23 September 2004
LUNDIN PETROLEUM EXPLORATION PROGRAM IN INDONESIA CONTINUES
Lundin Petroleum AB (“Lundin Petroleum”) is pleased to provide an update on its operations in Indonesia:
• The exploration well (Padi-1) in the Blora Block, Indonesia has spudded. The main target of the well is the Oligocene Sandstone formation, a well known and proven reservoir in the area. The drilling operations will be completed in the fourth quarter and the total depth is expected to be 1 235 meters.
• Under a farm-in agreement reached with Kuwait Foreign Petroleum Exploration Company (“Kufpec”) Lundin Petroleum is transferring a 40% working interest in the Blora block to a Kufpec subsidiary. As part of the agreement Kufpec has agreed to fund a percentage of Lundin Petroleum’s Padi-1 well costs. Following the farm-in and subject to all necessary government and partner approvals, Lundin Petroleum will hold a 43.3% working interest and CNOOC will continue to hold 16.7%.
• The exploration well “Banteng-1” located on the Lematang block has reached its main reservoir objective (the Gumai Sands Formation) at a depth of 3 227 meters.Logs were acquired and did identify a thin hydrocarbon gas column at the Gumai sands level. Log analysis however showed that the prospective reservoir section was thinner than anticipated and the well has been declared non commercial.
Currently, the well is being plugged and abandoned. Partners in the joint venture are PT Medco Energi 74.12% (the Operator), Lundin Petroleum 15.88% and PDA 10%.
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in France, Indonesia, Iran, Ireland, Netherlands, Norway, Sudan, Tunisia, UK,Venezuela and Albania. The Company is listed on the O-list at Stockholmsbörsen, Sweden (ticker “LUPE”).
For further information, please contact:
C. Ashley Heppenstall,
President and CEO
Tel: +41 22 319 66 00
Head of Corporate Communications
Tel:+46 8 440 54 50