Oil discovery in the North Sea

Lundin Norway AS, operator of production licence 338, is in the process of completing the drilling of wildcat well about 4 km northwest of the ”Luno” oil discovery and 3 km south of the ”Draupne” oil discovery. The objective of the well was to prove petroleum in Middle Jurassic reservoir rocks (the Hugin formation), as an extension of Draupne. As expected, the Hugin formation has good reservoir properties, but is dry. However, oil was encountered in two reservoir levels above the Hugin formation. One of the levels has an oil column of approximately ten metres in the Lower Cretaceous/Upper Jurassic sandstone layers, with good reservoir quality. The other level has a total of about 40 gross metres of oil column in Paleocene sandstone strata (the Heimdal formation) with variable reservoir quality.