Stockholm, 2013-03-06 08:35 CET (GLOBE NEWSWIRE) --
Lundin Petroleum AB (Lundin Petroleum) through its wholly owned subsidiary Lundin Norway AS (Lundin Norway) is pleased to announce that the Johan Sverdrup appraisal well 16/3-5 located in PL501 has encountered a 30 meter gross oil column in Upper Jurassic sandstone and Permian Zechstein Group carbonate reservoir.
The well is located 3 km south of appraisal well 16/3-4 and 3 km east of appraisal well 16/2-7, both in PL501. A comprehensive logging and coring program has been successfully completed as well as two production tests (DST).
Well 16/3-5 found a 30 metre gross oil column, shallow to depth prognosis, consisting of a 14 metre Upper Jurassic sandstone of excellent quality above a 16 metre oil column in a Zechstein Group carbonate of varying reservoir quality.
Two production test (DST) were conducted investigating flow properties of the Zechstein carbonate as well as the Upper Jurassic sandstone. The first DST test in the Zechstein carbonate resulted in low flow rates. Logs, core and losses while drilling are indicating upside potential for better flow properties within the Zechstein sequence. The second DST test in the Upper Jurrassic sandstone sequence tested through a restricted "48/64" choke resulting in a flow rate in excess of 4,700 barrels of oil per day (bopd). The DST showed exceptional flow properties, better than estimated from log evaluations. DST analysis indicates a laterally continuous reservoir without any flow barriers.
The well will now be plugged and abandoned. The total depth of the well is 2,025 metres below mean sea level.
The well was drilled using the semi-submersible drilling rig Bredford Dolphin. The rig will now move to PL359 to drill the Luno II exploration prospect operated by Lundin Petroleum.
Ashley Heppenstall, President and CEO Lundin Petroleum commented:"We are extremely pleased with the test results from this latest appraisal well which in terms of reservoir quality of the Volgian reservoir represents one of the best tests ever seen in the North Sea. The Zechstein carbonate test indicates upside potential which will require further evalution".
Lundin Norway is the operator in PL501 with 40 percent interest. Partners are Statoil Petroleum AS with 40 percent interest and Maersk Oil Norway AS with 20 percent interest.
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets primarily located in Europe and South East Asia. The Company is listed at the NASDAQ OMX, Stockholm (ticker "LUPE") and at the Toronto Stock Exchange (TSX) (Ticker "LUP"). Lundin Petroleum has proven and probable reserves of 202 million barrels of oil equivalent (MMboe).
For further information, please contact:
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Maria Hamilton Head of Corporate Communications E-mail: maria.hamilton@lundin.ch Tel: +41 22 595 10 00 Tel: +46 8 440 54 50 |
Teitur Poulsen VP Corporate Planning & Investor Relations Tel: + 41 22 595 10 00 |
This information has been made public in accordance with the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980).
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Reserves and Resources
Unless otherwise stated, Lundin Petroleum's reserve and resource estimates are as at 31 December 2011, and have been prepared and audited in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). Unless otherwise stated, all reserves estimates contained herein are the aggregate of "Proved Reserves" and "Probable Reserves", together also known as "2P Reserves". For further information on reserve and resource classifications, see "Reserves and Resources" in the Company's annual report.
Contingent Resources
Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. There is no certainty that it will be commercially viable for the Company to produce any portion of the Contingent Resources.
Prospective Resources
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources.
BOEs
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
