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Lundin Barents Sea Oil Find May Hold 145 Million Barrels

Oct. 2 (Bloomberg) -- Lundin Petroleum AB, the Swedish oil explorer focused on Norway, said its Gohta discovery in the Arctic Barents Sea may hold as much as 145 million barrels of crude and 545 billion cubic feet of gas.

Tests showed a flow rate of about 4,300 barrels of oil a day, the company said today in a statement. The discovery, announced last month, is Lundin’s first Barents Sea oil find off Norway’s northern tip and the first successful test of carbonate reservoirs from the Permian period on the Norwegian shelf.

“The discovery has proved the Permian carbonate play,” Ashley Heppenstall, chief executive officer of the Stockholm-based company, said in the statement. “As well as delineating the discovery, we will now look to drill similar exploration prospects in adjoining licenses.”

Gohta, located 35 kilometers (22 miles) north of Statoil ASA’s Snohvit gas field, follows a find by OMV AG at Wisting, Norway’s northernmost discovery, which holds as much as 160 million barrels of oil and 40 billion cubic feet of gas. The two finds may boost confidence in Norway’s Arctic after Statoil delayed its Johan Castberg development there in June because of rising costs, tax increases and lower resource estimates.

Lundin, which also has a stake in the Johan Sverdrup find, Norway’s biggest in decades, is the operator of the Gohta license with a 40 percent stake. Det Norske Oljeselskap ASA has 40 percent and Norwegian Energy Co. ASA 20 percent.

Share Performance

Lundin fell 0.2 percent to 137.9 kronor in Stockholm trading as of 11:52 a.m. local time. Det Norske climbed as much as 2.9 percent to 85.7 kroner in Oslo, the biggest intraday gain in almost four months. Noreco slumped as much as 14 percent after publishing a production update for September.

The location of the discovery between Snohvit and Johan Castberg gives it “a high likelihood for development,” Alex Gheorghe, an analyst at RS Platou Markets AS, said in an e-mailed note to clients. “You can expect more excitement as the discovery proves a new Permian oil play in the region.”

Platou estimated the discovery’s net-asset-value impact at 0.5 krone to 1 krone a share for Det Norske and 0.15 krone for Noreco.

To contact the reporter on this story: Mikael Holter in Oslo at mholter2@bloomberg.net

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

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