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

To: Tomas who wrote (569)	5/20/1998 10:43:00 PM
From: Tomas	Respond to of 2742

Red Sea Oil Corporation - New oil discovery in Libya Shares issued 41700000 Tuesday May 19 1998 E-mail: mailto:redsea@namdo.com to receive a full colour copy with maps and photos (e-mailed in pdf or via snail mail). Or call 604-689-7842 or toll free 1-888-689-7842 and ask for Sophia Shane. Alex Schneiter, Vice President-Exploration, will be in Vancouver, Calgary and Toronto at the beginning of June to give a series of corporate presentations and we would like to invite you to attend and meet Mr. Schneiter and enjoy some refreshments. Details are as follows: Vancouver June 1, 1998 Four Seasons Hotel 791 W. Georgia Street Oak Room 1:30 - 2:30 luncheon Calgary June 2, 1998 Westin Hotel 320 - 4th Avenue Lougheed Room 12:00 - 1:00 luncheon Toronto June 3, 1998 Yorkton Securities 181 Bay Street 30th Floor 8:00 - 9:00 breakfast Canaccord Capital 320 Bay Street 13th Floor - Boardroom 12:30 - 1:30 luncheon If you are able to attend, kindly R.S.V.P. to Sophia Shane via e-mail or at the above mentioned numbers. STOCK INFORMATION: Shares listed on: Alberta Stock Exchange Symbol: RSO Shares Outstanding: 41.7 million Current Price: Cdn $2.30 52 Week High/Low: Cdn $3.80-$0.55 Market Capitalization: Cdn $96 million NEW OIL DISCOVERY IN LIBYA: * Recoverable Reserves: Over 84 million barrels of high quality light crude oil (49 degrees API) * Estimated cost of production per barrel (including transportation): US $2.00 * Production to commence by the end of 1999: 27,000 barrels per day (estimated) * Pipeline infrastructure in place with 500,000 barrels per day excess capacity ENORMOUS UPSIDE POTENTIAL: Only one well drilled to date. At least three more planned. Numerous leads identified. Reserves could increase substantially. RED SEA OIL'S DISCOVERY IN LIBYA IS ONE OF THE COUNTRY'S MOST SIGNIFICANT IN RECENT YEARS. THE FLOW RATE OF RSO'S DISCOVERY WELL FAR EXCEEDS THE AVERAGE IN THE AREA AND COULD SIGNAL THE START OF A NEW DISCOVERY TREND SIMILAR IN MAGNITUDE TO THE FIELDS DISCOVERED DURING THE 1960'S. CORPORATE PROFILE: Concession: Block NC177 Area: 9,820 square kilometres Interest: 60% Lundin Oil holds the remaining 40% in the Block and also owns approximately 61% of the outstanding shares of RSO. Drilling Schedule: Two appraisal wells and re-entry into a well (J185) drilled previously on the block by another company in 1968. Drilling of these wells scheduled for Q3 1998. Two rigs will be used. Exploration drilling resumes in Q3 of 1999. Block NC177 is a large concession in the southwestern portion of the highly prolific Sirte Basin in Libya. The Company spudded the B1-NC177 discovery well on the En Naga North Prospect in early November, 1997, drilling to a total depth of 8,750 feet. A 40 day drill stem test program followed with the result of a cumulative flow rate from 4 zones of 6,517 barrels per day of light, high quality crude oil (42 degrees - 48 degrees API). Of significance is that this flow rate was achieved without artificial lift (i.e. without pumping). Pump assisted flow rates would be significantly higher. Reservoir studies have indicated that the field is capable of producing at least 27,000 barrels of oil per day from 2 of the zones alone. The main oil reservoirs are relatively shallow (5,000-7,000 feet), high porosity carbonates known as the Upper Zelten and Facha formations. Other formations are the Lower Zelten, Beda and Gir. The structure has an areal extent of up to 20 square kilometres (5,000 acres) and the B1-NC177 well penetrated a total gross pay thickness of approximately 542 feet. RSO is implementing a fast track appraisal and development program and expects first oil to be produced at the end of 1999. An excellent oil pipeline infrastructure is in place