Lundin Petroleum has an 18.75% working interest in Congo (Brazzaville) Marine Block XI. Previous exploration activity on the block has resulted in four undeveloped oil discoveries. In 2008, Lundin Petroleum acquired a 21.55% working interest in Marine Block XIV. The Phase I commitment exploration well was drilled in 2009 - unfortunately this was a dry hole.

Introduction
Lundin Petroleum has interests in two offshore blocks located in the Lower Congo Basin.

Marine Block XI is located in shallow water adjacent to the coast with water depths ranging up to 110 metres and covers an area approximately 1,400 square kilometres. The consortium participating in the block consists of Soco International, as operator with a 37.5% interest, Lundin Petroleum and Raffia Oil SARL each with an 18.75% working interest, SNPC, the state oil company with a 15% interest and Africa Oil and Gas Corporation with the remaining 10% interest.

Marine Block XIV is situated adjacent to Marine XI and comprises three discontinuous sections which cover approximately 265 km2. Partners in the joint venture consists of SOCO Exploration and Production Congo as operator with a 29.4% interest, PA Congo with a 12.5% interest, Raffia Oil SARL with 21.55% and SNPC with a 15% carried interest.

Geological Setting
The stratigraphy in the Congo can be subdivided into “Presalt” and “Post-salt” with the Aptian age salt being the dividing lithology. Most exploration and development has occurred in the Post-salt leaving the Pre-salt section under explored. Reservoirs range in age from Upper Jurassic to Tertiary and can be sandstones, conglomerates, and marine or freshwater limestones. The prolific source rock in the area is the Lower Cretaceous Marnes Noires shale.

Exploration Activity in Marine XI
There has been previous exploration activity on the block resulting in four small oil discoveries (the largest being Viodo) and the definition of several undrilled leads. All discoveries and leads are situated near existing facilities and in water depths ranging from 10 to 120 metres.

The acquisition of a 1,200 square kilometre 3D seismic programme was completed in 2006. This large survey has been used to further define the limits of existing fields and to delineate exploration targets for a 2009 drilling campaign.

A two well drilling programme commenced in August 2009 with the drilling of exploration well Liyeke Marine-1 on the Sendji prospect. The Sendji formation was encountered as forecasted but the formation was water bearing. A 62 meter heavy oil column was found in the overlying sediments, but the log and sample data indicated that the oil would not flow.

The second well in the 2009 programme is an appraisal of the 1986 Viodo oil discovery. Drilling is completed and two DST’s were successfully constructed. Although oil and gas were produced at good rates, pressure depletion further demonstrates the complexity of the reservoir. Reservoir modelling is underway, and a revised view of the field will be achieved by Q2 2010.

Exploration Activity in Marine XIV
The Marine Block XIV will operationally and technically complement Lundin Petroleum’s activity in Block XI. The Marine Block XIV licence comprises three discontinuous sections located in water depths ranging up to 110 metres. Recent 3D seismic interpretation has identified a number of prospects in the post-salt close to existing small oil discoveries on the block. Exploration drilling is expected to commence in 2010.