Swedish energy firm Lundin Petroleum has announced that it has made a major oil discovery in the northern Caspian Sea, at the Aptian and Neocomian sandstone reservoirs. The Morskaya-1 exploration well, situated in the Lagansky block, discovered a large oil accumulation after being drilled to a depth of 2,082 metres in a water depth of less than two metres.
The Morskaya-1 well is on trend with major oil and gas discoveries made by Lukoil in the Russian sector of the Caspian Sea. Lundin will now transport the Marine Drilling Complex (MDC) to the Laganskaya-1 well location where drilling will commence at the end of September, and it is planning to drill another two wells in the Lagansky block in 2009.
“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,” said Ashley Heppenstall, president and CEO, Lundin.
“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. We look forward to our forthcoming exploration and appraisal program to further realise the excellent potential of this area,” added Heppenstall.
Lundin Petroleum currently has a 70% interest in the Lagansky block, with 30% taken by minority shareholders. However, Gazprom has a call option to acquire a 50% plus one share in the Lagansky block.
