Neptune Energy Begins Fenja Drilling Campaign

Neptune Energy today announced the drilling campaign on the Fenja field is now underway, following the spud of the first well.

Fenja is Neptune’s first operated development project on the Norwegian Shelf and is estimated to contain 97 million boe. Fenja will deliver around 40 kboepd at plateau.

Neptune’s Director of Projects and Engineering in Norway, Erik Oppedal, said: “Sunday’s drilling start-up represents an important milestone in the project. The aim of these first geo-pilots is to gain a better understanding of the reservoir and to optimize the location of the production wells.

“As our first operated development in the Norwegian North Sea, Fenja is an exciting project for Neptune and underlines the importance of the region to our geographically-diverse business.”

Located in the Norwegian Sea 120 kilometres north of Kristiansund and at a water depth of 320 metres, the subsea field will be developed as a tie-back to the Njord-A platform. At 36 kilometres, it will be the world’s longest electrically trace-heated pipe-in-pipe subsea development.

The development plan combines two subsea templates with six wells, including three oil producers, two water injectors and one gas injector. The gas injector will be converted to a gas producer towards the end of field life.

The Fenja drilling campaign has been modified to address delays resulting from the impact of COVID-19 with the licence partners opting to carry out drilling in three phases over the next two years. This also provides greater flexibility to respond to subsurface insights gained from the geo-pilots, and the current challenging market conditions.

The drilling program for 2020 includes two top holes and two geopilots, with an expected duration of 85 days. The drilling program for 2020 will be carried out by the West Phoenix drilling rig, operated by Seadrill.

Production start-up at Fenja is expected by Q4 2021.

Fenja licence partners: Neptune Energy (Operator and 30%), Vår Energi, (45%), Suncor (17.5%) and DNO (7.5%)

Read more about the Fenja development project on our website (https://www.neptuneenergy.com/operations#region=norway).

About Neptune Energy Norge AS
Neptune Energy Norge is a subsidiary of Neptune Energy. The company is the operator of the Gjøa field in the North Sea. It has three operated development projects: Fenja, Duva and P1. The Company is a partner in several producing fields: Bauge (under development), Brage, Draugen, Fram, Gudrun, Hyme, Ivar Aasen, Njord and Snøhvit. Neptune Energy Norge is a participant in a total of 75 licences. For the full year 2019, Neptune produced 67 kboepd in Norway.

About Neptune Energy Group
Neptune Energy is an independent global E&P company with operations across the North Sea, North Africa and Asia Pacific. The business had production of 144,000 net barrels of oil equivalent per day in 2019 and 2P reserves at 31st December 2019 of 633 million barrels of oil equivalent. The Company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.

• Neptune Energy has started drilling on Fenja
• Neptune and its partners in the Fenja license have started drilling the first well on the Fenja field in the Norwegian Sea.
• Fenja is Neptune's first self-operated development on the Norwegian continental shelf.
• The field is estimated to contain 97 million barrels of oil equivalent. Expected maximum production is 40,000 barrels of oil per day.
• “The drilling start-up represents an important milestone in the project. The goal of these first geopilots is to better understand the reservoir and to optimize the location of the production wells, ”says Erik Oppedal, Director of Projects and Engineering in Norway.
• "As our first self-developed development, Fenja is an exciting project for Neptune and shows our faith in both the region and the Norwegian continental shelf."
• The field is located in the Norwegian Sea 120 km north of Kristiansund and with a water depth of 320 meters. Fenja is expanded with two subsea frameworks linked to the Njord A platform for processing and export
• Six wells must be drilled. Three of these will be oil producers, two water injectors and a gas injector. The gas injector will be converted to a gas producer at the end of its life.
• Due to delays in the Fenja project caused by COVID-19, and the general uncertainty in the market, the partners in the license have chosen to revise the drilling program. Drilling will now be done in three phases over the next two years. This increases the flexibility of licenses to respond to both technical data from the underground and to market challenges.
• The 2020 work program includes two top holes and two geopilots, with an expected duration of 85 days. The work is carried out by the West Phoenix drilling rig, operated by Seadrill.
• Production on Fenja is scheduled for the fourth quarter of 2021.
• Partners: Neptune Energy (Operator, 30%), Our Energy (45%), Suncor (17.5%) and DNO (7.5%)

About Neptune Energy Norge
Neptune Energy Norge AS is a subsidiary of Neptune Energy. The company is an operator of the Gjøa field, in the North Sea. It operates three development projects: Fenja, Duva and Gjøa P1. The company is a partner in several producing fields, including: Bauge (under development), Brage, Draugen, Fram, Gudrun, Hyme, Ivar Aasen, Njord and Snøhvit. Neptune Energy Norway participates in 75 licenses on the Norwegian continental shelf. Total production in 2019 ended at about 67,000 barrels of oil equivalent per day.

About Neptune Energy
Neptune Energy is an independent global E&P company with operations in the North Sea, North Africa and Southeast Asia. The company had a production of 144,000 net barrels of oil equivalent per day in 2019 and 2P reserves of 633 million barrels of oil equivalent as of December 31, 2019. The company is founded by Sam Laidlaw and has three strategic investors: China Investment Corporation, The Carlyle Group and CVC Capital Partners.