SPM Spg Media

RNS No 6860f
SODRA PETROLEUM AB
9th September 1998


 SODRA TO DRILL FIRST WELL OFFSHORE FALKLANDS WITH NEW PARTNER
                            DESIRE

Sodra is pleased to announce that an agreement has been
reached with Desire Petroleum Plc whereby Desire will earn a
12.5% working interest in Tranche F.  Desire already has a 25%
interest in Tranches C and D, and 100% of Tranches I and L.
This assignment is subject to the approval of the Falkland
Islands Government.

Sodra Petroleum is expected to take charge in the next few
days of the Borgny Dolphin drilling rig offshore the Falklands
Islands.  The rig is being moved to location on block 14/24 in
Tranche F and will be spudding an exploration well 14/24-A in
the next few days.

Well 14/24-A will be the fourth exploratory well in the North
Falklands basin.  It is planned to drill the well on the
Braela prospect to a depth of 3,750 metres.  It is anticipated
the well will take approximately one month to drill.

The Shell well 14/05-1A finished drilling on 31 August 1998 at
a total depth of 4,525 metres.  The well intersected oil and
gas at shallower levels and hydrocarbon source rocks were also
penetrated in the same interval.  However, reservoir
development was poor and no significant hydrocarbon
accumulations worth testing were encountered.  The well
further intersected gas shows in poor-quality reservoirs at
deeper levels indicating the development of additional
hydrocarbon source rocks.  Although these gas shows are
significant for the hydrocarbon potential of the North
Falklands Basin, gas has no current prospect of a market in
the South Atlantic and the shows were not tested.

Through a data sharing agreement with the other operating
companies Amerada Hess, Lasmo, and Shell, Sodra has the
benefit of the results of the first three wells in choosing
the well location in its licence area.  Sodra is encouraged by
the drilling results of wells 14/09-1 (Amerada Hess), 14/13-1
(Lasmo) and 14/05-1 (Shell) which have shown that an active
hydrocarbon system, comprising at least three separate
hydrocarbon-generating sources, exists in this basin.  Gas-
generating source rocks encountered in deeper depths should be
generating oil, if present, at shallower depths.  The presence
of oil and gas shows in two of these wells decreases the risk
involved in exploration elsewhere in the basin.

Sodra believes that Tranche F is better located to find
reservoir rocks, which appear to be lacking in the more
northerly tranches, because it is closer to the source of
sediment that has filled the lower part of the basin.  This
sediment source is believed to have been derived from a land
mass to the south, of which the present day Falkland Islands
still form a part.

Sodra Petroleum is listed on the Stockholm Stock Exchange New
Market and on AIM in London.

Enquiries:

Magnus Nordin                           Tel: 0046 8 440 5450
Managing Director
Sodra Petroleum

Vince Hamilton                          Tel: 0171 446 8300
Sodra Petroleum

Simon Rothschild / Judith Parry         Tel: 0171 256 5756
Millham Communications

END

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