Report for the period 1 January 2000 – 30 September
2000
RESULT AND CASH FLOW
The Group
Sodra Petroleum AB (Sodra) reports a group net profit for the nine months
ended 30 September 2000 of TSEK 2,056 (period to 30 September 1999,
TSEK 2,494) corresponding to SEK 0.03 (SEK 0.03) per share.
Sodra incurred administration expenses of TSEK 3,298 during the period
(TSEK 3,515).
Net financial income and expenses were TSEK 5,354 (TSEK 6,009).
Included was interest received of TSEK 5,666 (TSEK 5,972) and net
currency exchange loss of TSEK 312 (profit of TSEK 37). Currency
exchange movements arose primarily as a result of translating loans
receivable from USD to SEK.
Parent Company
The parent company reported a net loss for the period ended 30
September 2000 of TSEK 3,419 (profit for the period of TSEK 482). The
loss was the result of service income of TSEK 127 (TSEK 2,819), net
financial income of TSEK -382 (TSEK -157) and administration costs of
TSEK 3,165 (TSEK 3,144).
GROUP STRUCTURE
Sodra is the parent company of the group also consisting of Sodra´s
100%-owned subsidiary Sodra Petroleum BV, a company registered in the
Netherlands. Sodra is an approximately 50% owned subsidiary of Lundin Oil
AB (Lundin Oil).
FINANCING AND LIQUIDITY
The Group
Liquid assets at 30 September 2000 amounted to TSEK 111,841 (TSEK
6,590). Sodra has entered into a revolving loan agreement with its
associated company Lundin Oil. The outstanding loan balance is currently
zero.
Parent Company
Liquid assets at 30 September 2000 amounted to TSEK 99 (TSEK 5,301).
INVESTMENTS
The Group
During the period, investment in oil and gas assets have been made to an
amount of TSEK -1,113 (TSEK 17,155). This decrease in capital
expenditure represents Sodra’s share of credits relating to the
reconciliation of the Falklands Islands operating group, FOSA.
Parent Company
Shares in subsidiaries at 30 September 2000 amounted to TSEK 106,013
(TSEK 106,013)
OPERATIONS
Sodra holds an 87.5% interest in six exploration and production licenses
covering an area known as Tranche F in Falkland Islands territorial waters.
The remaining 12.5% interest in these licenses is held by Sodra’s joint
venture partner Desire Petroleum plc, a company quoted on the
Alternative Investment Market (AIM) of the London Stock Exchange.
Sodra is the operator of Tranche F which is held through Sodra’s Dutch
subsidiary Sodra Petroleum BV.
A study of the North Falkland Basin was carried out in 1999 by Robertson
Research. The results of the study indicate that a source rock is present
in the North Falkland Basin. In Tranche F, this source rock is generally not
buried deep enough to have expelled any substantial quantities of
hydrocarbons. The problem remains that no reservoir rocks are known to
be present in the area around the deeper parts of the basin to trap this
oil.
The results of the Robertson Study were presented to the British
Geological Survey (BGS) and the Falkland Island Government (FIG) in early
2000. Following these meetings, a proposal was made to FIG for the
transfer of the remaining well commitment to 2000 kilometers of seismic
acquisition on Tranche F and other areas. This proposal was accepted by
FIG in the third quarter. Preparations are currently being made for the
seismic acquisition programme which is planned to be completed before
the end of the first quarter 2001.
SHARE DATA AND OWNERSHIP
The total number of shares in Sodra amount to 81,012,976 divided into
two classes of shares, ordinary shares and convertible shares. There are
40,506,500 ordinary shares outstanding and 40,506,476 convertible shares
outstanding. The convertible shares can be exchanged for shares in the
parent company Lundin Oil AB (Lundin Oil) according to the ratio 12
convertible shares of Sodra for one new B share of Lundin Oil at the
nominal price of SEK 0.50. The exchange may take place in November
2001. All ordinary shares are owned by Lundin Oil, corresponding to
50.01% of the share capital.
Sodra’s second largest shareholder is its Chairman Adolf H. Lundin holding
10,214,834 convertible shares, corresponding to approximately12.6% of
the share capital.
BOARD OF DIRECTORS
At the Annual General meeting all the directors were re-elected.
Stockholm, 14 November 2000
Magnus Nordin
Managing Director
For further information, please contact:
Magnus Nordin
Tel: +41 22 319 6600
lundinoil.com |
