EARB SOUTH IS A OIL AND GAS DISCOVERY IN NORWEGIAN NORTH SEA

Marathon Oil Norge AS has completed the drilling of wildcat well 25/10-11
testing the Earb South prospect in PL505. The well was drilled about 8 km
southwest of the small 25/7-2 discovery and 40 km south of the Heimdal Field in
the northern Norwegian North Sea.


The well encountered three separate hydrocarbon bearing Jurassic sandstones
sequences with poor reservoir quality. The uppermost oil bearing interval
comprised a 6-8 meter thick sand sequence immediately below the Draupne shale.
Hydrocarbons were also sampled from an underlying 285 meter thick Upper
Jurassic sequence. A 150 meter thick interval from this sequence was production
tested. During the test oil and gas flowed to surface, but a sustainable stable
flow was not achieved. Hydrocarbons were also encountered in a 20-30 meter
thick Middle/Upper Jurassic sequence above TD.

Extensive data acquisition has been performed and will form the basis for
further evaluation of the prospectivity in the area.

Ashley Heppenstall, president and CEO of Lundin Petroleum comments; “The Earb
South well encountered a very large hydrocarbon column and the discovery
contains significant in-place volumes. The well was tested and flowed oil and
gas to surface but the reservoir is tight and further work will be required to
determine whether the discovery can be commercialized”

This was the first exploration well in PL505. The well was drilled to a depth
of 4,534 meters below sea surface and terminated in Jurassic sediments. Well 25
/10-11 was drilled using the Transocean Winner drilling rig.

Lundin Petroleum is partner in the licence with 30 percent. Marathon Oil Norge
AS is operator with 35 percent, VNG Norway AS has 20 percent interest and
Maersk Oil Norway AS has 15 percent.

 

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 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.

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.