SPM Spg Media

RNS No 4797q
SODRA PETROLEUM AB
8 June 1999                                 
                                      

Sodra Petroleum AB announces that its parent company, Lundin Oil
AB ("Lundin") has today issued the following announcement: -
                                 
 Red Sea Oil Corporation (RSO) is a 58% owned subsidiary of Lundin
                              Oil AB
                                 
                                 
                    RSO RIGHTS ISSUE RESULTS IN
                 GROSS PROCEEDS OF C$43.6 MILLION
                                 
          EXPLORATION DRILLING TO RESUME IN THIRD QUARTER

                                 
Red  Sea  Oil  Corporation  ("RSO") is  pleased  to  announce  the
successful completion of the RSO rights offering on June 4,  1999.
The  rights offering was oversubscribed and pursuant to the rights
offering,  34,894,870 units on offer were placed  at  a  price  of
C$1.25 per unit resulting in gross proceeds to RSO in excess of C$
43.6 million.  Each unit is comprised of one common share and  one
common  share  purchase warrant. Every two warrants  entitles  the
holder  to  purchase an additional common share at a price  of  C$
1.50  at  any time prior to 17:00 hours (Alberta time) on  January
31,  2000.   Yorkton  Securities Inc. acted as Dealer  Manager  in
connection with the offering.

The  net proceeds of the rights offering will be used to fund  the
ongoing exploration program in Area NC177 onshore Libya, including
the  drilling of the C1-NC177 well which will spud in  mid-August,
1999  as  well  as fund the equity requirement of the  development
costs  of  the  En  Naga  North  and  West  fields  and  to  repay
outstanding  indebtedness to Lundin Oil.  The C1-NC177  well  will
test  the Haruj "A" prospect immediately south of En Naga, one  of
several  drillable  structures identified from  the  1998  seismic
campaign.

RSO  has  commissioned a report prepared by Sproule  International
Limited  ("Sproule") of Calgary estimating the proven and probable
oil  reserves  for the En Naga North and West oil fields  together
with  the  net  present values of such reserves.  On  an  unrisked
basis,  the report concludes that the En Naga North and  West  oil
fields  contain  71  million barrels of oil (on  a  risked  basis,
probable  reserves are reduced by 50% to account for  risk  for  a
total  of 44 million barrels) having a net present worth value  to
RSO, discounted at 10%, of approximately US$45 million (based upon
escalated  cost  and  price assumptions).   In  addition,  Sproule
conducted   an   evaluation  of  RSO's  unproven  properties   and
determined  that  the fair market value of such properties  is  an
additional US$47.8 million.

RSO  has submitted a field development plan for the En Naga  North
and  West  oil fields for the approval of the Management Committee
(which  committee  is  controlled  by  the  Libyan  National   Oil
Company).   It  is estimated that first production  will  commence
within  12  months of the approval of the development plan  having
been obtained.  The forecast peak production rate from the En Naga
North  and West fields is estimated at 22,000 bpd (24 months after
start-up).  RSO is currently in discussions with various financial
institutions regarding a project financing for the development.

In April 1999, the Libyan UN sanctions were suspended resulting in
an  improved climate for investment and operations in  the  Libyan
oil industry.

RSO  is  the  operator  and holds a 60% interest  in  Area  NC177.
Lundin Oil holds the remaining 40% interest and is also the single
largest  shareholder of RSO with 58% of the  shares.   Lundin  Oil
subscribed  for  the  20,334,100 units to which  it  was  entitled
pursuant  to  the  rights  offering for an aggregate  subscription
price of C$25,417,625.


For additional information, please contact:

Ian H. Lundin
Telephone: +41 22 319 66 06

Magnus Nordin
Telephone: +46 8 440 5450

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

Notes to Editors:

1.Lundin is the parent company of Sodra by virtue of its
  holding of 40,506,500 Ordinary Shares of SEK0.50 each.  The
  40,506,476 Convertible Shares of SEK0.50 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 price 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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