LUNDIN PETROLEUM DISCOVERS GAS IN SECOND MALAYSIA WELL

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that it has made
a second gas discovery with the Cempulut-1 well that was drilled in Block
SB303, offshore Sabah, East Malaysia.


Cempulut-1 was drilled with the Offshore Courageous rig in a water depth of
approximately 75 meters. The well was drilled to a total depth of 1,095 meters.

 

The Cempulut-1 well intersected a large Late Miocene carbonate reef with
excellent reservoir properties.

 

The gross total vertical pay thickness encountered is approximately 50 metres.
The deeper targeted oil leg however proved to be water bearing.

 

An extensive data acquisition program was completed including pressure
measurements, sampling and a mini flow test.

 

The data recovered from the well will be analysed further in order to determine
a range of resource estimates.

 

Ashley Heppenstall, President and CEO of Lundin Petroleum comments: "This is
the second gas discovery made by Lundin Petroleum in SB303 and the third in the
contract area which also contains the Titik Terang discovery. All three
discoveries are in close proximity to one another and with additional undrilled
leads and prospects also in the block a clear opportunity to evaluate the
potential for a cluster development now exists.”

 

The rig will now move to drill the Batu Hitam prospect, in PM308A, the third
well in Lundin Petroleum's five well drilling campaign in Malaysia in 2011.

 

Lundin Petroleum holds a 75 percent interest in SB303 through its subsidiary
Lundin Malaysia BV. Lundin Malaysia BV's partner is PETRONAS Carigali Sdn Bhd
with a 25 percent 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 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

 

 

 

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.