25 February 2009
LUNDIN PETROLEUM RECEIVES LAGANSKY BLOCK LICENCE EXTENSION
Lundin Petroleum AB ("Lundin Petroleum") is pleased to announce that it has received from Rosnedra, the Russian subsoil licensing agency, a five year extension to its existing Lagansky exploration licence (70 per cent Lundin Petroleum interest). The Lagansky exploration licence is now valid until August 2014.
The Lagansky exploration licence is located in the Russian sector of the Northern Caspian Sea.It contains the Morskaya discovery drilled in 2008 which has estimated gross recoverable resources of between 110 and 450 million barrels of oil (MMbo).Following the award of this licence extension, Lundin Petroleum has taken the decision to postpone until 2010 the drilling of the Morskaya-2 exploration/appraisal well, which will appraise the western end of the Morskaya discovery.
Lundin Petroleum plans to drill the Petrovskaya-1 exploration well later this year.The Petrovskaya prospect is a four way dip closure which lies on trend and updip of the Morskaya discovery and is estimated to contain unrisked potential resources of 300 MMbo.
Ashley Heppenstall, President and CEO of Lundin Petroleum comments:'The extension to the exploration period of the Lagansky block licence provides us with the requisite time to fully explore this exciting area which already contains the Morskaya discovery.'
An option agreement in relation to the Lagansky block was signed in 2007 with JSC Gazprom ("Gazprom") whereby Gazprom acquired an option exercisable for a 50 percent plus one share interest in the Lagansky block. In addition, Lundin Petroleum signed an option agreement with its minority partner to purchase its 30 percent interest. The net effect is that, upon completion, Gazprom will own a 50 percent plus one share and Lundin Petroleum will own a 50 percent less one share interest in the Lagansky block.
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in Europe, Africa, Russia and the Far East. The Company is listed at the Nordic Exchange, Sweden (ticker "LUPE").
For further information, please contact:
C. Ashley Heppenstall,
President and CEO
Tel: +41 22 595 10 00
Head of Corporate Communications
Tel: +41 22 595 10 00
Tel: 08-440 54 50