Lundin Petroleum Announces a 23% Increase in Reserves

Lundin Petroleum announces the results of its third party reserves certification of proven and probable reserves as at January 1, 2005.

The third party reserve certification completed by Gaffney Cline has resulted in net proven and probable reserves increase to 142.6 million barrels of oil equivalent (MMBOE) as at January 1, 2005. This equates to a 23% increase of reserves since January 1, 2004 taking into account actual 2004 production and adjustments for 2004 including agreed asset sales and purchases.

Gaffney Cline 01.01.2004 reserves
DNO Asset Acquisition
Asset Sales Adjustments (Ireland/Norway/Tunisia)
2004 Production*
Gaffney Cline 01.01.2004 reserves at 01.01.2005
Gaffney Cline 01.01.2005 reserves
Reserve increase
Reserve replacement ratio

*2004 production equates to approx. 29,000 boepd based upon the dates of acquisition and disposal of the assets

The proven and probable reserves have been calculated using Society of Petroleum Engineers and World Petroleum Congress joint definitions.

The proven reserves as at January 1, 2005 certified by Gaffney Cline are 54.8 MMBOE.

Ashley Heppenstall, CEO & President of Lundin Petroleum commented: "Our exploration successes during 2004 in Norway and France coupled with the additions to late life UK reserves on the Thistle field have contributed to a material increase in recoverable reserves. Our policy of investing in our existing assets to extend field life coupled with our ongoing exploration strategy has led to organic growth of Lundin Petroleum and we will continue to follow this policy into 2005".