New gas discovery made by PGNiG on the Norwegian Continental Shelf

July 20, 2012
PGNiG Norway AS, a subsidiary of Polskie Górnictwo Naftowe i Gazownictwo SA, and its licence partners have made a new gas discovery in the Snadd Outer prospect, within the PL212E licence area. The discovery lies close to the Snadd North gas discovery  and borders the Skarv oil and gas field, which is being prepared for production launch.

Recoverable reserves of the Snadd Outer discovery  have been preliminarily estimated by the operator at between 1.2 and 2.3 billion cubic metres of natural gas (between 7.5 and 15 million barrels of oil equivalent). PGNiG Norway's interest in this new discovery is 15%.

The drilling work was preceded by detailed geological and geophysical surveys performed by PGNiG Norway AS and its licence partners: BP Norge AS, E.ON E&P Norge AS and Statoil ASA. The well confirmed the presence of sandstones with good reservoir properties, saturated with high-methane natural gas.  The well was drilled to a total depth of 2,923 meters.

Within the next six months, the licence partners will complete a comprehensive evaluation of the Snadd Outer resources, which will enable them to estimate the probability of their future development.   The close proximity of Snadd Outer to the Skarv field may facilitate its development together with the Snadd North and Snadd South resources.

A long term production test on the Snadd North discovery is due to commence after the launch of production from the Skarv field, which is scheduled for Q4 2012. The test results will provide data enabling the development of and production from the Snadd discoveries.

The exploration and production activities on the Norwegian Continental Shelf are carried out by PGNiG Norway, a company established in 2007. PGNiG SA is its only shareholder. PGNiG Norway holds interests in 11 exploration and production licences on the Norwegian Continental Shelf, with the interest in the Skarv field being its core asset.

Copyright 2012, PGNiG Norway AS. All rights reserved.