Lundin Oil (LOILY, LOILB Sweden) Message Board

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

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To: Greywolf who wrote (1762)	7/21/2000 6:14:22 AM
From: Greywolf	of 2742

Cash Flow 1 billion SEK for year 2001, (This is a translation of an article in the Financial Daily Dagens Industri 21/7. If I missed something I trust Tomas will point it out) Lundin Oil is on the road to a record year where cash flow is set to double to the tune of 650 million SEK. For Q1 this year cash flow from Malaysia and the North Sea came in at 141 million SEK and for the year the prognosis is 650 million SEK. This is an increase of 75% compared to 1999. This is during a year where 4.000 bopd are locked in at a much lower price than the prevailing $29. (Lundin Oil secured part of the North Sea production at a price around $18 pbo for the whole of this year, ends 31/12). Adolf say´s - "if the oil price stays as is Q1 next year will be a record quarter". Lundin expects cash flow for Q1 2001 to be 250 million SEK if the price of oil stays at today´s levels. This would then give a cash flow for 2001 of about 1 billion SEK, this then compared to the the current market cap of 1.7 billion SEK. With further increased production 15.000 bopd due to come on line in March 2001 from Libya Adolf Lundin say´s the cash flow could be greater than 1 billion SEK. Adolf comments the low price of the stock by saying - "As far as we know we are not doing anything wrong yet we chose to concentrate on the business at hand ie expanding the company, as we are not in need of further stock issuance". Four years ago the stock price held at 60 SEK compared to today´s 20 SEK. Adolf hopes the numbers will further impress larger institutions when the company is set to inform analysts and portfolio managers during the later part of this year. The institutional ownership in Lundin Oil is small with Skandia (Insurance) the largest at 2.6%. Adolf see´s the potential for increasing institutional ownership/awarenss yet as he ends with - "we do not want to spend too much time travelling around informing analysts and portfolio managers"... di.se\07\21\2086

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