Lundin makes oil discovery in Caspian Sea

Lundin Petroleum AB, a Swedish independent oil and gas exploration and production company, has encountered a major oil accumulation in the Aptian and Neocomian sandstone reservoirs at its Morskaya-1 exploration well in the Lagansky block, in the northern Caspian Sea.

The company drilled the Morskaya-1 well to a depth of 2082 metres in a water depth of less than two metres. The company has acquired a significant amount of cores, wireline logs and reservoir fluid samples..

The Lagansky block contains significant additional prospectivity and following the testing of the Morskaya-1 well the Marine Drilling Complex (MDC) will be transported to the Laganskaya-1 well location, where drilling is expected to commence at the end of September.

Ashley Heppenstall, President and CEO of Lundin Petroleum, said this is a world class oil discovery which has confirmed the excellent prospectivity of the Lagansky block.

It is clearly positive that the discovery is predominantly oil but based upon the data acquired it appears that the size of the discovery will be below pre-drill estimates, he said.

Further appraisal drilling will be needed to assess the full extent of the hydrocarbon reservoirs across such a large structure. It is a major milestone for Lundin Petroleum which will have a material impact upon the company, added Mr. Heppenstall.

We look forward to our forthcoming exploration and appraisal program to further realise the excellent potential of this area, concluded Mr. Heppenstall.