Lundin All Smiles over Johan Sverdrup Sidetrack, Lines Up Next Appraisal

Lundin Petroleum AB announced that its wholly owned subsidiary Lundin Norway AS (Lundin Norway) has successfully completed the side-track 16/2-13A of the appraisal well 16/2-13S. The results from the well are excellent in respect of reservoir quality and thickness, validating the field geological model and confirming a deeper oil water contact at this location. The well 16/2-13S was drilled approximately 1.5 miles (2.4 kilometers) north east of the discovery well 16/2-6, and the side-track 16/2-13A was drilled with a 1,250 meters step-out towards north-north west. The Johan Sverdrup field is located in licenses PL501 and PL265 on the Norwegian Continental Shelf (NCS).

The side-track well (16/2-13A) encountered a gross reservoir column of approximately 72 feet (22 meters), of which 39 feet (12 meters) were above the oil water contact. The top of the reservoir was 13 feet (4 meters) shallower than the prognosis. The oil water contact was established at approximately 6,316 feet (1,925 meters) below Mean Sea Level which is approximately 10 feet (3 meters) deeper than observed in earlier PL501 wells. A comprehensive coring and logging program has been performed which confirmed the good reservoir properties encountered in the appraisal well 16/2-13S. The total depth of the side-track was 9,108 feet (2,776 meters). The wells will be plugged and abandoned.

It has recently been decided that the location of one of the remaining two 2012 appraisal wells to be drilled on PL501 will be in the northern Johan Sverdrup area. The appraisal well 16/2-16 will be drilled 2.3 miles (3.7 kilometers) to the northwest of the 16/2-13 well.

Ashley Heppenstall, President and CEO of Lundin Petroleum commented, "The results from the latest appraisal well are positive. The Johan Sverdrup reservoir quality, as in previous wells, was excellent. However, we are particularly pleased that the side-track was not only shallow to prognosis but also encountered a lower oil water contact. We will now drill our next appraisal well to the north west to test the extent of the field in this area."

Lundin Norway is the operator of PL501 with a 40 percent interest. Partners are Statoil Petroleum AS with a 40 percent interest and Maersk Oil Norway AS with a 20 percent interest.


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