Luno Field, Norway

The Luno field is located in production license PL 388, offshore Norway. Lundin Petroleum is the operator of PL 388, with a 50% interest. The other partners are Wintershall Norge with 30% and RWE Dea Norge with a 20% interest. PL 388 was granted to Lundin Petroleum in 2004.

Two reservoirs, the Jurassic and the Triassic, were identified in the licensed area. The appraisal well 16 / 1-8 discovered light oil in the Jurassic reservoir in 2007. Production testing was completed in October 2009. Three more delineation wells, 16 / 1-10, 16 / 1-11 and 16 / 1-12, were subsequently planned.

The license operating company completed the appraisal of the first Luno well 16 / 1-10 in January 2009. This well, along with 16 / 1-8, was drilled to appraise the Luno field.

The appraisal well proved the possibility of reserves in extended areas of the Luno field to the north-east of the main discovery.

Luno geology and reserves

The light oil at the Luno field lies at the Jurassic Reservoir with the Triassic reservoir below oil / water contact. The recoverable reserves at the Jurassic and potential Triassic reserves were initially estimated to range between 65mboe and 190mboe.

Gaffney, Cline and Associates, an independent reserves auditor, revised the reserves estimate in the field to be 95mboe of gross 2P reserves in July 2009.

Gaffney, Cline and Associates arrived at its estimate of Luno's reserves on the basis of the results of discovery well 16 / 1-8, the appraisal of 16 / 1-10 and an early-stage interpretation of an ocean bottom cable seismic survey that was conducted in 2008.

The estimation for the two reserves was based on the 365mboe oil in place and 26% recovery factor.

In October 2010, following completion of the 16 / 1-13 appraisal well, Lundin Petroleum revised the reserve estimate of the field from 95mboe to 149Mboe.

Luno field development, drilling and exploration

The Luno field development steamed ahead with the discovery well 16 / 1-8. Well 16 / 1-8 is a significant light oil discovery in the Norwegian North Sea with major working interest in adding acreage. It is located 28km east of the 15 / 3-1 Gudrun discovery in the Central North Sea.

Exploration of well 16 / 1-8 over the Luno prospect was concluded in October 2007. The well was drilled to a depth of 2,175m below the sea surface.

The exploration activities were targeted at identifying petroleum over the prospect in Jurassic reservoir rock.

The production testing at the well, concluded in October 2009, was carried out at a water depth of 108m. The testing operations were executed by employing the semi-submersible drilling rig Transocean Winner.

The well was not tested in its year of discovery, only extensive data and samples were acquired during that time. For re-entering the well for further testing and permanent abandonment, the well was held back temporarily in 2007.

It was later re-entered, drilled and tested in two stages with flow rates up to approximately 5,700 barrels of oil per day through a 1in choke. The well was later plugged permanently.

The appraisal of the first Luno well 16 / 1-10 began in November 2008, targeting the Jurassic reservoir along with exploring upside potential in the Triassic reservoir. The appraisal proceeded with testing, with flow of approximately 4,000 barrels of oil on a 54 / 64 choke.

The hydrocarbon reservoir with clean sands and conglomeratic divisions was found at the well location. A Bredford Dolphin semi-submersible drilling unit was used for drilling the appraisal well.

Exploration well 16 / 1-12 over the Luno extension prospect was successfully drilled in September 2009.

While drilling, the well only encountered the complex reservoir of fractured basement and could not reach the pre Cretaceous reservoir.

In January 2010 Lundin Petroleum completed drilling of the second appraisal well 16 / 1-13. The well was drilled by Transocean Winner semi-submersible rig to a vertical depth of 2,275m. It encountered a 50m oil column in Jurassic sediments with exceptional reservoir characteristics.

Luno extension

Further technical analysis has indicated the possibility of even more reserves at Luno. Further exploration at the Luno extension was undertaken by Lundin Petroleum. Drilling at the extension started in the first half of 2009.

The resource estimate at Luno extension is 135-310mboe gross unrisked (mid 241mboe).

The conceptual development studies for the field are in process and will be submitted as a development plan in 2011. Lundin is planning to jointly develop the Luno and the Draupne fields.

Contracts

In February 2010 Lundin Petroleum awarded Sevan Marine a contract to study the possible use of a Sevan production unit for the field.

The study will concentrate on examining whether the Sevan cylindrical floater can be used at the field.