Denmark

Country Summary

Discover’s asset portfolio includes 2 high-impact exploration licenses offshore Denmark.

Licence Area (KM2) Working Interest Seismic Coverage Technical Maturity Operator
07/16 306 50.00% 2D/3D Exploration Discover
14/16 285 32.00% 2D/3D Exploration Edison

Outer Rough Blocks – High impact oil-prone prospectivity in the under-explored eastern margin of the Outer Rough basin.

Location and Geology

The Outer Rough Blocks cover an area of 284.9 km2 and are located on the northernmost margin of the Southern Permian Basin on the western limit of the Danish offshore, bounded to the west by the UK median line and to the south by the German median line. Water depths are approximately 70m and the nearby fields include the Fife/Fergus/Flora fields some 10km to the west in UK waters and the Valhall field some 20km north in Norwegian waters.

The Outer Rough Blocks acreage was high graded following a regional assessment of an area encompassing five countries and enabled by careful cross border re-interpretation of some 1,200 km2 of 3D seismic, a thorough geological well review, and the generation of a proprietary seismic inversion volume. Two major stratigraphic prospects have been matured within the Upper Jurassic shoreface sandstones. Such reservoirs have been proven as oil producers in the neighbouring UK Fife and Fergus fields, and are mapped to extend into Denmark, where they have been penetrated by two wells, Wessel-1 and Saxo-1. Both these on licence wells targeted structural traps in sub optimal locations for charge access though proved the potential for excellent reservoir quality and development. The mean in place volumes suggest a yet-to-find stratigraphic potential of over a billion barrel of oil in place within the Jurassic section.

Equity Interests

Licence 14/16, which covers Blocks 5603/30, 5603/31 and 5503/2, was awarded as part of the 7th Danish offshore licensing round, in April 2016. Discover through its wholly owned subsidiary, Hansa Hydrocarbons Limited, holds a 32% non-operated interest in the licence. The remaining licence interests are held by Edison International SPA (48% as operator) and the Nordsøfonden 20% (state participation).

Operator

Licence 14/16 is operated by Edison International SPA (https://www.edison.it/en/norway-and-denmark).

Licence Status

The licence term is six years with a decision at the end of the second year to either acquire a new 3D seismic survey or to drill an exploration well. However, operator Edison International SPA asked for a one-year extension, so that the decision is postponed until April 2019. The firm work programme consists of reprocessing existing 3D seismic data in order to improve the structural definition across the area and basin modelling studies to address the key risk of charge. Additionally, a further inversion volume will be generated from the latest 3D seismic survey to refine prospect mapping and definition. With the results of this initial work programme, the joint venture partners will be in a position to decide whether to progress to a second phase comprising either an exploration well or seismic commitment.

Shallow Oil – An exciting seismic driven play extension of a proven shallow oil discovery.

Location and Geology

Licence 7/16 (across Blocks 5504/20, 5604/24, 5505/21), covers an area of 306.4 km2 down to a depth limit of 1,700m and is situated adjacent to the Lille John discovery to the west and the German median line to the south. The large Halfdan field lies directly to the northeast. Water depths are approximately 65m.

The exploration objectives are an extension of the Late Miocene oil play successfully appraised in 2015 with the Lille John-2 well and side-track by Dana Petroleum Limited. The appraisal well was tested and showed a maximum flow rate of 1,400 bbls/day of light 34°-35° API oil with no H2S. From calibration of the well to seismic, this discovery gives support to a number of large seismic amplitude anomalies identified in similar age sandstones being oil-filled.

At this early stage of prospect maturation, focus is on the large stratigraphically closed Nyborg prospect updip from Lille John. A second lead, Alborg, is an anomaly which emanates from a second nearby salt diapir to the south east. Given the extent of these observed seismic anomalies, the combined potential volume of oil-in-place is estimated to be well in excess of 1 billion barrels.

Interests

Licence 7/16 was awarded as part of the 7th Danish offshore licensing round, in April 2016. Discover through its wholly owned subsidiary, Hansa Hydrocarbons Limited, holds a 50% operated interest, along with Edison International SPA with 30%, and the Nordsøfonden with 20%.

Licence Status

The initial licence term is six years with a drill or drop decision at the end of the third year. The firm work programme consists of reprocessing existing 3D seismic data, combined with AVO analysis and inversion studies, with the objective of maturing the identified prospectivity prior to taking the decision on drilling an exploration well.