OKEA aims for growth

OKEA's CEO, Erik Haugane, will present the company’s current status and growth strategy at the 27th Pareto Energy Conference today.

“We have an optimistic outlook and are increasing our activity level. We foresee a sound organic growth in our production exceeding 25000 boe/d by 2025 within our existing portfolio and target to deliver this growth without the need to raise further equity. We also maintain our opportunistic view on M&A” says CEO Erik Haugane.

OKEA is the operator of the Draugen field, where they have reported excellent HSE performance and made improvements in production efficiency. Current average output from Draugen is around 8000 boe/d. The company is also substituting diesel used for platform power by gas import, starting in October this year.

In 2023, it is expected that first gas from the Hasselmus discovery can be produced as a tie-back to the Draugen platform, which will further secure power supply.

The company also plans to extract more oil from Draugen through recompleting the D2 well, drilling new infill wells and introduce a new water injections scheme.

Apart from Draugen, OKEA has a significant stake in the Neptune-operated Gjøa field and announced in July that the company has signed a Sales and Purchase Agreement (SPA) with Equinor for the acquisition of Equinor’s 40% operated working interest in PL195 and PL195 B, which include the nearby Aurora discovery. Both the transaction and a potential change in operatorship are still subject to approval by the Ministry of Petroleum and Energy though.

Another project OKEA is partnering in is the redevelopment of the Yme field, operated by Repsol. Production start for this field is expected in 2021.

Earlier this year, the company announced a dramatic cut-back in exploration expenditure. In 2019, it drilled exploration well 6407/9-12 just east of Draugen, but reservoir sands were reported to be of poor quality and were water wet.