(Adds detail)
OSLO, Nov 22 (Reuters) - Lundin Petroleum hasfound additional oil and gas in the Norwegian Arctic, theSwedish company and the Norwegian Petroleum Directorate said onTuesday, lifting the company's shares.
The find is located some 60 km (37 miles) from Lundin's Altafind, which the company estimates could contain up to 400million barrels of oil equivalent (BOE), and 20 km from theJohan Castberg discovery which contains up to 600 millionbarrels of oil.
"The total gross resource estimate for the Neiden discoveryis between 25 and 60 million (BOE)," Lundin Petroleum said in astatement.
Shares in Lundin were up 4.46 percent at 0709 GMT, making itthe best performing stock in the European oil and gas index.
"Although a discovery is positive, the preliminary volumesestimate ... was significantly below the pre-drill estimate of204 million barrels," Swedbank analyst Teodor Sveen-Nilsen, whoholds a Reduce recommendation on the stock, wrote in a note toclients.
Oil companies such as Statoil and Lundin have greathopes that the Norwegian Arctic, which is much less exploredthan the North Sea, could contain significant new oil and gasresources.
Others are less enthusiastic, however, with Royal DutchShell, Total and Eni notparticipating in the latest oil licensing round organised byNorway, which focused on the Arctic.
The only find in production in the Arctic Barents Sea isEni's Goliat, but others are in development, such asStatoil's Johan Castberg field.
Lundin operates the well at the Neiden discovery and has a40 percent stake. Its partners are Japan's Idemitsu andDEA, the oil firm controlled by Russian billionaire MikhailFridman, each hold 30 percent stakes.
Lundin will next drill a prospect called Filicudi, alsolocated in the Barents Sea, which the firm estimates couldcontain up to 258 million BOE. (Reporting by Gwladys Fouche; editing by Terje Solsvik andJason Neely)
