Lundin Makes Minor Oil Discovery Near Snøhvit Field (Norway)

Lundin Norway AS, operator of production licence 490, has completed the drilling of wildcat well 7120/6-3 S in the Barents Sea, offshore Norway. The well was drilled about 10 kilometres northwest of the Snøhvit field.

The objective of the well was to prove petroleum in reservoir rocks from the Early Cretaceous and Late Jurassic Ages (the Kolmule, Knurr and Hekkingen formation).

The well encountered oil in a gross eight-nine metre column in thin sandstone strata above a 25-metre sandstone sequence in the Kolmule formation. No reservoir rocks were encountered in the Knurr and Hekkingen formation.

Preliminary estimates indicate that the discovery is not profitable. However, evaluation and analyses will be performed to further clarify the resource potential of the discovery.

The well was not formation-tested, but extensive data acquisition and sampling have been carried out. This is the first exploration well in production licence 490. The licence was awarded in APA 2007.

The well was drilled to a vertical depth of 2993 metres below the sea surface, and terminated in the Kapp Toscana group from the Early to Middle Jurassic Age. Water depth at the site is 330 metres. The well will now be permanently plugged and abandoned.

Well 7120/6-3 S was drilled by the Transocean Arctic drilling rig, which will now proceed to production licence 475 in the Norwegian Sea to drill wildcat well 6407/1-6 S, where Wintershall Norge AS is the operator.

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Press Release, November 26, 2012