OSLO (AP) — Norwegian state-controlled oil company StatoilHydro ASA struck oil and natural gas with an exploratory well drilled in the North Sea, 90 miles (150 kilometers) from the coastal town of Stavanger, the company announced Wednesday.

The well was drilled near its Grane and Gudrun fields in water depths of 350 feet (109 meters), and showed both oil and natural gas, StatoilHydro said.

The company said more study is needed to assess the extent of the find. However, it said preliminary estimates suggest natural gas reserves of 105-360 billion cubic feet (3-10 billion cubic meters) assuming the new find is part of the same reservoir found by a 2007 well drilled 4 miles (6.5 kilometers) farther north.

The government has been encouraging oil companies to search for small finds in so-called mature areas — where fields are already producing — in hopes of offsetting Norway’s slowly dwindling production. Tying new finds into existing fields and pipelines dramatically cuts development costs and time.

“This represents a new and exciting play,” said Noralf Steinsland, StatoilHydro’s offshore license manager for the North Sea. “It increases opportunities for further discoveries in a mature area.”

StatoilHydro has a 40 percent stake in the field, which it operates on behalf of partners, the government oil investment company Petoro has 30 percent, Det Norske Oljeselskap ASA has 20 percent and Talisman Energy Norway has 10 percent.

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On the Net:

www.statoilhydro.com

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