Lundin acquires Lower Congo Basin interest

Lundin Petroleum AB has agreed to acquire a 18.75% working interest in SOCO International Plc.'s Congo Marine XI block.

Offshore staff

STOCKHOLM, Sweden -- Lundin Petroleum AB has agreed to acquire a 18.75% working interest in SOCO International Plc.'s Congo Marine XI block.

In the Lower Congo Basin with water depths to 110 m, the 1,400 sq km block has had four oil discoveries. A contract for the acquisition of a 1,200-sq-km 3D seismic program has been awarded to PGS Overseas AS. TheRamform Explorer is expected to start work in early October.

SOCO Exploration and Production Congo is the operator of the block, with a 37.5% working interest, and the remaining interests will be held by Raffia Oil SARL (18.75%), the exploration and production branch of Société Nationale des Pétroles du Congo ("SNPC") (15%), and Africa Oil & Gas Corp. (10%).

"Our entry into Congo Brazzaville exemplifies our ongoing efforts to secure access to oil and gas resources in highly prospective and under-explored areas," said Ashley Heppenstall, president and CEO of Lundin. "We are confident that the application of new exploration and development technologies will prove up material reserves in the bock."

9/7/06

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