FINANCING / Lundin Oil AB: Sodra Petroleum New Issue Completed,
All Shares Taken Up
STOCKHOLM STOCK EXCHANGE SYMBOL: LOIL B
TSE SYMBOL: LOI
NASDAQ SYMBOL: LOILY
MAY 20, 1998
VANCOUVER, BRITISH COLUMBIA--Lundin Oil AB is pleased to announce
that the new share issue of 40,506,476 convertible shares of Sodra
Petroleum AB has been completed and all shares have been taken up.
Sodra has through this issue raised MSEK 303.8.
Over 80 percent of the issue was taken up through rights issued to
shareholders of Lundin Oil. The remaining shares have been taken
up without rights and Lundin Oil has taken up 3 million shares
with intention to place these in the British market in connection
with a listing of Sodra on AIM (the Alternative Investment
Market). An AIM listing is planned for early this summer.
The convertible shares now issued can be converted to Lundin Oil
shares during the period November 5 to 23, 2001. Twelve Sodra
shares can be converted to 1 newly issued share in Lundin Oil.
After the now completed new share issue Sodra is a 53.7 percent
owned subsidiary to Lundin Oil. The total number of shares in
Sodra now amounts to 81,012,976 of which 40,506,500 are common
shares owned by Lundin Oil and 40,506,476 are convertible shares
quoted on the New Market within the Stockholm Stock Exchange
quotation system. Lundin Oil thus also currently owns 3 million
convertible shares.
Sodra Petroleum owns 100 percent of a licence to explore for and
develop oil and gas offshore the Falkland Islands within an area
known as Tranche F (see map).
An exploration well is currently in progress within Tranche A
operated by Amerada Hess. The well has encountered minor oil and
gas shows, the economic significance of which it is far too early
to be able to assess. Sodra Petroleum's first well is scheduled
for the 4th Quarter of 1998.
Sodra Petroleum AB's sole business is the exploration for and
development of oil and gas offshore the Falkland Islands.
NOTE: Location map available from the Company at the phone number
listed below.
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