Neptune's Calypso exploration well encounters hydrocarbons in Norwegian Sea

(WO) — Neptune Energy and its partners said Wednesday that hydrocarbons have been encountered in the Calypso exploration well in the Norwegian Sea.

The announcement came five days after Neptune said drilling had commenced with a reservoir target in the middle and lower Jurrassic formations at a depth of 2,960 meters (9,711 feet).

"Having entered the reservoir, logs proved the presence of hydrocarbons. Additional data gathering of the reservoir will now be considered," the company said in its brief announcment on Wednesday.

The operations are still at an early stage, and it has not determined if commercial volumes are present.

The exploration well, 6407/8-8 S, is being drilled by the Deepsea Yantai, a semi-submersible rig, owned by CIMC and operated by Odfjell Drilling. The Calypso prospect is located 14 kilometers (9.7 miles) northwest of the Draugen field and 22 kilometers (13.7 miles) northeast of the Njord A platform, within the Neptune-operated PL938 License.

Neptune Energy and OKEA ASA hold 30% stakes in the project, while Pandion Energy AS and Vår Energi ASA both hold 20%.

alypso is positioned within one of Neptune’s core areas on the Norwegian Continental Shelf. In the event of a commercial discovery, Calypso could potentially be tied back to existing infrastructure.

“Calypso is an exciting prospect and fits our exploration strategy of focusing on opportunities within core areas and near existing infrastructure,” said Neptune Energy’s director of subsurface in Norway, Steinar Meland.

The drilling program comprises a main-bore (6407/8-8 S) with an optional side-track (6407/8-8 A), based on the outcome of the exploration well.

Neptune Energy Norge, a subsidiary of Neptune Energy, is the operator of the Gjøa field in the North Sea. It recently opened up two new subsea fields, Duva and Gjøa P1, tied back to the Gjøa platform.

Neptune also is the operator of the development project Fenja in the Norwegian Sea, and is partner in several producing fields, amongst these are Snøhvit, Gudrun, Njord and Fram. Neptune Energy Norge is a participant in a total of 81 licenses.