig slot in the overall drilling programme of the Ocean Guardian rig. On completion of the Ernest 26/6-1 Exploration Well, it is currently anticipated that the Ocean Guardian will return to Rockhopper's Sea Lion 14/10-2 Well (100% Rockhopper) to conduct flow testing on the oil discovery.

Flow Test Update-Sea Lion 14/10-2 discovery well

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the Ocean Guardian drilling rig is at the location of the Sea Lion 14/10-2 discovery well and that operations to carry out a flow test on the Sea Lion main and lower fans are underway. While testing operations can be more sensitive to weather conditions than standard drilling operations, the Company anticipates that operations will be completed in approximately 30 days. A further announcement will be made on completion of operations.

Result of Flow Test - Technical Update

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, is pleased to report the following update from the recent flow test on well 14/10-2: "Sea Lion 1". The test was carried out over four perforated intervals totalling 77m between 2,403m and 2,566m (below drill-floor). Upon retrieving the perforating guns, a gun misfire was apparent and only the top two intervals were found to have been perforated, meaning the lower two intervals did not contribute to the flow. After perforation, a small amount of oil was produced into the tubing to clean the perforations and enable downhole oil sampling. The well was then shut in for approximately 2 hours to determine the initial reservoir pressure. The final recorded pressure was 3,385 psia at gauge depth (2,344.6m below drill-floor) and was still building. The well was then opened to flow through the three and a half inch test string, initially on a 24/64th choke, opened to a 64/64th choke during the flow period and reduced to 44/64th towards the end of the flow period to allow samples to be taken. The well was flowed for approximately 18 hours without incident and for sustained periods of over 2,000 barrels per day ("BOPD") with a maximum rate of 2,304 BOPD. The final flowing wellhead pressure was approximately 120 psia. A wax dissolver chemical was injected at the subsea test valve to mitigate the appearance of wax. Rockhopper believes that the flow rate was inhibited by incomplete perforation, waxing of the tubing string above 800 metres, increased viscosity of the oil as it cooled in the upper part of the test string and a lack of specialist equipment. As such, the Company estimates that the well could have flowed at approximately 4,000 BOPD without these constraints. Rockhopper also believes that, with a more optimal well location and horizontal well completions, significantly higher flow rates could be achieved from future production wells.

Rachel North spudded

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, notes the announcement by Desire Petroleum plc (the Operator) that the Rachel North 14/15-2 well, in which Rockhopper holds a 7.5% working interest, was spudded at 10:40 hrs GMT on 12 November 2010. A further announcement will be made once drilling is completed.

14/10-3 Exploration Well Spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the 14/10-3 exploration well was spudded at 1700hrs GMT on 13 January 2011. 14/10-3 is located 8km North West of the Sea Lion 14/10-2 discovery well on Licence PL032, which Rockhopper operates and holds a 100% working interest in. The well is located on the undrilled northern lobe of the Sea Lion fan system. The well will also penetrate the distal, downdip portion of the newly-identified and underlying S2 fan body which has been mapped over an area of 42 sq. km. 14/10-3 is situated outside of the Sea Lion Discovery Area. Total depth is planned to be ca. 3,000 metres. Drilling operations are expected to take approximately 38 days and a further announcement will be made once drilling is completed. It is currently anticipated that, on completion of operations on 14/10-3, Rockhopper will drill 14/10-4, an appraisal well on the southern lobe of the Sea Lion fan system within the Discovery Area, before the rig is released.

14/10-4 Appraisal Well Spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the 14/10-4 appraisal well was spudded at 0040hrs GMT on 19 February 2011. 14/10-4 is the first appraisal well to be drilled on the Sea Lion feature situated on Licence PL032, which is 100% owned and operated by Rockhopper. The appraisal well (14/10-4) is located 2.3km away from the Sea Lion 14/10-2 discovery well, in the southern lobe of the Sea Lion fan system. 14/10-4 is designed to investigate reservoir and hydrocarbon columns downdip of the Sea Lion 14/10-2 discovery well. The planned Target Depth of circa 3,000 metres will investigate the possibility of deeper sands than those encountered in the Sea Lion discovery well. Drilling operations are expected to take approximately 38 days and a further announcement will be made once drilling is completed.

Ninky 14/15-3 exploration well spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, notes the announcement by Desire Petroleum plc (the "Operator") that the 14/15-3 exploration well on the Ninky prospect was spudded at 02.45 BST on 29 March 2011. Rockhopper has a 7.5% interest in the well. The Operator described the prospect as a combined structural dip and stratigraphic pinch-out trap with multiple reservoir targets within the Barremian source rock interval. The well has a planned total depth of circa 2,620 metres and drilling operations are expected to take approximately 30 days. The Operator will make a further announcement once logging is complete.

