Lundin strengthens position in Basement PlayRolvsnes @Lundin

Lundin strengthens position in Basement Play

Lundin has acquired Lime Petroleum’s portfolio on the Utsira High including interest in the Rolvsnes discovery and the Goddo prospect.

In a press release Lundin Petroleum announced an agreement with Lime Petroleum to acquire Lime’s entire acreage on the Utsira High. Lundin Norway’s working interest in the Rolvsnes oil discovery in PL338C and in the recently awarded extension PL338E1 increases from 50 to 80% and the Goddo prospect in PL815 from 40 to 60%. This consolidates the company’s position in the proven weathered and fractured basement play on the Utsira High.

Lundin’s acreage on the Utsira High (Figure Lundin)

Rolvsnes has a gross estimated resource range of 14 to 78 MMboe. Following the successful appraisal well and production test in 2018, an extended well test (EWT) will be conducted at Rolvsnes in 2021 to better understand the long-term reservoir behaviour.

The Rolvsnes discovery 16/1-12 was proven in 2009, and subsequently delineated by well 16/1-25 S in 2015. The reservoir contains a 30m oil column in weathered and fractured granitic basement beneath a thin, 20-30 centimeter, Early Cretaceous conglomerate. It is in pressure communication with Edvard Grieg.

GEO 04/2011: “Gammelt grunnfjell mettet med olje

The purpose of the appraisal well was 1) to drill through as many fractured and weathered sands as possible and 2) to confirm commercial, sustainable production rates from the reservoir. It was a success and Gross resources increased from 3–16 MMboe to 14–78 MMboe (Read also “Significant increase in resources”).

Rolvsnes appraisal well 16/1-28S  in fractured basement (Figure Lundin)

The production test in 2018 on Rolvsnes has de-risked the on-trend Goddo basement prospect in adjacent PL815. An exploration well will be drilled on Goddo in 2019. The combined gross resource potential of the Rolvsnes and Goddo area is more than 250 MMboe.

Goddo prospect in PL815 (Figure Lundin)

The transaction, which is effective from January 2019, involves a cash consideration to Lime Petroleum of USD 43 million and a contingent payment of a further USD 2 million, with completion subject to customary government approvals.