Tullow strikes in Norway

Tullow Oil is confident of hitting a "major new commercial oil resource" off the coast of Norway; one of the company’s few high- potential asset regions outside of Africa.

The Irish-founded exploration firm yesterday reported a successful oil find at the Hanssen discovery in the Barents Sea.

A 20-25 metre oil bearing sandstone, with “good reservoir properties”, was encountered in the main target of a wildcat well.

Hydrocarbon-bearing sandstones, albeit in poor reservoirs, were also found. While a maximum production rate of just over 2,000 barrels per day was found, Tullow thinks production rates from future development wells will be significantly higher. Tullow plans drilling over the next 12 months on two more wells in the so-called Wistling cluster; and this find is likely to significantly de-risk that planned activity. A number of recent discoveries in the general vicinity also point to the overall region being commercially viable.

Part of the $415m (€304m) net exploration write-off — covering failed drilling and licence relinquishments in the past two years which Tullow announced earlier this week — related to previous disappointing results from its Norway campaign. But this find enhances its chances of success in the country.