Lundin updates Indonesian ops

The following is an excerpt taken from Lundin Petroleum?s Q2 2010 Report published on Wednesday.(ed)

Salawati Island and Basin (Papua)
The net production to Lundin Petroleum from Salawati (Salawati Island WI 14.5%, Salawati Basin WI 25.9%) was 2,100 boepd for the period.

An exploration well, North Walio-1, was successfully completed as an oil discovery and is now producing through the Salawati Basin facilities.

In the Koi area, offshore Salawati Island, a 3D seismic acquisition was successfully completed. 406 km2 of 3D seismic was acquired and will be interpreted in the second half of 2010 to firm up remaining prospectivity around the Koi discovery.

Lematang (South Sumatra)
The net production to Lundin Petroleum from the Singa gas field (WI 25.9%) during the period amounted to 100 boepd. Production from the Singa field commenced during the second quarter of 2010. Current gross production from the first production well is approximately 15 MMscfd of sales gas and is restricted by surface facility limitations resulting from higher hydrocarbon liquid production than expected. Additional liquid removal facilities will be installed in 2011 and until such time production will remain constrained. Production is expected to increase to a gross plateau rate of 50 MMscfd in 2011 following further development drilling.

The original Singa gas sales agreement with PT PLN (Persero), an Indonesian state owned electricity company, was amended in February 2010 incorporating an increased gas price at in excess of USD 5 per million British thermal units (MMbtu) and to allow

PT PGN (Persero), an Indonesian state owned gas distributor, to buy the first three years of Singa gas production.

Rangkas (Java)
A 474 km 2D seismic acquisition programme will be completed in 2010 on the Rangkas licence (WI 51%).

Baronang/Cakalang (Natuna Sea)
A 975 km2 3D seismic acquisition programme on the Baronang and Cakalang licences (WI 100%) was completed in April 2010. (end of excerpt)