SPM Spg Media

RNS No 6949t
SODRA PETROLEUM AB
14th August 1998


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

 "Libya - Lundin Oil completes first appraisal well on the 
                   En Naga North field
                               
Lundin Oil AB ("Lundin Oil") and Red Sea Oil Corp. ("RSO") are
pleased to announce that the first appraisal well (B2-NC177)
on the En Naga North field, located in Block NC177 onshore
Libya, has reached its total depth of 8,500 ft ahead of
schedule and below budget. The well logs have proven the
continuity of all the existing reservoirs tested in B1-NC177
and established an oil water contact at the "Lower Gir" level
(one of the two main reservoirs) which is situated lower than
expected thus increasing the overall oil column at that level.
Production testing was not considered necessary and the well
has been suspended for re-entry at a later stage, once a
development is approved. Current operation is to move the rig
for the re-entry of the J1-85 well in order to evaluate the
"Lower Gir" formation at that location. Following the
completion of J1-85 the second appraisal well on the En Naga
North field, B3-NC177, will be drilled.

The Company is currently incorporating all the new data with a
view to updating the conceptual development plan and the
overall estimated reserves of the En Naga North discovery. The
field development plan is expected to be completed by the end
of the year.

The regional seismic acquisition is ongoing with over 200 km
of the new 1,600 km seismic programme completed. Preliminary
results indicate the existence of several new structures to
the south and south-east of En Naga North, which are likely to
turn into drillable prospects once the full interpretation of
the data has been carried out.

RSO is the operator of NC177 with 60% interest. The remaining
40% is held by Lundin Oil which also controls 61% of RSO."

For further information, please contact:

Ian H. Lundin
Managing Director
Tel: +41 22 3196606

Magnus Nordin
Deputy Managing Director
Tel: +46 705 766 555

Simon Rothschild
Millham Communications
Tel: +44 171 256 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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