<p>
<strong>Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that
drilling of the first appraisal well 16/3-4 on the Avaldsnes discovery located
in PL501, in the North Sea sector of the Norwegian Continental Shelf (NCS), has
commenced. </strong></p>
<p>
<strong>The main objective of the well 16/3-4 is to delineate the Avaldsnes
discovery made in 2010 with estimated recoverable resources between 100–
400 million barrels of oil in PL501. The target is to confirm the presence of
late Jurassic sand approximately 5 km southeast of the Avaldsnes discovery well
16/2-6.  </strong> The planned total depth is approximately 2,000 meters
below mean sea level and the well will be drilled using the semi-submersible
drilling rig Bredford Dolphin. Drilling is expected to take approximately 45
days. The second appraisal well, 16/2-7, will spud directly following the
completion of well 16/3-4 using the same rig.</p>
<p>
Lundin Petroleum is the operator of PL501 with 40 percent interest. Partners
are Statoil Petroleum ASA with 40 percent and Mærsk Oil Norway AS with 20
percent.</p>
<p>
 </p>
<p>
 </p>
<p>
 </p>
<p>
 </p>
<p>
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).</p>
<p>
 </p>
<p>
 </p>
<p>
For further information, please contact:</p>
<p>
 </p>
<p>
C. Ashley Heppenstall,</p>
<p>
President and CEO</p>
<p>
Tel: +41 22 595 10 00</p>
<p>
 </p>
<p>
or</p>
<p>
 </p>
<p>
Maria Hamilton</p>
<p>
Head of Corporate Communications</p>
<p>
maria.hamilton@lundin.ch</p>
<p>
Tel: +41 22 595 10 00</p>
<p>
Tel: +46 8 440 54 50</p>
<p>
 </p>
<p>
 </p>
<p>
 </p>
<p>
<strong>FORWARD-LOOKING STATEMENTS</strong></p>
<p>
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.</p>
<p>
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.</p>
<p>
<strong>Resources</strong></p>
<p>
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.</p>
<p>
 </p>
<p>
 </p>