14/15-3 exploration well result

Based on drilling and wireline logging, the well encountered two sand-prone sections in the Upper and Middle F2 intervals, which were the primary targets (2323 metres to 2334 metres and 2365 metres to 2389 metres). The sands have a combined gross thickness of 35 metres and oil shows were encountered throughout both intervals while drilling. The reservoir quality is generally poor having only 5.6 metres of net reservoir with an average porosity of 13%. A thin interval of around 1.2 metres at the top of the Middle F2 zone is interpreted to be oil bearing from log analysis. Wireline formation pressure measurements were attempted, but no valid pressures were obtained, indicating that the reservoirs are low permeability at this location. As a result no wireline sampling was attempted. The depositional model suggests these sands are sourced from the east and therefore better reservoir quality may be expected downdip. In addition, there are indications from seismic of further sands along strike on the Ninky structural high, which were not penetrated in this well. These opportunities will be evaluated with the new 3D seismic as part of the Operator's prospect inventory update. Operations on the Ninky well will now be completed and the well will be plugged and abandoned. Upon completion of operations on the Ninky well, the Ocean Guardian drilling rig will return to Rockhopper. Rockhopper will drill a minimum of 3 additional wells using the Ocean Guardian drilling unit. Rockhopper's next well is planned to be located near to the 14/10-2 discovery well. Specialist flow test equipment is due to be in the Islands in early May and Rockhopper intends to flow test the well if appropriate using this equipment to obtain a greater understanding than was possible during the test of well 14/10-2.

14/10-5 Appraisal Well Spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the 14/10-5 appraisal well ("the well") was spudded at 13.20hrs BST on 1 May 2011. The well is situated on Licence PL032, which is 100% owned and operated by Rockhopper. The well is located just north of the Sea Lion 14/10-2 discovery well and 13 metres updip at top reservoir level. The well is designed to appraise the Sea Lion main fan reservoir and investigate hydrocarbon column and reservoir distribution. The location is 77 metres updip at top reservoir level from the recently drilled 14/10-4 appraisal well. Specialist flow test equipment is being mobilised and Rockhopper intends, if reservoir is as prognosed, to flow test the well to obtain a greater understanding than was possible during the test of well 14/10-2 last year. Drilling operations are expected to take approximately 38 days and a further announcement will be made once drilling is completed.

14/10-6 Appraisal Well Spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the 14/10-6 appraisal well ("the Well") was spudded at 2125 hrs BST on 15 July 2011. The Well is situated on Licence PL032, which is 100% owned and operated by Rockhopper, and is the third appraisal well to be drilled on the Sea Lion feature since Rockhopper's oil discovery in May 2010. The Well is located some 4.1km to the west of the 14/10-2 discovery well, on the western side of the structural low at top reservoir, and 2.3km to the south-west and 14m updip from the 14/10-4 appraisal well. The Well is designed to investigate reservoir and hydrocarbon presence outside what the Company considers the minimum case area. Both Sea Lion Main and Lower fan intervals are targets, with all the Sea Lion Main fan expected to be above the Oil-Water Contact established by the 14/10-4 appraisal well, and with reservoir expected to be thinner than encountered in previous wells on the Sea Lion feature. Drilling operations are expected to take approximately 38 days and a further announcement will be made once drilling is completed.

14/10-7 Exploration Well Spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the 14/10-7 exploration well (the "Well") was spudded at 0600hrs BST on 22 August 2011. The Well is situated on Licence PL032, which is 100% owned and operated by Rockhopper. The Well is located approximately 3.3km to the north west of the 14/10-2 discovery well, just outside of the Sea Lion Discovery Area. The Well is designed to investigate reservoir and hydrocarbon presence towards the northern limit of the currently mapped extent of the Sea Lion Main Complex within an area of relatively low amplitudes. Accordingly, the Sea Lion Main Complex will be the only target, with reservoir expected to be thinner than encountered in the 14/10-2 discovery well. Drilling operations are expected to take approximately 32 days and a further announcement will be made once drilling is completed.

14/10-8 Well Spud

ockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the 14/10-8 exploration well (the "Well") was spudded at 03:45hrs BST on 25 September 2011. The Well is situated on Licence PL032, which is 100% owned and operated by Rockhopper, and is located approximately 4.1km to the south-south-east of the 14/10-2 discovery well, outside of the Sea Lion Discovery Area. This well is designed to investigate reservoir and hydrocarbon presence within the Sea Lion Main Complex in an area of relatively low amplitudes and is also an exploration well on both the Casper and Kermit oil prospects. Drilling operations are expected to take approximately 28 days and a further announcement will be made once drilling is completed.

