SPM Spg Media

RNS No 9623b
SODRA PETROLEUM AB
23 September 1999


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

            Block PM-3 offshore Malaysia/Vietnam:
              New production well to be drilled

Lundin Oil AB announced today that the PM3 partners (Lundin
Malaysia Ltd, Petronas Carigali Sdn Bhd and Petro Vietnam
Exploration and Production) have agreed to drill production
well A7, on the Bunga Kekwa field on Block PM3 CAA, offshore
Malaysia and Vietnam.

Well A7 is to be located on West Bunga Kekwa, south east of
well A4 which has produced about one third of the production
from the PM3 block to date.

The PM3 partners will farm into Petronas Carigali Sdn Bhd
drilling rig contract and expect to spud the A7 well at the
end of November 1999.  It is expected that this well will
produce about 2,000 to 3,000 bbl/day of oil.  The total
current production from the block is 14,000 bbl/day
(approximately 5,600 bbl/day net to Lundin Oil).

Ian Lundin, president of Lundin Oil AB said "It is expected
that the drilling of A7 well will materially increase
production levels extending economic life of Phase I well
into the next decade."  The most recent Malaysia PM3 lifting
realised in excess of US$21/bb1.

Meanwhile, Phase II of the project, which envisages boosting
production to 40,000 bbl/day of oil and 250 mmscf/day of gas
by the second half of 2003, is still awaiting the signature
of a Gas Sales Agreement between the contractors, Petronas
and Petro Vietnam.  This agreement is in the final stages of
negotiations and Lundin Oil is confident that it will be
finalised prior to the end of the year.

Lundin Oil AB has a 41.44 percent working interest (held
through Lundin Malaysia Limited with 26.44 percent and
Lundin Malaysia AB with 15 percent) and Lundin Malaysia
Limited is the Operator of Block PM3 CAA.  The remaining
working interest is held by Petronas Carigali Sdn Bhd with
46.06 percent and Petro Vietnam Exploration and Production
with 12.5 percent.


Enquiries to:

Lundin Oil
Adolph Lundin, Chairman                 Tel: + 41 22 319 6600

Sophia Shane                            Tel: +1 604 689 7842

Millham Communications
Simon Rothschild                        Tel: 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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