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

To: Tomas who wrote (701)	8/16/1998 7:51:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Papua New Guinea: "We rate the pipeline an 80 per cent chance of proceeding". The National, Monday August 17 Pipeline to boost Oil Search share value [note: Oil Search is Lundin Oil's partner in Papua New Guinea] BRISBANE: Development of the multi-billion dollar Papua New Guinea to Queensland gas pipeline could add at least A$1.00 to the value of Oil Search Ltd shares, an analyst has said. Shaw Stockbroking analyst John Colnan said the pipeline would commercialise Oil Search's vast gas reserves to a level that could start rivalling Santos' reserves. "We rate the pipeline an 80 per cent chance of proceeding and maintain our buy for growth stance," Mr Colnan said of Shaw's recommendation on the stock. Oil Search shares closed on the Australian Stock Exchange two cents up at A$2.15 on Friday. "Development of the pipeline should add at least A$1.00 per share to Oil Search valuation that currently stands at A$2.35 per share, based on low short-term oil prices," he said in a quarterly update on the stock. A decision on the go-ahead of the pipeline is expected as early as next month, with project leader Chevron Asiatic Ltd still negotiating with Comalco to become a foundation customer. Comalco is considering Gladstone as the site for a gas-fired alumina refinery. "We believe Comalco is currently playing Chevron off against Santos for the best deal in gas supply to its alumina refinery," Mr Colnan said. "We suspect both suppliers will be used if Comalco proceed with the refinery, to mitigate against PNG risk." Mr Colnan said Shaw Stockbroking upgraded Oil Search to its number one pick in the energy sector after its acquisition of BP's PNG assets for US$400 million (K952 million) in April this year. ... wr.com.au