Lundin Takes a 34% Stake in Cambodia Block

Lundin Petroleum has acquired a 34% interest in Block E from Medco International Petroleum, Kuwait Energy Company KSCC and JHL Petroleum Ltd. Completion of the transaction is subject to governmental approvals.

Block E covers 5,559 square kilometers and is located offshore Cambodia, in the Pattani Basin. The block contains several plays in addition to rift basin, fault traps and several structures have been identified. A 1,200-kilometer 2D seismic acquisition has recently been completed and is currently being processed and interpreted to define further exploration activities.

Future plans include 250 square kilometers 3D seismic acquisition and one exploration well. In addition, Lundin Petroleum and Medco have agreed to work together in respect to certain future oil and gas opportunities in Cambodia.

Medco serves as operator of Block E with 41.25% interest while Kuwait Energy Company holds 20.63% interest and JHL Petroleum holds 4.13% interest.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well-balanced portfolio of world-class assets in Europe, Africa, Russia and the Far East. The Company is listed at the Nordic Exchange, Sweden (ticker "LUPE"). Lundin Petroleum has existing proven and probable reserves of 176.4 MMboe as of January 1, 2007.