SPM Spg Media

RNS No 4975x
SODRA PETROLEUM AB                              
17th July 1998


                        SODRA PETROLEUM AB                              

Sodra Petroleum AB announces that its parent company, Lundin Oil
AB ("Lundin") has today issued the following announcement:-
                          

      "Lundin Oil AB: Block PM-3 Commercial Arrangement Area:
   North Bunga Pakma Field Discovery Well flows over 100 million
      cubic feet of gas and 2,000 bbls of condensate per day

LUNDIN   OIL   AB  (The   "COMPANY"),  through  its   wholly-owned
subsidiary,  IPC  Malaysia  Ltd.,  is  pleased  to  announce   the
discovery of the North Bunga Pakma field in the North West area of
the  Block  PM-3  CAA,  the  Commercial Arrangement  Area  between
Malaysia and Vietnam. North Bunga Pakma is the seventh field to be
discovered on this highly prospective block.

The  discovery well, North Bunga Pakma-1, was drilled to  a  total
depth  of  10,781 feet and encountered 12 commercially significant
hydrocarbon bearing reservoirs with a total gross thickness of 400
feet. Production testing of four representative sands from the  J,
K  and  I  sequences yielded a combined maximum flow rate  of  111
million  cubic  feet  per  day  and  2,036  barrels  per  day   of
condensate. Apart from proving up significant additional reserves,
the  well  results have upgraded the potential of the  North  West
Pakma  and North Orkid prospects which are adjacent to North Bunga
Pakma.  Development studies will now be carried out  to  incorporate 
the North Bunga Pakma field into the  Block's development plans.

The  remaining two wells planned on the Block this  year  will  be
drilled  on  the  Kekwa field and will be tied into  the  existing
production  facilities as soon as they are  completed.  The  Kekwa
filed  currently produces in excess of 10,000 barrels of  oil  per
day from a Floating Production and Storage and Offloading vessel.

Ian  H.  Lundin, President of Lundin Oil AB, commented as follows:
"The  reserves  discovered by North Pakma represent a  significant
addition to the Block reserves which is currently estimated at 140
million barrels of oil and condensate and 1.8 trillion cubic  feet
of gas recoverable. Discussions are ongoing with the Government of
Malaysia  and Vietnam with regards to the Gas Sales Agreement  and
we  expect  to have a final resolution before year end which  will
enable  Phase-II of the project to proceed with a target start  up
date  in  late 2,000 at an initial rate of 250 million cubic  feet
per day and 40,000 barrels of oil per day."

Lundin Oil AB has a 41.44 percent working interest (held  through
IPC  Malaysia Ltd. 26.44 percent and Sands Malaysia AB 15 percent)
and  is the Operator of Block PM-3 CAA. The remaining interest  is
held   by  Petronas  Carigal  Sdn  Bhd  with  46.06  percent   and
PetroVietnam Exploration and Production with 12.5 percent."

For further information, please contact:

Magnus Nordin
Managing Director - Sodra Petroleum AB
Tel: +46 705 766 555

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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