(A short video explaining the size, significance and development of the Johan Sverdrup oil discovery - Source: Lundin Petroleum AB)
Lundin Petroleum (LUP:TSX) has announced spectacular results from their appraisal well on the behemoth Johan Sverdrup oil discovery in Norway. The appraisal well was a wild success, to say the least. Initial testing flowed at a rate of 4,900bpd of oil. The well, 16/3-8 S, was drilled roughly 4km southeast of their discovery well (16/2-6) and was located on the Avaldsnes High on the eastern part of the Johan Sverdrup discovery (Lundin is 40% operator, Statoil 40% and Maersk Oil 20%).
It was designed to test the thickness and quality of the sandstone reservoir as well as the Permian Zechstein carbonates.
The well, which was drilled to 2,010.5 vertical metres below mean sea level, encountered 13m of late Jurassic Draupne sandstone with excellent reservoir quality and a high net to gross ratio. It also encountered 67m of Zechstein carbonates with mostly tight reservoir quality and oil shows. This is the fifth well that has been production tested on this block and now covers the majority of the Avaldsnes High area.
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 reservoir appears to be ideally pressurized for production. Some of the best reservoir qualities were found in the central part of the Avaldsnes High with high permeability and no flow restrictions within a 3-4km radius.
They also drilled a sidetrack well, 16/3-8 S T2, which was drilled to determine the petrophysical properties in the reservoir. That data is currently being analyzed.
According to the development plans for Johan Sverdrup, Lundin and their partners see the field reaching forecast plateau production of 550-650,000boe/d which would account for 25% of Norwegian oil production. It is estimated that the field holds between 1.8-2.9 billion barrels of gross recoverable contingent oil resources.
Production is expected to start in late 2019 with gross production starting at roughly 315-380,000boe/d of oil.
Click here for a presentation on their conceptual development plans for the enormous oil field.
Read: Johan Sverdrup Appraisal Wells 16/3-8 S and 16/3-8 S T2 Successfully Completed