Dagens Industry reminded investors that a major value event may be triggered at any time in Lundin Petroleum (OMX: LUPE). In the beginning of January the stock retreated more than 15% in a flash on a relative dud from the southern flank of the discovery, which added to uncertainty considering the resource in the area. At that time the company said it is evaluating the impact of that well on the entire resource estimate for that part of the discovery.
Lundin is expected to present results from a fourth appraisal well in the license in question shortly. Dagens Industri says that a new resource estimate should be forthcoming soon after that. Other stocks that are expected to be affected are the partners Statoil and Maersk. The proportional effect, up or down, will be largest for Lundin Petroleum, which has a current market cap just below 50 billion SEK.
It was recently announced that the discovery in question, till then known as Aldous / Avaldnes, has been renamed as Johan Sverdrup in honour of the first Prime Minister of the country, who is often called the father of parliamentarianism in Norway. This highlights the importance of this new find, which is one of the five largest oil discoveries in NCS ever and the biggest one in the world in 2011.
There will be a lot of appraisal wells drilled in other parts of the discovery during this year as well. In total five to seven new wells are likely to be drilled in PL501 and PL265 in 2012. Lundin is still down just under 14% for the year and 3% last week despite a gain of 2.8% on Friday.
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