Lundin Petroleum finds oil in North Sea

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STOCKHOLM, Sweden, Oct. 11 (UPI) -- The Norwegian subsidiary of Swedish company Lundin Petroleum announced it encountered oil in a North Sea field but it was too early to estimate its potential.

Lundin Norway said it completed drilling an exploration well in the Albert prospect in the northern waters of the North Sea off the Norwegian coast.

The company said it encountered oil but the characteristics of the reservoir meant further geophysical and geological studies were needed to clarify the potential of the discovery.

Ashley Heppenstall, president and chief executive officer of Lundin Petroleum, said the existence of oil in the well, however, was "encouraging." There remains the potential for commercial discoveries in the region if drilling confirms thicker reservoir characteristics, he said.

The company announced Wednesday it started drilling in similar structures in the Barents Sea. Independent estimates of a discovery by Lundin reported last week in the Barents Sea confirmed natural gas volumes of more than 29 million barrels of oil equivalent.

The Norwegian government said this week it expected investments in the oil and natural gas sector to reach $30 billion by the end of the year.