Calgary-based independent Oilexco has declared the Bugle oil discovery in the North Sea commercially viable after a sidetrack well.

A test of “Dirk” and “Upper Valley” detected at a combined 560 feet of oil in two accumulations, it was understood Wednesday.

Oilexco drilled the well and earned a 41 percent interest in the discovery on Block 15/23d, which is operated by On behalf of the licence operator Nexen (41 percent) and partner ENI (18 percent).

The original 15/23d-13 discovery well, drilled in 1997, encountered 85 ft. of oil-bearing Jurassic Sandstone and 123 ft. of oil-bearing Jurassic Galley Sandstone.

Oilexco re-entered the well on Christmas Eve, 2007, when the objective had been to find the oil-water contact. The result, instead, “significantly increaseed” the size of the Bugle oilfield and now first oil is targeted for 2010 after a development to tie-in Bugle and nearby Black Horse to the Scott Platform.

The Ocean Guardian semi-submersible rig -- under long term contract to Oilexco -- next heads to Block 23/21 and the Moth prospect south of the Lomond gas field.

A production well and appraisal sidetracks will be drilled at Bugle later this year.

Tags: Eni, Nexen Petroleum U.K. Limited, Oilexco Incorporated