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 (1811)	8/28/2000 7:09:23 PM
From: Greywolf	of 2742

ANALYST PRESENTATION - A SUMMARY The Company 106 million shares fully diluted including Sodra options. Production current 3 mmbo year. Reserves proven 287 mmbo. Reserves valued today at around $1 per barrel. Daily production close to 15.000 bopd Q1 2001 30.000 bopd, 2003 50.000 bopd. Reserv life 57 years. Average current unit operating cost $5 pbo. Reserves today valued at less than $1 pbo against cash-flow valued at $5 pbo. Malaysia Current production 5.800 bopd at cost $5 pbo Net back to Lundin $6 pbo. Phase 2 cost per barrel $1.50 due to sale at platform. 2003 production at 34.000 bopd. Malaysia no sale of 15% of field due to low production costs. Malaysia new production drills for more gas. Malaysia can buy all the current production. Yet even Vietnam is potential market. Sudan 5A close to fields producing 200.000 bopd. Thar Jath had a 63 feet payzone. Bentu structure most prolific. Albania 1 drill this year in block 2 onshore 20% working interest to Lundin. LOIL owns the deeper operating levels. Drill will take six months to complete.br> Q4 drill at cost $3 for Lundin, potential 1 billion barrels. North Sea Daily production can only be obtained by finding new fields otherwise the production will decrease by 2.000 to 3.000 bopd next year. Cost for search for new production holes $1 to $2 million per new hole. Libya Harju D is to be drilled in a couple of weeks with 45 to 60 days to drill, last drill was dry and they now feel they know why. New fields in the works. Sirte basin Mursuk were touched upon. Q1 production start as planned pipeline is on order. Deal with Edison is on a 50% - 50% basis as to new gasprojects. Harju D drill close to current field. On find it would be easy to connect to pipeline being built with capacity 80.000 bopd. Next drill before years end. Falklands No drill! Falkand Government agreement.. Cost $1 to $2 not to drill. Cost to drill 10 times that cost. Options on Lundin just now best bet. No new projects in the pipeline. Financials Current cash flow enough for current planned projects. Malaysia needs $19 pbo to be funded and this is the reason for the 5.000 barrel sell option at $19 which will come into effect in 2001. Libya is funded and note about this is due before the end of the year. Libya is funded even at $8 pbo world market price. No new emissions to fund projects at current oil price band. The 33.000 shares in KMOC Siberia are worth $4 to $500 per share at current market value. UK net operating cost $5 pbo Libya production cost $1.8 pbo New Projects/Ventures Expected to have deals in place for new ventures in Malaysia, Vietnam and Sudan before end of year. Summary The presentation can be seen at tanka.swip.net:8080/ramgen/fti2/000828_lundinoil/start.smi and it is in Swedish yet Ashley Heppenstall does his bit in English and this pertains to the H1 report. Also all visual material is in English with salient points. Not much was new if you look at the last presentation. Interesting that Malaysia has come off the For Sale lost and as Ian Lundin pointed out why sell when the going is good. Given the current low stock price the company is valued at a 23% discount to current cash flow.

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