Lundin outlines 2015 offshore Norway exploration, development programs

Petroleum Safety Authority Norway has approved Lundin Norway’s request to drill an exploration well on the Gemini prospect in the central Norwegian North Sea.

Offshore staff

STOCKHOLM, Sweden – Petroleum Safety Authority Norway has approved Lundin Norway’s request to drill an exploration well on the Gemini prospect in the central Norwegian North Sea.

The semisubmersibleIsland Innovator is expected to spud well 16/1-24 in 135 m (443 ft) of water on production license PL 338 in block 16/1 later this month.

Drilling will last at least 46 days or longer if a discovery results. In that event, the company plans to drill a side track and perform a production test.

This year, parent companyLundin Petroleum has budgeted $275 million for exploration offshore Norway. Seven wells will be drilled targeting net unrisked prospective resources of 480 MMboe in the company’s core exploration areas, the Utsira high in North Sea and the Barents Sea.

The Utsira High campaign comprises three wells aside from Gemini on the Zulu prospect in PL674; Luno II North in PL359; and Fosen in PL544. In the Møre basin in theNorth Sea, the company will additionally drill the Morkel prospect.

Lundin plans to drill one operated well in the Barents Sea on the Ornen structure in PL708 and on Neiden in PL609.

The company has also budgeted $150 million for three appraisal wells in Norway. Two will be on last year’sAlta discovery in PL609 in the Barents Sea, with the third on the Edvard Grieg field in PL338 in the North Sea, a follow-up to a successful appraisal well on the field in 2014. Rigs have been secured for all three appraisal wells.

As for development, Lundin expects new operator Det norske oljeselskap to bring onstream the Bøyla field in the North Sea during the current quarter.

Work on the Lundin-operated Edvard Grieg field development is progressing according to plan and budget. This year the company has committed a further $490 million for continuous drilling of the development wells, offloading, transportation and installation of the platform topsides, and the completion of the subsea oil and gas pipelines.

Edvard Grieg is expected to come onstream during 4Q, with Lundin’s share of production reaching 50,000 boe/d at peak in mid-2016.

01/07/2015

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