Lundin Petroleum AB, Stockholm, (TSX: LUP) (OMX: LUPE) has reported that its wholly owned subsidiary, Lundin Malaysia BV has entered into an agreement with Petronas Carigali Sdn Bhd to farm-in to Block PM307 offshore Peninsula Malaysia. Under the agreement, Lundin Petroleum acquires a 75% interest and operatorship. Petronas Carigali Sdn Bhd holds the remaining 25% interest in the Block.
Block PM307 covers an area of approximately 6,126 km2 and contains a proven oil discovery.
Work commitments include 500 km2 of 3D seismic, an appraisal well on the discovery and an exploration well.
Lundin Petroleum now operates a total of 6 Blocks in Malaysia divided into 2 core areas. The Peninsula Malaysia core area consists of PM307, PM308A and PM308B which are contiguous. The Sabah core area consists of SB303, SB307 and SB308 which are also contiguous blocks.
"The signing of this Block marks a further important step forward in Lundin Petroleum's pursuit of organic growth opportunities in Malaysia and South East Asia," says Ashley Heppenstall, president and chief executive officer of Lundin. "We are particularly encouraged by the recent announcement made by the Malaysian Government regarding fiscal incentives for small fields that when implemented could accelerate commercialisation of the proven discovery that exists within the Block."