LASMO Announces New Gas Discovery in Pakistan.

LONDON--(BUSINESS WIRE)--March 22, 1999--LASMO plc (NYSE: LSO), the international oil and gas exploration and production company, today announced the success of the Badhra-2 exploration well, drilled in the Kirthar concession in Western Sindh province, Pakistan. The well has discovered the second gas field within the concession area, following the Bhit field which was discovered in 1997. LASMO is operator and its partners are Kirthar Pakistan BV (Premier Shell Pakistan) and Oil and Gas Development Company Limited.

Badhra-2 was drilled on a large surface anticline and reached a total depth of 3,495 meters. The well encountered gas shows in a number of formations and the presence of hydrocarbons was confirmed by logging.

Cased hole tests were run across two Upper Cretaceous intervals, the Parh Limestone and the Mughal Kot Sandstone. The first test, in the Parh, produced small quantities of gas. The second test, in the Mughal Kot, flowed gas at a rate of 10.4 million cubic feet per day with a flowing wellhead pressure of 220 psi. The flow rate was restricted by the completion equipment and it is estimated that, when completed for production, the well could be capable of producing at initial rates in excess of 20 million cubic feet per day. The produced gas contained no hydrogen sulphide, only minor amounts of carbon dioxide and approximately 7 percent nitrogen.

A shallower geological horizon, the Pab sandstone which forms the reservoir of the Bhit field, could not be evaluated due to adverse drilling conditions. The well has now been suspended and work has commenced to develop a reservoir appraisal plan for the Mughal Kot and exploration plans for the Pab and deeper geologic horizons.

Chris Wright, LASMO's Group Managing Director said, "We are delighted with the Badhra-2 results. The discovery is close to the Bhit field and hence should benefit from shared development infrastructure. In addition, the Mughal Kot has not previously been tested in the area and its presence as a productive reservoir further improves the exploration potential in LASMO's Kirthar foldbelt acreage. The foldbelt is fulfilling its potential as a major hydrocarbon province and we expect to continue our drilling program in the region later this year."

In addition to LASMO's listing on the New York Stock Exchange, LASMO shares trade on the London, Toronto and Montreal Stock Exchanges. Shares are quoted on the SEAQ System, and prices may be accessed on the Reuter Equities 2000 Service under the symbol LSMR.L and on Quotron under the symbol LSMRU.EU. For further information, visit LASMO's web page at http:\\www.lasmo.com.

Notes to editors:

1. Working interests in the Kirthar Concession are:

LASMO Oil Pakistan Limited (LASMO Pakistan) 47.5 percent

Kirthar Pakistan BV 47.5 percent

Oil and Gas Development Company Limited 5.0 percent

Kirthar Pakistan BV is a wholly-owned subsidiary of Premier

Shell Pakistan BV.

2. The Government has the right to back-in for 20 percent on

declaration of commerciality, which is a further 15 percent to

the 5 percent currently held by OGDCL. LASMO Pakistan's

resultant interest level will be 40 percent.

3. In addition to its position in the Kirthar concession, LASMO

Pakistan has operated interests in four other exploration

licenses and the Kadanwari production and development lease

which (includes the producing Kadanwari field) as follows:

Kirthar West

LASMO Pakistan 75.0 percent

Oil and Gas Development Company Limited 20.0 percent

Government Holdings 5.0 percent

The quoted interests reflect the intention of OGDCL to take a

20 percent interest in the license as per the terms of the

original concession award.

The Government has the right to back-in for 20 percent on

commerciality, which is a further 15 percent to the 5 percent

held by Government holdings. LASMO Pakistan's resultant equity

would be 63.16 percent.

Pab

LASMO Pakistan 95.0 percent

Government Holdings 5.0 percent

The Government has the right to back-in for 15 percent on

commerciality, which is a further 10 percent to the 5 percent

held by Government holdings. LASMO's resultant equity would be

85 percent.

Indus `A' and `F'

LASMO Pakistan 95.0 percent

Government Holdings 5.0 percent

The Government has the right to back-in for 15 percent on

commerciality, which is a further 10 percent to the 5 percent

held by Government holdings. LASMO's resultant equity would be

85 percent.

Kadanwari (Tajjal)

LASMO Pakistan 18.42 percent

Oil and Gas Development Company Limited 50.00 percent

Premier Shell Pakistan BV 15.79 percent

Kuwait Petroleum Company 15.79 percent