Centrica finds oil at its Butch exploration well in Norway

Centrica announced that early appraisal results at its Butch exploration well in the Northern North Sea indicate a significant presence of light oil

Centrica announced today that early appraisal results at its Butch exploration well in the Northern North Sea indicate a significant presence of light oil in the reservoir.

Preliminary resource estimates indicate a discovery of between 30 to 60 mmboe for the main Butch segment, in which it has a 40% operating interest. Further data collection is now underway and the drilling of a second side track well has commenced on the Butch south west compartment, where Centrica is targeting additional volumes. Butch, which is located 220km off the coast of Norway, marks yet another milestone in Centrica's ambitions to grow its upstream business by 50% in the next three to five years.

Jonathan Roger, Managing Director of Centrica Energy Upstream, said:

"These are very exciting times for Centrica's oil and gas business as we look to increase our production by 50% over the next three to five years through a balance of exploration and acquisition activity. Early indications are that we have found light oil in our Butch exploration well in Norway. This discovery comes only two weeks after announcing the £1bn acquisition of production and development assets from Statoil, which opens up new exploration possibilities and will increase our reserves by nearly a third."

 

Notes

  1. Centrica Energi (Norge) AS has a 40% operating interest in the potential Butch development. Other partners are Suncor Energy Norge AS (30%), Spring Energy Norge AS (15%) and Faroe Petroleum Norge AS (15%).
  2. Centrica announced on 21 November that it had signed a £13 billion gas supply deal for the UK with Norway and announced the £1bn acquisition of producing and development assets from Statoil in the Norwegian North Sea.
  3. Centrica Energy in Norway, Centrica Energi, is a growing business. Headquartered in Stavanger, it is investing in operated and non-operated assets in the North Sea, Haltenbanken and Norwegian Sea.
  4. It acquired its first license in Norway in 2007 and has continued to grow through a combination of acquisitions and exploration activities.
  5. The business has demonstrated a strong exploration performance with a higher than average exploration success rate (4 from 7).