Annual Report 2005 (6 MB) - Lundin Petroleum

OPERATIONS REVIEW
IRELAND
In January 2005 Lundin Petroleum was granted Frontier Exploration Licence 1/05 in
the Donegal Basin. Lundin Petroleum will operate the licence, which covers Block
13/7 and part-Blocks 13/11 (NE) and 13/12 (N) off the north western coast of Ireland.
Lundin Petroleum and partners have a single exploration well commitment on this
licence, to be drilled within two years of the award. Following signifi cant activity in
late 2005, Lundin Petroleum has contracted a semi-submersible drilling rig, which
will drill the Inishbeg exploration well in the summer of 2006.
Lundin Petroleum also holds a 12.5 percent interest in the Seven Heads Oil licensing
option, which lies below the Seven Heads producing gas fi eld. This option has been
extended to end 2006, by which time the partnership has to decide whether or not
to mature it to a full exploration licence or allow the licence to lapse.
2005 highlights 2005
■ Completed sale of Seven Heads gas fi eld.
■ Award of Frontier Exploration Licence 1/05 in the Donegal Basin.
■ Agreement reached with partners regarding well design, drilling location
and drilling rig selection for 2006 drilling.
2006 work programme
■ Drilling of an exploration well to test the Inishbeg gas prospect scheduled for
summer 2006.
NIGERIA
In January 2005, Lundin Petroleum signed an agreement to acquire a 22.5 percent
net revenue interest in Block OML 113 located off shore West Nigeria. The Block is
operated by the indigenous company Yinka Folawiyo Petroleum Company and
Lundin Petroleum acts as a technical advisor on behalf of a consortium of several
international oil and gas companies.
Nigeria is a prolifi c province for oil and gas with an oil production in excess of 2
million bopd. Block OML 113 is located in the Benin Basin, where oil is produced from
the Seme fi eld.
The Aje fi eld was discovered in 1996 by the Aje-1 well which encountered around
300 feet of gas and a thin underlying oil rim within Turonian sandstones reservoir.
Aje-2 located east of Aje-1 confi rmed the presence of gas and oil within the Turonian
reservoir and discovered a new oil accumulation within a deeper Cenomanian
sandstones reservoir. The Aje-3 appraisal well was drilled during 2005. The presence
of gas in the Turonian reservoir could not be tested due to poor reservoir properties.
The Cenomanian sandstone reservoir was below the water contact.
2005 work programme
■ Aje-3 appraisal well was drilled.
2006 work programme
■ Re-processing of 3D seismic data.
■ New seismic interpretation of the whole block OML 113 together with a 3D
geological and reservoir model.
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