and the Company will hook into one of the several gathering terminals located within a radius of 75 kilometres from the discovery. The oil is then transported to terminals located along the Mediterranean Sea on the Libyan coast. Here the oil will be loaded into oil tankers and shipped to markets primarily in Europe. The crude oil that will be produced from RSO's En Naga North Field is high quality and will attract premium prices. Plans for the field appraisal program are underway. Over 65 kilometres of 2D infill seismic will be acquired followed by two appraisal wells which will be drilled in the third quarter of this year. In addition, the Company is planning to re-enter the J185 well which is a well previously drilled on the prospect by another company in 1968. The J185 well is located 3 kilometres from RSO's En Naga North discovery and is in a separate structure. Over 85 feet of gross pay have been identified within the lower Gir/Facha formation following detailed log analysis and correlates very well with the B1-NC177 at the Gir/Facha level. The J185 will be re-entered in the third quarter of 1998 and could prove up additional reserves for the En Naga Field. A 1,600 kilometre of regional 2D seismic program will commence shortly and will be targeted at firming up numerous other leads which have been identified within the Block. Exploration drilling will resume in 1999. The discovery of the En Naga North oil field marked a major turning point for the Company. The excellent results of the B1-NC177 well combined with the upside potential of the Block could be a true company builder. RSO intends to explore and develop this block to its full extent over the coming years and expand its presence in Libya through other ventures. MANAGEMENT: Ian H. Lundin President and C.E.O. Mr. Lundin graduated in 1981 from the University of Tulsa with a B.Sc. in Petroleum Engineering. He was trained by Wintershall AG, a subsidiary of BASF, as a drilling engineer on the Prinos Field offshore northern Greece. In 1983, Mr. Lundin joined North South Resources and was put in charge of the company's drilling operations in Egypt. In 1984, Mr. Lundin was transferred to Dubai as the company's Operations Manager. In 1989, Mr. Lundin was appointed General Manager prior to his appointment as President and C.E.O. of International Petroleum Corporation (now Lundin Oil) in 1990. C. Ashley Heppenstall Vice President - Corporate Planning and Finance Mr. Heppenstall is head of corporate planning and finance for Red Sea Oil and Chief Financial Officer of Lundin Oil AB. Mr. Heppenstall has extensive experience in corporate finance and project financing matters as well as financial feasibility analysis of projects, particularly for natural resource companies. Mr. Heppenstall is a graduate of Hatfield College, Durham University in England. Alex Schneiter Vice President - Exploration Mr. Schneiter holds a B.Sc. in geology from the University of Geneva and a Masters Degree in geophysics. He has worked in mining exploration in Papua New Guinea from 1989 through to 1990. In late 1990 he joined Eurocan as a geophysicist for oil exploration in Latin America. In 1992, Mr. Schneiter joined International Petroleum Corporation (now Lundin Oil) in Dubai as a senior geophysicist and was appointed Vice President - Exploration in 1995 with the overall responsibility for worldwide exploration activities. ADDRESSES Vancouver North American Office 1320-885 W. Georgia St. Vancouver, B.C. Canada V6C 3E8 Ph. 604-689-7842; Fx. 604-689-4250 Sophia Shane, Investor Relations Geneva Chairman's Office 6 Rue de Rive, P.O. Box 3410 1211 Geneva 3, Switzerland Ph. 4122-319-6600; Fx. 4122-319-6666 Ian H. Lundin, President and C.E.O. Dubai Technical Centre Al Jadaf, P.O. Box 9211 Dubai, U.A.E. Ph. 9714-341-218; Fx. 9714-341-256 Alex Schneiter, Vice President Exploration