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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden)

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To: Tomas who wrote (1875)	10/18/2000 5:24:33 PM
From: Greywolf	Read Replies (1) of 2742

LUNDIN OIL UP´S RESERVES IN MALAYSIA BY - 30%! In an article in the Swedish financial daily DI Adolf Lundin is quoted as saying -"Our production is today definitely above 15.000 bpd and we have increased production by 8% to 9% during last few weeks"- The level of production increase has been obtained by enhancement of current production holes which on a yearly basis increases revenue by 8% ie 120 million SEK. Due to the high price of crude $30 the company see´s a cash flow of $40 to $50 million from Malaysia alone and this based on a production of 14.000 bpd, this number has now been increased to 15.000 bpd. The current cash flow is restricted by the hedge on the North Sea production but this will be lifted by the 31/12 this year. The interesting part of the article is that DI say´s that Lundin Oil has been awarded a new production block in Malaysia that is set to be brought online. Lundin Oil could be able to produce up to 22.000 bpd next year from the region. Yet there are production restrictions in place so a conservative estimate would be a production of 18.000 bpd. The company´s reserve would then see an increase by 30% in Malaysia! Adolf Lundin ends the article by voicing thought´s about the price of oil going forward and he belives it will be higher. He say´s that the only country with spare capacity is Saudi Arabia and that Libya and Iran do not have the extra capacity.

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