Lundin Makes Oil Find at Gohta Prospect in Norway’s Barents Sea
Lundin Petroleum AB (LUPE), the Swedish energy company, found oil at the Gohta prospect in the Barents Sea off Norway’s northern tip along with partners Det Norske Oljeselskap ASA (DETNOR) and Norwegian Energy Company ASA.
“The well encountered a gross 75 meter oil column and a gross 25 meter gas/condensate cap,” the Stockholm-based company said in a statement today. “A drill stem test will now be carried out to establish the flow properties of the discovery.”
The find, 35 kilometers (22 miles) north-west of Statoil ASA (STL)’s Snohvit gas field, comes four days after OMV AG said it found as much as 160 million barrels of oil and 40 billion cubic feet of gas at the Barents Sea’s Wisting prospect, Norway’s northernmost discovery. The finds may help boost confidence in Norway’s Arctic region after Statoil in June delayed plans to develop the Johan Castberg discoveries there because of costs, tax increases on energy companies and lower resource estimates.
Norway’s oil industry is expanding into the waters off its northern tip to compensate for dwindling production from aging fields in the North Sea. The country’s crude production is expected to drop for a 13th consecutive year in 2013 to less than half a 2000 peak.
While no resource estimate was given for Gohta, the few details given so far “could indicate substantial volumes,” Swedbank First Securities analyst Teodor Sveen Nilsen said in an e-mailed note. Based on an average pre-drill volume estimate of 160 million barrels of oil equivalent, the fair value per share of the find is estimated to be worth 1.2 krona for Lundin, 1.2 kroner for Det Norske and 0.6 kroner for Noreco, he wrote.
Noreco, which has a 20 percent stake in license 492 where Gohta is located, gained as much as 14 percent, the most in more than 15 months. The stock traded 9.9 percent higher at 2.90 kroner as of 9:15 a.m. in Oslo.
Det Norske, which has a 40 percent stake in the license, gained as much as 2.4 percent to 85 kroner in the Norwegian capital while Lundin, which also has 40 percent, rose 1.7 percent to 144.60 kronor in Stockholm.
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