STOCKHOLM, SWEDEN, Mar 06 (MARKET WIRE) --
Lundin Petroleum AB (TSX:LUP)(OMX:LUPE) (Lundin Petroleum) through its
wholly owned subsidiary Lundin Norway AS (Lundin Norway) is pleased to
announce that the Johan Sverdrup appraisal well 16/3-5 located in PL501
has encountered a 30 meter gross oil column in Upper Jurassic sandstone
and Permian Zechstein Group carbonate reservoir.
The well is located 3 km south of appraisal well 16/3-4 and 3 km east of
appraisal well 16/2-7, both in PL501. A comprehensive logging and coring
program has been successfully completed as well as two production tests
Well 16/3-5 found a 30 metre gross oil column, shallow to depth
prognosis, consisting of a 14 metre Upper Jurassic sandstone of excellent
quality above a 16 metre oil column in a Zechstein Group carbonate of
varying reservoir quality.
Two production test (DST) were conducted investigating flow properties of
the Zechstein carbonate as well as the Upper Jurassic sandstone. The
first DST test in the Zechstein carbonate resulted in low flow rates.
Logs, core and losses while drilling are indicating upside potential for
better flow properties within the Zechstein sequence. The second DST test
in the Upper Jurrassic sandstone sequence tested through a restricted
"48/64" choke resulting in a flow rate in excess of 4,700 barrels of oil
per day (bopd). The DST showed exceptional flow properties, better than
estimated from log evaluations. DST analysis indicates a laterally
continuous reservoir without any flow barriers.
The well will now be plugged and abandoned. The total depth of the well
is 2,025 metres below mean sea level.
The well was drilled using the semi-submersible drilling rig Bredford
Dolphin. The rig will now move to PL359 to drill the Luno II exploration
prospect operated by Lundin Petroleum.
Ashley Heppenstall, President and CEO Lundin Petroleum commented: "We are
extremely pleased with the test results from this latest appraisal well
which in terms of reservoir quality of the Volgian reservoir represents
one of the best tests ever seen in the North Sea. The Zechstein carbonate
test indicates upside potential which will require further evaluation."
Lundin Norway is the operator in PL501 with 40 percent interest. Partners
are Statoil Petroleum AS with 40 percent interest and Maersk Oil Norway
AS with 20 percent interest.
Lundin Petroleum is a Swedish independent oil and gas exploration and
production company with a well balanced portfolio of world-class assets
primarily located in Europe and South East Asia. The Company is listed at
the NASDAQ OMX, Stockholm (ticker "LUPE") and at the Toronto Stock
Exchange (TSX) (Ticker "LUP"). Lundin Petroleum has proven and probable
reserves of 202 million barrels of oil equivalent (MMboe).
This information has been made public in accordance with the Securities
Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act
Certain statements made and information contained herein constitute
"forward-looking information" (within the meaning of applicable
securities legislation). Such statements and information (together,
"forward-looking statements") relate to future events, including the
Company's future performance, business prospects or opportunities.
Forward-looking statements include, but are not limited to, statements
with respect to estimates of reserves and/or resources, future production
levels, future capital expenditures and their allocation to exploration
and development activities, future drilling and other exploration and
development activities. Ultimate recovery of reserves or resources are
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management.
All statements other than statements of historical fact may be
forward-looking statements. Statements concerning proven and probable
reserves and resource estimates may also be deemed to constitute
forward-looking statements and reflect conclusions that are based on
certain assumptions that the reserves and resources can be economically
exploited. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but not
always, using words or phrases such as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should", "believe"
and similar expressions) are not statements of historical fact and may be
"forward-looking statements". Forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such
forward-looking statements. No assurance can be given that these
expectations and assumptions will prove to be correct and such
forward-looking statements should not be relied upon. These statements
speak only as on the date of the information and the Company does not
intend, and does not assume any obligation, to update these
forward-looking statements, except as required by applicable laws. These
forward-looking statements involve risks and uncertainties relating to,
among other things, operational risks (including exploration and
development risks), productions costs, availability of drilling
equipment, reliance on key personnel, reserve estimates, health, safety
and environmental issues, legal risks and regulatory changes,
competition, geopolitical risk, and financial risks. These risks and
uncertainties are described in more detail under the heading "Risks and
Risk Management" and elsewhere in the Company's annual report. Readers
are cautioned that the foregoing list of risk factors should not be
construed as exhaustive. Actual results may differ materially from those
expressed or implied by such forward-looking statements. Forward-looking
statements are expressly qualified by this cautionary statement.
Reserves and Resources
Unless otherwise stated, Lundin Petroleum's reserve and resource
estimates are as at 31 December 2011, and have been prepared and audited
in accordance with National Instrument 51-101 Standards of Disclosure for
Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas
Evaluation Handbook ("COGE Handbook"). Unless otherwise stated, all
reserves estimates contained herein are the aggregate of "Proved
Reserves" and "Probable Reserves", together also known as "2P Reserves".
For further information on reserve and resource classifications, see
"Reserves and Resources" in the Company's annual report.
Contingent Resources are those quantities of petroleum estimated, as of a
given date, to be potentially recoverable from known accumulations using
established technology or technology under development, but are not
currently considered to be commercially recoverable due to one or more
contingencies. Contingencies may include factors such as economic, legal,
environmental, political and regulatory matters or a lack of markets.
There is no certainty that it will be commercially viable for the Company
to produce any portion of the Contingent Resources.
Prospective Resources are those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects. Prospective
Resources have both a chance of discovery and a chance of development.
There is no certainty that any portion of the Prospective Resources will
be discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the Prospective Resources.
BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
Lundin Petroleum AB
Maria Hamilton, Head of Corporate Communications
+41 22 595 10 00
+46 8 440 54 50
Mobile: +41 79 63 53 641
Lundin Petroleum AB
VP Corporate Planning & Investor Relations
+41 22 595 10 00
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