14/10-9 Well Spud

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the 14/10-9 well (the "Well") was spudded at 10.45 hrs BST on 25 October 2011. The Well, situated on Licence PL032, which is 100% owned and operated by Rockhopper, is the eighth well to be drilled on the Sea Lion feature. It is located approximately 5.9 km to the south west of the 14/10-2 discovery well and is designed to investigate reservoir presence and hydrocarbon charge within the Sea Lion Main Complex towards the southern edge of the Company's acreage and is also an exploration well on the Eastern side of the Casper prospect. Drilling operations are expected to take approximately 33 days and a further announcement will be made once drilling is completed.

Rig Contract Agreement Secured

Further to our press release dated 26 November 2009 FOGL is pleased to announce that it has reached an agreement with Desire Petroleum plc to contract the Ocean Guardian rig to drill the first ever exploration well in the East Falklands Basin on the Toroa prospect, which it expects will be within the first half of 2010.

Toroa Well Spudded

FOGL is pleased to announce that the Toroa F61/5-1 exploration well spudded on Monday 31st May 2010. The Toroa prospect is located in Licence PL15, in which FOGL has a 49% interest. The well is being drilled to an estimated target depth of circa 2,700 metres. Drilling operations are expected to take approximately 35 days and a further announcement will be made once drilling is completed.

LUNDIN PETROLEUM SPUDS TORPHINS EXPLORATION WELL, OFFSHORE UNITED KINGDOM

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that drilling of the exploration well 21/8-4 on the Torphins prospect located in block 21/8, production licence P1107, in the central North Sea sector of the United Kingdom Continental Shelf (UKCS), has commenced. Well 21/8-4 is targeting the Palaeocene sandstone reservoir. The Torphins prospect is defined by a 3D seismic anomaly. The estimated unrisked gross potential is approximately 30 million barrels of oil equivalent (mmboe). Lundin Petroleum has contracted the Transocean's GSF Arctic II semi-submersible rig to drill this prospect. Drilling is expected to take up to 75 days. Well 21/8-4 is located 12km north of the Lundin operated Scolty discovery drilled in late 2007 and is targeting a similar amplitude anomaly. Lundin Petroleum is the operator with 40 percent interest. Partners are Challenger Minerals (North Sea) Limited and Revus Energy (E&P) Limited.

NOIL Energy ASA: delineation of oil discovery in the North Sea

Det norske oljeselskap ASA (`DETNOR`) announces that the Ragnarock well 16/2-4 is at TD of 2000 m below sea level. Det norske oljeselskap`s affiliate, NOIL Energy ASA, holds a 30% interest in the 265 license. The current evaluation indicates considerable hydrocarbon volumes with a high uncertainty in recovery factor. A series of mini-DST well tests were conducted, which confirmed limited flow potential in the chalk reservoir. Oil and gas were also proven in low permeable crystalline basement. The main purpose of the well was to prove the extent of the moveable hydrocarbons and evaluate productivity within the chalk reservoir. More detailed evaluations are necessary to confirm the potential of Ragnarock and if commercial volumes can be produced. This well is located 35 km east of the Gudrun Field and was drilled with the West Epsilon jack-up rig. The water depth in the area is 113 metres. The partners in PL 265 are StatoilHydro ASA (30% and operator), NOIL Energy ASA (30%), Petoro AS (30%), and Talisman Energy Norge AS (10%).

Well spudding on Ragnarrock

Drilling operations at the Ragnarrock field in Production License 265 started February 22nd 2009. The well 16/2-5 is in proximity to the recent discoveries at the Ragnarrock field in the wells 16/2-3 and -4. The drilling operation is carried out wih the jack-up West Epsilon. StatoilHydro is operator and Det norske holds a 20 percent interest in the license. The result of the drilling will be anounced by NPD.

Encouraging gas discovery in Ragnarrock Graben

Det norske oljeselskap (DETNOR) has made an encouraging gas discovery in exploration well 16/2-5 in PL 265 on the Ragnarrock Graben prospect. Preliminary analyses indicate that the gas discovery in Graben could be connected to the previous gas discovery made in basement in well 16/2-4. If this is correct, the chances are good that the necessary volumes for a viable development are present. A full scale production test was carried out in the gas zone with maximum production of 120 000 scm per day, or 750 boepd, plus some condensate. The reservoir is however complex and consist of conglomerate from the pre Cretaceous. The production could thus vary considerably in different parts of the reservoir. An additional well is planned drilled in PL 265 and may offer additional information about the gas potential and flow rates in the basement. The information gathered so far indicates that there are considerable amounts of gas present in the license (Basement north and Graben). However, the reservoirs are challenging and more geological and technical work is necessary in order to mature an economical viable development. Det norske see the results from the well as positive for further development of the resources in PL 265. The gas discovery in 16/2-5 increases the probability that gas is present also in the southern part of basement (Basement south). This is the fourth exploration well in Production License 265. The well was drilled to a vertical depth of 2,324 meters below sea level and into the basement. The water depth is 109 meter. Well 16/2-5 was drilled with the drilling facility West Epsilon, which will now sail to the Sleipner Field in PL 025 in the North Sea.

