STAVANGER, Norway -- The Norwegian Petroleum Directorate has granted Lundin Norway AS a drilling permit for well 16/1-27, cf. Section 8 of the Resource Management Regulations.

Well 16/1-27 will be drilled from the Island Innovator drilling facility, at position 58°50’18.11” north and 2°11’56.83” east, in a southwesterly extension of Edvard Grieg field in the central part of the North Sea.

The drilling program for well 16/1-27 relates to the drilling of an appraisal well on Edvard Grieg in production licence 338. Lundin Norway AS is the operator, with an ownership interest of 65%. The other licensees are OMV (Norge) AS with 20%, and Wintershall Norge AS with 15%.

The area in this licence consists of part of block 16/1. The well will be drilled about 3 km west of Edvard Grieg platform.

Production licence 338 was awarded on Dec. 17, 2004 (APA 2004). This is the 11th exploration well to be drilled in the licence area and the eighth exploration well on Edvard Grieg field.

The permit is contingent upon all other permits and consents required by other authorities being granted before drilling activities commence.