Lundin budgets $725 million for E&P

Lundin Petroleum has budgeted $350 million for exploration around the world this year.

Offshore staff

STOCKHOLM, Sweden --Lundin Petroleum has budgeted $350 million for exploration around the world this year.

It plans to drill 13 exploration and three appraisal wells, targeting up to 1.56 Bboe of net risked and unrisked reserves. Its current proven and probable reserves amount to 184.2 MMboe.

Most activity in Europe will center on the North Sea. Offshore Norway, Lundin will operate or participate in three exploratory wells and at least three appraisal wells. The appraisal drilling program relates to the Luno, Nemo, and South East Tor discoveries.

In the UK North Sea, Lundin will drill a well close to its small Scolty oil find, and in the Russian sector of the Caspian Sea it is lining up two exploration wells on the Lagansky block.

Elsewhere, it will participate in two exploratory wells off Vietnam and Congo. Rigs have been secured for all these programs except Congo.

As for field development, the main focus of the company's $375 million budget this year will be on the North Sea. Lundin is a partner to Marathon in the Alvheim project, where production should start end-March, peaking at 90,000 boe/d, and in the related Volund development, due on stream in 2009.

In the UK sector, Lundin is making progress with its re-development of the Thistle field facilities, and expects to reactivate the platform's drilling rig this year.

01/08/2008

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