Lundin Swaps Sareba Block for Cendrawasih VII

Lundin Petroleum AB's wholly owned subsidiary, Lundin Sareba BV, signed a production sharing contract (PSC) amendment with Indonesia's upstream oil and gas regulator SKKMigas to replace the existing Sareba Block with new acreage named Cendrawasih VII (CVII), offshore north eastern Indonesia.

Lundin Petroleum is awarded the new block under the amended agreement as Sareba Block was declared a protected nature conservation area.

The CVII Block covers an area of approximately 2,141 square miles (5,545 square kilometers) and contains the shallow water portion of the Mamberamo delta and an undeveloped gas discovery in Pliocene turbidite reservoirs. Large carbonate build ups have also been identified on a 367 square miles (950 square kilometers) 3D seismic survey that was acquired in 2009. Lundin Petroleum expects to reprocess the 3D seismic survey prior to possible future drilling.

The fulfilled Sareba Block commitments are carried over to the CVII Block PSC and the remaining financial commitment for the purchase of geological and geophysical data shall be completed in Year 1 of the PSC amendment agreement.

"The signing of this amendment agreement marks a further important step forward in Lundin Petroleum's pursuit of organic growth opportunities in Indonesia and South East Asia. We are particularly encouraged by the prospectivity of the CVII Block and securing this acreage provides us with the chance to continue with our exploration activities," Ashley Heppenstall, president and CEO of Lundin Petroleum said in a press release.

Lundin Petroleum, which operates 5 blocks in Indonesia and holds non-operated interest in an onshore gas producing block, has a 100 percent interest in the CVII Block PSC through its subsidiary Lundin Sareba.

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