Lundin Petroleum Announces Reserves and Contingent Resources Update
Wednesday 24 January 2018
Lundin Petroleum AB is pleased to announce that as at 31 December 2017, its proved plus probable net reserves (2P reserves) are 726 million barrels of oil equivalent (MMboe), its proved plus probable plus possible net reserves (3P reserves) are 895 MMboe and its best estimate net contingent resources are 203 MMboe. The Edvard Grieg field, Lundin Petroleum’s main producing asset, represents an increase of 51 MMboe gross 2P reserves from year end 2016, excluding production, and a 47 percent increase in best estimate ultimate recovery from the original PDO.
The main reason for the increase in reserves relates to Lundin Petroleum’s two main assets, the Edvard Grieg and Johan Sverdrup fields, both located on the Utsira High in the Norwegian North Sea. The reserves upgrade on Edvard Grieg is driven by the drilling results and production performance to date which indicate more oil-in-place and with a greater proportion of the oil-in-place in the high quality high recovery factor sands as compared to the lower quality conglomerate reservoir. The best estimate gross ultimate recovery from Edvard Grieg as at end 2017 is 274 MMboe, which is cumulative production to end 20175 plus 2P reserves. This represents an increase of 51 MMboe from year end 2016 and a 47 percent increase from the original PDO. Additionally, the high estimate gross ultimate recovery from Edvard Grieg as at end 2017 is 337 MMboe, which is cumulative production to end 20175 plus 3P reserves. This represents an increase of 27 MMboe from year end 2016. Further contingent resources are identified associated with infill drilling opportunities.
The upgrade of reserves in the Johan Sverdrup field are consistent with the upgrade announced by Statoil during 2017 and reflects positive drilling results and optimisation of the reservoir development plan. Further reserves increases have been attributed to the Alvheim and Volund fields. Oil accounts for 93 percent of Lundin Petroleum’s 2P reserves.