Investmentidea: Lundin Petroleum AB

Investmentidea: Lundin Petroleum AB

den 27 februari 2017

Lundin Petroleum makes Barents Sea oil find

Lundin Petroleum is an independent oil exploration and production company with a principal focus on oil and gas operations in Norway. It focuses on building core exploration areas in specific countries with a clear objective to grow organically and has a portfolio of assets in Norway, Malaysia, France, the Netherlands and Russia.

The company vision is to grow a profitable upstream exploration and production company, focused on core areas in a safe and environmentally responsible manner for the long-term benefit of the company and society.

Lundin Petroleum has an inventory of drillable prospects and continues to actively pursue new exploration acreage in core areas.


Proactive subsurface strategy

Growing its existing asset base with a proactive subsurface strategy to enhance ultimate hydrocarbon recovery is one of the main Lundin aims just as acquiring new hydrocarbon reserves, resources and exploration acreage where opportunities exist to enhance value.

On Monday, 13th February 2017, the company announced that Lundin Norway, its wholly owned subsidiary, made an oil and gas discovery in the main well in the southern Barents Sea.


Estimates between 35 and 100 million barrels of oil equivalents

The gross resource estimate for the Filicudi discovery is between 35 and 100 million barrels of oil equivalents (MMboe). Lundin Petroleum explained that the well results may “indicate upside potential that require further appraisal drilling.” However the future development remains to be seen.

Filicudi is on trend with the Johan Castberg discovery, with resources of approximately 500 MMboe, in similar reservoir intervals. Multiple additional prospects have been identified on the Filicudi trend with total gross unrisked prospective resource potential for the trend of up to 700 MMboe. The partnership is considering the drilling of up to two additional prospects in 2017.


Objective: Oil in Jurassic and Triassic sandstone reservoirs

The company added that it is presently drilling a sidetrack on the Filicudi prospect. The wells are located about 40 km southwest of Johan Castberg and 30 km northwest of the Alta and Gohta discoveries on the Loppa High.

The main objective was to prove oil in Jurassic and Triassic sandstone reservoirs. The well encountered a gross 129 metres hydrocarbon column of high quality sandstone reservoir characteristics, with about 63 metres of oil and about 66 metres of gas in the Jurassic and Triassic targets.

Currently, Lundin Petroleum AB stocks quote at around SEK 195.00 and have a twelve-month target price of SEK 197.70 (Bloomberg). The forward trailing P/E-ratio of the next twelve months is 17.30. At Bloomberg, 10 analysts recommend to buy the stock, 9 to hold and 5 to sell.

Investors can leverage their Lundin Petroleum trades with Vontobel Bull & Bear Certificates.



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2022-11-26 20:47:53