18 May 2007

ANNUAL GENERAL MEETING OF LUNDIN PETROLEUM, 16 MAY 2007

The Annual General Meeting of Lundin Petroleum AB was held on Wednesday, May 16, in Stockholm.

The Company's and the Group's income statements and balance sheets were adopted and the Board of Directors and the President were discharged from liability for the financial year 2006.

C. Ashley Heppenstall, Ian H. Lundin, Lukas H. Lundin, William A. Rand and Magnus Unger were re-elected Directors of the Board.

Ian H. Lundin was re-elected as chairman of the Board of Directors.

Kai Hietarinta and Viveca Ax:son Johnson did not put themselves forward for re-election. Their contribution to the Board was acknowledged.

The Meeting resolved that no dividends should be paid for the year 2006.

Further, the Meeting resolved, in accordance with the Board of Directors' proposal:

- to implement a Long-term Incentive Plan ("LTI") consisting of a Share Option Plan and a Performance Share Plan. Employees will have a choice to select either the Share Option Plan or the Performance Share Plan or a 50/50 allocation of both. The Share Option Plan includes a grant of a maximum of not more than 3'950'000 options with a vesting period of 18 months and subject to (i) the achievement of a performance condition relative TSR and (ii) that the employee is employed by Lundin Petroleum when the options are exercised. Each option shall entitle the holder to acquire one newly issued share at a price equivalent to 110 per cent of the average last paid price for Lundin Petroleum's shares on the Stockholm Stock Exchange during the period 18 - 31 May, 2007.

- to authorize the Board of Directors to issue no more than 35,000,000 new shares, without the application of the shareholders pre-emption rights, in order to enable the company to raise capital for the company's business operations and business acquisitions; and

- to pay the Board of Directors total directorship fees of SEK 6.65 million to be distributed by the Board of Directors among its members. The fee includes work in the Board Committees. In addition, the Board of Directors shall have disposal of an amount of no more than SEK 4 million for remuneration of Board members for special assignments outside the directorship.

The Meeting also resolved that, in the same procedure as followed in 2007, the Chairman of the Board will invite the three or four largest shareholders of the company to form a Nomination Committee. The names of the members of the Nomination Committee will be announced not later than six months prior to the Annual General Meeting in 2008. The Nomination Committee will prepare the following proposals for resolutions to the Annual General Meeting in 2008: (i) proposal for Chairman of the meeting; (ii) proposal for members of the Board of Directors; (iii) proposal for Chairman of the Board of Directors; (iv) proposal for remuneration of the members of the Board of Directors, distinguishing between the Chairman and other members of the Board and remuneration for Committee work; and (v) proposal for remuneration of the Company's auditors.


Lundin Petroleum
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in Europe, Africa, Russia and the Far East. The Company is listed at the Nordic Exchange, Sweden (ticker "LUPE"). Lundin Petroleum has existing proven and probable reserves of 176.4 million barrels of oil equivalent (mmboe) as at 1 January 2007.

For further information, please contact:

C. Ashley Heppenstall ,
President and CEO
Tel: +41 22 595 10 00
or
Maria Hamilton
Head of Corporate Communications
Tel:+46 8 440 54 50