Lundin Petroleum AB
TSX : LUP
OMX : LUPE

Lundin Petroleum AB

September 23, 2011 02:47 ET

Lundin Petroleum AB: Sidetrack of the Second Avaldsnes Appraisal Well Successfully Completed

STOCKHOLM, SWEDEN--(Marketwire - Sept. 23, 2011) - Lundin Petroleum AB (TSX:LUP)(OMX:LUPE) (Lundin Petroleum) is pleased to announce that the sidetrack (16/2-7A) of the second appraisal well, 16/2-7, has confirmed excellent quality oil bearing Upper Jurassic sandstone reservoir. The Avaldsnes field is located in license PL501 on the Norwegian Continental Shelf.

The sidetrack well (16/2-7A) encountered a gross reservoir column of approximately 25 metres of which 17 metres net was above the oil water contact. A comprehensive coring and logging program has been performed which has confirmed excellent quality reservoir characteristics similar to the Avaldsnes discovery and appraisal wells.

The sidetrack 16/2-7A was drilled 400 metres northeast of well 16/2-7 to a total depth of 2,100 metres measure depth (MD) and in a water depth of 113 metres. The semi submersible drilling rig Bredford Dolphin was used to drill the sidetrack well.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments: "As compared to the successful second Avaldsnes appraisal well the sidetrack has found a larger Jurassic reservoir section above the oil water contact. The sidetrack, the recently drilled two appraisals wells within PL501 license as well as the Aldous Major South discovery will be incorporated into our geotechnical models. A revised resource range from the previously announced 100-400 million barrels of recoverable oil equivalent within PL501 will be announced in the forthcoming weeks".

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

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.

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