FIELD ACTIVITIES / Lundin Oil AB 1998 Drilling Programme to Start
in Early June Latest Discovery Increases Oil Reserves by 94 Percent.
STOCKHOLM STOCK EXCHANGE: LOIL B
TSE SYMBOL: LOI
NASDAQ SYMBOL: LOILY
APRIL 7, 1998
STOCKHOLM, SWEDEN--Lundin Oil AB ("Lundin Oil") is pleased to
announce that its 1998 drilling programme consisting of eight high
potential wells will commence in early June with the kick-off of a
five-well exploration/appraisal drilling campaign on Block PM-3
CAA offshore Malaysia/Vietnam where the Company has a 41.44
percent interest. Shortly thereafter a two-well appraisal
programme will commence on the Company's NC177 Block onshore Libya
which is held by Lundin Oil (40 percent) and Red Sea Oil Corp. (60
percent) (owned 61 percent by Lundin Oil). Finally the year will
end with a frontier exploration well offshore the Falklands
Islands on Tranche "F" which is 100 percent held by Sodra
Petroleum AB ("Sodra"). Sodra is currently conducting a new share
issue, which, if fully subscribed, will make Sodra 50 percent
owned by Lundin Oil. Although Falklands is last on the list, the
semi-submersible Borgny Dolphin which will be utilized has already
been mobilized and will drill three wells for other Falklands
operators prior to starting on Tranche F around October.
Ian H. Lundin, President of Lundin Oil AB commented as follows:
"1998 will be an extremely exciting year for Lundin Oil in terms
of appraising our existing discovery in Libya, establishing
substantial additional reserves in Malaysia/Vietnam and taking a
shot at the possible discovery of a new oil province in the
Falklands. Last year's drilling campaign yielded three
discoveries (out of four exploration wells), two in
Malaysia/Vietnam and one in Libya.
Our technical review of the Libya discovery has established the En
Naga North field contains recoverable reserves of approximately 84
million barrels of oil (64.3 million barrels net to Lundin Oil).
This almost doubles our existing oil and condensate reserves and
is a major milestone in the development of the Company. Similar
success in our 1998 drilling campaign will further transform the
Company as we enter the next millenium."
Lundin Oil AB is a Swedish independent oil and gas exploration and
production company with activities in nine countries world-wide.
The Company has production in the United Kingdom and in
Malaysia/Vietnam, as well as an oil discovery in Libya and a gas
discovery in Papua New Guinea. Booked proven and probable
reserves amount to 162 million barrels of oil equivalents (BOE),
of which 67.1 million BOE is oil and condensate. The booked
reserves do not include the Papua New Guinea gas reserves, the
Libya discovery or the latest Malaysia/Vietnam discoveries. |
