Small discovery, but big hopes at Malaysian natural gas field

STOCKHOLM, Sweden, Oct. 26 (UPI) -- Swedish energy company Lundin Petroleum announced it made a small gas discovery off the coast of Malaysia, where it's placed much of its recent focus.

Lundin said it ran though a 30-foot column of natural gas in an exploration well in the deepwater Bertram field off the coast of Malaysia. The size of the discovery was considered small, though Lundin provided no details on the commercial gas prospects expected after completing the exploration well.

After selling off its Indonesian oil and gas assets in early October for $22 million, Lundin said Malaysia would be central to its growth strategy in Southeast Asia.

Lundin's Malaysian subsidiary started commercial production from the Bertam field in April using four pre-drilled development wells. The field is estimated to hold about 18.4 million barrels of oil equivalent, most of which exists as oil. The field is expected to have a 10-year lifespan.

Lundin revised its production guidance lower to 32,000 barrels of oil equivalents per day as a result of less than expected output from fields off the coast of Norway. Revenue for the first half of the year was $279 million, down nearly 40 percent year-on-year.

The Swedish company is among those struggling through a weakened energy sector, which is plagued by low crude oil prices. Last year, the company said it spent roughly $127 million on exploration programs without success.