Lundin Begins Production at Oudna Field

Lundin Petroleum and Sinochem report that oil production commenced from the Oudna field, offshore Tunisia on November 11, 2006. Production is from a single production well supported by a water injection well both tied back to the IKDAM Floating Production Storage Offloading (FPSO) vessel.

Initial production from natural flow is over 8,000 bopd, gross, and is forecast to shortly increase to 20,000 bopd, gross, following the start-up of artificial lift operations. Proven and probable reserves of the Oudna field are 11.5 million barrels of oil.

Lundin Petroleum and Atlantis Holding Norway AS (a subsidiary of Sinochem Corporation) are each holders of 50 percent of the Oudna field. Lundin Petroleum is the operator. ETAP, the Tunisian state oil company, has a 20 percent purchase option in the Oudna field which may be exercised up to 120 days from the commencement of production.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments "The production start-up from Oudna is a major milestone for Lundin Petroleum. The Oudna field development which utilizes our part owned Ikdam FPSO is an excellent example of how smaller marginal oil fields can be profitably developed through the proactive approach of a operator such as Lundin Petroleum. The Oudna field start-up will ensure we are on target to achieve our forecast year end production of 40,000 boepd''

Mr. Han Gensheng, Vice President of Sinochem Corporation comments "The production start-up of the Oudna field demonstrates the successful cooperation between Sinochem and Lundin Petroleum and also identifies Sinochem's exploration and production business entering into a new development phase. We are confident that with our joint efforts, the smooth operation of the Oudna field will not only bring benefit to the investors but also contribute to the Tunisian economy. Sinochem is willing to cooperate with our partners and develop more oil fields in Tunisia and worldwide''