Neptune starts drilling exploration well targeting Dugong Tail prospect

Oil and gas company Neptune Energy has started drilling on the Dugong Tail exploration well, located in the North Sea off Norway, using the Deepsea Yantai drilling rig.

The Dugong Tail well is located in PL 882 where Neptune Energy is the operator with a 45 per cent interest and its partners are Petrolia Noco (20 per cent), Idemitsu Petroleum (20 per cent), and Concedo (15 per cent).

The Dugong Tail is being drilled by the Deepsea Yantai, a semi-submersible rig, owned by CIMC and operated by Odfjell Drilling. The well is located 120 kilometres west of Florø, Norway, at a water depth of 320 metres, and is close to the existing production facilities of the Snorre field. The reservoir lies at a depth of 3,200 – 3,500 metres.

Neptune said on Friday that the drilling program comprises a main bore with the potential for sidetracks, should hydrocarbons be encountered.

Dugong Tail is an additional prospect in the licence located approximately 4 to 5 kilometres southwest of the Dugong discovery made in 2020. Dugong was one of the largest discoveries on the NCS last year. A recent Drill Stem Test (DST) of Dugong has now been completed and is currently under evaluation. If successful, the exploration well could contribute to the further development of the Greater Dugong Area.

Neptune Energy’s Director of Exploration & Development in Norway, Steinar Meland, said: “Dugong Tail represents an important geophysical calibration point for the licence, with the potential to unlock further prospectivity in the region. This positive activity demonstrates Neptune’s commitment to investing in Norway, underlining the importance of the country to our global portfolio”.

In a separate statement on Friday, Petrolia Noco said that data from the Dugong Tail well will help to de-risk additional exploration and development opportunities in the license and in the surrounding area, where the company holds a material 30 per cent share in two licenses (PL992 and PL994) adjacent to PL882.

According to Petrolia Noco, the Dugong partners aim to submit a Plan for Development and Operation by the end of 2022.