Lundin Norway successfully completes Luno II appraisal well

STOCKHOLM -- Lundin Petroleum AB has announced that its wholly owned subsidiary Lundin Norway AS has successfully completed the Luno II appraisal well 16/4-11 in PL359 on the Utsira High, in the Norwegian North Sea.

The appraisal well was located approximately 2.5 km south of the original Luno II discovery well and is the fifth well on the Luno II oil discovery. The main objective of the appraisal well was to prove additional resources in the Luno II discovery to progress to development.

The appraisal well encountered a gross oil column of 22 m in Triassic sandstone with very good reservoir quality, which is significantly better than expected. The oil-water contact was encountered at 1,947 m below the sea surface. The entire reservoir, including the water zone, consists of sandstones with some conglomeratic sandstone intervals with a total thickness of about 400 m. Extensive data acquisition and sampling have been carried out in the reservoir, including conventional coring and fluid sampling.

Following these positive well results, the previous gross resource range for the Luno II discovery of 30 to 80 MMboe has been increased to between 40 and 100 MMboe. Development studies for Luno II will now be progressed with the objective of submitting a PDO around the end of 2018. The development concept for Luno II is a subsea tie-back to the nearby Edvard Grieg platform.

Lundin Norway is the operator of PL359 with a 50% working interest. The partners are OMV with 20% and Statoil and Wintershall with 15% each.

After completion of the Luno II appraisal well, the semisubmersible drilling rig COSL Innovator will proceed to drill appraisal well 16/1-28S on the nearby Rolvsnes oil discovery in PL338C. The main objective is to confirm commercial rates from a horizontal well that will be drilled in fractured and weathered basement reservoirs similar to the reservoirs currently producing in the northern area of Edvard Grieg field. Rolvsnes is also considered a potential tie-back development to Edvard Grieg and success will further de-risk the larger area prospectivity, estimated to contain gross resources of more than 200 MMboe. Drilling and testing at Rolvsnes is expected to take 115 days.

Lundin Norway is the operator of PL338C with a 50% working interest. The partners are Lime Petroleum with 30% and OMV with 20%.