Swedish independent oil and gas company Lundin Petroleum has booked an increase in its 2P and 3P reserves, owing to two North Sea fields.
According to its statement on Monday, as at December 31, 2017, Lundin’s proved plus probable net reserves (2P reserves) are 726 million barrels of oil equivalent (MMboe), its proved plus probable plus possible net reserves (3P reserves) are 895 MMboe and its best estimate net contingent resources are 203 MMboe.
The Edvard Grieg field in the North Sea off Norway, Lundin Petroleum’s main producing asset, represents an increase of 51 MMboe gross 2P reserves from year end 2016, excluding production, and a 47 percent increase in best estimate ultimate recovery from the original plan for development and operation (PDO). Lundin marked the second year of production from the Edvard Grieg field last November.
Lundin Petroleum’s 2P reserves as at December 31, 2017, are 726.3 MMboe and reflect a positive revision of 45.8 MMboe, excluding sales. The 3P reserves as at December 31, 2017 are 895.5 MMboe and reflect a positive revision of 31.5 MMboe, excluding sales.
Lundin said that the main reason for the increase in reserves relates to its two main assets, the Edvard Grieg field and Statoil-operated Johan Sverdrup field, both located on the Utsira High in the Norwegian North Sea.
The reserves upgrade on Edvard Grieg is driven by the drilling results and production performance to date which indicate more oil-in-place and with a greater proportion of the oil-in-place in the high quality high recovery factor sands as compared to the lower quality conglomerate reservoir.
The best estimate gross ultimate recovery from Edvard Grieg as at end 2017 is 274 MMboe, which is cumulative production to end 20175 plus 2P reserves. This represents an increase of 51 MMboe from year end 2016 and a 47 percent increase from the original PDO. Additionally, the high estimate gross ultimate recovery from Edvard Grieg as at end 2017 is 337 MMboe, which is cumulative production to end 20175 plus 3P reserves. This represents an increase of 27 MMboe from year end 2016. Further contingent resources are identified associated with infill drilling opportunities.
The upgrade of reserves in the Johan Sverdrup field are consistent with the upgrade announced by Statoil during 2017 and reflects positive drilling results and optimization of the reservoir development plan. Further reserves increases have been attributed to the Alvheim and Volund fields. Oil accounts for 93 percent of Lundin Petroleum’s 2P reserves.
The reserves are based upon a third party independent audit conducted by ERCE.
Lundin Petroleum’s net contingent resources as at December 31, 2017, are 203 MMboe. Contingent resources have been added associated with infill drilling opportunities at the Edvard Grieg field and from the Filicudi oil discovery in the southern Barents Sea.
At the Alvheim area contingent resources have been transferred to reserves associated with finalizing infill drilling plans for 2018.
Contingent resources have been reduced at the Gohta oil discovery in the southern Barents Sea due to the results from the appraisal well drilled in 2017 and have also been reduced at the adjacent Alta oil discovery following a detailed review of all the wells completed in 2016 and 2017.
Based on this, the combined gross contingent resource range for the Alta and Gohta discoveries is between 115 and 390 MMboe. An extended well test will be conducted at Alta in 2018 to reduce reservoir uncertainty and provide the basis for development studies.