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

To: mike h who wrote (513)	3/7/1998 9:47:00 AM
From: Tommaso	Read Replies (2) \| Respond to of 2742

Sounds to me like a way to raise some cash quickly. Since US and Canadian shareholders can't participate, I haven't paid much attention to it. These rights are probably not worth very much--and will be sold on behalf of unqualified investors (me). I guess a check for a few dollars will turn up in my brokerage account at some point. Am I right? Anyone studied it more carefully? It is a typical Lundin way of doing things--except that this time I find my interests more aligned with theirs than usual. It means that they are not very confident of finding oil near the Falklands and want to cut the risk in half. Also watch for an effort by Sands, after it becomes Lundin Oil, to acquire Arakis through an issuance of Sands stock, possibly in collaboration with a major oil company--maybe even an American one, if the relations with the Sudan can be improved. Though possibly the Sands interest in Arakis mainly has to do with guaranteeing access to the pipeline for shipping production from the concession that Sands already has. See Arakis thread for endless discussion of all this.

To: mike h who wrote (513)	3/8/1998 12:05:00 AM
From: Tomas	Respond to of 2742

MikeH: Sands' Sodra-offer sounds good to me, but I've heard some critical voices in Sweden. One thing that makes the Sands offer more attractive than usual is that shares in Sodra will be convertible into Sands shares (via options) in November 2001. If no oil is found investors need not end up with empty pockets: If Sands share price doubles over the 3 years period that the Falklands exploration takes place, and the Falklands well is dry, the shareholders will get their money back. Sands has identified 11 prospects in it's Falklands holding, each of which could potentially produce hundreds of barrels of oil. The total potential in Sands' block is 2 billion barrels. This is certainly one of the most exciting oil plays happening anywhere in the world this year, but sure it's a risky play. On the other hand I'm confident investors will at least get all their money back 2001, and probably more than that. I can't see how Sands can avoid doubling it's share price over 3 1/2 years with Malaysia phase 2 and the oil production in Libya coming up. Sodra is a rather safe bet, even if the Falklands wells are dry! But I know, everyone does not agree with me. Any thoughts?