Good commercial potential
The E-24 licence covers a large low-risk prospect in 120 metres of water. At the heart of the licence is the Dalders structure, where the geology and geoscience indicate up to 300 mmbbls of recoverable oil reserves. Dalders is the largest undrilled prospect in the Baltic Sea.
Solution still awaits
We are still awaiting a solution of the border dispute, the reason why Svenska’s activities in licence E-24 are on hold. The Dalders licence is definitely an interesting asset. Svenska continues accumulating geological knowledge and is ready to go forward once a solution is reached. A new exploration permit has recently been awarded in the Latvian sector not far from the Dalders structure and this will hopefully make the Latvian sector more active in terms of exploration operations.
Svenska has had a 90 per cent interest in the E-24 licence since 2002. The Latvian state holds the remaining 10 per cent. Once an upcoming Latvian-Lithuanian border deal is ratified in the Latvian parliament, Svenska’s subsidiary OPAB will have three years to drill a well.