West Epsilon leaving Sleipner

The work of moving the drilling rig West Epsilon from Sleipner West in the North Sea to the Elf operated Frøy field in the Frigg area has begun. Statoil will sublease the rig, which has finished drilling the production wells on Sleipner West. The contract with Elf is for 280 days. There then remains about one year of the hire contract with rig owner Smedvig. West Epsilon has been specially adapted to operate on the well head platform Sleipner B on the Sleipner West field. Before the rig leaves the field, the derrick will be skidded back from Sleipner B on to West Epsilon. The rig will then be jacked down to sea level. The legs will be released from the seabed before the rig is towed ashore by two tugs. Both operations set strict requirements to weather conditions. On land, the rig will be prepared for the assignment on the Frøy field, which has a similar well head platform to Sleipner West. Statoil will carry out an turnaround on both Sleipner West and Sleipner East when West Epsilon is moved. The turnaround came into effect on Saturday 31 March. According to installation manager Einar Holmemo on Sleipner A, it will last eight days on Sleipner East (the A platform) and nine days on Sleipner West (T and B platforms). One of the major tasks is to replace the flare nozzles on the flare booms on Sleipner A and Sleipner T with new nozzles.

Further North Sea exploration

Statoil has today, Thursday 28 December, commenced drilling of exploration well 16/4-4 on the North Sea Biotitt prospect. The drilling marks the start of a busy exploration programme for the West Epsilon rig which initially will drill four North Sea exploration wells for Statoil. "We've secured significant capacity in the North Sea over the next few years with the West Epsilon contract," says Tim Dodson, Statoil's senior vice president for exploration on the Norwegian continental shelf (NCS). In the summer, Statoil signed a contract with the Seadrill company for the chartering of the jack-up rig for three years. West Epsilon can only operate at water depths down to 128 metres. The rig has now begun drilling the first well on the Biotitt prospect, south west in block 16/4 in production licence 339, awarded in 2004. The prospect lies north east of the Sleipner West field. Statoil is operator with a 70% stake, while ExxonMobil has 30%. The well will be drilled to a total depth of around 2,400 metres. The water depth in the area is around 91 metres. Exploration drilling is expected to take 40 days with the aim of proving gas/condensate which can be produced by the Sleipner A platform. Following Biotitt drilling, the rig will continue exploration in the southern part of the North Sea. Well number two will be drilled on the Ermintrude prospect in block 15/6 in production licence 303, awarded in 2003. Following that, it will be moved to the Ragnarrock structure in production licence 265, awarded in 2001. "The four exploration wells that will initially be drilled are in areas that could yield valuable additional resources near existing infrastructure," says Mr Dodson. "The wells are an important part of Statoil's exploration programme on the NCS." West Epsilon will also drill in the "cellar" under the Statoil-operated Huldra field in production licence 051. "West Epsilon's activity is important for us in achieving our goal of producing one million barrels of oil equivalent on the NCS in 2015," says Mr Dodson.

Rig for Troll/Sleipner chartered

Statoil has signed a contract with the rig company Seadrill for the chartering of the West Epsilon jack-up rig from November 2006. The rig will be used for exploration and production drilling in the Troll/Sleipner area in the North Sea. ”This means that there will be full focus on further development of the Sleipner area," says Astrid Sørensen, senior vice president for the Troll/Sleipner business cluster. "The production from the Sleipner fields will be off plateau in a few years. Additional volumes will be developed and exploration for new volumes performed. West Epsilon marks a change of pace in the development of this part of the North Sea.” Under the contract with Seadrill Statoil gets to charter the rig for a total period of up to four years. The alternatives are two years of charter with an option to extend the contract for two years, or three years of charter, with an option for a one-year extension. The value of the contract is between NOK 1.5 and 2.0 billion, depending on what charter alternative Statoil goes for. West Epsilon is a jack-up rig that can operate in water depths of up up to 120 metres. Currently on assignment for BP the rig will be taken over by Statoil towards the end of the year.

Finds at Sleipner

Operator Statoil has proven gas and condensate in the Biotitt prospect in the North Sea using the West Epsilon rig, which is now continuing its exploration programme in the area. The 16/4-4 wildcat in production licence 339 was drilled to a total depth of 2,360 metres below sea level. Drilling was halted in rocks of Cretaceous age with gas and condensate being proven in the Heimdal formation of Tertiary age. "We will assess whether to produce the find using the Sleipner platform," says Tim Dodson, Statoil's senior vice president for exploration in Exploration & Production Norway (EPN). "An evaluation and analysis of the gathered data will now be carried out to determine the find's resource potential. A joint development with the 16/7-2 find south of Biotitt could be an option. "Biotitt is a good start in a comprehensive exploration programme in the North Sea in the next few years," he says. The Biotitt find lies approximately 20 kilometres north-east of the North Sea's Sleipner field. The well will now be permanently plugged and abandoned. The well was drilled using the West Epsilon drilling rig in 91 metres of water. Statoil has a three-year contract with the Seadrill company for hire of the jack-up rig which can operate at depths of up to 120 metres. West Epsilon is now being moved to its next location which is the Ermintrude prospect in block 15/6 in production licence 303, 10 kilometres north of the Sleipner field. The licensees in exploration licence 339, awarded in 2004, are Statoil with a 70% share and ExxonMobil with 30%.

