Mixed Fortunes for Explorations in North Sea

Lundin Norway announced the successful completion of appraisal well 16/1-18 on the Edvard Grieg field in the North Sea sector of the Norwegian Continental shelf. 

The objective of the well is mainly oil.

‘The results of the Edvard Grieg appraisal well provided encouraging results in respect of the quality of the conglomeratic reservoir which is much better than seen in other wells. This provides upside in relation to the resource contribution from this reservoir where we previously assumed low recovery factors,’ Ashley Heppenstall, President and CEO of Lundin Petroleum, said in a note released on Monday.

This is the ninth exploration well in production licence 338 and the sixth exploration well on the Edvard Grieg field. The licence was awarded on 17 December 2004 (APA 2004). 

Lundin Petroleum announced a $1.4 billion budget for expenditure on development projects, increasing by 25% the expenditure for 2013. The majority of the funds will aim at developing projects in Norway.

Also on Monday, Faroe Petroleum reported disappointing results for the Butch East well  8/10-5S. 

“Whilst the results for the Butch East well are disappointing, Butch South West is structurally independent and a highly prospective target with significant upside potential. Once Butch East operations are completed, we will move on directly to drill Butch South West. In the meantime drilling operations are continuing on the first of two side-tracks on the significant Pil discovery in the Norwegian Sea, results from which are expected to be announced in the near future,” Graham Stewart, Chief Executive of Faroe Petroleum, commented in a press release.