Examines the drivers for exploration performance

The report offers an explanation of the differences in exploration performance of Norwegian companies, putting a different perspective on what changes might result in better performance.

Norway remains a mainstay for explorers in the small to mid-cap E&P sector, with activity levels proving somewhat resilient to the fall in oil prices. Norway continues to attract significant exploration capital, indeed, in contrast to most other petroleum provinces the country’s activity levels were relatively unaffected by the downturn in oil prices, supported by the 78% tax rebate available to operators for exploration expenditure. However, in the light of Norway’s declining exploration performance over recent years, this is an opportune time for companies – and arguably Norwegian tax payers – to reflect on the results of drilling programmes to date and assess how performance might be improved in the future.

An analysis of activity, efficiency and influences

In an attempt to untangle and perhaps explain the large differences in exploration performance between companies REP has examined correlation between exploration performance and a number of difference metrics, including play selection and companies’ focus on high impact of infrastructure led prospects.

The first part of the report looks at the overall industry performance in Norway. The second section looks at company activity, discovered volumes and exploration efficiency. The final part considers the influences on company performance