http://www.statoil.com/en/NewsAndMedia/News/2007/Pages/PromisingNorthSeaFinds.aspx

Operator Statoil has made a promising oil discovery in the North Sea's Ermintrude prospect. Deposits are reckoned to be in the region of 50 million barrels of recoverable reserves. "Ermintrude can give valuable additional resources at the Sleipner area," says Tim Dodson, Statoil's senior vice president for exploration in Exploration & Production Norway (EPN). "The well is an important part of our exploration programme and can contribute to our ambition of producing one million boe per day from the Norwegian continental shelf (NCS) until 2015." Wildcat 15/6-9 S in block 15/6 lies 10 kilometres north of the Sleipner area in production licence (PL) 303. The well was drilled in a water depth of 114 metres to a total depth of 3,850 metres below sea level. Drilling was halted in rocks of Triassic age. The well was found to contain light oil in sandstones of mid-Jurassic age. A small gas find was also proven in sandstones of Tertiary age. "We will now drill a sidetrack well further up in the Ermintrude structure to establish if there is gas/condensate above the oil that has been discovered," says Mr Dodson. "A prospective development, and what solution is chosen, depends on what can be proven in the sidetrack." After its Ermintrude duties, the West Epsilon rig will continue its Sleipner area exploration programme. Statoil has a three-year contract with the Seadrill company for the hire of the jack-up rig. West Epsilon's exploration programme has so far yielded promising results, with operator Statoil proving gas and condensate in the Biotitt prospect in the Sleipner area earlier this spring. "Statoil has great faith in the NCS," says Mr Dodson. "Ermintrude shows that our NCS focus gives results." Statoil has a 100% interest in PL 303.

New oil find in Sleipner area

A new oil discovery has been made by Statoil in the Ragnarrock prospect near the Sleipner area in the North Sea. "It is encouraging that Statoil has made an oil discovery in a little-explored exploration model that is close to our North Sea infrastructure," says Frode Fasteland, acting exploration manager for the North Sea. The find was made in exploration well 16/2-3 in production licence 265, which lies 35 kilometres east of the Statoil-operated Gudrun discovery. "The oil was proven in Cretaceous rocks with complex reservoir conditions," says Mr Fasteland. "Together with our partners in the licence we have therefore decided to drill the appraisal well 16/2-4 in the structure when the first well is completed." Statoil has carried out an extensive compilation of data and taken samples which will be analysed. The well was drilled to a total depth of 1,856 metres below sea level. The water depth in the area is 113 metres. The exploration well is now being permanently plugged and abandoned by the West Epsilon jack-up rig. This is the fifth exploration well drilled by West Epsilon for Statoil this year and hydrocarbons have been proven in all of the wells. The licensees are Statoil, operator, with 30%, Petoro (30%), Den norske Oljeselskap ASA ( 30%) and Talisman (10%).

More Ermintrude resources found

Operator Statoil has completed the drilling of two appraisal wells at the Ermintrude find in the North Sea. Gas, condensate and oil have been proven. Wells 15/6 A and B lie in production licence 303 seven kilometres north of the Sleipner area in the North Sea's central sector. Gas and condensate in sandstones of Jurassic age have been proven in well 15/6-9 A while oil has been proven in well 15/6-9 B in the same reservoir. "The two successful appraisal wells have increased our understanding of the promising 15/6-9 S oil find, carried out in May this year, confirming its size to be eight to 12 million standard cubic metres of recoverable oil equivalent reserves," says Frode Fasteland, acting head of Norwegian continental shelf (NCS) exploration. "Around half is gas/condensate and half is oil." According to Mr Fasteland, the results are encouraging. "This reinforces our belief that Ermintrude can add valuable additional resources to the Sleipner area and will be an important contributor to our ambition of producing one million barrels of oil equivalent per day from the NCS until 2015," he says. The wells have not been production tested, but comprehensive data gathering and sampling have been carried out. Statoil will evaluate the need for further appraisal of the find and to what extent its development can be tied back to existing fields in the vicinity. Both wells were drilled by the West Epsilon drilling rig in a water depth of 114 metres to a total depth of 3,580 and 3,870 metres respectively. Drilling was halted in rocks of the late Triassic. The wells were then permanently plugged and abandoned. Statoil has a 100% interest in production licence 303. West Epsilon will now drill appraisal well 16/2-3 in the Ragnarrock structure in production licence 265.

