Petrolia Noco AS (49.9 % owned) announces the completion of the formation and
flow testing (DST) of well 34/4-16 S, located in the Norwegian sector of the
North Sea in Production License 882. Petrolia Noco has 20% ownership in the
license.

The appraisal well 34/4-16 S was drilled and temporarily plugged and abandoned
as announced March 29th, 2021, before re-entry on September 2nd, 2021. The
well's main objective was to identify the oil-water contact and delineate the
Dugong discovery in the Rannoch formation. A secondary objective was to
formation test the reservoir if a sufficient amount of hydrocarbon bearing sand
was encountered.
 
The well encountered a 25-metre oil column in the Rannoch formation, 22 metres
of which consists of sandstone of primarily moderate reservoir quality. The
oil/water contact was encountered at a vertical depth of 3443 meters below sea
level. Following re-entry of the well, a successful formation test was
conducted. In the upper part of the Rannoch formation, a 13-metre section was
perforated and delivered a maximum production rate of approximately 2100 bbls/d
through a 32/64-inch nozzle opening. 

The Dugong discovery, in Production Licence 882, was one of the largest
discoveries on the Norwegian Continental Shelf in 2020. Dugong is located 158
kilometres west of Florø, Norway, at a water depth of 330 metres, and is close
to the existing production facilities of the Snorre field. The reservoir lies at
a depth of 3,250 - 3,500 metres. Following the Dugong Appraisal well, the
recoverable resources are estimated to be between 40-108 million barrels of oil
equivalent. The partnership, with operator Neptune Energy, aim to submit a Plan
for Development and Operation for the Dugong discovery by end of 2022. 

Dugong licence-partners: Neptune Energy (operator and 45%), Petrolia Noco (20%),
Idemitsu Petroleum Norge (20%) and Concedo (15%).