November 4, 2011
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Lundin Makes Major Oil Discovery in Norway's North Sea

Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB (together Lundin Petroleum), is pleased to announce an updated estimate of the recoverable Contingent Resources from the Avaldsnes discovery in licence PL501, located in the Norwegian North Sea on the Norwegian Continental Shelf (NSC). Lundin Petroleum is the operator of PL501.

The Avaldsnes discovery is estimated to contain gross Contingent Resources of between 800 million and 1.8 billion barrels of recoverable oil within licence PL501 following the results of this year's two appraisal well and sidetrack program. The results from the Aldous Major South discovery well drilled by Statoil in the adjoining licence PL265 were also used when updating the resource range within licence PL501. The Contingent Resource range has been independently audited by Gaffney, Cline & Associates.

Avaldsnes was discovered in September 2010 with the 16/2-6 well. The Avaldsnes and the Aldous Major South discovery wells and subsequent Avaldsnes appraisal wells demonstrate that Avaldsnes and Aldous Major South are connected with the same oil water contact, pressure regime, oil type and reservoir.

Statoil as operator for PL265 has announced an estimated recoverable resource range from 400 to 800 million barrels (gross) for Aldous Major South. The combined Avaldsnes/Aldous Major South discoveries therefore have a gross Contingent Resource range estimate of 1.2 to 2.6 billion barrels of recoverable oil.

The resource increase in PL501 is due to the positive results from the PL501 appraisal wells as well as the Aldous Major South well. All the wells have been cored through the reservoir section for direct reservoir properties analysis, age dating, log calibrations and analysis of the depositional system of the reservoir sands. The Avaldsnes discovery well 16/2-6 and first appraisal well 16/3-4 were both successfully tested and proved the high lateral continuity and productivity of the main Upper Jurassic reservoir sands. The reservoir in all the wells has confirmed excellent reservoir properties.

The appraisal wells have significantly upgraded the thickness and properties of the main prime Volgian Upper Jurassic reservoir which has had a material impact upon the revised recoverable resources. In addition it is now believed that the Upper Jurassic Volgian reservoir is transgressive across the whole of the Avaldsnes structure.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments; "Avaldsnes/Aldous which is already a world class discovery has, following this year's appraisal program, become significantly larger. The discovery is transformational for Lundin Petroleum with a 40 percent equity interest in PL501 and 10 percent in PL265. Avaldsnes and Aldous will be developed together and we are already working closely with our partners and Statoil as operator of PL265 to ensure that the project proceeds without delay. The discovery is located in 115 metres water depth, at a reservoir depth of less than 2,000 metres and close to existing infrastructure with significant spare pipeline capacity. The discovery is likely to be one of the largest five discoveries on the Norwegian Continental shelf and certainly the largest since the mid 80's and highlights the continued prospectivity of what many viewed as a mature region with limited remaining potential."

Further appraisal wells will be drilled in PL501 to define the recoverable resource range and to assist with the development planning strategy. Well 16/5-2 will be drilled in the south western part of the Avaldsnes discovery in the fourth quarter 2011. In addition at least three further appraisal wells will be drilled in 2012.

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

Lundin Petroleum holds a 10 percent interest in PL265. Partners are Statoil Petroleum AS (operator) with a 40 percent interest, Petoro (30 percent) and Det norske oljeselskap ASA (20 percent).

Copyright 2011, Lundin. All rights reserved.


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