New drilling campaign at Sleipner West

On behalf of the licencees of Sleipner West, StatoilHydro has elected to exercise an option to commence drilling with the drilling rig West Epsilon in the North Sea field. The option has a value of NOK 620 million, and the total value of the contract now entered into with Seadrill for Sleipner West since last summer now amounts to NOK 1.18 billion. The option to use the jack-up drilling rig West Epsilon allows StatoilHydro to drill five or six new wells at Sleipner West in the period leading up to 2010. There is strong activity on the Sleipner West field, and new seismics will be shot this year. StatoilHydro is utilising advanced seismics to reduce risk and become more effective in its drilling operations. The drilling campaign can contribute to increasing remaining reserves. The initiatives being implemented mean that production at Sleipner West is expected to continue well beyond 2020.

Interesting North Sea find

Gas and condensate have been discovered by Statoil in the Beta West prospect, 1.5 kilometres from the main Sleipner West reservoir. Resources in the find, which lies four kilometres west of Sleipner B, are currently estimated at 37-63 million recoverable barrels of oil equivalent (six to 10 million standard cubic metres oe). “This discovery strengthens our prospects for finding more resources in the immediate vicinity of Sleipner West,” says Tom Dreyer, head of infrastructure-led exploration in the North Sea. Edvin B Ytredal, Statoil’s operations vice president for the Sleipner area, is very satisfied both with the discovery and with the opportunities it represents for Sleipner West. “Production from this field is coming of plateau, but the newly discovered resources mean that its future prospects are substantially brighter,” he says. Located in 108 metres of water, the well was drilled from the West Epsilon rig to a vertical depth of 3,760 metres beneath sea level. Hydrocarbons were encountered in a sandstone unit belonging to the Hugin formation.

New North Sea discovery

More oil and gas have been discovered by StatoilHydro with an exploration well drilled about 35 kilometres east of Gudrun in the North Sea and roughly 30 kilometres south of Grane. Gas and oil with associated condensate were found in rocks interpreted to be Jurassic or Triassic/Permian. An exploration well proved gas and oil about 6.5 kilometres further north in the autumn of 2007, and the latest discovery probably forms part of the same hydrocarbon system. Preliminary estimates put total recoverable gas resources in these two finds at three to 10 billion standard cubic metres (scm). More detailed studies of collected well data will be needed to evaluate the resources and determine further activity around the discovery. “This represents a new and exciting play,” comments Noralf Steinsland, StatoilHydro’s licence manager for the North Sea. “It increases opportunities for further discoveries in a mature area where we have strengthened our position through new licences and farm-ins.” The discovery well was drilled from the West Epsilon rig to a vertical depth of 2,324 metres beneath the sea surface, in waters 109 metres deep. It will now be permanently plugged and abandoned. In addition to StatoilHydro, with a 40% holding, the partners in production licence 265 are Petoro with 30%, Det Norske Oljeselskap with 20% and Talisman Energy Norway with 10%.

New rig contracts signe

Statoil has awarded a contract to Dolphin AS and a letter of intent to Seadrill for two rigs which will operate on the Norwegian continental shelf (NCS). The Bideford Dolphin rig has won a three-year contract with start-up from 27 January 2011. The contract is worth about USD 421 million. Statoil has an option to extend the contract from three to four years by 1 November 2010. The value of the contract will then increase to about USD 553 million. Dolphin AS is a wholly-owned subsidiary of Fred Olsen Energy ASA. Seadrill’s West Epsilon rig has been awarded a letter of intent for a four-year contract to take effect on 29 December 2010. This contract is worth about USD 394 million. The agreement is conditional on partner approval. Statoil can extend the contract period to five or six years before 1 October 2010. There will also be an option to extend the contract for an additional two years. Both rigs are working for Statoil at present. “We have great expectations that these rigs will continue their improvement efforts in health, safety and the environment and in drilling operations,” says Geir Slora, senior vice president for drilling and wells in Exploration & Production Norway. Before the global economic problems took full effect Statoil found that the rig rates had increased too much, and they did not decrease correspondingly when the market circumstances changed. Anders Opedal, senior vice president for procurement in Projects & Procurement, says that the rig rates are now at a more sustainable level. “We see that the cost level for rig charter is better adapted to the current market situation and we look forward to continuing cooperation with the two rigs,” says Opedal. “They will play an important part in helping us reach out production targets for the NCS in the next few years.”

