Luno inching closer to development

Gaffney, Cline and Associates has increased its estimate of 2P reserves in the Luno discovery in the Norwegian North Sea to 136.7 MMbbl of oil and 66.4 bcf of gas.

Offshore staff

STOCKHOLM -- Gaffney, Cline and Associates has increased its estimate of 2P reserves in the Luno discovery in the Norwegian North Sea to 136.7 MMbbl of oil and 66.4 bcf of gas.

Operator Lundin Petroleum has completed much of its conceptual studies for a standalone development for Luno, and will submit a Plan of Development to the Norwegian authorities in 2011.

In parallel, the company is considering a joint development with the nearby Draupne field. If this emerges as the most beneficial solution to both partnerships, a Plan of Development will also be submitted next year.

Drilling results from the ongoing Apollo exploration well in license PL 338 may further impact the scheme for Luno.

Ashley Heppenstall, President and CEO of Lundin Petroleum, said: "We are very pleased to announce an increase to Luno reserves of over 50%...

“In addition with the recent announcement of our Avaldsnes discovery in PL501 we believe the Greater Luno Area will emerge as a material new production hub on the Norwegian Continental Shelf."

Lundin Petroleum operates PL 338 in partnership with Wintershall Norge and RWE Dea Norge.

10/28/2010

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