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

To: Timelord who wrote (999)	4/10/1999 7:33:00 PM
From: Tomas	Respond to of 2742

Alex: A minimum of 2 exploration wells are required in Sudan under the terms of the EPS agreement. If the first well proves commercial they'll maybe try to keep the rig and drill a second well. In last years annual report they wrote: "the 1999 drilling campaign will probably consist of at least 2 wells back-to-back". There is a problem however: the annual heavy rains. It usually starts raining in July, but last year it started as early as in May (an El Niño-effect?). So maybe they won't have time enough to drill a second well. It's not impossible to drill during the rainy season if the place has been prepared in advance, but I'm not sure if it's a realistic option or not in this case. Development plans would probably take us into 2000, the next drilling season starts in December. The development phase would be very much like Lundin's En Naga field in Libya, around 2 years from first discovery to first production, perhaps 2 1/2 years. If the first well in Sudan proves commercial I think we can expect oil production to start during 2001.

To: Timelord who wrote (999)	4/13/1999 3:47:00 PM
From: Tomas	Respond to of 2742

Lundin Oil: European oil firms poised to gain in Libya, at Americans' expense LONDON - AP World News, April 12 For Swedish oil executive Magnus Nordin, the suspension of U.N. sanctions against Libya means no longer having to take an exhausting, five-hour taxi ride to reach his firm's office in the Libyan capital. Until now, the deputy managing director of Lundin Oil AB has had to travel to Libya by way of a flight to neighboring Tunisia, then hail a cab for the cross-border journey to Tripoli. But those circuitous trips should soon be just an unpleasant memory. Libya's is North Africa's most prolific oil patch, and its underdeveloped oil industry will now be able to obtain the spare parts and more of the capital needed to expand production. Foreign oil companies active in Libya _ most of them European _ anticipate that banks will now be more willing to finance them. European energy companies such as Italy's ENI, Repsol of Spain and Austria's OMV helped fill the void created by the American exodus. They've been busy; even under U.N. sanctions, Libya was allowed to continue exporting crude. Promising areas of the country remain to be explored. Lundin, the Swedish firm, is prospecting at En Naga in the Sahara, 1,000 kms (620 miles) southeast of Tripoli. The only players who stand to lose from the U.N. decision are American companies, which were forced to withdraw from Libya when the United States imposed its own unilateral embargo in 1986. The United States has so far refused to end its embargo, preventing U.S. firms from returning to oil fields they helped discover more than 30 years ago. The bigger issue, however, is U.S.-Libyan political relations. A decision by the United States to lift its sanctions would stimulate Libya's oil industry and foreign oil companies alike.

To: Timelord who wrote (999)	4/15/1999 9:29:00 AM
From: Tomas	Read Replies (1) \| Respond to of 2742

Lundin Oil's Ian Lundin on Libyan Exploration: Company Comment London, April 15 (Bloomberg) -- Following are comments by Ian Lundin, managing director of Lundin Oil AB, regarding the Swedish company's work to explore for oil in Libya. ''It's a very good time for a company our size to get more involved in Libya. The government shows plenty of signs that it wants us. They're expediting requests. There's definitely no road blocks to slow us down. ''There is some talk about them announcing new terms and exploration sites. We will be very interested in what they have to say because we're looking to expand. Smaller fields there are very commercial to develop, but when you get into the larger fields the terms become very onerous. ''We're operating on block NC177 covering 10,000 square kilometers. We've collected about 2,300 square kilometers of seismic (detailing underground rock structures) and invested about $50 million. ''We made two discoveries, the En Naga North field in January 1998 and En Naga West in September 1998, with proven and probable reserves of about 71 million barrels.'' Capital costs for the project are about $130 million, Lundin said. The company will lay a 100 kilometer pipeline from the field to the nearest oil export pipeline, which will haul the oil about 700 kilometers north to the Mediterranean. The expected lifting of United Nations economic sanctions will make work in Libya easier. ''For us we won't have to travel through Tunisia to get there anymore. There will be direct flights, and that will make it a lot easier to get into and out of the country. The Bank of England also approved capital transfers into Libya. ''The biggest thing is the Murzuk basin (in Libya's southwest). There's talk of 150,000 to 250,000 barrels a day -- even 500,000 barrels a day coming out of that region. That's significant. We're not in that basin, but Libya is building its production capacity to where it was before. They produced about 3 million barrels a day 20 years ago.'' Output today is about 1.3 million barrels a day. ''Eventually they'll have to increase their OPEC quota.'' quote.bloomberg.com