M Vest Energy acquires interests in the Draugen, Brage and Ivar Aasen fields from Neptune

(Bergen, 12 November 2021) M Vest Energy AS (MVE) today announces the purchase of 7.56% working interest (WI) in Draugen, 4.4424% WI in Brage, and 0.8% WI in Ivar Aasen from Neptune Energy Norge AS (“Neptune”). In addition to the oil and gas producing fields, the transaction includes a 1.2092% WI in Edvard Grieg oil pipeline and 1.8138% WI in Utsira High gas pipeline. The acquisition will add reserves of 7-8 million barrels of oil equivalents with significant upside potential. For 2022 the expected production is 1,700 – 1,800 barrels of oil equivalents per day.

‘M Vest Energy is very pleased to announce a transaction that will further transform the company, a journey that started with the acquisition of 5% of the Polarled gas pipeline in 2020. We are now partners in transportation, exploration, field development and production licenses, and are well positioned for future growth.’, says Jonny Hesthammer, CEO. ‘The license partners have a high focus on extending the lifetime of the fields, increasing reserves, and reducing the environmental footprint. M Vest Energy look forward to work with the other partners in the assets maximising value for both the Norwegian state and our shareholders.’

The transaction between MVE and Neptune is subject to the completion of the transaction between Neptune and OKEA and customary governmental approval and is effective from 1.1.2022.

MVE’s acquisition is a part of a larger transaction involving OKEA. In total Neptune sells its 7.56% WI in Draugen, 4.4424% WI in Brage, 3.023% WI in Ivar Aasen (OKEA taking 2.223% and MVE 0.8%), 1.2092% WI in Edvard Grieg oil pipeline and 1.8138% WI in Utsira High gas pipeline.

Facts about the Draugen field and the Hasselmus Field development project
The Draugen Field is located in the southern part of the Norwegian Sea, at a water depth of 250 metres. The field was discovered in 1984 and the plan for development and production was approved in 1988. The production started in 1993.

The field is developed with a concrete fixed facility and integrated topside and has both platform and subsea wells. Stabilised oil is stored in tanks at the base of the facility. Two pipelines connect the facility to a floating loading-buoy.

Draugen produces oil from two formations. The main reservoir is in sandstone of Late Jurassic age (the Rogn Formation) while the Western part of the field also produces from sandstone of Middle Jurassic age (the Garn Formation). The reservoirs lie at a depth of 1,600 metres, with good quality and relatively homogeneous across the field. The field is produced by pressure maintenance from water injection and aquifer support. The oil is offloaded via a floating loading-buoy and exported by tankers. To reduce CO2 footprint and extend the lifetime of the field, the plan is to electrify Draugen with power from shore from 2025, in a common solution with the Njord Field.

The Hasselmus discovery (6407/9-9) proved gas in the early Jurassic Ile and Ror Formations. It is located 7 km north of the Draugen field and will be developed as a subsea tie-back to the Draugen platform. A final investment decision was taken June 2021 and production start is planned for 2023.

Draugen and Hasselmus is owned by PL 093 where OKEA ASA is the operator (44.56 %), and the other partner is Petoro AS with 47.88 % working interest.

Facts about the Brage field
Brage is a field in the northern part of the North Sea, located a few kilometres east of the Oseberg Field. The water depth is 140 metres. Brage was discovered in 1980, and the plan for development and operation (PDO) was approved in 1990 and the production started in 1993. A PDO for Brage Sognefjord was approved in 1998.

The field is developed with an integrated production, drilling and accommodation facility with a steel jacket. The oil is transported by pipeline to the Oseberg field and further through the Oseberg Transport System (OTS) pipeline to the Sture terminal. A gas pipeline is tied-back to Statpipe.
Brage produces oil and gas from four different sandstone reservoirs. The field has been producing for a long time, and work is still ongoing to find new ways of increasing recovery from the field. New wells are still being drilled, proving additional reserves. The license partners have a high focus on reducing the environmental footprint, and several alternatives are evaluated for lowering the CO2-emissions.

Wintershall Dea Norge AS is the operator of the field holding 35.2 % working interest. The other partners are Lime Petroleum AS (33.8434 % pending authority approval), DNO Norge AS (14.2567 %) and Vår Energi AS (12.2575 %).

Facts about the Ivar Aasen field
The Ivar Aasen Field is located at a water depth of 110 meters in the northern part of the North Sea, directly north of the Edvard Grieg Field and northwest of the Johan Sverdrup Field. Ivar Aasen was discovered in 2008, and the plan for development and operation (PDO) was approved in 2013. The production started in 2016.

The development includes a production, drilling and housing facility (PDQ) with a steel substructure and a separate jack-up rig for drilling and completion. Ivar Aasen is currently powered by electricity from Edvard Grieg but will be supplied with power from shore from around Q4 2022.

Ivar Aasen produces oil from sandstone reservoirs. The field consists of the discovery 16/1-9 Ivar Aasen and a small discovery, 16/1-7 (West Cable). Oil and gas are transported to the Edvard Grieg facility for final processing, and further by pipeline to the Sture terminal. The gas is exported to the Scottish Area Gas Evacuation (SAGE) pipeline system in the UK sector.

Aker BP is the operator (34.7862 %), with other partners Equinor Energy AS (41.4730 %), Spirit Energy Norway AS (12.3173 %), Wintershall Dea Norge AS (6.4615 %), Lundin Energy Norway AS (1.3850 %) and OKEA ASA (2.777 % WI, whereof 2.223 % is pending authority approval).
For further information, please contact:
CEO, Jonny Hesthammer, +47 992 05 989