Neptune Energy announced agreement with Concedo AS for the acquisition of a further 5% interest in the Dugong licence (PL882) in the Norwegian sector of the North Sea. On completion of the acquisition, Neptune will have a 45% interest in Dugong.

The payment will be partly cash, partly carry of future cost and partly a contingent payment.

The Neptune-operated Dugong discovery is the largest on the Norwegian Continental Shelf so far this year. Volumes are estimated to be in the range of 40-120 million barrels of oil equivalent (boe). Prospective resources for the Tail prospect are currently estimated at 33 million boe.

Neptune and its licence partners plan to drill two additional wells on PL882, an appraisal well on the Dugong discovery and an exploration well targeting the Tail prospect. Drilling will commence in the first quarter of 2021.

Dugong is located 158 kilometres west of Florø, Norway, at a water depth of 330 metres, and is close to existing production facilities.

The transaction is subject to approval by the Norwegian Ministry of Petroleum and Energy. On completion of the transaction, the Dugong partners will be Neptune Energy (operator and 45%), Concedo (15%), Petrolia NOCO (20%) and Idemitsu Petroleum Norge (20%).