LASMO PLC

Areas of International Activity (main producing countries)

Click here for comparative production figures.

LASMO plc is a UK based international independent exploration and production company with headquarters in London. The Company’s shares are listed on the London, New York, Toronto and Montreal Stock Exchanges.

Through its six core areas, LASMO has positions in 11 countries, in 8 of which it acts as operator. The Group’s key producing assets are currently concentrated in the UK and Indonesia, which jointly accounted for 89 per cent of 1998 production and 45 per cent of year end 1998 reserves. Existing production in Venezuela and North Africa is expected to grow substantially over the coming years. The fifth core area is Pakistan, where levels of production will be materially increased with the start-up of a major gas development, planned for 2001. In the Middle East LASMO is involved in study and exploration projects which have the capacity to provide significant longer term production capacity.

Group production is currently approximately 185,000 barrels of oil equivalent per day and reserves are 1.1 billion barrels. LASMO expects production to grow at an annual average rate of between 5 and 10%, with a current outlook of between 240 and 270 Mboepd for 2002. By 2002 the company expects to operate more than half its production, compared to 17 per cent in 1998.

May 1999 - Lasmo are expected to take a stake in three deep water exploration blocks operated by Unocal. As part of the deal Lasmo would be expected to spend around $30m on exploration over the next two years. All blocks are near Lasmo's existing Indonesian gas assets at East Kalimantan.

April 1999 - LASMO announced the signing of a Petroleum Exploration Licence between LASMO Oil Pakistan Limited, Petronas Carigali (Pakistan) Limited, a wholly owned subsidiary of the Malaysian state petroleum company (Petronas), and Government Holdings of Pakistan. The 2769-4 licence in the Sindh Province of Pakistan will be operated by Petronas with a 57% working interest in the block, while LASMO will have a 38% interest and Government Holdings 5%. The Licence is located in the vicinity of a number of existing gas fields and is adjacent fields include the LASMO operated Kadanwari field and the Mari, Miano and Sawan fields.

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Mar - 98 - Evaluation of its Elephant oil discovery in Libya has increased Lasmo’s estimate of reserves to more than 500m barrels. The Elephant discovery is the largest in Libya for 13 years.

April 1998 - Lasmo announced first oil production in Venezuela. The company took control of operations of the Dacion Area in eastern Venezuela at the end of March following the approval of a detailed field development plan by Petros de Venezuela.

May 1998 - Lasmo announced first oil production from the Hassi Berkine South (HBNS) field on block 404 in the Berkine Basin in Algeria. Production will reach 60,000 bpd by mid year and rise to more than 300,000 bpd over the next 2-3 years. In addition to this success Lasmo are progressing the appraisal and development of their Elephant discovery in Libya which has gross reserves of over 500m barrels.

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Based on current forecasts it is anticipated that by the turn of the century gross production from HBNS and BBN should reach around 250,000 bopd (approximately 30,000 bopd net to Lasmo).

1998 Overview

Oil and gas production was derived from six countries, comprising 57% oil and averaging 185,000 boepd (1997: 173,000 boepd). Total development expenditure in the period was 219 million, predominantly in Venezuela, the UK and Algeria.
At the end of 1998, total reserve additions of 93 million boe were booked, equating to a reserve replacement ratio (excluding asset management) of 137% of production. Total booked reserves fell slightly from 1,145 to 1,091 million boe as a result of asset sales.
During 1998, 21 out of 36 wells drilled have been evaluated as commercial.
Major fields in Libya, Pakistan and Algeria were progressed towards development and new discoveries made. Total expenditure, including new business activity and 27 million spent on further appraisal of fields awaiting development in Pakistan and North Africa, was 112 million. Three year average finding costs (excluding asset management) remained at 91 pence per boe.

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May 1998 -Lasmo announced that it has been granted a Reconnaissance Licence covering approximately 11,400 sq km of the Ras Tafalney area offshore western Morocco. The Reconnaissance Licence, for an initial term of one year, will enable Lasmo to complet an evaluation of the drilling potential of the area.

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July 1998 - Lasmo has sold its Colombian operations to a subsidiary of Petrobras for US$151m in a deal that cements the relationship between the two companies.

Aug 1998 - Together with future new field start-ups in the UK, Pakistan and Libya, and existing production, Lasmo expect total production to increase to around 250 Mboepd by 2001, an increase of approximately one-third from the current level. Over the same period the company are targeting its total cost of sales to fall to 6 per barrel.

Aug 1998 - Lasmo has production from seven countries and in the first half of 1998 output from British waters contributed 61% of the Groups 290m turnover.

Dec 1998 - Agreement was reached with the National Iranian Oil Company and Shell to conduct an exclusive exploration study project in the Southern Caspian Sea. The companies will participate in an 18 month study as equal partners in the consortium, with the possibility of BP joining at a later date. The technical cost of the project are likely to be around $19 million, shared by the international companies.

April 1999 - Lasmo has sold all its interests in the southern North Sea to a subsidiary of Gaz de France for over 90 million. The French utility has been buying up assets in the North Sea as it is the nearest producing site to France, and has engaged in deals with Total and Elf. Lasmo will keep its Markham field in the central North Sea, but otherwise concentrate on core interests.

May 1999 - Lasmo has made a 600m ($1bn) agreed bid for Monument Oil and Gas, representing a premium of 36% on Monument's closing share price. The combination of the two companies will create a leading international exploration and production company. Both groups operate in the North Sea and are also involved in developing new fields in the Caspian Sea. In addition, Lasmo also has signficant production in Indonesia, Venezuela, North Africa and Pakistan. Cost savings of between 6m-7m per year are expected to be realised through the merger.

July 1999 - As part of its disposal programme of non-core assets Lasmo has sold a stake in 2 onshore blocks in Algeria to ENI for 27m. Lasmo will still maintain a presence in Algeria.

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LASMO plc
101, Bishopsgate
London EC2M 3XH
Tel: 0171 892 9000
Telex: 8812970
Fax: 0171 892 9292

Click here to visit LASMO's web site

Date last modifed August 12, 1999