Neptune Energy said Aug. 4 the company and its partners have made a commercial oil discovery at the Dugong well in the Norwegian sector of the North Sea, derisking another prospect and upping total resource potential.

Estimated volumes at the Dugong discovery are 40 to 120 million barrels of oil equivalent (MMboe), the company said in a new release.

Located in production license 882 at a water depth of 330 m about 158 km offshore Florø, Norway, Dugong consists of two reservoirs at a depth between 3,250 m and 3,500 m.

“The discovery well 34/4-15 S and the down-dip sidetrack 34/4-15 A proved oil in the Viking and Brent Groups of the Dugong prospect,” Neptune said. “These are the first exploration wells in production license 882.”

The discovery also de-risks another nearby prospect that Neptune estimates has 33 MMboe.

“This is a significant discovery and strategically important for Neptune Energy in this region,” Odin Estensen, Neptune Energy’s managing director in Norway, said in the release.

He added, “Dugong may also open up additional opportunities in the surrounding licenses, with the potential for a new core area for Neptune in Norway.”

Steinar Meland, the company’s director of exploration and development in Norway, said the discovery gives “new and valuable understanding of the subsurface in this part of the Tampen area.” Plans are now to begin studies and consider development options.

The well, which will be plugged and abandoned, was drilled by the Odfjell Drilling-operated Deepsea Yantai semisubmersible rig.

Holding a 40% interest, Neptune Energy is the operator. Partners are Concedo (20%), Petrolia NOCO (20%), and Idemitsu Petroleum Norge (20%).

Offshore