Norwegian Energy Company (Noreco) reports an oil discovery with the Gygrid exploration well in license PL348 in the Norwegian Sea. This is the third discovery within this license. The license is operated by StatoilHydro and Noreco has a 17.5% ownership.

"We are very pleased with the results from the Gygrid well. Light oil was discovered in a good quality reservoir. This latest discovery increases the probability of further finds in this very prospective license" says Noreco VP Exploration, Lars Fosvold.

The preliminary volume of the Gygrid discovery is in the range of 19-31 million barrels of oil equivalents. The license also contains the gas discovery Galtvort, drilled last year and the Tau discovery. There are many identified prospects and leads and the total volume potential for the licence is estimated by Noreco to be up to 25 million barrels oil equivalents net to Noreco.

The Gygrid well is part of Noreco's selective exploration program which focuses on exploration wells that have a high value creation potential for Noreco. Noreco has made two discoveries in 2009; Gita in Denmark and Gygrid. Results from the ongoing Grosbeak exploration well operated by Wintershall are expected in July.

Tags: Norwegian Energy Company ASA, StatoilHydro