Lundin Extends Avaldsnes Field with Second Appraisal Well

Lundin Petroleum reported that the second appraisal well, 16/2-7, confirms the continuation of the Avaldsnes field about 3 miles (5.5 kilometers) south of the 16/2-6 discovery well and 2.7 miles (4.5 kilometers) southwest of the first appraisal well 16/3-4.

The second well encountered a large reservoir column of excellent-quality Upper Jurassic age sandstone of about 115 feet (35 meters), of which 23 feet (7 meters) were above the oil water contact. The operator performed a coring and logging program that confirmed the well has excellent quality reservoir characteristics.

Lundin plans to sidetrack the appraisal well to obtain further reservoir data, which is scheduled for completion in mid-September. Drilled by the Bredford Dolphin semisub, the well reached a depth of 8,202 feet (2,500 meters) MD in a water depth of 371 feet (113 meters).

The operator stated that the Avaldsnes /Aldous Major South discovery is already the largest discovery on the Norwegian Continental Shelf since the mid-1980s. Plans call for a third appraisal well drilled on Avaldsnes in 4Q 2011.

Avaldsnes is located on Block 16/2 in 377 feet (115 meters) of water. Lundin serves as operator of Production License 501 with a 40% interest. Partners on the license include Statoil with 40%, and Maersk Oil with 20%.