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

To: Razorbak who wrote (2380)	5/9/2001 7:46:01 PM
From: Greywolf	Read Replies (1) \| Respond to of 2742

Lundin hits the jackpot 17:50 GMT Sweden's Lundin Oil is claiming a significant new oil discovery on block PM-3 CAA on the maritime border between Malaysia and Vietnam. The East Bunga Raya-1 well encountered seven new oil zones and two low-carbon dioxide gas reservoirs, the company said. The main oil zone was production tested and flowed at a maximum rate of 5500 barrels per day. Total net pay in the well is 168 feet of oil and 328 feet of gas, Lundin added. The so-called Commercial Arrangement Area between the two countries is already the focus of a development project on the Bunga Kekwa oilfield in PM-3. It is producing around 18,000 barrels per day of oil through an early production scheme involving an unmanned monopod wellhead platform and a leased floating production, storage and offloading vessel. Phase two of the project, which involves larger platforms and an FSO, seeks to bring on stream neighbouring finds with targeted production of 40,000 bpd of oil and 250 million cubic feet per day of gas in late 2003. "The additional hydrocarbon reserves delineated by this (latest) well can be developed using excess capacity from the current planned phase-two infrastructure with minor processing and production de-bottlenecking refinements. A mid-year re-assessment of the third party certified reserves is currently under way," the company said. Lundin Oil president Ian Lundin said: "We are very excited about the results of this well and the major impact it will have on the value of this project. As there will be only minor additional capital requirements, the additional oil revenues will add directly to the project cash flow and profitability.'' Lundin Malaysia holds a 41.44% interest in the PM-3 CAA tract and operates the concession on behalf of partners Petronas Carigali (46.06%) and PetroVietnam Exploration and Production (12.5%). www.upstream.tm