Lundin Petroleum Spuds Luno II Appraisal Well

Sweden's Lundin Petroleum reported Monday that the drilling of appraisal well 16/5-5 on Norwegian production license 410 has begun.

The well is intended to target the Luno II South structure, which is located some six miles southeast of the Luno II discovery well (16/4-6S) on production license 359. The Luno II discovery itself is located approximately nine miles south of the Edvard Grieg field.

The main objective of the appraisal well is to prove the extension of the Luno II discovery into PL410. The reservoir is expected to be of Jurassic/Triassic age, Lundin said. The firm estimates the Luno II discovery to contain gross contingent resources of 25 to 120 million barrels of oil equivalent. The northern part of the Luno II South structure is located in PL359.

The planned total depth is 7,790 feet below mean sea level and the well will be drilled using the Bredford Dolphin (mid-water semisub) rig. Drilling is expected to take approximately 40 days.

Lundin Norway is the operator, with a 70-percent working interest in PL410. Its partner is Statoil, which has the remaining 30-percent interest.



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