SPM Spg Media

RNS No 7858p
SODRA PETROLEUM AB
9th December 1998


  Sodra enters into loan agreement with its parent company Lundin Oil


Sodra Petroleum AB ("Sodra") announces that it has entered into a  loan
agreement  with  its  parent Company, Lundin  Oil  AB  ("Lundin  Oil"),
pursuant to which Sodra will provide Lundin Oil with a revolving credit
loan  facility of US$12m. Interest will accrue on a daily  basis  under
the  facility and will be charged at an annual rate of 2% above 1 month
LIBOR, payable monthly. The outstanding balance under the facility will
be  repayable on 14 days notice at any time after 31 December 1998  and
is secured by a negative pledge over certain assets of Lundin Oil.

The  Directors of Sodra (excluding Adolf Lundin and Ian Lundin who have
taken  no part in the Board's deliberations of the proposals by  virtue
of their significant share interests in Lundin Oil) have consulted with
Greig  Middleton & Co. Limited and, in their opinion, the terms of  the
loan transaction are fair and reasonable so far as the shareholders  of
Sodra are concerned.

Sodra is currently evaluating the results of the first exploration well
in Tranche F. Magnus Nordin, Managing Director of Sodra, said:
"This  loan arrangement with our parent company, Lundin Oil,  provides
us  with  a good rate of return on our existing cash resources  whilst
we evaluate the results of our operations to date."

Sodra  is  an  exploration  company  operating  offshore  the  Falkland
Islands.  Sodra's convertible shares are listed on the Stockholm  Stock
Exchange  New  Market and on the Alternative Investment Market  of  the
London  Stock  Exchange. Lundin Oil AB holds 50.01% of the  capital  in
Sodra.

For further information:

Magnus Nordin, Managing Director                   Tel: +46-8-440 56 85
Sodra Petroleum AB

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


END

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