Lundin Petroleum AB: Avaldsnes Recoverable Resources Increase

Lundin Petroleum AB: Avaldsnes Recoverable Resources Increase to
Between 800 Million and 1.8 Billion Barrels of Oil 
Press conference to be held today at 11.00 CET in Oslo. See below for
more information. 
STOCKHOLM, SWEDEN -- (Marketwire) -- 09/30/11 -- Lundin Norway AS, a
wholly owned subsidiary of Lundin Petroleum AB (TSX:LUP)(OMX:LUPE)
(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
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
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
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). 
Press conference 
In connection with this announcement Ashley Heppenstall, President
and CEO of Lundin Petroleum and senior management from Lundin Norway
will give a presentation. 
Time: 30 September 2011, 11.00-12.00 CET 
Location: Felix, Bryggetorget 3, Oslo, Norway 
You can follow the presentation live on The
slides will be available on the website prior to the presentation. 
You can also dial in to listen to the presentation on the following
telephone number: 
Sweden: +46-8 505 598 53 
International: +44 203 043 24 36 
US/Canada toll free number: +1 866 458 40 87 
Lundin Petroleum is a Swedish independent oil and gas exploration and
production company with a well balanced portfolio of world-class
assets primarily located in Europe and South East Asia. 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
The above information has been made public in accordance with the
Securities Market Act and/or the Financial Instruments Trading Act. 
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
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. 
Contingent Resources are those quantities of petroleum estimated, as
of a given date, to be potentially recoverable from known
accumulations using established technology or technology under
development, but which are not currently considered to be
commercially recoverable due to one or more contingencies. 
The estimated Contingent Resource range provided herein for Avaldsnes
incorporates estimates of uncertainties in reservoir extent,
reservoir properties and recovery factors. These resources represent
technically recoverable volumes. No commercial factors have been
considered at this time. The main contingency preventing the
classification of the resources as reserves is the definition of a
development plan. 
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. 
The effective date of the resource estimate is the date of this press
Lundin Petroleum AB
C. Ashley Heppenstall
President and CEO
+41 22 595 10 00 
Lundin Petroleum AB
Maria Hamilton - Head of Corporate Communications
+41 22 595 10 00 or +46 8 440 54 50
Mobile: +41 79 63 53 641
Press spacebar to pause and continue. Press esc to stop.