Lundin Petroleum : 2016 southern Barents Sea drilling campaign commen

Microsoft Word - Lundin Petroleum - Norway 2016 drilling campaign-V5-20160721en.docx

Press Release

Stockholm 21 July 2016

Lundin Petroleum commences the 2016 southern Barents Sea drilling campaign Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Norway AS (Lundin Norway) has commenced the 2016 exploration and appraisal campaign in the Loppa High area in the southern Barents Sea with the winterised Leiv Eiriksson semi-submersible drilling rig.

The 2016 drilling campaign consists of three wells commencing with the re-entry of the Alta-3 appraisal well 7220/11-3A in PL609 which was successfully drilled last year on the eastern flank of the Alta discovery. The objective of the Alta-3 re-entry is to deepen the well to further assess the quality of the Permian carbonate reservoir section as well as to conduct a production test. The original Alta-3 well encountered a gross hydrocarbon column of 120 metres and all three Alta wells drilled to date have proven pressure communication. The Alta discovery is estimated to contain gross contingent resources of between 125 and 400 million barrels of oil equivalents (MMboe).

Following the completion of the Alta-3 well the rig will move further north on PL609 to re-enter the suspended Neiden exploration well 7220/6-2 which was partially drilled last year. The Neiden well was suspended immediately above prognosed reservoir section in October last year due to winter restrictions for the drilling rig (Island Innovator). The Neiden prospect is estimated to contain gross unrisked prospective resources of 204 MMboe.

The third well to be drilled in the 2016 campaign is an exploration well targeting the Filicudi prospect on PL533 to the northwest of the Alta discovery and south of the Statoil operated Johan Castberg discovery. The Filicudi prospect is expected to contain Jurassic sandstone reservoir analogous to the Johan Castberg discovery. The Filicudi prospect is estimated to contain gross unrisked prospective resources of 258 MMboe.

Lundin Norway is the operator of both PL609 and PL533 and holds a 40 percent and 35 percent working interest in these respective licences.

The Leiv Eiriksson drilling rig has been contracted for three firm well slots with an additional six optional well slots.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker "LUPE"). Lundin Petroleum has proven and probable reserves of 716.2 million barrels of oil equivalents (MMboe) as at 1 January 2016.

For further information, please contact:

Maria Hamilton

Head of Corporate Communications maria.hamilton@lundin.ch

Tel: +41 22 595 10 00

Tel: +46 8 440 54 50

Mobile: +41 79 63 53 641

Teitur Poulsen

or VP Corporate Planning & Investor Relations Tel: +41 22 595 10 00

Lundin Petroleum AB Registration No 556610-8055

Hovslagargatan 5

SE-111 48 Stockholm

Tel. +46 8 440 54 50

Fax. +46 8 440 54 59

www.lundin-petroleum.com E-mail: info@lundin.ch

Forward-Looking Statements

Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable 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 relied upon.

These statements speak only as on the date of the information 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, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading "Risks and Risk Management" and elsewhere in the Company's 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 are expressly qualified by this cautionary statement.