Denmark: Noreco Spuds Luna Well

Norwegian Energy Company (Noreco) has begun exploration activity on the Luna prospect in Denmark with the spudding of the Luna-1X well yesterday. The Maersk Resolve rig will target between 196 million and 490 million barrels of oil equivalent (mmboe) of gross resources at the prospect.

The well is located approximately 150 kilometres north-west of Esbjerg in Denmark. The prospect is covered under the 1/11 licence. Noreco is the operator for the project, with a 47 per cent stake. Xtract Energy subsidiary, Elko Energy holds a 33 per cent share and the Danish North Sea Fund a 20 per cent stake.

Xtract Energy says the well will be drilled to a depth of 2,250 metres with a reservoir sandstone thickness prognosis of about 90 metres and expects activity on the well to take a month.

The company also says that though it is thought that the Rotliegendes reservoir is thought to be present in the drilling location, the exploration will confirm the seismic information already collected on the prospect.

"Uncertainty still exists however on which seismic event represents the top reservoir and where the pinch out occurs," a statement for Xtract says. "In addition to the uncertainty on the pinch out position, there is a possibility that the Rotliegendes does not, in fact, pinch out but continues up dip into Lead A.  It is therefore possible that Luna and Lead A are connected and represent one feature."

Xtract says the current well location was chosen in order to investigate this uncertainty further and to test the Rotliegendes play concept.

Chief Executive of Xtract, Peter Moir said, "We are pleased that the Maersk Resolve is now on location and it is exciting that drilling has commenced at Luna.  We look forward to updating shareholders on progress in due course."