UPDATE:Total's Victoria Gas Find Smaller Than Thought

Total's (TOT) Victoria gas find offshore Norway is smaller than originally thought, the country's petroleum directorate, or NPD, said Thursday.

"Preliminary estimates indicate that the discovery may be within the range of 20-60 billion standard cubic meters of recoverable gas," the NPD said.

That compares with earlier estimates of 89 billion cubic meters of gas, which would have been Norway's largest undeveloped gas discovery, the NPD said.

Total recently completed an appraisal well at the prospect in the Norwegian Sea which clarified the extent of the reserves.

"The result is of course disappointing. The most important things now is to give the operator time and opportunity to analyze samples and data to ascertain what this means" for the development, said NPD's Director for Exploration Sissel Eriksen.

The results from the well were being watched closely because they were considered decisive for this section of the Norwegian Sea where several gas discoveries have been made including Luva, Onyx, Gro and Marulk.

The finds have raised hopes of a new Norwegian gas production hub, supporting new infrastructure in the area, but Total's disappointing revision means a decision on developing will take longer than assumed.

Victoria is a high pressure, high temperature reservoir, meaning it would already be more difficult and costly to develop.

The well was the deepest ever in the Norwegian shelf, reaching 5,664 meters below the surface of the sea. Total owns 40% of Victoria, while StatoilHydro ASA (STO) and Eni Norge (E) each own 30%.

Directorate Web site: www.npd.no

-By Elizabeth Adams, Dow Jones Newswires; [phone]; [e-mail]