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

To: Tomas who wrote (837)	11/18/1998 6:16:00 PM
From: Oily1	Read Replies (11) \| Respond to of 2742

SODRA, DESIRE PETROLEUM AND THE FALKLANDS : THERE IS LIGHT AT THE END OF THE TUNNEL FOR FURTHER EXPLORATORY WELLS IN THE NORTH FALKLANDS BASIN By J. Brock (FINN) Speculation in the media about SODRA and Desire drilling an exploratory well has met with caution, even though the price per barrel of oil has risen 12c to approximately $12.56. News of the possible joint exploratory well prompted FINN to have a chat with director of Mineral Resources, Mrs. Phyl Rendell about the possible well and some of its implications. PR The companies have been doing a lot of talking. There are all sorts of proposals in the air, which is only to be expected when the rig is coming to the end of its last committed well. I think that some of the other companies have been looking at ways in which to keep the rig here and drill more wells. FINN given the risks involved and the relatively low price of oil per barrel, is this wise? PR I think it's only natural and I think the Falkland Islands Government is very willing to co-operate in any way it can if good strong proposals are presented to us but it is rather risky in these rather difficult times with exploration. It's difficult to find the cash to continue. There certainly are a number of proposals in the pipeline, so to speak, but what will actually come about at the end of it is certainly unclear. What is clear is that the proposals that are put to government are entirely up to the companies involved. FINN Then, the speculation that we might be retaining the rig for further exploration is true. PR We certainly have been party to some of the discussions and we would like to assist wherever we can if the proposals are well put together and within the rules and guidelines of our operational legislation. FINN The reality is the price per barrel. It is still considerably low. Are there any indicators that this might turn around and decrease the risk to companies wanting to do exploratory drilling in the North Falklands Basin? PR I think the price of oil last week went to $12.56 for Brent Crude. That was thought to be quite an improvement. It was about .12c up on the previous price. But, when the oil is under $13.00 a barrel it's very very difficult for the companies to find oil exploration money. Their money is needed to keep their production fields operational and therefore area for new areas or areas where there haven't yet been proven resources found are the areas that will get neglected and I think it's a very good thing that the Falkland Islands had its licensing round two years ago and wasn't trying to licence the offshore now. We certainly, I think, would find a very different situation. I have just been to Rio at an Oil Convention and those countries trying to get started with Licensing rounds at the moment are really finding it very, very tough, indeed. Frankly, I think we are in a pretty good position. We've licensed our acreage. We've had companies drilling. We have a tremendous amount of data now from six wells. There will be time taken over analysing that. But, with the down-turn in oil prices, it will take some time for there to be more activity offshore Falklands. FINN the Geology itself, I understand, is one of the drawing cards in actually having more exploratory wells drilled. Is the Geology addictive? PR It's addictive for Petroleum Geologists and these six wells have revealed very interesting things. They certainly have found oil there but not in commercial quantities so now the hunt is on to see where that oil might be coming from or might have migrated to, to try and find reservoirs that hopefully will be big enough to exploit. So, it is a bit like having put a needle in a haystack and analysing what was down those wells and trying to find and understand what's going on. From a geologist's point of view, it's quite fascinating but, of course, they've got to get the funding and the commitment from their oil companies to keep searching. FINN I was wondering also about the Special Area. Would you be able to tell FINN's readers how that's progressing? PR We've got meetings. The Attorney General and I are going to London in early December for a set of meetings. The Special Area matters are still in discussion and we are still trying to find ways forward. There are still quite a number of technical issues that need to be addressed, things like marking schemes, health and safety legislation, tax issues. These are all nitty gritty things that we are still working on and our experts are working on and they are on course. We always knew it would take time. It took us more than four or five years to prepare for the Falklands and that only involved one country but now we are trying to put together two regimes and with people not working full time on it, it is going to take a little while yet. FINN So, perhaps by the time the special Area of Co-operation is ready to begin its licensing round, the price of oil per barrel might have risen above $13.00 per barrel. PR Perhaps it's a good thing that we're not ready now. As you say, by the time we are ready, perhaps the prices will be a bit more buoyant and we will be able to attract good companies into that area. Last changed: November 18, 1998

To: Tomas who wrote (837)	11/18/1998 7:16:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Australian Foreign Minister: "Boost" for the PNG-Queensland gas pipeline project. Lundin Oil's Pandora field mentioned. The National, Thursday November 19 Downer welcomes passage of gas act By KEVIN PAMBA PORT MORESBY: Australian Foreign Minister Alexander Downer yesterday welcomed the passing of the oil and gas bill by PNG Parliament on Monday. Mr Downer described the passage of the bill by an absolute 62-0 vote as "boost" for the the PNG-Queensland gas pipeline project. He said the Australian Government looked forward to continue working with its PNG counterpart to advance the project. "I welcome this encouraging step from the PNG Parliament towards what could prove one of our two countries' largest ever joint venture," Mr Downer said in media statement. "The A$3.1 billion (K4.1 billion) project is expected to generate more than 5,500 jobs in Australia and PNG during the two year construction period and about 300 permanent jobs in the longer term." He said the project could also generate significant investment opportunities for companies in both countries. He gave an example that in Australia, energy consuming projects already under consideration in the Townsville and Gladstone areas in Queensland have the potential to create more than 2,400 permanent positions with capital expenditure in excess of A$5 billion. Mr Downer said "PNG will also benefit from the potential establishment of industrial developments by large-scale energy users and further regional development opportunities including the possible development of the Pandora gas field in the Gulf of Papua". "Much work remains to be done to bring the project to fruition but the decision by the PNG Parliament to pass the new legislation is a welcome reminder of the high priority the PNG government attaches to this important commercial opportunity," Mr Downer said. "The Australian Government looks forward to continuing work with the PNG Government to advance the PNG-Queensland gas pipeline project." The passage now puts to rest the anxiety expressed by project proponents lead by operator Chevron earlier this month that, the project would held back by a year if a workable legislation was not passed by Parliament. Participants in the project are: Chevron Niugini Ltd, Mitsubishi Oil Co Ltd, Mobil Exploration and Producing (Australia) Pty Ltd, Oil Search Ltd, Orogen Minerals Pty Ltd and Petroleum Resources Kutubu Pty Ltd. wr.com.au