Longboat Energy PLC (AIM:LBE) told investors that the Oswig exploration well has encountered hydrocarbons and the operator has opted to drill a sidetrack.
The Oswig well, in the Norwegian North Sea, was drilled to a depth of 5,003 metres to target the Tarbert and Ness formations – gas-condensate was confirmed in the Tarbert formation, and hydrocarbons have also been confirmed in the Ness.
Gas-in-place volumes in the Tarbert formation are believed to be higher than pre-drill expectations.
The sidetrack well will be used for a drill stem test (DST) and the forward programme is expected to take six to eight weeks to complete.
"We are very pleased to have encountered hydrocarbons in the Oswig exploration well, the first of two wells we farmed-into from OMV,” said chief executive Helge Hammer.
“We now look forward to working with the operator on the sidetrack and DST and to making the final well result announcement in due course."
Prior to drilling, Oswig was estimated to host a 93mln barrel gross resource which, Longboat highlighted, makes it one of the largest gas prospects being tested in Norway this year.
Longboat has a 20% interest in the well, alongside partners OMV (40%), Wintershall (20%) and Source Energy (20%).