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Lundin Completed Drilling of Well 16/5-5 in PL410

Source: www.gulfoilandgas.com 12/20/2013, Location: Europe

Lundin Petroleum AB, through its wholly owned subsidiary Lundin Norway AS (Lundin Norway), has completed the drilling of appraisal well 16/5-5 in PL410. The well targeted a possible southern extension of the Luno II discovery.

The main objective of well 16/5-5 was to prove the southernmost extension of the Luno II discovery in PL410 within a separate segment. The target oil bearing Triassic reservoir was intersected higher than prognosis but with poor quality. The segment is therefore regarded as non-commercial.

Extensive data acquisition including coring and sampling have been carried out. Detailed log analysis suggests lower porosities than anticipated and lower oil saturations as a result of poor reservoir characteristics.

The tested segment is now believed to be located in a separate sub-basin which likely explains the reservoir characteristic variations observed in this appraisal well. The next Luno II appraisal well will be drilled in the second quarter of 2014. It will target the central part of the Luno II discovery believed to be located in the same geological setting as the discovery well where better quality reservoir was found and in the area which contains the majority of the Luno II resource range.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments; "It appears that this well has been drilled into a separate sub-basin with poor reservoir quality. These results should have no impact on the risk associated with the next appraisal well in Luno II central which if successful is likely to confirm Luno II as a commercial discovery".

The semi-submersible drilling rig Bredford Dolphin drilled the well to a total depth of 2,060 metres below mean sea level, in a water depth of 100 metres.

Lundin Norway is the operator and has a 70 percent working interest in PL410. The partner is Statoil Petroleum AS with 30% working interest. The rig will move to drill the delineation well 16/3-8 in PL501, Johan Sverdrup.

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