April 11 (UPI) -- The results of an appraisal well in the Edvard Grieg oilfield in Norwegian waters could lead to an increase in the overall reserve estimate, a company said.
Lundin Petroleum said its Norwegian subsidiary confirmed the presence of reserves in an appraisal well drilled about a mile away from the platform positioned over the Edvard Grieg field. The purpose of the well was to prove additional resources and Lundin said it estimated the presence of up to 30 million barrels of oil equivalent at the appraisal well.
"The final implication for total reserves for the Edvard Grieg field will be quantified in the 2017 year end reserves update," the company stated.
For 2017, Lundin said nearly all of its $1.1 billion in development spending for the year was targeting reserves in Norway and most of that was targeting operations tied to the larger fields like Edvard Grieg. Oil was first pulled out of the field in November 2015.
Apart from Russia, Norway is a top oil and gas exporter to the European market. Nearly all of its offshore oil and gas is designated for exports.
For the company itself, Lundin gained some leverage in Norwegian waters last year when regional major Statoil spent $538 million to acquire an 11.9 percent stake in the company.
In a separate statement, Lundin said it received conditional approval to list shares of a spinoff company on the open market. The company completed the establishment of its International Petroleum Corp. in early April, breaking off its non-Norwegian assets into another company.
When announcing plans to form IPC in February, Lundin said its sole focus would be on operations in the Norwegian waters of the North Sea and the Barents Sea.