Lundin frustrated with latest North Sea find

Production tests disappointing, company says.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   Aug. 29, 2014 at 9:01 AM
| License Photo

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.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Compact cannon for British armored vehicles
Kraft-Heinz merger forms world's fifth-largest food-beverage company
Ford recalls 432,000 North American vehicles over software bug
Aetna to acquire Humana for $37 billion in cash, stocks
New Zealand military receives medium heavy military trucks