Lundin Confirms Luno Discovery, Extends Field with First Appraisal Well

Lundin has successfully completed the first Luno appraisal well 16/1-10 located in production license PL338, offshore the Norwegian North Sea. The well was drilled to appraise the Luno field discovered in late 2007 with well 16/1-8. The appraisal well has successfully confirmed the extension of the Luno field to the northeast.

Luno Appraisal

The well was tested with a flow rate of approximately 4,000 barrels of oil per day (bopd) on a 54/64 choke. A comprehensive data acquisition program including multiple cores was successfully acquired. The hydrocarbon bearing reservoir at the well location is complex with both clean sands and conglomeratic sections encountered. The results of the appraisal well will now be analyzed and subsequently incorporated into a revised resource estimate for the Luno field which was indicated as within a range of 65 mmboe to 190 mmboe gross recoverable following the discovery well.

The appraisal well was drilled with the Bredford Dolphin semisubmersible drilling rig to a total vertical depth of 2,125 meters below sea level in a water depth of 110 meters.

Luno Discovery

The Luno oil discovery was made in October 2007 in PL338. Light oil was discovered in a clastic Jurassic reservoir. The size of the discovery is estimated at between 65 mmboe and 190 mmboe of gross recoverable oil from the Jurassic reservoir with additional upside potential from the Triassic reservoir which was penetrated by the well. Recent technical analysis has identified additional potential in extensions of the Luno discovery located up-dip of the Luno discovery which contain significant additional reserve potential. Further exploration wells will be drilled to further test the potential in the Greater Luno area during 2009.

PL338 was awarded in the Norwegian North Sea licensing round in 2004. Lundin Petroleum is the operator of PL338 with a 50 percent interest with partners Wintershall Norge ASA (formerly Revus Energy ASA) with 30 percent and RWE Dea Norge ASA with 20 percent interest.

Ashley Heppenstall, President and CEO of Lundin Petroleum commented, "We are pleased with the successful test results from the Luno appraisal well. I am confident that the Luno field is a commercial discovery with resource estimates within the original range. The reservoir quality in the lower part of the appraisal well is such that there is likely to be no upside from the previously indicated Triassic reservoir at this location. We are now moving forward with a drilling program to test the additional prospectivity in the Greater Luno area with three exploration wells planned for 2009. In tandem we are progressing studies on potential development concepts for the Luno field."