SPM Spg Media

RNS No 7475d
SODRA PETROLEUM AB
27th January 1999


Sodra Petroleum AB announces that its parent company, Lundin Oil
AB ("Lundin") has today issued the following announcement:-
                                 
                                 
            Lundin Oil AB: 1999 Budget and Work Program
                                 
                                 
Lundin  Oil  AB  ("the Company") is pleased  to  announce  a  1999
capital  budget  of  USD  40  million.  This  compares  with  1998
estimated capital expenditures of approximately USD 112 million. A
near  65% reduction, the 1999 budget reflects tightened operations
in  view  of  lower  oil prices as well as the completion  of  the
successful  appraisal program for its new oil field in  Libya.  In
addition,  the general and administration budget has been  reduced
by  37% from USD 9.2 million to USD 5.8 million as a result  of  a
reorganisation of the Company.

The 1999 work programme will include:

*   Seismic and one exploration well in Sudan in the  second
    quarter
*   Seismic and one exploration well in Libya in the  second
    quarter
*   Development planning of the En Naga fields in Libya with
    submission of a development plan to the NOC in February 1999
*   Lundin  Oil's  share  of 11 development  wells  and  one
    exploration well in the UK North Sea
*   Ongoing  production operations from Phase I and  further
    development planning in Malaysia

Malaysia  continues to be a key production asset  of  the  Company
with  gross  oil production currently at 12,000 barrels  per  day.
Since acquiring Block PM-3, the Company has drilled 16 wells which
have  resulted in the discovery of seven oil and gas fields. Phase
I  of  the  development of the block has been  operating  smoothly
since July, 1997. Phase II, which would bring gross production  up
to  an estimated 40,000 barrels of liquids per day and 250 million
cubic  feet  of gas per day, is currently being optimised  with  a
view  to  cut  capital  costs and increase  production  efficiency
following the decision to defer the project as a result of the low
oil prices.

Libya and Sudan are two exploration and/or development assets with
enormous upside potential for the Company and will be the  primary
focus of the 1999 work program.

Libya,   where  the  Company  has  already  made  two  significant
discoveries, En Naga North and En Naga West, will be  the  subject
of  further exploration. The targets identified in both Sudan  and
Libya  have  the  potential to increase reserves by  an  order  of
magnitude.  The development plan for the En Naga fields  in  Libya
will be submitted in February 1999 to the National Oil Corporation
for  approval. Peak production from the field is estimated  at  in
excess  of 25,000 barrels per day. Startup can be achieved  within
12 months of approval.

The  Company's concession in Sudan is adjacent to and on the  same
geological trend with two fields which have estimated oil reserves
in  excess of 700 million barrels. Several important targets  have
been identified on the Company's concession, one of which has  the
potential  to  hold  in  excess of  250  million  barrels  of  oil
recoverable. If drilled successfully, this target would be one  of
the largest fields in the area.

Ian  H.  Lundin,  President of Lundin Oil further adds:  "We  have
managed  to minimize the impact of low oil prices by taking  swift
actions against costs and focusing our 1999 budget on top priority
projects.  Lundin  Oil is a growing company  irrespective  of  oil
price  with  exciting exploration and development projects  and  a
continuous  increasing  reserve base which  are  expected  to  add
significantly to future growth."

Lundin  Oil  AB  is  an  independent oil and gas  exploration  and
production  company with assets in nine different  countries.  The
shares  are listed on NASDAQ, the Toronto Stock Exchange  and  the
Stockholm Stock Exchange.

For further information, please contact:

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

Judith Parry / 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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