News post

Lime Petroleum Norway to participate in drilling of well in PL338C

  • Exploration well to clarify the upside of the Rolvsnes discovery
  • Located close to infrastructure in the North Sea
  • Core area with 30% share, operated by Lundin

Lime Petroleum Norway AS ("LimeNorway") is participating in the drilling of exploration well 16/1-25S to clarify the extent and size of the Rolvsnes discovery in North Sea licence PL338C. Operator Lundin Norway AS ("Lundin") started drilling the well on 15 October 2015, using the semi-submersible rig Bredford Dolphin in a water depth of 106 m. The well is scheduled to take 45 days with a total depth of about 2,400 m and is located some 7 km to the south of the Lundin operated Edvard Grieg platform in the Utsira High area. Further, Lime Norway has 30%participation in two more Lundin operated licences in the area.

The Rolvsnes discovery was made in 2009 in well 16/1-12, proving a 42 m oil column in fractured granitic basement. The liquid hydrocarbon indicator Rex Virtual Drilling("RVD") shows good correlation with the discovery and indicates a larger prospective area. The new exploration well is designed to clarify the extent and size of the discovery, including the presence of a possible Cretaceous/Jurassic sandstone reservoir over lying the fractured basement. The gross exploration resources are estimated at 108 million barrels oil and the geological chance of success at 35% (source:Lundin corporate presentation, October 2015).

The drilling of all wells carry some risks. The key risks associated with the Rolvsnes well have been identified to be the production characteristics of the weathered and fractured basement reservoir as porosity and permeability distributions are irregular in such unconventional reservoirs. Further, RVD has not previously been attempted in this kind of rocks and the calibration is uncertain.

The well is planned as a deviated hole to optimise penetration of the reservoir targets. A drill stem production test is planned and there is an option to drill a side-track if needed to further evaluate the commercial viability.

PL338C is held by operator Lundin at 50%,Lime Norway at 30% and OMV at 20%. Lime Norway also has 30% participation in the nearby licences PL544 and PL410, all operated by Lundin. The Fosen prospect in PL544 is scheduled to be drilled in January 2016.