Utsira High upgrades lift Lundin’s Norway reserves

Lundin Petroleum’s proved plus probable (2P) reserves offshore Norway totalled 745 MMboe at the end of 2018.

Offshore staff

STOCKHOLM, Sweden – Lundin Petroleum’s proved plus probable (2P) reserves offshore Norway totalled 745 MMboe at the end of 2018.

This was the fifth consecutive year that the company had managed to more than replace its production, with the increase in reserves related mainly to estimates for the Johan Sverdrup,Edvard Grieg and Alvheim area fields, all in the Norwegian North Sea.

At Sverdrup, the upgrade followed positive development drilling results and sanctioning of the water alternate gas (WAG) injection project, while at Grieg production performance remains above expectations with much slower build-up of water production than anticipated. This has led Lundin (as operator) to forecast an extension of plateau production at the field to mid-2020.

Last year’s 4D seismic survey over Grieg confirmed that the water injection flood front is further away from the main producer wells than the prediction in the current reservoir models.

This year the company will look to sanction a three-well infill drilling program on Grieg in 2020, which will allow 10 MMboe of net contingent resources to be converted to 2P reserves.

Lundin’s contingent resources at year-end were 40 MMboe higher than in 2017, at 225 MMboe, mainly as a result of theFrosk (Alvheim area) and Lille Prinsen (Utsira High area) discoveries, strong results from appraisal drilling on Luno II, Rolvsnes and Gekko, and the acquisition of an additional 15% interest in Luno II.

It expects sanction for Phase 1 of the Utsira High Luno II development project during the current quarter along with an extended well test on Rolvsnes, which will be developed in parallel with Luno II.

In the southern Barents Sea, the company continues to assess data from the Alta extended well test and theTopSeis 3D seismic survey across the Alta and Gohta area. Future appraisal work should be determined later this year once all the additional data has been processed.

Consultant ERCE audited the reserves.

01/14/2019

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