Lundin frustrated with latest North Sea find

STOCKHOLM, Sweden, Aug. 29 (UPI) -- The Norwegian subsidiary of Swedish energy company Lundin Petroleum said Friday it made an oil discovery in the North Sea, but was disappointed with results.

The company said it found oil in its appraisal well at the Luno II discovery, about 10 miles south of the Edvard Grieg field in the Norwegian waters of the North Sea.

Edvard Grieg was discovered in 2007 and Lundin said it expects peak production to reach 90,000 barrels of oil and 53 million cubic feet of natural gas per day after first production begins in late 2015.

The Norwegian Petroleum Directorate confirmed the latest find from Lundin holds at least 380 million square feet of recoverable oil equivalents from what the company said was an oil column measuring about 100 feet thick.

During a production test, however, Lundin said in a statement the reservoir properties "were lower than expected."

From Edvard Grieg itself, the company in May said it doesn't expect much more oil or gas.

Energy consulting group Wood Mackenzie said Tuesday it believes there are 10 billion barrels of oil equivalent discovered, but yet to be developed, in Norway. About 60 percent of that could be developed commercially.