Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Norway AS (Lundin Norway) has successfully completed the Luno II appraisal well 16/4-11 in PL359 on the Utsira High in the Norwegian North Sea.

The appraisal well was located approximately 2.5 km south of the original Luno II discovery well and is the fifth well on the Luno II oil discovery. The main objective of the appraisal well was to prove additional resources in the Luno II discovery to progress to development.

The appraisal well encountered a gross oil column of 22 metres in Triassic sandstone with very good reservoir quality, which is significantly better than expected. The oil-water contact was encountered at 1,947 metres below the sea surface. The entire reservoir, including the water zone, consists of sandstones with some conglomeratic sandstone intervals with a total thickness of about 400 metres. Extensive data acquisition and sampling have been carried out in the reservoir, including conventional coring and fluid sampling.

Following these positive well results, the previous gross resource range for the Luno II discovery of 30 to 80 MMboe has been increased to between 40 and 100 MMboe. Development studies for Luno II will now be progressed with the objective of submitting a PDO around the end of 2018. The development concept for Luno II is a subsea tie-back to the nearby Edvard Grieg platform.

Lundin Norway is the operator of PL359 with a 50 percent working interest. The partners are OMV with 20 percent and Statoil and Wintershall with 15 percent each.

After completion of the Luno II appraisal well, the semi-submersible drilling rig COSL Innovator will proceed to drill appraisal well 16/1-28S on the nearby Rolvsnes oil discovery in PL338C. The main objective is to confirm commercial rates from a horizontal well that will be drilled in fractured and weathered basement reservoirs similar to the reservoirs currently producing in the northern area of the Edvard Grieg field. Rolvsnes is also considered a potential tie-back development to Edvard Grieg and success will further de-risk the larger area prospectivity, estimated to contain gross resources of more than 200 MMboe. Drilling and testing at Rolvsnes is expected to take 115 days.

Lundin Norway is the operator of PL338C with a 50 percent working interest. The partners are Lime Petroleum with 30 percent and OMV with 20 percent.

Lundin Petroleum is one of Europe’s leading independent oil and gas exploration and production companies with operations focused on Norway and listed on NASDAQ Stockholm (ticker "LUPE"). Read more about Lundin Petroleum’s business and operations at www.lundin-petroleum.com

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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.

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Lundin Petroleum - Luno II appraisal results-V5-20180326en