Agora announces successful Burgman exploration well results

The Stavanger-based oil company Agora Oil & Gas AS (“Agora”) announces that the Burgman side-track well 28/9-4z located on UKCS Central North Sea Block 28/9 has successfully encountered hydrocarbons in the targeted Lower Tay sandstone interval. Agora’s wholly owned subsidiary Agora Oil & Gas (UK) Limited holds a 15% interest in Licence P1430, covering Block 28/9. This acreage also contains the recent Catcher and Varadero discoveries.

The Burgman discovery was made by well 28/9-4. On March 21st 2011, Encore Oil plc, the licence operator, announced that this well had encountered 10 feet of oil pay at the Lower Tay sandstone level, with 12 feet of gas pay penetrated in the overlying Upper Tay sandstone interval. Seismic evidence suggested that thicker Lower Tay oil reservoir could be present elsewhere on the Burgman structure, and the licence partnership decided to side-track the discovery well in order to test this concept.

The side-track was drilled directionally with a hole angle up to 64 degrees to a Total Depth of 5,237 feet Measured Depth (M.D.). Initial analysis indicates net oil pay of 135 feet over a gross reservoir interval of 135 feet (M.D.), equivalent to 64 feet of net vertical oil pay over gross vertical interval of 64 feet True Vertical Thickness. Preliminary log analysis indicates an average porosity of 38%, significantly better than in the original Burgman well 28/9-4.

This result now concludes the current drilling programme on Block 28/9 and following completion of this well, the Transocean Galaxy II heavy duty jack-up rig will be demobilised. The Galaxy II has drilled three successful wells during this drilling campaign, resulting in two substantial discoveries at Varadero and Burgman, and an appraisal of Catcher North.

Agora CEO, Svein Ilebekk commented:

“We are very satisfied with this result, which both confirms Burgman as an important discovery and gives the P1430 partnership increased confidence in our predictive geophysical model for identifying oil pay on the block. We look forward to contributing to the partner group work programme as we progress the existing discoveries towards first oil whilst continuing to mature the remaining potential of this highly prospective licence.

Agora thanks the operator, Encore Oil plc, for conducting another safe and highly efficient drilling campaign in Block 28/9”.