DNO Unveils New Oil Play in Norwegian Waters
Monday, Dec 2, 2024 2:29 am ET
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DNO ASA, the Norwegian oil and gas operator, has struck oil in a new play offshore Norway, adding to its growing list of discoveries in the region. The company, in collaboration with its partners Aker BP ASA, Petoro AS, and Source Energy AS, has unearthed a significant oil find in license PL1086, where DNO holds a 50 percent operated interest.
The discovery, located in the Borr unit of the Våle Formation, has preliminary estimates of gross recoverable resources ranging from 27 to 57 million barrels of oil equivalent (MMboe) on a P90-P10 basis, with a mean of 41 MMboe. This marks the second new play opened by DNO in Norway, following last year's Norma discovery, and is the first time moveable oil has been encountered in the Borr unit of the Våle Formation in the Norwegian sector.

The Othello discovery, as it is called, is situated east in the basin, an area previously thought to have too high a migration risk, making it an intriguing find. The well had two exploration targets, a deeper prospect (Falstaff) where no reservoir was encountered, and a shallower prospect (Othello) where a 16-meter net oil-bearing reservoir was discovered. This discovery was subsequently confirmed in a sidetrack.
DNO and its partners are already considering tying back the discovery to existing infrastructure, with the ConocoPhillips Ekofisk hub some 40 kilometers to the west and the Valhall hub operated by Aker BP some 55 kilometers to the southwest. This could result in a faster and more cost-effective development process, enabling the company to capitalize on the discovery more swiftly.
Meanwhile, the licensees of nearby PL1085 are considering developing the 2022 Overly discovery as a tieback to Aker BP's Valhall hub, based on recently completed studies leading to increased estimates of recoverable resources. Overly lies 10 kilometers north of Valhall.
DNO's exploration strategy, focusing on near-infrastructure and derisked areas, has once again paid off. The company's persistence, purposefulness, and pertinacity have resulted in multiple play-opening discoveries and increased reserves, validating its approach. With this new oil play, DNO continues to demonstrate its prowess as a North Sea playmaker, successfully identifying and exploiting new hydrocarbon plays.
As an investor, watching DNO's continuous success in the Norwegian Continental Shelf is intriguing. The company's ability to target underexplored areas and uncover significant resources with clear routes to commercialization is a testament to its robust exploration strategy. DNO's focus on near-infrastructure exploration and tie-back opportunities not only reduces development costs but also accelerates commercialization, making it an attractive investment option in the energy sector.
In conclusion, DNO's latest oil discovery in the Norwegian sector is a significant milestone for the company, further solidifying its position as a North Sea playmaker. As an investor, keeping an eye on DNO's ongoing exploration campaign in Norway is prudent, as the company's success in identifying and exploiting new hydrocarbon plays could lead to increased production, revenue, and ultimately, an improved valuation.