New Production Well To Be Drilled: Block PM-3 CAA Offshore Malaysia/Vietnam
VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 23, 1999-- Lundin Oil AB is pleased to announce that the Block PM-3 partners (Lundin Oil Malaysia Limited, Petronas Carigali Sdn Bhd and PetroVietnam Exploration and Production) have agreed to drill production well A7, on the Bunga Kekwa field on Block PM-3 CAA, offshore Malaysia and Vietnam.
Well A7 is to be located on West Bunga Kekwa, southeast of well A4 which has produced approximately one-third of the production from Block PM-3 to date.
The PM-3 partners will farm into the Petronas Carigali Sdn Bhd drilling rig contract and expect to spud the A7 well at the end of November, 1999. It is expected that this well will produce about 2,000 to 3,000 barrels of oil per day (``bpd'). The total current production from the block is approximately 14,000 bpd (5,600 bpd net to Lundin Oil).
Ian Lundin, President of Lundin Oil AB, said ``It is expected that the drilling of the A7 well will materially increase production levels extending the economic life of Phase I well into the next decade. The most recent Malaysia PM-3 lifting realised in excess of US$21 per barrel.'
Meanwhile, Phase II of the project, which envisages boosting production to 40,000 bpd of oil and 250 mmscf/day of gas by the second half of 2003, is awaiting the signature of a Gas Sales Agreement between the contractors, Petronas and PetroVietnam. This agreement is in the final stages of negotiations and Lundin Oil is confident that it will be finalised prior to the end of the year.
Lundin Oil AB has a 41.44 percent working interest (held through Lundin Malaysia Limited - 26.44 percent and Lundin Malaysia AB - 15 percent) in Block PM-3 CAA. Lundin Malaysia Limited is the operator of the Block. The remaining working interest is held by Petronas Carigali Sdn Bhd with 46.06 percent and PetroVietnam Exploration and Production with 12.5 percent.
NOTE: Location map available from the company at the number listed below.
Contact: Lundin Oil AB
Magnus Nordin, 011/46 8 440 54 50
or
Sophia Shane, 604/689-7842
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