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West Prospero Drills Tembakau-2 Appraisal Well in PM307 Offshore Malaysia

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Lundin Petroleum AB reported Thursday that it has commenced the first well in its 2014 Malaysian drilling campaign with the spud of the Tembakau-2 appraisal well in Block PM307, offshore Malaysia.

The well will target stacked gas reservoirs in Miocene aged sands in a large, low-relief, structure discovered by Lundin Petroleum’s Tembakau-1 in late 2012. The discovery well penetrated 196 feet (60 meters) of net gas sands in 5 high quality sand intervals between 2,624 feet (800 meters) and 4,101 feet (1,250 meters) subsea. The appraisal well will core the main reservoir section and is expected to confirm the extent and quality of the gas reservoirs 2.3 miles (3.7 kilometers) to the south of Tembakau-1. Deliverability will be measured through production testing.

The objective of the well is to confirm the current gross contingent resource estimate of gas as well as to test upside resource potential within the structure and to provide reservoir information for development planning. Tembakau-2 is a vertical well to be drilled by the jackup West Prospero (400' ILC) to a depth of 4,593 feet (1,400 meters) in approximately 70 metres water depth. The drilling of the well, including testing, is expected to take approximately 60 days.

Lundin Petroleum holds a 75 percent interest in PM307 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV's partner is Petronas Carigali Sdn. Bhd. with 25 percent interest. Lundin Malaysia BV operates seven blocks in Malaysia, namely PM307, PM308A, PM308B, PM319, SB303and SB307/308.

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