Lundin Puts Avaldsnes-Aldous Among Top Five Norway Oil Finds; Shares Jump

Lundin Petroleum AB (LUPE) increased its estimate of recoverable resources for the North Sea Avaldsnes prospect, part of a discovery that now ranks among Norway’s five biggest offshore finds.

Lundin, which operates Avaldsnes, raised its estimate for production license 501 to 800 million to 1.8 billion barrels of recoverable oil, according to a statement today. The results from Statoil ASA’s discovery well at Aldous Major South were used when updating the resource range, it said. Lundin shares surged as much as 36 percent to a record.

Aldous Major South and Avaldsnes are part of Norway’s biggest discovery in more than 20 years, and the latest results place it among the country’s five largest finds, Lundin said. The combined oil structure is estimated to hold “gross contingent resources” of 1.2 billion to 2.6 billion barrels of recoverable oil equivalents, it said.

“Avaldsnes/Aldous, which is already a world class discovery has, following this year’s appraisal program, become significantly larger,” Chief Executive Officer Ashley Heppenstall said in the statement. “Avaldsnes and Aldous will be developed together and we are already working closely with our partners and Statoil ASA (STL) as operator of PL265 to ensure that the project proceeds without delay.”

Lundin jumped to a record 121 kronor in Stockholm trading. Statoil, which holds 40 percent in both Avaldsnes and Aldous, rose 4.6 percent to 128.4 kroner, and Det Norske soared as much as 17 percent to 45.5 kroner.

‘Significant Upside’

Statoil found “significant upside potential compared with previously announced resource estimates for PL501 and will revert with the company’s updated volume estimates after completion of Statoil’s ongoing appraisal well 16/2-10 in Aldous Major South,” according to a separate statement today.

The company last week drilled a well at the Aldous Major North prospect that resulted in a discovery too small to be commercial. The Stavanger-based explorer said it stood firm by its estimates for the combined oil structure.

Statoil operates the Aldous Major North and South license, in which Petoro AS holds 30 percent, Det Norske 20 percent and Lundin 10 percent. Lundin holds 40 percent in the Avaldsnes license, in which Maersk Oil owns 20 percent.

-- Editors: Alex Devine, Will Kennedy

To contact the reporter on this story: Marianne Stigset in Oslo at mstigset@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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