Statoil said it was disappointed after the highly anticipated first well drilled for a discovery close to its Johan Castberg find failed to yield commercial results.
The Nunatak well was the first of four wells to be drilled inthe area with the aim of establishing additional volumes from the huge $15.5billion Johan Castberg project.
But only a modest gas discovery was made from the drilling, which Statoil said was the highest geological risk of the four prospects.
“The find is not commercially interesting,” the Norwegian Petroleum Directorate confirmed in a statement.
Statoil said that despite the disappointment of not finding additional oil resources at the well, they had acquired useful data for the Johan Castberg project.
“With Nunatak we tested a new geological play model in the Johan Castberg area and acquired essential data which will be further analysed,” said Gro G. Haatvedt Statoil’s senior vice president for exploration in Norway.
“The Nunatak results do not have any implications for the expectations to the next three wells as these will target other play models.
“Whilst it is disappointing to find only gas in Nunatak, we believe in further oil potential in the Johan Castberg area.”
Statoil delayed work on the Johan Castberg project earlier this month over tax and cost concerns, Earlier this month the company delayed the project due to a planned tax increase and cost concerns that eroded its profitability.
The West Hercules rig which drilled the first well will now move onto their second option at the Iskrystall prospect.