Lundin Petroleum AB
TSX : LUP
OMX : LUPE

Lundin Petroleum AB

May 16, 2011 02:46 ET

Lundin Petroleum Spuds Skalle Exploration Well in Barents Sea

STOCKHOLM, SWEDEN--(Marketwire - May 16, 2011) - Lundin Petroleum AB (Lundin Petroleum) (TSX:LUP)(OMX:LUPE) is pleased to announce that drilling of exploration well 7120/2-3 in PL438 has commenced. The well will target the Skalle prospect, which is situated to the north of the Snøhvit field in the Barents Sea, offshore Norway.

The main objective of well 7120/2-3 is to test Cretaceous and Jurassic/Triassic age sandstones of a multiple target structure. Lundin Petroleum estimates the Skalle prospect contains unrisked, gross, prospective resources of 250 million barrels of oil equivalent (MMboe).

The planned total depth is 2,650 meters below mean seal level and the well will be drilled using the semi-submersible drilling rig Transocean Leader. Drilling is expected to take approximately 60 days.

Lundin Petroleum is the operator of PL438 with 25 percent interest. Partners are RWE Dea Norge AS with 20 percent interest, Petoro AS with 20 percent, Spring Energy with 17.5 percent and Talisman Energy Norge with 17.5 percent interest.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in Europe, South East Asia, Russia and Africa. 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).

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.

Contact Information

  • Lundin Petroleum AB
    C. Ashley Heppenstall
    President and CEO
    +41 22 595 10 00

    Lundin Petroleum AB
    Maria Hamilton
    Head of Corporate Communications
    +41 22 595 10 00 or +46 8 440 54 50
    maria.hamilton@lundin.ch