All go for Gudrun drilling

The Gudrun project is reaching new milestones, with the West Epsilon rig busy drilling wells that need to be ready for production start in 2014. “The Gudrun field is characterised by high pressure and high temperature,” says Petter Kostøl, who is in charge of drilling and well operations in Stavanger. All seven production wells planned for the Gudrun field will be pre-drilled through the jacket before the topside is installed in 2013. Work commenced on the first well on 6 September. “Due to the field characteristics we have to pre-drill all wells before we start the actual production,” says Kostøl. “With this concept we have chosen a robust well strategy.” Production in 2014 The background for this strategy is not least to avoid depletion problems, which means reservoir depressurisation that would complicate further drilling. “This stepwise and repeated drilling operation leads to a more rational use of equipment and resources,” says drilling superintendent Nils Petter Norheim. “The result is improved learning and safety as well as higher efficiency.” Drilling through the jacket will continue for two years until the summer of 2013. Then the topside will be installed on the Gudrun platform, and the pre-drilled wells will be completed and prepared for production. The entire drilling programme will stretch into 2014, with plans calling for oil and gas production to start in the first quarter of 2014. In addition to the seven wells on Gudrun, an effort is currently being made to obtain approval for the drilling of a production well on the Brynhild discovery. “While the Gudrun project has been able to build on drilling experience from the Kristin, Morvin and Kvitebjørn high-pressure fields, the experience from Gudrun may be useful during the engineering and development of the Valemon field,” indicates Jan Einar Malmin, head of the Gudrun field development project. Like Gudrun, the Valemon field also has high pressure and high temperature, and production from this field is also scheduled for start-up in 2014.

Statoil to drill on Gudrun field with 'West Epsilon'

Statoil has received consent to use West Epsilon for production drilling on the Gudrun field. Gudrun is 50 kilometres north of the Sleipner Øst and Sleipner Vest fields. Water depth is around 110 metres. Gudrun has been developed using a facility with a steel jacket and first stage processing. It is tied to Sleipner A through two pipelines, one for oil and one for rich gas. Statoil formerly received consent to use West Epsilon for drilling and completion of well 15/3 on the Gudrun field and has now received consent to drill the remaining sections of well 15/3 – A- 14. The PSA has now granted Statoil consent to use the West Epsilon mobile drilling facility for these activities. West Epsilon is operated by North Atlantic Drilling, formerly known as Seadrill Offshore AS.

'Ocean Guardian' contracted for offshore drilling in Ireland

Lansdowne Oil & Gas plc, a North Celtic Sea focussed oil and gas company, is pleased to announce that PSE Seven Heads Limited, the operator of SEL 4/07, and a wholly owned subsidiary of PSE Kinsale Energy Limited ("Kinsale Energy") has entered into a contract with Diamond Offshore Drilling (UK) Limited for the Ocean Guardian semisub to drill a well on the Midleton Prospect. The Ocean Guardian is expected to drill the Midleton well during August 2015, upon completion of its current contract with Shell. Kinsale Energy holds an 80% interest in SEL 4/07, with Lansdowne holding the remaining 20%. Through the farm-in agreement previously announced, Kinsale Energy will fund 100% of the costs of drilling a well (including the site survey work) on the Midleton prospect. Kinsale Energy is continuing work on well planning and further announcements will be made in due course.

Petronas spuds Irish exploration well

Lansdowne Oil & Gas Plc (“Lansdowne”), has announced that the operator of the SEL 4/07 licence in the north of the Celtic Sea spudded the wildcat on the Midleton prospect in the early hours of Wednesday morning with the semi-submersible Ocean Guardian. The well is scheduled to take approximately 20 to 30 days to drill, with Petronas subsidiary Kinsale Energy funding 100% of the drilling costs. Midleton is estimated to hold potential for 330 billion cubic feet of gas initially in-place from the same Lower Cretaceous ‘A’ sands that are already producing at Kinsale Head.

Midleton exploration well deemed non-commercial

Lansdowne Oil & Gas (“Lansdowne”), the independent oil and gas company focussed on offshore Ireland has announced that drilling at the Midleton exploration well in the Celtic Sea has been completed. Drilling was carried out using the Ocean Guardian semisub by the operator (PSE Kinsale Energy Limited), with the spudding of the well (49/11-3) taking place on 29th July 2015. The well has now reached a total depth (TD) of 3,480 feet and whilst good quality reservoirs were encountered, the volumes were not commercial and some were water bearing. The well is now being plugged and abandoned.

Operational Update for WilPhoenix

The WilPhoenix remains berthed at Hartlepool while awaiting final project acceptance by Apache North Sea Ltd prior to re-commencement of the remaining 22 months of its three-year contract. A further update will be released upon re-commencement of normal operations. WilPhoenix is one of Awilco Drilling's two enhanced pacesetter semi-submersibles and is equipped for drilling in water depths up to 1,200 ft.

