Stable Production And Good Oil Prices, Lundin Oil To Embark On Heavy Work Program For Year 2000
Company Press Release January 10, 10:33 am Eastern Time
VANCOUVER, B.C.--(BUSINESS WIRE)--Jan. 10, 2000--
Lundin Oil AB (the "Company") (NASDAQ:LOILY - news) estimates fourth quarter production oil equivalents (on working interest basis) at 13,800 boepd (compared to 13,700 boepd average production for the first nine months of the year). The Company achieved an approximate average oil price for the quarter (including the effect of oil price hedging) of USD $22.30 per barrel versus an average oil price of USD $15.77 per barrel for the nine months to September 1999.
The Company is about to embark on a heavy work program in its main areas of operation, i.e. Malaysia, Libya and Sudan. In this regard, the Board recently approved a 2000 capital budget of USD $74 million, up by 58% from 1999. Of the total, USD $41 million will be spent on exploration activities with the balance on development.
In Malaysia the A-7 production well has been successfully completed and is on stream. The well is still stabilising before actual flow rates can be established. Phase II of the development project is expected to receive formal approval in the near future following the resolution of all outstanding commercial and legal issues.
In Libya two further exploration wells will be drilled in the first half of the year. Formal approval of the development plan for En Naga North and West is expected in the near future.
In Sudan operations related to the re-entry of the Thar Jath well drilled in May 1999 have commenced. The testing of the Thar Jath well is scheduled to be completed by mid-February 2000 followed by at least one further exploration well.
Lundin Oil's President, Ian Lundin, stated ``I look forward extremely positively to the new year. I am now more confident than ever that we will receive the approvals to proceed with our development projects in Malaysia and Libya which will allow us to monetise our successful exploration efforts over the past few years. We expect to maintain our good track record in the exploration sense with additional wells planned in Libya, Sudan and Albania during the year.'
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