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Lundin identifies additional resources at Edvard Grieg field

Lundin Petroleum has announced that overall reservoir results from its development drilling program at the Edvard Grieg field – located on the Utsira High in the Norwegian North Sea – have exceeded pre-drill expectations. As a result, the best estimate gross ultimate recovery for the field has been increased by 47% from the estimate made in the Edvard Grieg plan of development and operation, extending the field production plateau by two years to the end of 2019.

The drilling program, consisting of 14 development wells, was completed under budget by the Rowan Viking jackup, which is now being demobilized. An infill development drilling program is being planned for 2020, which has the potential to further extend the production plateau. A 4D seismic survey is being acquired over the field this year to refine the infill well targets.

The Edvard Grieg field in PL 338 started production in late 2015. Current gross production from Edvard Grieg is approximately 95,000 bbl of oil equivalent per day, which reflects the facilities capacity allocation with the Ivar Aasen field. The capacity of the Edvard Grieg production wells is currently more than double the available facilities capacity, which provides flexibility to optimally manage the reservoir. The facilities continue to perform ahead of guidance with a production efficiency of 97% year to date. Total gross production from Edvard Grieg from first oil to end of the Q1 2018 amounted to 74 million bbl of oil equivalent (MMboe).

Lundin’s operated oil discoveries Luno II in PL359 and Rolvsnes in PL338C are being matured as subsea tie-back development opportunities to the Edvard Grieg facilities. The recent Lille Prinsen oil discovery in PL167 is also a possible area tie-back opportunity. Additionally, further area prospectivity is being matured for drilling in 2019. In total, there is potential to double the resources to be produced through the Edvard Grieg facilities.

The resource upside at Edvard Grieg and the additional resource potential in the area are incremental to Lundin’s long-term production guidance and have the potential to keep the Edvard Grieg facilities full for many years, maintaining the current operating cost for the field of below $4/bbl.

Alex Schneiter, President and CEO of Lundin, said, “Edvard Grieg is a key asset for Lundin Petroleum. I am very pleased with the performance of the field on all fronts and convinced that we will eventually see the gross ultimate recovery grow to more than 300 MMboe. The exciting tie-back opportunities in the area have the potential to double the volumes produced through Edvard Grieg, allowing us to keep the facilities full for many years to come.”

Lundin Norway is the operator of PL338 with a 65% working interest. The partners are OMV with 20% and Wintershall with 15%.



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