Lundin Petroleum says strikes oil in Caspian Sea
Swedish oil Lundin Petroleum said its Morskaya-1 exploration well in the Lagansky block in the Caspian Sea had encountered a major oil deposit.
“This is a world class oil discovery which has confirmed the excellent prospectivity of the Lagansky block,” Ashley Heppenstall, chief executive of Lundin Petroleum, said in a statement.
“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.”
Further drilling will be needed to assess the extent of the hydrocarbon reservoirs.
The find “will have a material impact upon the company,” Heppenstall added.
Lundin said it would also begin drilling at the Laganskaya-1 well, probably in September and planned to drill two additional wells in 2009.
Lundin has a 70% share in the Lagansky block and an option to acquire 30% from minority owners. However, Russian giant Gazprom has a call option on 50% plus one share which if exercised would leave Lundin with just below 50% if it also used its option. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.