Wednesday, January 25, 2012

Lundin completes Avaldsnes appraisal well

Wednesday, January 25, 2012

Lundin Petroleum has completed the appraisal well, 16/5-2S located approximately 8.5 km south of the Avaldsnes discovery well 16/2-6, and 4 km south of the appraisal well 16/2-7.

The objective of the 16/5-2S well was to delineate the southern flank of the Avaldsnes discovery.

Well 16/5-2S encountered a 15 metres Jurassic sequence of which the upper 8 metres has excellent reservoir quality.

Top reservoir was found deeper than expected, and below the oil water contact. Good hydrocarbon shows were observed below the oil water contact but were currently evaluated as not producible hydrocarbons.

A comprehensive data acquisition program was performed including coring, wire line logging and fluid sampling.

Well 16/5-2S is the first of an extensive Avaldsnes appraisal program comprising at least four wells in PL501 during 2012. This appraisal campaign will address key development planning uncertainties to ensure an efficient and optimal field development process for this exciting discovery.

The impact of this well on the southern extent of the Avaldsnes discovery is currently being evaluated and will most likely reduce current resource estimates for this area. Further geophysical studies and possible appraisal drilling will be required to determine whether the deeper than prognoses, top reservoir depth at this location, is not a local effect.

The well was drilled to a total depth of 2,042 metres MD and in a water depth of 111 metres.

Lundin Petroleum used the semi submersible drilling rig Bredford Dolphin to drill the well. After permanent abandonment of well 16/5-2S the rig will move to the next appraisal well location in PL501, well 16/2-11.

The results of the well will be incorporated into the current reservoir model. A revised resource estimate will be released after the completion of the next appraisal well 16/2-11.

Lundin Norway AS is the operator of PL501 with 40% interest. Partners are Statoil Petroleum AS with 40% interest and Maersk Oil Norway with 20% interest.

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