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Lundin Petroleum: Apollo Prospect Further Oil Discovery in the Greater Luno Area

Lundin Petroleum Lundin Petroleum AB ("Lundin Petroleum") has successfully completed the drilling of the 16/1-4 exploration well in PL338 targeting the Apollo prospect. The well has been plugged and abandoned as an oil discovery. The well was drilled to a total depth of 2,550 meters and is located approximately 4 km north west of the Luno field and 3 km south of the Draupne discovery.

The primary objective of the well was to target the extension into PL338 of the Jurassic reservoir associated with the Draupne discovery. In addition secondary objectives were targeted at both the Paleocene and the Upper Jurassic/Lower Cretaceous ("Cretaceous") sand sequences.

Oil was encountered in both the Paleocene and Cretaceous sandstone reservoirs of both secondary targets. The Jurassic sands associated with the primary target were encountered deeper than anticipated and below the Draupne oil water contact. Post drill mapping and log interpretation indicates that only a limited area of the Draupne discovery extends into PL338.

At the Paleocene level (Heimdal formation) a 40 meter gross oil column was encountered. At the Cretaceous level a separate 10 meter gross oil column with excellent reservoir qualities was encountered. An additional 60 meters of good quality Cretaceous sands were encountered below the oil water contact and as a result there is excellent potential up-dip of the discovery.

An extensive data acquisition program including detailed logs, cores and oil samples have been acquired over all the reservoirs. Based on the quality of the data acquired testing was deemed not to be necessary.

The extent and volume of the Apollo discovery will require further delineation drilling both in relation to Paleocene and Cretaceous reservoirs. The initial recoverable resources range is estimated from 15 - 65 million barrels of oil within PL338.

Ashley Heppenstall, President and CEO of Lundin Petroleum AB, commented:

"It is very pleasing to have made another oil discovery in the Greater Luno Area following the significant Avaldsnes discovery announced earlier this year. We have now made discoveries at Luno, Avaldsnes and Apollo in what is a very important area for Lundin Petroleum. The Apollo discovery opens up further exploration potential in the Greater Luno Area at the Paleocene and Cretaceous horizons."

Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum, is the operator of PL338 with a 50 percent interest. The semi submersible drilling rig Transocean Winner was used to drill well 16/1-14. The rig will now be moved to operated PL409 license to drill the Norall prospect. Partners in PL338 are Wintershall Norge ASA with 30 percent and RWE Dea Norge AS with 20 percent interest.

Lundin Petroleum NASDAQ OMX, Stockholm (ticker "LUPE") is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in Europe, Russia, South East Asia and Africa. Lundin Petroleum has proven and probable reserves of 177 million barrels of oil equivalent (MMboe).

Published 01/12/2010

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