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Lundin Petroleum makes more successful Oil discoveries, oil shares leap

Friday, 30 September 2011
Lundin Petroleum raises its estimate of what is in the oil deposit Avaldsnes in PL 501 in the Norwegian North Sea.

Test drilling has shown that it contains between 800 million and 1.8 billion barrels of recoverable oil, writes Lundin Petroleum said in a statement.

Lundin Petroleum is the operator of PL 501 with a working interest of 40 percent. Other partners are Statoil and Maersk Oil. This finding may be the fifth largest in Norwegian history, analysts said.

“I do not know what to use for the term. Superb is the word that comes up first in the head. It's incredibly good news. The hope among analysts was that it would come in at 400 million barrels, representing an upward revision from the 100-400 that was mentioned earlier. Today it will result in 800 to 1.8 billion barrels,” says Daniel Råvik, analyst at Handelsbanken, told Reuters.

The news of the discovery of oil has made shares for the sector to leap heavily in an otherwise sour Stockholm Stock Exchange. As the clock approached half past ten on Friday morning Lundin Petroleum has risen by nearly 26 percent, to Skr111:50.

Oil discovery at Avaldsnes was discovered in September last year and also Lundin Petroleum's CEO Ashley Heppenstall believes that the find is the biggest in a long time in Norway.

"The deposit is probably one of the five largest deposits on the Norwegian continental shelf and certainly the largest since the mid-80s, which highlights the continued potential of what many saw as a mature region with limited remaining potential," he writes in a comment.
By Scancomark.se Team

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