Lundin Petroleum reports third quarter results

Swedish independent oil firm Lundin Petroleum AB reported Wednesday its Indonesian net production slightly declined to 201,189 barrels of oil equivalent (boe) or 2,187 barrels of oil equivalent per day (boepd) in the third quarter of 2005 from 207,282 boe or 2,253 boepd in the same quarter last year.

Lundin said in its quarterly report that sales dropped to 118,658 boe in the third quarter of 2005 compared to 176,947 boe a year ago, with average realized price at US$54.04 per boe compared to US$39.26 per boe, respectively.

Lundin?s liquids production come from its participating interest in PetroChina-operated Salawati Basin PSC (25.9 percent) and Salawati Island join operating body (14.5 percent), which are both located in Papua Province.

According to the report, first production from the TBA field offshore Salawati Island has been further delayed due to the non-availability of a floating production and storage vessel.

?The field which is forecast to add 1,000 boepd net to Lundin Petroleum production is now forecast to come onstream in 2006,? Lundin said.

Lundin added that development and exploration drilling program continued at Salawati Basin and Island, but the exploration drilling had thus far yielded disappointing results.

Beside the two producing blocks, Lundin operates two exploration blocks, namely Banyumas and Blora, in Central Java.

Lundin reported the exploration of Jati-1 well in Banyumas block was progressing slower than expected due to difficult "drilling conditions". The well is expected to reach its total depth by the end of the year.

The company also said an additional exploration well, the Tengis-1, would be drilled on Blora block in the first half of 2006. For the exploration program, the firm will use the onshore rig, which is currently used to drill the Jati-1 well.

Lundin previously plugged and abandoned the first exploration well in Blora failing to discover commercial reserves. (Robert)