Lundin Petroleum Receives Final Norwegian Parliament Approval for the Edvard Grieg Plan of Development

Lundin Petroleum AB (TSX:LUP)(OMX:LUPE) ("Lundin Petroleum") is pleased to announce that its wholly owned subsidiary Lundin Norway AS has received final approval for the plan for development and operation (PDO) for the Edvard Grieg field from the Norwegian Parliament. The Norwegian Ministry of Petroleum and Energy concurred with the field development plan in April 2012. The Edvard Grieg is the first standalone development project operated by Lundin Petroleum on the Norwegian Continental Shelf (NCS).

First production from the Edvard Grieg field in PL338 is expected in late 2015 with a forecast gross peak production of approximately 100,000 barrels of oil equivalent per day (boepd) (90,000 barrels of oil per day (bopd) and 1.5 million Sm3 of gas per day).

The capital cost of the Edvard Grieg development including platform, pipelines and production wells is estimated at USD 4 billion. The Edvard Grieg platform design capacity will accommodate in excess of 160,000 boepd (130,000 bopd and 4 million Sm3 gas per day) when Draupne production is combined with that from the Edvard Grieg field.

Major contracts (Jacket, topside, drilling and marine installation) have already been awarded subject to final PDO approval.

Ashley Heppenstall, President and CEO of Lundin Petroleum, comments; "The final approval from the Norwegian Parliament of the Edvard Grieg plan of development is a major achievement and confirmation of Lundin Petroleum's capabilities. We have built an experienced project team with strong record of completing similar projects and are confident we have the capability to deliver this major project on schedule and on budget. Production from the Edvard Grieg field will be the major contributor in doubling our production to 70,000 boepd by late 2015. Our production will increase further with the subsequent development of the Johan Sverdrup discovery located in the southern Utsira High."

Lundin Petroleum is the operator and has a 50 percent working interest in the Edvard Grieg field. Wintershall Norge AS and RWE Dea Norge AS hold a 30 percent and a 20 percent interest, respectively.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets primarily located in Europe and South East Asia. The Company is listed at the NASDAQ OMX, Stockholm (ticker "LUPE") and at the Toronto Stock Exchange (TSX) (Ticker "LUP"). Lundin Petroleum has proven and probable reserves of 211 million barrels of oil equivalent (MMboe).

This information has been made public in accordance with the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980).

Forward-Looking Statements

Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, including the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading "Risks and Risk Management" and elsewhere in the Company's annual report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.

Reserves and Resources

Unless otherwise stated, Lundin Petroleum's reserve and resource estimates are as at 31 December 2011, and have been prepared and audited in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook").

Contingent Resources

Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. There is no certainty that it will be commercially viable for the Company to produce any portion of the Contingent Resources.

Prospective Resources

Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources.

BOEs

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Contacts:
Lundin Petroleum AB
C. Ashley Heppenstall
President and CEO
+41 22 595 10 00

Lundin Petroleum AB
Maria Hamilton, Head of Corporate Communications
+41 22 595 10 00 or +46 8 440 54 50
Mobile: +41 79 63 53 641
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.lundin-petroleum.com