• Annual Report 2009
  • 4Letter to shareholders
  • 6Words from the Chairman
  • 8Our business, vision and strategy
  • 9Market overview
  • 12Operations
  • 13Reserves, resources and production
  • 16Core area - Europe
  • 21Core area - Russia
  • 22Core area - South East Asia
  • 23Other operations
  • 24Corporate responsibility
  • 30Corporate governance report
  • 36-Internal control and risk management
  • 38-Board of directors
  • 39-Management
  • 40-Risk factors
  • 41The share and shareholders
  • 44Five year financial summary
  • 45Director's report
  • 54Income statement
  • 55Comprehensive income
  • 56Balance sheet
  • 57Statement of cash flow
  • 58Statement of changes in equity
  • 59Key financial data
  • 60Accounting principles
  • 67Notes - Group
  • 84Parent company annual accounts
  • 88Notes - Parent company
  • 90Board assurance
  • 90Financial reporting dates
  • 91Auditor's report
  • 92Reserve quantity information
  • 93Definitions

Annual Report 2009

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CORE AREA - EUROPE United Kingdom spin-off of UK business On 6 April 2010, Lundin Petroleum announced the completion of the spin-off its UK business into a newly formed company called EnQuest plc. EnQuest acquired the UK oil and gas production, development and exploration assets and operations of both Lundin Petroleum and Petrofac Limited, a London listed company. Lundin Petroleum received 55 percent of the shares of EnQuest which were distributed to Lundin Petroleum shareholders. EnQuest is listed on both the London Stock exchange and the NASDAQ OMX Stockholm. Petrofac Shareholders 45% 55% Lundin Petroleum Shareholders UK Assets UK Assets EnQuest EnQuest is an independent oil and gas production and development company whose initial activities will be focused on the United Kingdom Continental Shelf (UKCS). EnQuest intends to deliver sustainable growth in shareholder value by focusing on the exploitation of its acquired reserves, commercialising and developing discoveries, converting its significant contingent resources into reserves and pursuing selective acquisitions. With a portfolio of producing assets, development opportunities and appraisal and exploration opportunities, strong cash flow generation and an experienced management and staff that have a proven development and operating record, EnQuest believes that it will be well positioned to increase its production and reserves and benefit from the opportunities that exist in the UKCS. EnQuest’s asset portfolio will comprise primarily producing assets and development opportunities, together with appraisal and exploration opportunities, all of which are located in the UKCS. EnQuest’s producing assets will include interests in six producing fields: Broom, Heather, Thistle, Deveron, West Don and Don Southwest. EnQuest will have interests in 16 production licences covering 26 blocks or part blocks in the UKCS, of which 15 licences are operated by EnQuest. EnQuest’s licence interests also provide it with an inventory of potential developments, discoveries and prospects, which are predominantly located close to EnQuest’s interests in existing infrastructure. Based on the 2009 production of Lundin Petroleum and Petrofac, EnQuest’s average daily working interest production for the year ended 2009 would have been approximately 13,620 bopd. Gaffney, Cline & Associates (GCA) has certified that, as at 1 January 2010, EnQuest had a total of 80.5 MMbbls of net 2P oil and NGL reserves. As at 1 January 2010, GCA has also certified net oil and gas contingent resources for individual assets. The aggregate of the oil contingent resources (2C) on an unrisked basis is 67.5 MMbbls, and of the gas contingent resources (2C) is 30.6 Bcf 1. In addition, EnQuest has identified five further exploration opportunities, all of which have been independently reviewed by GCA. 1 UNITED KINGDOM – KEY DATA Reserves (MMboe) Contingent resources (MMboe) Average production per day (Mboepd) Net turnover (MSEK) Sales price achieved (USD/boe) Cost of operations (USD/boe) Operating cash flow contribution (USD/boe) 2009 78.8 54.3 10.2 1,783.7 62.83 34.54 23.36 2008 82.1 56.3 10.2 2,280.8 96.41 42.19 48.77 GCA warns that there may be a significant risk that accumulations containing contingent resources will not achieve commercial production and that it is inappropriate to aggregate contingent resources. 20 Lundin Petroleum ANNUAL REPORT 2009

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