Source Energy has participated in 5 exploration wells and four of these have been reported by Norwegian Petroleum Directorate (NPD) as discoveries – the Atlantis discovery (PL878), the Oswig East discovery (PL1100), the Eirik discovery (PL817) and the Norma discovery (PL984). Source’s successful exploration drilling has yielded a material development portfolio with favorable ESG characteristics. The majority of the discoveries are gas/condensate discoveries located close to existing infrastructure for production and export.
The first production from Source’s portfolio is expected in 2029 and the cashflow can then be recycled into new exploration activities and developments. This will lead to a peak production around 4 000 Sm3/d (~25 000 boe/d) after 2030.
All of Source’s discoveries are operated by experienced operators – Equinor Energy AS for the material Atlantis discovery, OMV (Norge) AS for the Oswig East and Eirik discoveries and DNO Norge AS for the Norma discovery. There are significant appraisal upside and additional exploration prospects within these licenses which will be tested in the coming years.
View a Map of Source’s portfolio here
The Atlantis gas/condensate discovery in the PL878 license is down-faulted from the Huldra gas field which produced 22.7 million Sm3 between 2001 and 2014. Atlantis was discovered in July 2020 by the 30/2-5S well, and the well encountered a gas column of about 160 meters in the Brent Group. The gas/water contact was not encountered.
The Atlantis discovery is a 3-way structure against a large sealing fault. The thick sand-filled reservoir and the high reservoir pressure will enable an efficient drainage and high recovery of the discovery. Source Energy currently estimates the discovery to contain 14.1 million Sm3 of recoverable oil equivalents (89 MMboe) with a significant upside. Atlantis is a commercial discovery. Norwegian Petroleum Directorate (NPD) reports the discovery to contain 11.0 million Sm3 of recoverable oil equivalents (69 MMboe).
In the same license, the Canon gas/condensate discovery was discovered in year 2000. The Canon discovery contains 2.1 million Sm3 (RNB2023) of recoverable oil equivalents.
The Oswig East gas/condensate discovery in the PL1100 license was discovered in September 2022 by the 30/5-4S well, and subsequently appraised by the sidetrack well 30/5-4A including a successful formation test. The well 30/5-4 S encountered a gas/condensate column of about 100 meters in Middle Jurassic reservoir rocks in the Tarbert Formation (the Brent Group) with poor reservoir quality.
The current resource estimate for the discovery is 5.1 million Sm3 of recoverable oil equivalents. The licensees are currently assessing Oswig East toward further follow-up.
If attractive production rates can be obtained from the tight reservoir, Oswig East can be developed with four gas/condensate producers with hydraulic fracturing and a tie-back to the Oseberg Field. The high reservoir pressure will support the reservoir depletion.
The Eirik oil discovery in PL817 license was discovered in March 2023 by the 15/2-2S well. The well encountered a 500 meter thick intra-Draupne Formation, consisting of multiple thin reservoir sandstone layers totaling 23 meters with poor reservoir properties. Oil samples were recovered in two sandstone layers.
The preliminary volume estimate is between 1.0 and 5.5 million Sm3 of recoverable oil equivalents due to the limited thickness of the sandstone layers and uncertainty in their extension. The licensees are evaluating the well results to define the volume potential in the different reservoir zones and will assess the discovery alongside other prospects in the production license.
The gas/condensate discovery can be tied back to Gudrun for processing and export if sufficient volumes are justified.
The Norma gas/condensate discovery in the PL984 license was discovered in September 2023 by the 25/7-11S well. The well encountered a 16-meter gas/condensate column in the Draupne Formation, of which 13 meters were net reservoir with moderate to good reservoir quality. The well was not formation-tested, but extensive data acquisition and sampling were done including collecting several gas/condensate samples and a 33.7 m core.
The preliminary gas/condensate volume estimate is between 2 and 21 million Sm3 of recoverable oil equivalents.
The discovery is considered a play-opener for the deep turbiditic sands in this area given the good reservoir quality encountered. Plans are underway to further delineate the discovery and the upside potential in the license.
Norma is situated in an area with extensive infrastructure in the central part of the North Sea, with tie-back options like Balder and Alvheim offering potential routes to commercialization.