JOHAN SVERDRUP PL501 APPRAISAL WELLS 16/3-8 S and 16/3-8 S

Stockholm, 2014-03-27 08:31 CET (GLOBE NEWSWIRE) --  

Lundin Petroleum AB (Lundin Petroleum), through its wholly owned subsidiary Lundin Norway AS (Lundin Norway), is pleased to announce that the Johan Sverdrup appraisal wells 16/3-8 S and 16/3-8 S T2, located in the eastern part of PL501, have been successfully completed. Appraisal well 16/3-8 S is located on the Avaldsnes High, in the eastern part of the Johan Sverdrup discovery. The well was drilled approximately 4 km south-east of the discovery well 16/2-6 and approximately 3 km west of appraisal well 16/3-4. The purpose of the well was to investigate the thickness and quality of the late Jurassic Draupne sandstone reservoir as well as the Permian Zechstein carbonates. The well 16/3-8 S encountered an oil filled reservoir consisting of 13 metres of late Jurassic Draupne sandstone with excellent reservoir quality and a very high net to gross ratio.  A production test (DST) has been performed in this interval and flowed at a rate of 4,900 bbl/d of oil through a 52/64" choke. The pressure data information has proven exceptional production properties and lateral extension over an extensive area of the Avaldsnes High location. The DST showed that some of the best reservoir quality is found in the central area of the Avaldsnes High with an exceptionally high permeabilty of 65 Darcy and no flow restrictions within 3 to 4 km of radius of investigation. This is the 5th well that has been production tested (DST) in PL501 and the investigated area now covers a majority of the Avaldsnes High area. The well 16/3-8 S also encountered 67 metres of Zechstein carbonates with variable, but mostly tight, reservoir quality with oil shows. The oil water contact is interpreted at 1,925 metres below mean sea level (MSL) with oil sampled at 1,924.5 metres below MSL. The well was drilled to a total vertical depth of 2,010.5 metres below MSL into sediments of Permian age. A comprehensive coring and logging program has been successfully completed. A technical side-track, 16/3-8 S T2, was drilled to investigate petrophysical properties in the reservoir. This data were successfully acquired and is being analysed. Ashley Heppenstall, President and CEO of Lundin Petroleum commented: "The test results from this well are as good as anything previously encountered on the Norwegian Continental Shelf. Prior to drilling this well there was a risk that the good quality Volgian reservoir thinned out or even disappeared on the Avaldsnes High area of the Johan Sverdrup field. This well has proven that this is certainly not the case and the Volgian reservoir is contiguous over this area." The well was drilled using the semi-submersible drilling rig Bredford Dolphin. Lundin Norway is the operator in PL501 with a 40 percent interest. The partners are Statoil Petroleum AS with 40 percent interest and Maersk Oil Norway AS with a 20 percent interest. Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets primarily located in Europe and South East Asia. The Company is listed at the NASDAQ OMX, Stockholm (ticker "LUPE") and at the Toronto Stock Exchange (TSX) (Ticker "LUP"). Lundin Petroleum has proven and probable reserves of 194 million barrels of oil equivalent (MMboe).

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These risks and uncertainties are described in more detail under the heading "Risks and Risk Management" and elsewhere in the Company's annual report.  Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements.   Forward-looking statements are expressly qualified by this cautionary statement. Reserves and Resources Unless otherwise stated, Lundin Petroleum's reserve and resource estimates are as at 31 December 2013, and have been prepared and audited in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook")."). Unless otherwise stated, all reserves estimates contained herein are the aggregate of "Proved Reserves" and "Probable Reserves", together also known as "2P Reserves". For further information on reserve and resource classifications, see "Reserves, Resources and Production" in the Company's annual report. Contingent Resources Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets.  There is no certainty that it will be commercially viable for the Company to produce any portion of the Contingent Resources. Prospective Resources Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both a chance of discovery and a chance of development.  There is no certainty that any portion of the Prospective Resources will be discovered.  If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources. Unless otherwise stated, all Prospective Resource estimates contained herein are reflecting a P50 Prospective Resource estimate. Risked Prospective Resources reported herein are partially risked. They have been risked for chance of discovery, but have not been risked for chance of development.   BOEs BOEs may be misleading, particularly if used in isolation.  A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.