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

To: Tommaso who wrote (514)	3/7/1998 7:58:00 PM
From: mike h	Respond to of 2742

Thank you Tommaso for your response. I already hold a position in Arakis for that reason. I purchased when Lundin started buying so I patiently sit underwater waiting and lurking on the Arakis thread. Thanks again MikeH

To: Tommaso who wrote (514)	3/8/1998 12:49:00 AM
From: Tomas	Read Replies (1) \| Respond to of 2742

Tommaso: I don't think Lundin's way of doing things means that he's not very confident of finding oil near the Falklands. Lundin probably doesn't know more about the chances than the British Geological Survey, and they believe there is a one in six chance of finding oil off the Falklands. A surpsrisingly high probability, the seismic results must be excellent! But of course, that also means there are five in six chances of not finding oil... Sands never intended to keep more than 40-50% of their Falkland holding. They rarely keep more than 40-50% (like in Sudan). They tried farming out 50-60% of their Falkland interest for several months, and they were offered $15 million for a 50% stake. Declining oil prices didn't facilitate the negotiations... Sands didn't accept these offers, and that's why they now offer shareholders to purchase half of the Sodra Petroleum subsidiary instead. Keep an eye on Desire Petroleum, they hope to raise funds in London as part of its Falkland plans. But their terms are not as attractive to investors as Sands/Sodras'. Amerada Hess will drill the first well in May. If it shows indications of oil or gas in the area, then they will probably sooner or later make a big oil discovery. The geological similarities to the North Sea are quite strong (but the North Sea is smaller...)