Lundin Petroleum Announces 2013 Capital Expenditure Budget of

Lundin Petroleum Announces 2013 Capital Expenditure Budget of USD 1.7
Billion 
STOCKHOLM, SWEDEN -- (Marketwire) -- 01/07/13 -- Lundin Petroleum AB
(TSX:LUP)(OMX:LUPE) (Lundin Petroleum) is pleased to announce its
2013 development, appraisal and exploration budget which totals USD
1,700 million. 2013 will be the busiest year in the company's history
both in relation to exploration and development activities. 
The 2013 expenditure on development projects is budgeted at USD 1,100
million which represents approximately a 150 percent increase on
forecast 2012 development expenditure. The 2013 budgeted expenditure
on exploration activity is USD 460 million which represents
approximately 40 percent increase on the forecast 2012 exploration
expenditure. The budgeted 2013 appraisal expenditure amounts to USD
150 million against a forecast 2012 appraisal expenditure of
approximately USD 150 million. 
Development Projects 
Substantially all of the 2013 budgeted development expenditure
relates to ongoing development projects in Norway. 
1. The development of the Edvard Grieg field (WI 50% and operated by
Lundin Petroleum) commenced in 2012. The 2013 net expenditure is
budgeted at close to USD 550 million which will involve ongoing
engineering and construction of the jacket, topside and export
pipelines.  
2. The development of the Brynhild field (WI 90% and operated by
Lundin Petroleum) is progressing well and first production is
scheduled to come onstream in the fourth quarter of 2013 at a net
plateau rate of 10,800 barrels of oil equivalent per day (boepd). The
2013 net development expenditure is budgeted at approximately USD 470
million which includes topside modification of the Haewene Brim FPSO,
subsea facilities construction and installation and the drilling of
production and water injection wells.  
3. The non-operated Boyla field (WI 15%) which will be tied back to
the Alvheim FPSO received development approval in 2012. The 2013 net
development expenditure is budgeted at approximately USD 40 million
which predominantly involves engineering, procurement and fabrication
of subsea and topside equipment. The field is scheduled to come
onstream in the fourth quarter of 2014 at a net plateau rate of
approximately 3,000 boepd. 
Exploration Activity  
The exploration budget for 2013 is USD 460 million with a major focus
on Norway which accounts for approximately 70 per cent of this
amount. The exploration programme (excluding appraisal) involves the
drilling of 18 exploration wells in Norway, Malaysia, Indonesia,
France and the Netherlands.  
1. Norway  
The budgeted net exploration expenditure for 2013 is USD 330 million.
A total of ten exploration wells will be drilled in Norway during
2013. A significant proportion of the 2013 exploration expenditure
will be focused around the Utsira High Area with six exploration
wells targeted in the area, on PL625 (WI 40%), PL338 (WI 50%), PL359
(WI 40%), PL544 (WI 40%), PL501 (WI 40%) and PL410 (WI 70%) all of
which are operated by Lundin Petroleum. Two exploration wells will be
drilled in the southern North Sea on PL495 (WI 65%) and PL453 (WI
35%) both of which are operated by Lundin Petroleum. One operated
exploration well will be drilled in the Barents Sea on PL492 (WI 40%)
and one non-operated exploration well will be drilled on PL330 (WI
30%) in the northern part of the Norwegian Sea.  
2. South East Asia  
The budgeted net exploration expenditure for 2013 is approximately
USD 115 million. Three exploration wells will be drilled in Malaysia
of which two will be drilled offshore Peninsular Malaysia and one
well offshore Sabah. Two exploration wells will be drilled offshore
Indonesia; on the Baronang (WI 100%) and Gurita (WI 100%) licences
respectively.  
Appraisal Activity  
The appraisal budget for 2013 is USD 150 million with approximately
95 per cent of the expenditure being spent in Norway. The appraisal
programme involves the drilling of 6 appraisal wells in Norway and
pre-investment decision work on the Bertam field in Malaysia. 
1. Norway  
The budgeted net appraisal expenditure for 2013 is USD 140 million
with all the appraisal activity taking place on the Johan Sverdrup
discovery and on PL338 (WI 50%). Four appraisal wells will be drilled
on the Johan Sverdrup discovery in 2013, two on PL501 (WI 40%,
operated by Lundin Petroleum) and two on PL265 (WI 10%, operated by
Statoil). Two appraisal wells will be drilled on PL338 including one
appraisal well in the south eastern section of the Edvard Grieg
field.  
2. Malaysia  
The budgeted net appraisal expenditure for 2013 is USD 10 million
relating to assessing the viability of the Bertam field in PM307 (WI
75%) ahead of a final investment decision during 2013. If the Bertam
field development moves forward additional development costs will be
incurred. 
Ashley Heppenstall, President and CEO of Lundin Petroleum comments;
"With an 85% increase in capital expenditure for 2013 this year will
be our busiest year ever. I am very pleased that all our Norwegian
development projects are on schedule and that we still are on target
for a doubling of our current production to in excess of 70,000 boepd
by the end of 2015. The appraisal of Johan Sverdrup is progressing
well and by the end of 2013 it is likely that at least 18 exploration
and appraisal wells will have been drilled on the discovery.
Importantly we have secured the rig capacity to execute on our 16
exploration and appraisal well programme in Norway during 2013 and I
am confident that this programme will prove-up yet more resources.
Our 2013 budget will be fully funded from operating cash flow and
existing bank facilities".  
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 211 million barrels of oil equivalent
(MMboe). 
This information has been made public in accordance with the
Securities Market Act (SFS 2007:528) and/or the Financial Instruments
Trading Act (SFS 1991:980). 
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, projecti
ons, 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. 
Reserves and Resources 
Unless otherwise stated, Lundin Petroleum's reserve and resource
estimates are as at 31 December 2011, and have been prepared and
audited in accordance with National Instrument 51-101 Standards of
Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian
Oil and Gas Evaluation Handbook ("COGE Handbook"). Unless otherwise
stated, all reserves estimates contained herein are the aggregate of
"Proved Reserves" and "Probable Reserves", together also known as "2P
Reserves". For further information on reserve and resource
classifications, see "Reserves and Resources" in the Company's annual
report. 
Contingent Resources  
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 are not currently considered to be commercially
recoverable due to one or more contingencies. Contingencies may
include factors such as economic, legal, environmental, political and
regulatory matters or a lack of markets. There is no certainty that
it will be commercially viable for the Company to produce any portion
of the Contingent Resources. 
Prospective Resources 
Prospective Resources are those quantities of petroleum estimated, as
of a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects.
Prospective Resources have both a chance of discovery and a chance of
development. There is no certainty that any portion of the
Prospective Resources will be discovered. If discovered, there is no
certainty that it will be commercially viable to produce any portion
of the Prospective Resources.  
BOEs  
BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. 
Contacts:
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
maria.hamilton@lundin.ch 
Lundin Petroleum AB
Teitur Poulsen
VP Corporate Planning & Investor Relations
+41 22 595 10 00
www.lundin-petroleum.com