OilVoice - Avaldsnes-Aldous Discovery The Largest North Sea Find In Three Decades

Avaldsnes-Aldous Discovery The Largest North Sea Find In Three Decades

Friday, September 30, 2011

The combined Avaldsnes/Aldous Major South discoveries have a gross Contingent Resource range estimate of 1.2 to 2.6 billion barrels of recoverable oil
The discovery is likely to be one of the largest five discoveries on the Norwegian Continental shelf and the largest since the mid 80's, says Lundin
The field was discovered in September 2010 and is divided between two separate exploration licenses

In what is seen as the third-biggest North Sea find, the Avaldsnes/Aldous Major South oil and gas discovery has exceeded expectations adding to significant upgrade in resource estimates for Lundin Petroleum. According to the company the discovery is believed to hold 1.2 to 2.6 billion barrels of recoverable oil.

"This field is a giant and one of the biggest ever on the Norwegian continental shelf," Lundin CEO, Ashley Heppenstall, told a news conference in Oslo.

"The Avaldsnes discovery is estimated to contain gross Contingent Resources of between 800 million and 1.8 billion barrels of recoverable oil within licence PL501 following the results of this year's two appraisal well and sidetrack program. The results from the Aldous Major South discovery well drilled by Statoil in the adjoining licence PL265 were also used when updating the resource range within licence PL501. The Contingent Resource range has been independently audited by Gaffney, Cline & Associates," Lundin said.

The field was discovered in September 2010 and is divided between two separate exploration licenses. According to Lundin the Avaldsnes and the Aldous Major South discovery wells and subsequent Avaldsnes appraisal wells demonstrate that Avaldsnes and Aldous Major South are connected with the same oil water contact, pressure regime, oil type and reservoir.

Statoil as operator for PL265 has announced an estimated recoverable resource range from 400 to 800 million barrels (gross) for Aldous Major South. The combined Avaldsnes/Aldous Major South discoveries therefore have a gross Contingent Resource range estimate of 1.2 to 2.6 billion barrels of recoverable oil.

The discovery is being hailed as the third largest find in the North Sea after Statfjord and Ekofisk fields, each believed to hold more than 3 billion barrels.

Ashley Heppenstall, president and CEO of Lundin Petroleum commented: "Avaldsnes/Aldous which is already a world class discovery has, following this year's appraisal program, become significantly larger. The discovery is transformational for Lundin Petroleum with a 40 percent equity interest in PL501 and 10 percent in PL265. Avaldsnes and Aldous will be developed together and we are already working closely with our partners and Statoil as operator of PL265 to ensure that the project proceeds without delay. The discovery is located in 115 metres water depth, at a reservoir depth of less than 2,000 metres and close to existing infrastructure with significant spare pipeline capacity. The discovery is likely to be one of the largest five discoveries on the Norwegian Continental shelf and certainly the largest since the mid 80's and highlights the continued prospectivity of what many viewed as a mature region with limited remaining potential."

Gro G. Haatvedt, Statoil's senior vice president for exploration on the Norwegian continental shelf said, "Statoil sees a significant resource potential in the Aldous Major South and Avaldsnes area, and our understanding of it is improving all the time."

"Statoil will work with the partners to ensure speedy clarification of the total resource potential in Aldous Major South and Avaldsnes, and a rapid and optimal development of the area," Statoil said.

Avaldsnes is located in licence PL501. Lundin Norway AS is the operator with a 40% interest, partners Statoil and Mærsk have 40% and 20% interests, respectively.

Aldous Major South is located in licence PL265. Statoil is the operator and has a 40% interest. The other partners are Petoro (30%), Det norske oljeselskap (20%) and Lundin Norway AS (10%).