Sweden-based Lundin Petroleum AB has commenced drilling at the fourth well, as part of its 2012 Malaysian drilling campaign, with the spud of the Tembakau-1 exploration well in the PM307 block (offshore east coast Peninsula Malaysia). Tembakau-1 is a vertical well that will be drilled to a depth of 1,650 metres in a water depth of about 80 metres. The well will target hydrocarbons in the oligocene- and miocene-aged sands in a low-relief structure 50 km to the northwest of the Bertam-2 oil discovery made by Lundin Petroleum in 2011. Lundin Petroleum holds a 75 per cent stake in PM307 through its subsidiary, Lundin Malaysia BV. Petronas Carigali Sendirian Berhad owns the remaining 25 per cent.