Lundin Oil: Libyan Development Gathers Pace
VANCOUVER, BRITISH COLUMBIA, June 2 --Red Sea Oil Corporation, through International Petroleum Libya Limited ("IPLL"), Lundin Oil's wholly owned operating company, is pleased to announce that the Libyan Development project took a quantum step forward recently when the National Oil Corporation ("NOC") announced the appointment of the Operators Management Committee. The Committee is responsible for taking the En Naga North and West Field on Area NC-177, onshore Libya, into production. IPLL's target for first oil is the first quarter of 2001 at an initial rate of in excess of 15,000 barrels of oil per day.
IPLL's project team is now at an advanced stage of issuing and assessing tender enquiries for the export pipeline and process facilities that will link the En-Naga crude oil production to Es-Sider export terminal in the Gulf of Sirte.
In terms of exploration activity, IPLL has recently completed the acquisition of 400 km of seismic in the central southern part of Area NC-177. Two new exploration wells are planned, with drilling commencing this summer. IPLL has a 100% interest in Area NC-177.
Red Sea Oil also announces that the acquisition by Lundin Oil AB of all of the issued and outstanding common shares of Red Sea Oil Corporation, other than common shares owned by Lundin Oil, its affiliates and dissenting shareholders, pursuant to a plan of arrangement has been completed.
Lundin Oil has commenced the process of registering with the appropriate regulatory authorities in Sweden the Series B shares (to be evidenced by global depositary receipts) which will be issued to Red Sea Oil shareholders. Lundin Oil expects to be in a position to deliver the Series B shares (as evidenced by GDRs) to Red Sea shareholders in approximately one week.
Lundin Oil's Series B shares are listed for trading on the OM Stockholm Exchange and the GDRs are listed for trading on NASDAQ.
ON BEHALF OF THE BOARD
Ian H. Lundin, President
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