Lundin to reduce interest in Blora, Banyumas blocks

Swedish E&P company Lundin Petroleum AB is in talks with potential farm-in parties to reduce its working interest in Blora and Banyumas exploration blocks in Central Java.

?Negotiations are continuing with a potential farm-in partner and it is expected that the party will acquire a 40 percent working interest and will fund a part of Lundin Petroleum?s well costs,? the company said in its quarterly report adding that it would be left with a 43.3 percent working interest in Blora.

Lundin has an 83.3 percent interest in the Blora block following the withdrawal of two partners, Amerada Hess and Paladin Resources, from the block earlier. Lundin expected that the PADI-1 exploration well with potential reserves in excess of 50 million barrels will spud during the third quarter 2004.

The company further said discussions with potential farm-in partners over Banyumas block are well advanced.

Lundin, which has a 50 percent of working interest in Banyumas block, has planned to commence drilling exploration in the block in the second quarter of 2005.

Lundin holds operatorship of Blora and Banyumas blocks. (Robert)