Caterpillar exploration well in Norway is an oil discovery

15 February 2011

CATERPILLAR EXPLORATION WELL IN NORWAY IS AN OIL DISCOVERY

Lundin Petroleum AB has successfully concluded the drilling of the Caterpillar exploration well (24/9-10S) and its side track (24/9-10A) located in production licence PL340 BS approximately 31 kilometres south of the Alvheim FPSO in the Norwegian North Sea. The Caterpillar exploration well reached a total vertical depth of 2,161m in the Paleocene Lista Formation.

The primary objective of the Caterpillar exploration well was to prove oil in the upper Paleocene reservoir rocks (Hermod Formation). Both the Caterpillar main exploration well as well as its sidetrack encountered respectively a 26 and 24 meter oil column in sandstone reservoir in the Hermod Formation. A comprehensive data acquisition programme was undertaken. Preliminary gross resource range for the Caterpillar discovery is estimated at between 5 to 12 million barrels of oil equivalent (MMboe).

Development studies are progressing for the Bøyla (formerly Marihøne) field tieback to the Alvheim FPSO. The Caterpillar discovery located 8 kilometres to the southeast of Bøyla is likely be developed as part of the Bøyla development concept.

Ashley Heppenstall President and CEO of Lundin Petroleum comments: "We are very pleased to find additional resources in the Greater Alvheim Area. The Caterpillar discovery will be developed with the Bøyla field as a tieback to the Alvheim FPSO controlled by the same partners."

Lundin Petroleum holds 15 percent interest in PL340BS. Partners are Marathon Petroleum (operator) with 65 percent interest and ConocoPhillips with 20 percent.

The Transocean Winner rig will now move to production license PL505 to drill the Earb south prospect where Lundin Petroleum has a working interest of 30%.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in Europe, Russia, South East Asia and Africa. The Company is listed at the NASDAQ OMX, Stockholm (ticker "LUPE"). Lundin Petroleum has proven and probable reserves of 187 million barrels of oil equivalent (MMboe).

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
Tel: +46 8 440 54 50