<p>
<strong>Lundin Norway AS (Lundin Norway) a wholly owned subsidiary of Lundin
Petroleum AB (Lundin Petroleum) is pleased to announce that the first appraisal
well, 16/3-4 has confirmed the extension of the Avaldsnes field to the
south-east of the 16/2-6 discovery well in PL501 on the Norwegian Continental
Shelf (NCS). The well was successfully tested and a comprehensive logging and
coring program has been acquired</strong>.</p>
<p>
Avaldsnes was confirmed as an oil discovery by the Lundin Norway operated well
16/2-6 in 2010 and is located approximately 25 km east of the Lundin Norway
operated Luno discovery.</p>
<p>
The first appraisal well 16/3-4 was drilled approximately 6.5 km south-east of
the discovery well and has proved an oil column of 13,5 meters in excellent
quality sandstone of Jurassic age. A high net to gross has resulted in net pay
at the appraisal location in excess of that at the discovery well. The data
acquired confirms excellent reservoir properties, with average porosity of
approximately 30 percent and multi-Darcy permeability. The average production
rate was in excess of 5,500 barrels of oil equivalent per day through a
restricted choke size of 60/64 inch.</p>
<p>
The well will now be side-tracked to confirm the lateral continuity of the
reservoir towards the west.</p>
<p>
The well will then be plugged and abandoned. The total depth of the well is
2020 meters.</p>
<p>
Ashley Heppenstall, President & CEO of Lundin Petroleum comments:
“We are very pleased with the results of the first Avaldsnes appraisal
well which encountered oil bearing reservoir of thickness and quality which is
better than the discovery well. We will now sidetrack the appraisal well to
provide information regarding the lateral continuity of the reservoir towards
the part of the structure we had assumed in our previous resource estimates was
non-hydrocarbon bearing. We will update our Avaldsnes resource estimates
following the sidetrack and second appraisal well.”</p>
<p>
Lundin Norway is using the semi submersible drilling rig Bredford Dolphin to
drill the well. The rig will start drilling the second appraisal well on
Avaldsnes, 16/2-7, immediately after 16/3-4.</p>
<p>
Lundin Norway is the operator with 40 percent interest. Partners are Statoil
Petroleum AS with 40 percent interest and Maersk Oil Norway AS with 20 percent
interest.</p>
<p>
Lundin Petroleum is a Swedish independent oil and gas exploration and
production company with a well balanced portfolio of world-class assets in
Europe, South East Asia, Russia and Africa. The Company is listed at the NASDAQ
OMX, Stockholm (ticker "LUPE") and at the Toronto Stock Exchange (TSX)
(ticker “LUP”). Lundin Petroleum has proven and probable reserves
of 187 million barrels of oil equivalent (MMboe).</p>
<p>
 </p>
<p>
For further information, please contact:</p>
<p>
C. Ashley Heppenstall,</p>
<p>
President and CEO</p>
<p>
Tel: +41 22 595 10 00</p>
<p>
or</p>
<p>
Maria Hamilton</p>
<p>
Head of Corporate Communications</p>
<p>
maria.hamilton@lundin.ch</p>
<p>
Tel: +41 22 595 10 00</p>
<p>
Tel: +46 8 440 54 50</p>
<p>
 </p>
<p>
<strong>FORWARD-LOOKING STATEMENTS</strong></p>
<p>
Certain statements made and information contained herein constitute
"forward-looking information" (within the meaning of applicable
Canadian securities legislation). Such statements and information (together,
"forward-looking statements") relate to future events, including the
Company's future performance, business prospects or opportunities.
Forward-looking statements include, but are not limited to, statements with
respect to estimates of reserves and or resources, future production levels,
future capital expenditures and their allocation to exploration and development
activities, future drilling and other exploration and development activities,
ultimate recovery of reserves or resources are based on forecasts of future
results, estimates of amounts not yet determinable and assumptions of
management.</p>
<p>
All statements other than statements of historical fact may be forward-looking
statements. Statements concerning proven and probable reserves and resource
estimates may also be deemed to constitute forward-looking statements and
reflect conclusions that are based on certain assumptions that the reserves and
resources can be economically exploited. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance (often,
but not always, using words or phrases such as "seek",
"anticipate", "plan", "continue", "estimate",
"expect", "may", "will", "project",
"predict", "potential", "targeting", "intend",
"could", "might", "should", "believe" and
similar expressions) are not statements of historical fact and may be
"forward-looking statements". Forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such
forward-looking statements.  No assurance can be given that these
expectations and assumptions will prove to be correct and such forward-looking
statements should not be unduly relied upon.  These statements speak only
as on the date of this news release and the Company does not intend, and does
not assume any obligation, to update these forward-looking statements, except
as required by applicable laws. These forward-looking statements involve risks
and uncertainties relating to, among other things, operational risks (including
exploration and development risks), productions costs, availability of drilling
equipment and access, reliance on key personnel, reserve estimates, health,
safety and environmental issues, legal risks and regulatory changes,
competition, geopolitical risk, financial risks. These risks and uncertainties
are described in more detail under the heading “Risk Factors” and
elsewhere in the Company’s 2010 annual report.  Readers are
cautioned that the foregoing list of risk factors should not be construed as
exhaustive. Actual results may differ materially from those expressed or
implied by such forward-looking statements.   Forward-looking
statements included in this new release are expressly qualified by this
cautionary statement.</p>
<p>
 </p>
<p>
<strong>Resources</strong></p>
<p>
The recovery and production estimates of the Company’s resources
provided herein are only estimates and there is no guarantee that the estimated
resources will be recovered or produced. Actual resources may be greater than
or less than the estimates provided here. There is no certainty that it will be
commercially viable for the Company to produce any portion of these
resources.</p>
