Svane license to expire due to drilling costs
DONG and its partners have decided not to pursue the drilling of an appraisal well at Svane field, opting instead to let the 04/98 Svane license to expire on 1 January 2013.
DONG said the decision was based on detailed technical evaluations.
"The gas accumulation in Svane is found at a depth of 5.5-6 km at a pressure of 1200-1300 bar which is considered at the edge of what can be managed by present technology," the company stated in a press release.
Drilling on an appraisal well, which was announced in January 2010, was expected to cost between $105.8 million and 158.8 million (DKK 0.6-0.9 billion).
DONG operates the Svane license with 35% interest. Its partners include Baynerngas Denmark (30%), Nordsøfonden (20%), and VNG Danmark (15%).
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