Lundin Wins South Sokang PSC

Lundin Petroleum AB on Monday secured a new production sharing contract (PSC) for the South Sokang Block from MIGAS, the Indonesian oil and gas regulating authority. The block is located in the Natuna Sea, offshore Indonesia.

The South Sokang Block covers an area of approximately 4,994 km2. It contains a new previously unknown frontier Eocene/Oligocene basin, which has been discovered by Lundin Petroleum.

Lundin Petroleum holds a 60 percent interest in the block, with Salamander Energy holding the remaining 40 percent interest. Lundin Petroleum is the operator of the block.

During the first three-year exploration phase Lundin Petroleum plans to shoot 2,400km 2D and 500km2 3D seismic.

The PSC will be signed on December 10, 2010.

Ashley Heppenstall, President and CEO of Lundin Petroleum, commented: "The award of the South Sokang PSC is an important step in the continued expansion of Lundin Petroleum's exploration portfolio in South East Asia. The Natuna Sea is a core area for Lundin Petroleum demonstrated by the number of blocks it already holds in Malaysia and Indonesia."