Six months ended 30 June 2011 • Production of 32,300 boepd up 13% from the first six months 2010 • Profit after tax of MUSD 130.3 up 526% from the first six months 2010 • EBITDA of MUSD 505.3 up 96% from the first six months 2010 • Operating cash flow of MUSD 390.3 up 52% from the first six months 2010 • Net debt down to below MUSD 120 from MUSD 410 at year end • Five exploration discoveries, four in Norway and one in Malaysia • Ten Norwegian licences awarded in the 2010 Norwegian licensing round, six as operator • Operated licence awarded in Barents Sea in the 21st Norwegian licensing round • Operated Gurita block awarded in the Natuna Sea, offshore Indonesia Second Quarter ended 30 June 2011 • Production of 31,100 boepd • Profit after tax of MUSD 76.9 • EBITDA of MUSD 266.9 • Operating cash flow of MUSD 196.7 • Three exploration discoveries - Skalle and Earb South discoveries in Norway and Tarap discovery in Malaysia • Appraisal well confirmed extension of the Avaldsnes discovery • New operated block PM307 awarded in Malaysia • Brynhild field plan of development (formerly called Nemo) submitted Comments from C. Ashley Heppenstall, President and CEO Lundin Petroleum achieved excellent results in the second quarter of 2011 with increased profitability and cash flow. What is extremely pleasing however, is the continued exploration success. I have always highlighted that the major valuation creation for our company will be achieved through increasing our oil and gas resources, and the best way to do that is through exploration. Lundin Petroleum produced a net result for the first six months of MUSD 130.3. The strong production coupled with oil prices achieved of well over USD 100 per barrel resulted in operating cash flow of MUSD 390.3 and EBITDA of MUSD 505.3. Despite our significant exploration and development investment programme net debt during the first half of the year has reduced from MUSD 410 to below MUSD 120. The positive exploration news has continued during the second quarter with further discoveries at Skalle in PL438 in the Barents Sea, Earb South in PL505 in the northern Norwegian north Sea and Tarap in Block SB303 offshore East Malaysia. In addition the results of the first Avaldsnes appraisal well were extremely encouraging confirming the extension of the Avaldsnes field to the south east. We have now achieved five discoveries from our first five exploration wells this year following the Tellus and Caterpillar discoveries during the first quarter. Our business is continuing to grow and I am confident we will continue to increase shareholder value. We are generating strong cash flow and profitability from our existing production which is outperforming, our development projects are proceeding well and our exploration success continues. Listen to President & CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the audio cast presentation 3 August at 14.00 CET. The presentation and slides will be available on www.lundin-petroleum.com following the presentation. Please dial in to listen to the presentation on the following telephone number: + 44 (0) 203 043 24 36. To view the whole report see attached document. Visit our website: www.lundin-petroleum.com For further information, please contact: C. Ashley Heppenstall, President and CEO Tel: +41 22 595 10 00 or Maria Hamilton, Head of Corporate Communications Tel: +46 8 440 54 50 Tel: +41 79 63 53 641 DISCLOSURE The above information has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 7.30 CET on 3 August 2011. 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. 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. 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.
Lundin Petroleum AB - Financial report for the six month period ended 30 June 2011
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