Lundin spins bit at Luno 2 appraisal

Drilling ahead: Bredford Dolphin

Lundin Petroleum has launched drilling of a second appraisal well at its Luno 2 discovery in the North Sea off Norway.

The 16/4-8S probe, spudded by semi-submersible Bredford Dolphin in Lundin-operated production licence 357, is targeting additional resources in the central-south basin about four kilometres south-east of the discovery well.

It will test the hydrocarbon potential of a Jurassic/Triassic reservoir, with a planned total depth of 2700 metres below sea level.

The Swedish explorer hopes the latest well, with an estimated duration of around 50 days, will prove up additional volumes to boost the find’s current contingent resource estimate of between 26 million and 121 million barrels of oil equivalent.   

Lundin also has on its radar screen a further exploration well to be drilled in the third quarter at the Luno 2 North and Fignon prospects in the same licence that aims to prove up further resources of around 46 million barrels of oil equivalent.

Chief executive Ashley Heppenstall believes that if both wells deliver the goods the company could have a material resource base of as much as 220 million barrels on its hands at the discovery that could lead to a new commercial development in the prolific Utsira High play.

Lundin currently holds a 40% operating stake in the licence but is set to increase its holding to 65% through the pending buyout of Premier Oil’s 30% interest and sale of a 5% interest to existing partner OMV.

The remaining partners are OMV, which presently holds 15% but is set to increase this to 20%, and Statoil, on 15%.

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