Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Norway AS (Lundin Norway) has successfully completed the appraisal well 16/1-28S and production test on the Rolvsnes discovery in the PL338C on the Utsira High in the Norwegian North Sea.

Highlights:

• Successfully confirmed good productivity from fractured and weathered basement reservoir
  • Constrained production rate of 7,000 barrels of oil per day (bopd)
  • Confirmed connectivity to significant oil volume 
• Substantial increase in resources for Rolvsnes
  • Gross resource range increased to between 14 and 78 million barrels of oil equivalent (MMboe) from previously 3 to 16 MMboe
  • Extended well test required to better understand reservoir long term productivity 
• De-risks additional on-trend basement prospectivity
  • Goddo prospect exploration well planned for 2019
  • Combined Rolvsnes and Goddo prospective area estimated to contain gross potential resources of more than 250 MMboe

The appraisal well is located approximately 3 km from the Lundin Norway operated Edvard Grieg platform and is the third well on the Rolvsnes oil discovery. The main objective was to confirm commercial rates from a horizontal well drilled in fractured and weathered basement reservoirs, similar to those currently producing in the northern area of the Edvard Grieg field.

The well was drilled horizontally in the reservoir interval and encountered 2,500 metres of fractured and weathered basement. Extensive data acquisition and sampling have been carried out in the reservoir, including a 10 day production test with production logging and bottom hole fluid sampling. A maximum constrained production rate of 7,000 bopd was achieved, while the 5 day main flow period was held at a production rate of 4,200 bopd. The test results show good reservoir productivity and connection to a significant oil volume that benefits from aquifer pressure support, which are positive factors towards demonstrating commercial recovery at Rolvsnes.

Following these positive well results, the gross resource range for the Rolvsnes discovery has been increased to between 14 and 78 MMboe from the previous range of between 3 to 16 MMboe. The long-term production behaviour from this reservoir type needs to be understood better and options are being assessed to conduct an extended well test of the horizontal appraisal well. Rolvsnes is considered a potential tie-back development to Edvard Grieg. The well was drilled by the COSL Innovator semi-submersible drilling rig and following completion of well suspension operations the rig went off hire.

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.

The positive well results at Rolvsnes de-risks the similar on-trend prospectivity on the adjacent PL815 licence where an exploration well is being planned on the Goddo prospect in 2019. The combined Rolvsnes and Goddo prospective area is estimated to contain gross potential resources of more than 250 MMboe.

Lundin Norway is operator of PL815 with a40 percent working interest. The partners are Petoro, Lime Petroleum and Concedo with 20 percent each.

Alex Schneiter, President and CEO of Lundin Petroleum comments:

“I am very pleased to announce the successful completion of the appraisal well and production testing at Rolvsnes. It is not often that a company is able to de-risk a new play concept in a jurisdiction like Norway, and with the results at Rolvsnes, I am encouraged by the significant potential of this weathered and fractured basement play on the Utsira High.

“The key element was to prove commercial production rates and significant connected oil volumes, and I am pleased to note that we have exceeded our expectations on both. We will now focus on understanding the full potential of the play and are planning for an extended well test and further exploration drilling. This result not only validates our organic growth strategy, but also highlights the continued upside in and around our Edvard Grieg facility.”

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

This is information that Lundin Petroleum AB is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons set out below, at 07.00 CEST on 27 August 2018.

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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.

Attachment

• Lundin Petroleum - Successful Rolvsnes appraisal result V1 20180827en