SPM Spg Media

RNS Number:7693B
Sodra Petroleum AB
1 December 1999


Sodra Petroleum AB announces that its parent company, Lundin Oil
AB ("Lundin") has today issued the following announcement:-
                                 
        C1-NC177 exploration well abandoned. Exploration to
                             continue

Lundin  Oil  AB's subsidiary Red Sea Oil Corporation, through  its
wholly  owned  subsidiary  International Petroleum  Libya  Limited
("IPLL"), announces that testing operations on the C1-NC177  well,
drilled  on  Block NC177, onshore Libya, have been  suspended.  In
spite  of  strong  oil shows during drilling and encouraging  logs
results,  the  three  tests carried out did  not  flow  commercial
quantities of hydrocarbons. IPLL is now evaluating the data with a
view  to  assessing the impact of these results on the  Haruj  "A"
structure on which the well was drilled.

Ian  H. Lundin, President of Lundin Oil AB, comments, "Substantial
potential  remains in Area NC177 and exploration work is  ongoing.
Several targets remain to be tested and two exploratory wells  are
planned  for  next  year as well as an extensive regional  seismic
programme."

IPLL  plans to acquire 300 kilometres of seismic on NC177 in early
2000  in order to define further drilling targets. Meanwhile,  the
En  Naga  field, which is also located on NC177, is  awaiting  the
Development  Plan  approval by the Governmental  authorities.  The
field,  with  proven  and  probable oil  reserves  of  71  million
barrels, is currently scheduled to go onstream in early 2001  with
a  planned plateau production rate in excess of 22,000 barrels per
day. The pipeline from En Naga to the nearest tie-in point of  the
main export pipeline has been sized to handle up to 80,000 barrels
per day.

Red  Sea Oil Corporation ("RSO") is the operator of Area NC177 and
holds a 60% interest. The remaining 40% interest is held by Lundin
Oil which also owns approximately 58% of the outstanding shares of
RSO.

                                 
For further information, please contact:

Ian H. Lundin
President - Lundin Oil AB
Tel: +41 22 319 66 00

Magnus Nordin
Managing Director
Tel: +46 8 440 54 50

Simon Rothschild
Millham Communications
Tel: 0171 256 5756


Notes for editors:

1.   Lundin is the parent company of Sodra by virtue of its
holding of 40,506,500 Ordinary Shares of SEK0.05 each.  The
40,506,476 Convertible Shares of SEK0.05 each in Sodra listed on
the AIM market are effectively convertible into the right to
subscribe for B Shares in Lundin in November 2001.  Upon exercise
of the conversion right, for every 12 Convertible Shares, the
holder will receive a warrant to subscribe for 1 new Lundin B
Share at the nominal value of SEK0.50.

2.   Convertible Shares in Sodra are also listed on the New Market
of the Stockholm Stock Exchange.  Lundin B Shares are currently
quoted on the Stockholm Stock Exchange, Toronto Stock Exchange and
the Nasdaq National Market.

END

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