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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Greywolf who wrote (2161)	3/10/2001 2:35:28 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Lundin Oil hits the sweet spot with onshore Thar Jath discovery well - Swede on the boil in Sudan Upstream, March 9-15 By Nassir Shirkhani Swedish independent Lundin Oil has struck oil on onshore block 5A in Sudan with its Thar Jath discovery well, raising hope of a welcome boost to oil production in the impoverished African country. Lundin said the well, drilled to a total depth of 1820 metres, flowed at a cumulative rate of 4260 barrels per day of oil. "Reservoir quality is excellent with high porosity and permeability. Appraisal drilling is due to start after the completion of another exploration well (Jarayan)," said the company. Chief executive Ian Lundin said: "This is a significant and exciting event for Lundin Oil. We have confirmed that the trend of prolific oilfields as seen in blocks 1, 2 and 4 operated by the GNPOC consortium extend into our block." The consortium, including Malaysia's Petronas, Canada's Talisman, China National Petroleum Corporation and Sudan's Sudapet, currently produces more than 200,000 bpd. Lundin said its drill rig is being moved to the Jarayan-1 well location, about 12 kilometres south-east of the Thar Jath-1 discovery. Once the well has been completed, the rig will move back to Thar Jath to drill the first appraisal well. The company also plans to conduct extensive seismic surveys over the block. Lundin is the operator of block 5A with a 40.4% interest while Petronas Cargali holds 28.5%, Austria's OMV 26.1% and Sudapet 5%. Meanwhile, Talisman said it had been considering selling its interests in Sudan's Heglig concession after coming under pressure from the US government and human rights groups for its involvement in the country. Opponents of the Sudanese government say increased oil revenues would fuel the civil war against the southern rebels fighting against the Moslem north. The Clinton administration imposed sanctions against the company operating the Heglig concession in an effort to discourage investment in Sudan. Talisman, which owns a 25% interest in the concession, was not directly affected by the US measures. Talisman chief executive Jim Buckee said signals from the new US administration about a possible loosening of the sanctions were encouraging the company not to give up its Sudanese interests. "We were preparing an escape route or considering where we might go if we had to," said Buckee during a presentation in New York. "I can see the political climate vis a vis the Sudan may well improve, in which case now would not be a good time to sell," he said. Foreign companies have defended their presence in Sudan, saying increased oil revenues would help improve the plight of its poor citizens. Talisman said it has financed health and education projects in Sudan.