Consent to use West Epsilon for permanent well plugging

Statoil has received consent to use West Epsilon for permanent plugging of wells at Huldra 30/2-A, in production licence 051. Statoil has allocated 215 days for the activity, which will start in the second quarter of 2016. Water depth at the site is 125 metres. The PSA has now granted Statoil consent to use the West Epsilon mobile drilling facility for these activities. West Epsilon is operated by North Atlantic Drilling, formerly known as Seadrill Offshore AS. The Petroleum Safety Authority Norway issued an Acknowledgement of Compliance (AoC) for West Epsilon on 14 February 2003.

AWDR - Operational Update for WilPhoenix

Reference is made to Awilco Drilling's press release of 29 February 2016 and the Q4 2015 presentation given on 11 February 2016. The yard stay for WilPhoenix is taking longer than anticipated and in the meantime the rig remains berthed at Hartlepool on zero dayrate. Awilco Drilling is working expediently to close out the yard stay in co-operation with Apache North Sea Ltd. The estimated total cost for the yard stay and the installation of the new BOP continues to be below the budget of USD 42.5 million. A further update will be released upon re-commencement of the rig's remaining 22 months of its three-year contract. WilPhoenix is one of Awilco Drilling's two enhanced pacesetter semi-submersibles and is equipped for drilling in water depths up to 1,200 ft.

Operational Update for WilPhoenix

Reference is made to Awilco Drilling's press release of 4 April 2016. The yard stay for WilPhoenix is now complete and Awilco Drilling considers the rig to be, in all respects, ready to drill awaiting Apache North Sea Ltd's instructions to resume operations. The total cost for the yard stay and the installation of the new BOP was below the budget of USD 42.5 million. In accordance with the contract, Awilco Drilling considers that WilPhoenix is on standby rate from the completion of the yard stay. Apache North Sea Ltd. does not agree that the rig is ready to drill nor that Awilco Drilling is entitled to standby rate at this point. A further update will be released as and when appropriate.

Consent for exploration drilling for Faroe Petroleum

Faroe Petroleum has received consent to drill an exploration well in block 37/1. Faroe Petroleum Norge AS (Faroe Petroleum) is the operator for production licence 740 in the North Sea. The exploration well will be the first to be drilled in this production licence. It will be drilled in a prospect named Brasse, with the designation 31/7-1. The location is 16 km south-east of Oseberg A and approx. 93 km west of Sotra in Hordaland. Water depth at the site is 188 metres. The drilling will start in the second half of May at the earliest, with an estimated duration of up to 57 days. The drilling will be performed using Transocean Arctic, which is a semi-submersible mobile drilling facility operated by Transocean Offshore (North Sea) Ltd NUF. It was built by Mitsubishi Heavy Industries in Japan in 1987, and substantially upgraded in 2004. Transocean Arctic was issued with an Acknowledgement of Compliance (AoC) by the PSA in July 2004. The PSA has granted Faroe Petroleum consent for the exploration drilling.

Operational Update for WilPhoenix

Reference is made to Awilco Drilling's press release of 26 April 2016 and the Q1 2016 presentation given on 11 May 2016. Awilco Drilling PLC and Apache North Sea Ltd. have agreed that WilPhoenix should leave the yard in Hartlepool around 22 June 2016 and resume operations at Apache's first drilling location around 26th June. A further update will be released once drilling operations have been resumed. WilPhoenix is one of Awilco Drilling's two enhanced pacesetter semi-submersibles and is equipped for drilling in water depths up to 1,200 ft.

Operational Update for WilPhoenix

Reference is made to Awilco Drilling's press release of 17 June. Awilco Drilling PLC is pleased to confirm that the WilPhoenix has moored at Apache's drilling location on the Storr field and resumed operations last night, 26 June. WilPhoenix is one of Awilco Drilling's two enhanced pacesetter semi-submersibles and is equipped for drilling in water depths up to 1,200 ft.

The Well-Safe Guardian is no longer considered a drilling/tender rig and is now represented in WoodMacs USC vessel DB

The Well-Safe Guardian is no longer considered a drilling/tender rig and is now represented in WoodMacs USC vessel DB as a Well Intervention Vessel

Well-Safe Acquire Ocean Guardian

Well-Safe Solutions today announced that it has agreed to acquire the Ocean Guardian semi-submersible drilling unit sparking another jobs boost for the company. The asset, currently owned by Diamond Offshore, has been a stalwart in the North Sea, drilling hundreds of wells since entering service in 1985. Upon delivery, Well-Safe will start work immediately on an upgrade of the semi-submersible, which will be renamed the ‘Well-Safe Guardian’, converting the asset into a bespoke plug and abandonment (P&A) unit. Well-Safe will invest in the region of $100 million dollars on upgrades to deliver a truly bespoke P&A unit. This will include installing a dive system and the capability to deploy a SIL (subsea intervention lubricator) – which is nearing completion of the design and engineering phase, supported by the Oil and Gas Technology Centre (OGTC).