LUNDIN PETROLEUM COMPLETES AVALDSNES APPRAISAL WELL 16/5-2S, OFFSHORE NORWAY

Lundin Petroleum Norway, as operator for PL501, has completed the appraisal
well, 16/5-2S located approximately 8.5 km south of the Avaldsnes discovery
well 16/2-6, and 4 km south of the appraisal well 16/2-7. The objective of the
16/5-2S well was to delineate the southern flank of the Avaldsnes discovery.


Well 16/5-2S encountered a 15 metres Jurassic sequence of which the upper 8
metres has excellent reservoir quality. Top reservoir was found deeper than
expected, and below the oil water contact. Good hydrocarbon shows were observed
below the oil water contact but were currently evaluated as not producible
hydrocarbons.

A comprehensive data acquisition program was performed including coring, wire
line logging and fluid sampling.

Well 16/5-2S is the first of an extensive Avaldsnes appraisal program
comprising at least four wells in PL501 during 2012. This appraisal campaign
will address key development planning uncertainties to ensure an efficient and
optimal field development process for this exciting discovery.

The impact of this well on the southern extent of the Avaldsnes discovery is
currently being evaluated and will most likely reduce current resource
estimates for this area. Further geophysical studies and possible appraisal
drilling will be required to determine whether the deeper than prognoses, top
reservoir depth at this location, is not a local effect.  

The well was drilled to a total depth of 2,042 metres MD and in a water depth
of 111 metres.

Lundin Petroleum used the semi submersible drilling rig Bredford Dolphin to
drill the well. After permanent abandonment of well 16/5-2S the rig will move
to the next appraisal well location in PL501, well 16/2-11.

The results of the well will be incorporated into the current reservoir model.
A revised resource estimate will be released after the completion of the next
appraisal well 16/2-11.

Lundin Norway AS is the operator of PL501 with 40% interest. Partners are
Statoil Petroleum AS with 40% interest and Maersk Oil Norway with 20% interest.

Lundin Petroleum is a Swedish independent oil and gas exploration and
production company with a well balanced portfolio of world-class assets
primarily located in Europe and South East Asia. 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 211
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

Mobile: +41 79 63 53 641 The above information has been made public in
accordance with the Securities Market Act and/or the Financial Instruments
Trading Act.  

 

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.