A New Giant in Norway
In September 2010 an exploration well on the Avaldsnes prospect in PL501 (WI 40%), located 25 km east of the Luno field, resulted in a giant oil discovery. A further large discovery was made on the same structure in the neighbouring PL265 (WI 10%) on the Aldous Major South prospect. In early 2012 the Avaldsnes/Aldous discovery is renamed Johan Sverdrup. Following an appraisal drilling programme, the Johan Sverdrup structure was estimated to contain between 1.7-3.3 billion boe of gross recoverable resources making it the largest discovery on the NCS since the mid-eighties. Appraisal and exploration activities during 2012 will further prove up the Johan Sverdrup area.

Production
The Alvheim field during 2010 produced on average 12,900 boepd net to Lundin Petroleum. Gross ultimate recoverable reserves increased to 246 MMboe. Phase 1 of the Alvheim project has been successfully completed and Phase 2 which involves the drilling of three additional multi-lateral wells is expected to be completed in 2011. There is further potential in the greater Alvheim area from existing discoveries and from exploration.

The Volund field is located to the south of Alvheim and is a sub-sea tieback to the Alvheim FPSO. The field came on stream in May 2010 and gross plateau production is expected to be over 25,000 boepd.

Development
The Luno prospect in licence PL338 was successfully drilled as an oil discovery in late 2007. After appraisal drilling, gross 2P reserves were certified at 95 MMboe and later increased to 149 MMboe. Conceptual development studies are ongoing to select a development concept with a development plan submission scheduled for 2011. The Tellus discovery made in 2011 will be included in the Luno development plan. A further discovery was made during 2009 on the Luno South prospect.

The PDO for the development of the Gaupe field (PL292) was approved in June 2010 as a two well subsea tie-back to the Armada platform located in the UK. Gaupe is expected to come on stream in 2012. The Brynhild field(PL148) PDO received approval in November 2011.The development of Brynhild will be a three well subsea tie-back to the Pierce FPSO located in the United Kingdom. A further subsea tie-back project,the Bøyla field in PL340, is in the development pipeline.

Exploration
Further discoveries have been made in Norway on the Apollo, Caterpillar and Skalle prospects.

Lundin Petroleum has an active ongoing exploration/appraisal programme in Norway. A total of 14 wells are scheduled to be drilled in 2012.