Norwegian Energy Company ASA (Noreco) has announced an oil and gas discovery in the Grosbeak prospect in Norway, where the company holds a 20% interest. Hydrocarbons were found in both targets for the wildcat well 35/12-2. The preliminary volume for the discovery is estimated to be between 35 and 190 million barrels of recoverable oil equivalents.

“Grosbeak is a very promising discovery that is important to Noreco,” says Lars Fosvold, vice president exploration.

“The successful results from this well have increased the likelihood of additional discoveries on the license, and the total resource potential to Noreco is in excess of 100 million barrels of oil equivalents net,” says Lars Fosvold.

In addition to Grosbeak, there are four main prospects and seven smaller prospects in the license. The volume potential in the remaining four main prospects is substantial and estimated to be up to 375 million barrels of recoverable oil equivalents gross. Noreco also owns 20% of the neighboring license PL417 and is therefore well positioned in this prospective area. The license is close to existing infrastructure.

The next well will be in the Noreco operated PL412 where the Tasta prospect will be drilled. The Tasta well is expected to spud in August 2009 and results are expected by end third quarter of 2009.

Facts about the Grosbeak exploration well, 35/12-2:

Grosbeak is located in production license (PL) 378 where Noreco holds a 20% interest, Wintershall Norge ASA (operator) holds 40%, Premier Oil Norge AS and Spring Energy Norway AS each hold 20%. In PL 378 was awarded in APA2005 and Grosbeak is the first exploration well in the license.

35/12-2 was drilled to a vertical depth of 2,512 meters below the sea surface and was concluded in the Rannoch formation in the Middle Jurassic. The well was drilled in 360 meters of water using the Songa Delta drilling vessel.

The objective of the well was to test the hydrocarbon potential in the Sognefjord formation and Fensfjord formation in the Upper Jurassic and in the Brent group in Middle Jurassic. 35/12-2 found oil and gas in the Sognefjord formation and oil in the Brent group. An extensive data collection program has been carried out.