Lundin Oil Boosts Production

Lundin Oil AB together with Petronas Carigali Sdn Bhd and PetroVietnam Exploration and Production, are pleased to announce the completion of a production enhancement program and the commencement of a new exploration well on Block PM-3 CAA, offshore Malaysia/Vietnam.

The production enhancement program has increased production rates from the Kekwa Field by 30% to approximately 18,000 barrels of oil per day (bopd). This represents 7,500 bopd net to Lundin Oil on a working interest basis. The project included the drilling of two new development wells and the workover of four existing wells. The two new development wells, BK-A8 and BK-A9, tested 5,880 barrels of oil per day and 4,375 barrels of oil per day respectively.

Transocean Sedco Forex's jackup, Harvey H Ward, has now been repositioned and is currently drilling the East Bunga Raya-1 exploration well. This well will test a large shallow gas prospect and several deeper oil targets.

Lundin Oil's President, Ian Lundin commented, "We are very pleased with the results of this production enhancement program. The cash flow from this increased production level in the present climate of high oil prices will contribute significantly to the funding of the Phase 2 development project."

The Phase 2 development project remains on schedule and on budget with first production of 250 million cubic feet of gas and 40,000 barrels of oil per day planned for the end of the 3rd quarter in 2003.