FIELD ACTIVITIES / LASMO Announces Appraisal Successes in Pakistan
and North Africa
NYSE SYMBOL: LSO
MAY 27, 1998
LONDON, ENGLAND--LASMO plc (NYSE:LSO), the international oil and
gas exploration and production company, today announced the
results of successful appraisal drilling on two of its major LASMO
operated discoveries of 1997. The wells confirm the reserves
potential of the Bhit field in Pakistan and the Elephant field in
Libya.
Bhit-3 is the first appraisal well on the Bhit gas field in the
Kirthar Concession and is located approximately six kilometers
south of the Bhit-2 discovery well. Bhit-3 encountered a similar
quality reservoir section to Bhit-2 in the objective Cretaceous
Pab sandstone, with a net pay of approximately 100 meters. The
top of the reservoir was penetrated some 135 meters shallower
than anticipated, indicating upside reserves potential which will
be evaluated during the ongoing appraisal program. The second
appraisal well is expected to commence drilling in early June and
will test the northerly extension of the field. Bhit-3 is
currently being completed for an extended well test and subsequent
use as a production well.
The F3-NC174 well in Libya was the second appraisal well on the
Elephant oil field, and is located approximately 3 kilometers
northwest of the F1-NC174 discovery well, in the Murzuk Basin of
southwestern Libya. The well tested 8,400 barrels of 39 degree
API oil per day from a reservoir section of some 90 meters of net
pay.
This latest success supports LASMO's view of most likely reserves
in excess of 500 million barrels.
John Hogan, LASMO's Chief Operating Officer, said: "Confirmation
of the reserves potential of our major 1997 discoveries is a key
element of our 1998 drilling program. Increased understanding of
the Bhit field is of particular value as we prepare for further
exploration drilling of similar large structures in the same
geological play."
In addition to LASMO's listing on the New York Stock Exchange,
LASMO shares trade on the London, Toronto and Montreal Stock
Exchanges. Shares are quoted on the SEAQ System, and prices may
be accessed on the Reuter Equities 2000 Service under the symbol
LSMR.L and on Quotron under the symbol LSMRU.EU. For further
information, visit LASMO's web page at http:\\www.lasmo.com.
Notes
Pakistan
1. Working interests in the Kirthar Concession in Pakistan are:
LASMO Oil Pakistan Ltd (Operator) 47.5 percent Shell Exploration
Pakistan B.V. 47.5 percent Oil and Gas Development Corporation
Ltd 5.0 percent OGDC (a Government owned oil company) has the
right to back-in for 20 percent on commerciality, which is a
further 15 percent to their current 5 percent holding.
2. The producing zone of the Bhit field is at a depth of
approximately 2,000 meters.
3. LASMO is the largest foreign acreage holder in Pakistan, with
net acreage of 30,800 square kilometers.
Libya
4. Working interests in the Exploration and Production Sharing
Agreement for NC174 are:
LASMO Grand Maghreb Ltd (Operator) 33.33 percent Agip North Africa
BV 33.33 percent Korean Consortium (Pedco, Daewoo, Hyundai,
Majuko, Daesung) 33.33 percent
5. The producing zone of the Elephant field is at a depth of
approximately 1,500 meters.
6. LASMO entered Libya in 1990 and has been operator of NC174
since that date.
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