Lundin Petroleum has announced that its wholly-owned subsidiary Lundin Norway, which operates production license 338 offshore Norway, has completed the exploration well 16/1-8.

The objective was to prove petroleum in the Luno prospect in Jurassic reservoir rock. Light oil was proven in a sandstone reservoir of this age. The size of the discovery is estimated at between 65 million barrels of oil equivalent (mboe) and 190 mboe of recoverable oil. The potential reserves estimate only includes reserves in the Jurassic reservoir, with additional upside potential from the Triassic reservoir that was penetrated by the well.

The well has not been tested, but extensive acquisition of data and samples have taken place. The licensees have decided to temporarily abandon the well with a plan for future testing in conjunction with an appraisal program. The appraisal activities include at least one appraisal well during 2008 to evaluate further the reservoir and its extension and prepare for a plan of development.

Ashley Heppenstall, president and CEO of Lundin Petroleum, said: We are very excited to have made an oil discovery with our first operated exploration well in Norway. Our initial analysis is that the field will be commercial and has the potential to be a significant development on the Norwegian Continental Shelf. This discovery will have a major impact upon Lundin Petroleum’s reserve base representing on the mid-case an increase of over one third to our existing reserves.