North Bunga Pakma Field Discovery Well flows over 100 million cubic feet of gas and 2,000 bbls of
condensate per day
LUNDIN OIL AB (The "COMPANY"), through its wholly-owned subsidiary, IPC Malaysia Ltd., is pleased to announce the
discovery of the North Bunga Pakma field in the North West area of the Block PM-3 CAA, the Commercial Arrangement Area
between Malaysia and Vietnam. North Bunga Pakma is the seventh field to be discovered on this highly prospective block.
The discovery well, North Bunga Pakma-1, was drilled to a total depth of 10,781 feet and encountered 12 commercially significant
hydrocarbon bearing reservoirs with a total gross thickness of 400 feet. Production testing of four representative sands from the J,
K and I sequences yielded a combined maximum flow rate of 111 million cubic feet per day and 2,036 barrels per day of
condensate. Apart from proving up significant additional reserves, the well results have upgraded the potential of the North West
Pakma and North Orkid prospects which are adjacent to North Bunga Pakma ( see attached map at sandsp.se ). Development studies will now
be carried out to incorporate the North Bunga Pakma field into the Block's development plans.
The remaining two wells planned on the Block this year will be drilled on the Kekwa field and will be tied into the existing
production facilities as soon as they are completed. The Kekwa filed currently produces in excess of 10,000 barrels of oil per day
from a Floating Production and Storage and Offloading vessel.
Ian H. Lundin, President of Lundin Oil AB, commented as follows: "The reserves discovered by North Pakma represent a
significant addition to the Block reserves which is currently estimated at 140 million barrels of oil and condensate and 1.8 trillion
cubic feet of gas recoverable. Discussions are ongoing with the Government of Malaysia and Vietnam with regards to the Gas
Sales Agreement and we expect to have a final resolution before year end which will enable Phase-II of the project to proceed with
a target start up date in late 2,000 at an initial rate of 250 million cubic feet per day and 40,000 barrels of oil per day."
Lundin Oil AB has a 41,44 percent working interest (held through IPC Malaysia Ltd. 26,44 percent and Sands Malaysia AB 15
percent) and is the Operator of Block PM-3 CAA. The remaining interest is held by Petronas Carigal Sdn Bhd with 46,06 percent
and PetroVietnam Exploration and Production with 12,5 percent.
For further information, please contact:
Ian H. Lundin
Managing Director
Tel: +41 22 3196606
Magnus Nordin
Deputy Managing Director
Tel: +46 705 766 555
Sophia Shane
Investor Relations North America
Tel: +1 604 689 7842 |
