UPDATE 1-Total's Norvarg gas find in Norway may be smaller than thought

Wed Jul 31, 2013 2:58am EDT
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* Find was seen holding up to 315 mln boe

* Appraisal well shows daily flow rate of 175,000 cubic metres

OSLO, July 31 (Reuters) - French energy firm Total's Norvarg gas find in the Norwegian Arctic may be smaller than earlier thought, Det norske, a partner in the find said on Wednesday.

An appraisal well showed a maximum gross production rate of 175,000 cubic metres of gas per day, below that of 180,000 cubic metres in an earlier test on another part of the discovery.

"First assessment of the appraisal well results indicates that the resource range may have to be reduced on Norvarg, as compared to the initial evaluation from the discovery well," Det norske said in a statement.

Norvarg in the Barents Sea was earlier seen holding between 63 million and 315 million barrels of oil equivalents with markets considering around 200 million barrels as the likely size.

"As predicted the quality of the Kobbe reservoir (in Norvarg) is variable and further analysis is required to confirm the productivity of some of the reservoir intervals," North Energy, another partner said.

Partners in the license include Total (40 pct), North Energy (20 percent), Ithaca Energy (13 percent), Statoil (10 percent), Det Norske (10 percent), and Rocksource (7 percent).