SIDETRACK WELL CONFIRMS LATERAL EXTENSION OF THE FIELD FROM THE AVALDSNES FIRST APPRAISAL WELL, OFFSHORE NORWAY

Lundin Norway AS (Lundin Norway) a wholly owned subsidiary of Lundin Petroleum
AB (Lundin Petroleum) has completed the sidetrack well 16/3-4A of the first
appraisal well 16/3-4 on the Avaldsnes discovery in PL501 on the Norwegian
Continental Shelf (NCS). A comprehensive data acquisition and sampling program
has been acquired from the sidetrack well.


The objective of the sidetrack well 16/3-4A was to confirm  lateral reservoir
continuity and sand quality to the west of the first appraisal well. The
results from the sidetrack well shows good lateral continuity of the reservoir
with a proved oil column in excess of 4 meters with excellent quality sands.

 

The well 16/3-4A was drilled to a vertical depth of 1,934 meters below sea
level using the drilling rig Bredford Dolphin. The rig will now move on to
drill the second appraisal well, 16/2-7 over the Avaldsnes discovery.

 

Ashley Heppenstall, President and CEO of Lundin Petroleum comments ' The
results of the first Avalsdnes appraisal well and subsequent sidetrack are very
positive having proven the lateral continuity of the Upper Jurassic Draupne
reservoir  with high porosity and permeability. Whilst the reservoir thickness
across the Avalsdnes structure will be variable we now have a higher degree of
confidence that the part of the structure previously assumed to be non
hydrocarbon bearing will in fact be covered by Upper Jurassic hydrocarbon
bearing reservoir. '  

Lundin Norway is the operator with 40 percent interest. Partners are Statoil
Petroleum AS with 40 percent interest and Mærsk Oil Norway with 20 percent.

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).

 

For further information, please contact:

C. Ashley Heppenstall,

President and CEO

Tel: +41 22 595 10 00

 

or

 

Maria Hamilton

Head of Corporate Communications

maria.hamilton@lundin.ch

Tel: +41 22 595 10 00

Tel: +46 8 440 54 50

 

 

FORWARD-LOOKING STATEMENTS

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.

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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
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cautionary statement.

Resources

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.