New discovery for Saga
Saga Petroleum has made what could be a major new gas/ condensate discovery in block 6406/2 in the Norwegian Sea, south-west of the Asgard development. This is the second find in the block in the past year. The first, 6406/2-1, which was recently appraised, has recoverable reserves of 130-140 mmcm of oil equivalent. The northern part of the latest find stretches into block 6506/11. Saga described the find as "encouraging" but said it was too early to give any estimates of its size, as only two of five potential reservoir formations had been drilled. No production tests had taken place. Analysts suggest the find may have reserves in the order of 2 tcf of natural gas. Well 6406/2-3 is being drilled by semi-submersible Transocean Arctic and had reached a depth of around 4,900 m by yesterday. Target depth is around 5,400 m, which will make the well one of the deepest drilled off Norway's coast. The high pressure well was spudded on August 24 and encountered technical problems at about 4,500 m. This delayed drilling by up to two months and could eventually cost Saga an additional Nkr 50 mm ($ 7.8 mm).