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

To: Timelord who wrote (726)	9/16/1998 10:54:00 PM
From: Tomas	Respond to of 2742

How much is Lundin Oil worth today? How important is the Papua New Guinea project to Lundin Oil? The Pandora gas reserves = 130 million barrels of oil equivalents net to Lundin Oil. At the beginning of this year the company's total official reserves were 160 MMBOE. Today this figure has grown to more than 260 MMBOE (drilling success in Libya and revision upwards in Malaysia, but NOT including the recently discovered oil and gas fields in Malaysia). The 130 MMBOE in Papua New Guinea are NOT included, because there's no gas pipeline. Not yet. The formal decision to build the pipeline will be made by the Chevron consortium later this autumn, the probability is very high. The construction work is scheduled to start early next year. And as soon as they have decided to build the pipeline, Lundin Oil can add the 130 MMBOE in PNG to the existing reserves. A dramatic increase! If we add the PNG gas and the new fields in Malaysia (and the appraisal wells in Libya), the company's oil and gas reserves will be close to half a billion barrels at the end of this year. That means TREBLING the reserves during 1998. Can you see this development reflected in the stock price? OK, I know, the oil price... But 1/2 billion barrels and 81 million shares, and today's stock price is 2 7/8, that means 47 cents per barrel. What? Let me check that again. 47 cents per barrel! Are the reserves landlocked in Siberia, or on the moon, or what? Tomas

To: Timelord who wrote (726)	9/18/1998 7:50:00 AM
From: Tomas	Read Replies (2) \| Respond to of 2742

Libya: Discovery in Block NC177 Lundin Oil AB ("Lundin Oil") and Red Sea Oil Corporation ("RSO") are pleased to announce the results of the re-entry of the J1-85 well located 3 km south-west of B1-NC177, the discovery well drilled on the En Naga North structure in January this year in Block NC177, onshore Libya. The J1-85 well was extensively tested over a gross interval exceeding 90 feet in the Lower Gir formation which flowed at a stabilised rate of 2,203 barrels of 44ø API oil per day and 1.785 million cubic feet of gas per day on 44/64 choke without artificial lift. As J1-85 is located on a separate structure from the En Naga North Field, it represents a discovery which will be incorporated in the overall Development of the area. The J1-85 re-entry forms part of an ongoing exploration appraisal Programme on the Block which consists of this re-entry, two appraisal wells in the En Naga North Field an ongoing 1,600 km regional seismic survey. One appraisal well remains to be drilled on the En Naga North structure, the spud date of which is anticipated on around 30th of September. Based on the results of this ongoing programme RSO plans to proceed with the fast track development of the En Naga North Field and the J1-85 discovery, as well as the full appraisal of the remainder of the Block: the potential of which is considered to be significant. Lundin Oil AB has 40% interest in NC177. RSO is the operator with 60 % interest. Lundin Oil owns 61% of the outstanding shares of RSO For further information, please contact: Ian H. Lundin Managing Director Tel: +41 22 3196606 Magnus Nordin Deputy Managing Director Tel: +46 8 440 54 50 lundinoil.com

To: Timelord who wrote (726)	10/5/1998 11:47:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Libya: RSO/Lundin are supposed to have been offered US$50 million recently for a 25% interest in Block NC-177. That equals US$2 million per percent of the Block. Back in June the project manager, Alex Schneiter, said he expected bids at this level. But now, 4 months later, they want 50% more = $3 million per percent. Two more wells have been drilled since then, and the original 84 million barrels of oil have unofficially increased to around 120 million barrels. The geologists are convinced that the reserves in En Naga North are in excess of 160 MMB, probably more. $2 million per percent, Red Sea Oil has 60% = US$120 million. There are 41,7 million RSO shares outstanding ---> US$2.88/share = CAD$4.47/share. Red Sea Oil's last trade today: CAD$1.08 (bid/ask 0.95/1.03). So, $2 million/percent = a total value more than 4 times higher than today's market capitalization! Not bad, selling 25% of their interest in NC-177 would give RSO more $ than the market's price on the entire company today. And they want (and believe they can get) 50% more. $3 million/percent = a total value of CAD$6.70/share. Lundin Oil owns 75% of the Block (40% directly and the rest via RSO shares). $2 million per percent = US$150 million. $3 million per percent = US$225 million. Lundin Oils market cap today is US$180 million! What do you say?

To: Timelord who wrote (726)	11/23/1998 7:41:00 PM
From: Tomas	Respond to of 2742

Lundin Oil flowers in the Libya desert Upstream, November 20 -MARK HILLIER from Tripoli- Swedish outfit close to filing a development proposal for a pair of oilfields that it hopes will be just the first bloom of an ongoing, successful exploration campaign. LUNDIN OIL is putting the final pieces of the jigsaw in place for a full development proposal on the En Naga North and En Naga West oilfields in Libya. It has just embarked on a test programme at appraisal well NC177-B3. If all goes well, the Swedish company, chaired by the entrepreneurial Adolf Lundin, hopes to submit a plan for the two fields to Libya's National Oil Company before the end of February. That could lead to first production in the second half of the year 2000. That would mean the development proposal being submitted little more than a year after En Naga North was discovered last January. However, Lundin's success in Libya has not come overnight. It has been active in the north African nation since 1989, building up a position and its relations inside the country. Prior to the NC177-B1 hit the company had drilled three wells with no great success. Now, though, it is confident it has a project that will fly. In-house estimates peg reserves for En Naga North and En Naga West at 87 million barrels of oil. Lundin reckons it can bring the fields on stream at a cost of less than $100 million through a development that would lead to peak production in the range of 25,000 to 35,000 barrels per day. A preliminary conceptual plan envisages seven producing wells and five water injectors, with production running to a processing facility on En Naga North and oil then being exported via a 100-kilometre pipe to join a main NOC line at Samah. "It's a straightforward development, nothing complicated," says Lundin vice president of exploration Alexandre Schneiter. Lundin Libya country manager Nick Gosse says work is being prepared on bid packages for the project and interviews are taking place for key staff positions such as construction manager. The development plan is now only dependent on the final work on the reservoir, he says. Lundin estimates that project operating costs at peak production will be just $3 per barrel, comprising $1.25 of direct operating expense and $1.75 for the pipeline tariff. During the production phase, NOC will be responsible for 75% of operating costs. Finance director Ashley Heppenstall says the En Naga scheme is robust at low oil prices. Initial project economics were based on 82 million barrels of reserves so anything above that will make it even more profitable. However, although Lundin officials are confident about En Naga's viability, financing will have to be put in place and the project also has to win approval from Libya s NOC, both of which will affect its timing. Company officials say they had been working closely with their NOC counterparts to prepare the ground but once the development proposal is submitted they will have no control over how long approval might take. While taking nothing for granted, one official says the company is hopeful it will get the go-ahead in between four and six months.