News post

Lime Petroleum Norway to participate in drilling of well in PL708

  • Potentially     a high reward exploration prospect in the Barents Sea South
  • Located     close to shore and operated by Lundin

Lime Petroleum Norway AS ("LimeNorway") is participating in the drilling of exploration well 7130/4-1 onthe Ørnen (Eagle) prospect in Barents Sea licence PL708. Operator Lundin NorwayAS ("Lundin") started drilling the well on 22 November 2015, usingthe semi-submersible rig Transocean Arctic in a water depth of 288 metres andlocated in an accessible area only some 90 km from the coast. The well isscheduled to take approximately 60 days with a total depth of about 2,630metres.

The Ørnen prospect has a special type ofPermian aged carbonates as reservoir target, proven in nearby wells includingthe Seiland discovery in PL707 where Lime Norway also holds a 10 per centparticipating interest. The liquid hydrocarbon indicator Rex VirtualDrilling("RVD") shows good correlation with the prospect. Grossunrisked prospective resources are estimated at about 354 million barrels ofoil and a geological chance of success of 20 per cent (Source: Lundin corporatepresentation, November 2015).

The drilling of all wells carriesgeo-technical risks and uncertainties.  The Ørnen prospect has a reservoirwhich could prove to be difficult to produce at commercial flow rates due touneven distribution of porosity and permeability.

PL708 is held by operator Lundin at 40 percent, Lime Norway at 10 per cent, Lukoil Overseas North Shelf AS at 20 percent, Edison Norge AS at 20 per cent and North Energy ASA at 10 per cent. LimeNorway also has a participating interest of 10 per cent in the nearby licencePL707 and a participating interest of 20 per cent in each of the licences PL769and PL770 in the Barents Sea.

The semi-submersible rig Transocean Arctic