Second Well Delineates Heisenberg, Confirms Size of Discovery

DNO ASA, a Norwegian oil and gas operator, has announced that a second well has successfully delineated the Heisenberg oil and gas discovery in the Norwegian North Sea. This confirmation of the discovery size has significant implications for DNO's production and cash flow projections, as well as its competitive position in the North Sea.

The second well, drilled by DNO and its partner Equinor Energy AS, has confirmed that the Heisenberg discovery holds recoverable volumes in the range of 24 to 56 million barrels of oil equivalent (MMboe). This estimate is based on preliminary data and may be subject to revision as more information becomes available. The discovery is located in the northern part of the Norwegian North Sea, within tieback range of major hubs such as Troll B, Kvitebjørn, and Gjøa.

In addition to the primary Heisenberg discovery, the second well also encountered oil-bearing sands in a deeper secondary target called Hummer. The presence of oil in this deeper target may provide further opportunities for resource expansion and increased recovery factors. This could enhance the overall value of the Heisenberg discovery and contribute to DNO's production and cash flow projections.

Environmental and regulatory considerations will play a crucial role in DNO's investment decisions regarding the development of Heisenberg. The company must ensure that it adheres to stringent environmental standards and obtains the necessary approvals for the project. By doing so, DNO can minimize potential risks and maximize the long-term value of the Heisenberg discovery.

In conclusion, the successful delineation of the Heisenberg discovery by DNO ASA has confirmed the size of the find and has significant implications for the company's production and cash flow projections. The tieback range to major North Sea hubs, the presence of oil-bearing sands in the Hummer target, and the potential synergies with other discoveries in the area all contribute to DNO's competitive position in the region. As the company continues to evaluate the environmental and regulatory considerations, it can make informed decisions regarding the development of Heisenberg and maximize its long-term value.