Filicudi discovery – positive start to 2017 Barents exploration

Lundin’s Filicudi discovery is a successful start to exploration drilling in 2017 for the Barents Sea. The prospect holds an estimated 35 – 100mmboe and encountered 63m of oil and 66m of gas in high quality Jurassic and Triassic sandstones. Filicudi is on trend with Johan Castberg around 40km to the north east and the discovery has derisked the adjacent 218mmboe Hurri prospect together with the 285mmboe Hufsa. As a result, both prospects now carry a 25% CoS, and Lundin and licence partners AkerBP and Dea are considering drilling one or both of these later this year.

Meanwhile, attention in the Barents will now turn to the ENI operated Boné/Dazzler* well, with partner Faroe indicating that results can be expected around the end of February. Although the prospect sits 90km to the north of Johan Castberg, it is targeting similar Jurassic and Triassic targets encountered both there and in Filicudi.

Source: Faroe Petroleum

Johan Castberg and Filicudi sit on the Loppa High, while Boné/Dazzler is located on the southern flank of the Stappen High and separated from the Loppa High by the Bjørnøya Basin, however it is located in a structural setting that is similar to that found in Johan Castberg. To date, the bulk of exploration across the area has taken place in the Loppa High and the closest discovery to Boné/Dazzler, Pingvin, was a technical gas discovery, although traces of oil were found.

Source: NPD

The high impact Boné/Dazzler target is a large horst structure with key risks around reservoir and seal. This is due to the significant uplift and erosion that has typically occurred across the area, and has resulted in a CoS for the prospect of 15%. The well is targeting 232mmboe prospective resources and if successful would high grade three further prospects for Faroe, Dazzler East, South and West, that are currently independently estimated to hold combined best prospective resources of 388mmboe. At Faroe’s recent operational update, Boné/Dazzler was described during the call by COO Helge Hammer as a Johan Castberg lookalike that could hold up to 700mmboe.

Beyond the Southern Barents, drilling will commence for the first time in the Southeastern Barents in the second half of 2017 when Statoil is due to spud its Korpfjell* exploration well. Located in the most sought after acreage in the recent 23rd round, Korpfjell is estimated by partner Lundin to have a multi billion barrel potential.

*Boné/Dazzler: Operator ENI 30%, Partners Faroe 20%, Bayerngas Norge 20%, Petoro 20%, Point Resources 10%

*Korpfjell: Operator Statoil 30%, Partners Chevron 20%, Lundin 15%, ConocoPhillips 15%, Petoro 20%