Norway-based exploration and production outfit Rocksource said it might alter its plans to roughly double production by 2010 to 5,000 barrels of oil equivalent per day if the oil price does not improve.

The company declared an untested discovery at its U.S. Granbury 2 well without much fanfare on Friday, perhaps becuaes it was also announcing its U.S. businesses had averaged 25 percent less production, or 1,735 boepd.

“The decline in production is partly due to delays in current drilling campaign as previously reported, partly due to a higher counter pressure in the main pipeline from overall lower sales causing lower flow from our fields due to less pressure in our, and pipelines, and partly due to necessary well maintenance.

Meanwhile, at Granbury 1, though oil and gas is known to lie in several zones, tests were “in the lower end of expectations”.

In a revelation for the industry, Rocksource said lwo gas prices meant “additional wells must be drilled before new facilities are economically viable” and Rocksource will start planning new plant based on well-test results now being readied.

Tags: Rocksource ASA