8 July 2011
SKALLE WELL IN THE BARENTS SEA IS A GAS DISCOVERY
Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB (Lundin Petroleum), operator of production licence 438, has completed well 7120/2-3S on the Skalle prospect as a gas discovery. A comprehensive logging and coring program has been acquired.
The well is situated approximately 25 kilometers north of the Snøhvit Field in the south western part of the Barents Sea. The primary target for the well was to prove hydrocarbons in reservoir rocks from both the Cretaceous and the Jurassic age. Gas was proven in three separate zones.
The initial gross contingent resource range for the Skalle discovery is estimated at between 88 to 280 billion cubic feet (bcf) (15 to 50 million barrels of oil equivalent (MMboe)). There is a potential for a deeper oil leg in the lower Cretaceous reservoir of Skalle and an upside potential in Skalle substructures.
The results of the well will be further analysed to determine the appraisal program for the discovery.
Ashley Heppenstall, President and CEO of Lundin Petroleum comments; "The Skalle gas discovery is close to existing infrastructure with upside potential both in nearby substructures and other prospects on the licence. We remain confident regarding the oil prospectivity of Lundin Petroleum's Barents Sea acreage."
The well 7120/2-3S is the first exploration well in PL438 and was drilled to a vertical depth of approximately 2,600 meters below sea level.
Well 7120/2-3S was drilled using the rig Transocean Leader, which now will move to PL265 in the Greater Luno Area in the Norwegian North Sea to drill the Aldous Major South exploration well 16/2-8. Statoil ASA is the operator of PL265 and Lundin Petroleum has a 10 percent interest.
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in Europe, South East Asia, Russia and Africa. 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 187 million barrels of oil equivalent (MMboe).
For further information, please contact:
C. Ashley Heppenstall,
President and CEO
Tel: +41 22 595 10 00
Head of Corporate Communications
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
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