Successful appraisal well and extended production test on Alta
Lundin Petroleum AB (Lundin Petroleum) is
pleased to announce that its wholly owned subsidiary Lundin Norway
AS (Lundin Norway) has successfully completed the Alta appraisal
well 7220/11-5 and extended production test in PL609 in the
southern Barents Sea.
Highlights:
- Results were better than expected, demonstrating excellent
reservoir productivity and connectivity to a large volume
- Successfully completed 700 metres horizontal appraisal well
through karstified and fractured carbonate reservoir, a first on
the Norwegian Continental Shelf
- Two month flow period with a maximum production of 18,000 bopd
constrained by the surface production facilities with a total of
approximately 675,000 barrels of oil produced
- Results expected to increase the Alta resource estimate and
reduce the uncertainty range
The appraisal well is located approximately 4 km
south of the original Alta discovery well and is the fifth well
drilled on the Alta discovery. The main objectives of the appraisal
well and extended production test was to prove sustainable
production rates and reduce the uncertainty around the recovery
mechanism in the Permian-Triassic karstified and fractured
carbonate reservoirs to provide the basis to progress development
studies.
The semi-submersible drilling rig Leiv Eiriksson
was used for the drilling and testing at Alta. The well was tested
through the rig and the produced volumes were flowed via a flexible
flowline to the Teekay Scott Spirit tanker. The oil produced to the
tanker will be delivered to the Mongstad oil terminal on the west
coast of Norway and will be subsequently sold.
The well was drilled 700 metres horizontally in
the oil zone, encountering all targeted reservoir intervals and
with reservoir properties better than prognosis. As anticipated
fluid losses were encountered while drilling the well, which were
successfully managed, demonstrating the technical viability of
developing the Alta field with horizontal wells.
The extended production test duration was over a
period of about two months, with 30 days at a constrained rate of
around 7,500 barrels of oil per day (bopd) and the second period
totalling 25 flowing days of up to 18,000 bopd constrained by the
surface production facilities. A total of approximately 675,000
barrels of oil was produced during the test. Extensive data
acquisition and sampling have been carried out during the test,
including production logging. The results were better than
expected, demonstrating excellent reservoir productivity with
contribution from all reservoir intervals and connectivity to a
large volume.
Prior to the extended production test the
combined gross resource range for the Alta and Gohta discoveries
was estimated at between 115 and 390 million barrels of oil
equivalent (MMboe). These positive results are expected to increase
the Alta resource estimate and reduce the uncertainty range. Once
all new data gathered from the well, combined with the recently
available latest generation 3D seismic survey (TopSeis) that covers
the entire Alta and Gohta area, has been processed the resource
range for the Alta and Gohta discoveries will be updated in early
2019 with the Company’s year-end 2018 reserves process.
Studies for commercialising Alta will now be
progressed to determine additional appraisal drilling requirements
and the optimal development concept. The current development
concept for Alta is a subsea field development connected to a
standalone floating production and storage vessel. The adjacent
Gohta discovery located in PL492 is considered a possible joint
development opportunity together with the larger Alta
discovery.
Lundin Norway is the operator of PL609 with a 40
percent working interest. The partners are DEA Norge and Idemitsu
Petroleum Norge with 30 percent working interest each.
Commencement of second half 2018
exploration drilling campaignThe Leiv Eiriksson rig will
next proceed to drill exploration well 6307/1-1S on the Silfari
prospect in PL830 located in the Froan Basin area of the Norwegian
Sea. This is a play opening well on the undrilled Frøya High/Froan
Basin area where Lundin Norway has secured a significant acreage
position through recent licensing rounds. The well is located
approximately 40 km south of the Draugen and Njord fields and 30 km
southeast of the Fenja field. The main objective of the well is to
test the reservoir properties and hydrocarbon potential of the
Permian and Jurassic formations and on success there are multiple
follow-on drilling opportunities. The Silfari prospect is estimated
to contain gross unrisked prospective resources of 193 MMboe.
Drilling operations are expected to take approximately 100
days.
Lundin Norway is the operator of PL830 with a 40
percent working interest. The partners are Equinor, VNG Norge and
Petoro with 20 percent working interest each.
Alex Schneiter, President and CEO of
Lundin Petroleum comments:
“I am very pleased to announce the successful
completion of the appraisal well and extended production testing at
Alta. The results exceeded our expectations, demonstrating
sustainable flow rates and exceptional reservoir productivity,
which we expect will result in lifting our resource estimate for
the Alta discovery. We have significantly advanced our
understanding of this complex carbonate reservoir, the development
of which would be a first for Norway. We will now concentrate our
efforts on further defining the route to commercialisation and
progressing development concept studies.
“Our exciting organic growth programme is
delivering results with five successes out of six wells drilled so
far this year. We now have a pipeline of five appraisal projects
moving towards development, creating the opportunity for upside
beyond our “do nothing” production growth outlook.”
Lundin Petroleum is one of Europe’s leading
independent oil and gas exploration and production companies with
operations focused on Norway and listed on NASDAQ Stockholm (ticker
"LUPE"). Read more about Lundin Petroleum’s business and operations
at www.lundin-petroleum.com
For further information, please contact:
Edward WestroppVP Investor RelationsTel: +41 22 595 10
14edward.westropp@lundin.ch |
|
Sofia AntunesInvestor Relations OfficerTel: +41 795 23 60
75sofia.antunes@lundin.ch |
|
Robert ErikssonManager, Media CommunicationsTel: +46 701 11 26
15robert.eriksson@lundin-petroleum.se |
Forward-Looking Statements
Certain statements made and information
contained herein constitute "forward-looking information" (within
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and information (together, "forward-looking statements") relate to
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- Lundin Petroleum - Successful EWT Result at AltaV5
20180925en