OSLO, Norway, Aug. 7 (UPI) -- Swedish energy company Lundin Petroleum said Wednesday it made a small oil discovery off Norway and is upbeat about future production rates.
Lundin said it completed an exploration well near the western edge of the Johan Sverdrup discovery in the North Sea. Norwegian energy giant Statoil last year estimated there were 900 million to 1.5 billion barrels of recoverable oil equivalent in Johan Sverdrup, twice the previous estimate.
Lundin said the discovery, however, was small, measuring approximately 50 feet and had poor production characteristics.
The update came as Lundin posted a 10 percent decline in profits to $244 million for the second quarter though it said in a statement it was on pace to produce at least 33,000 barrels of oil equivalent per day for the year. That figure could be expanded if all of its projects in Norway start operating by the end of the year.
Lundin said its appraisal program in the Johan Sverdrup field was "extensive." Chief Executive Officer Ashley Heppenstall said in a statement three projects on the books could double production rates to more than 70,000 barrels of oil equivalent by 2015.
