Noreco, which owns 15% of the discovery, said that its predrill estimate for the discovery was 42 million barrels of oil equivalent. The results from the wells are reportedly encouraging with respect to the development of the discovery.

Noreco said that, in addition to the Oselvar discovery, there is significant exploration potential in license PL274. During the summer of 2008, the rig Maersk Guardian will drill an exploration well at the Ipswich prospect in the license, close to the Oselvar discovery.

Scott Kerr, Noreco’s CEO, said: We are very pleased with the results of the appraisal program at Oselvar. The wells have proven better reservoir flow performance than expected and confirmed our predrill resource estimate. Noreco is looking forward to work with our partners on a fast-track development of the field.