Annual Report 2009

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DIRECTORS’ REPORT LUNDIN PETROLEUM AB (PUBL) REG NO. 556610-8055 Group Structure as at 31 December 2009 Lundin Petroleum AB (S) Lundin Petroleum BV (N) Lundin Marine BV (N) Lundin Exploration BV (N) Lundin Petroleum SA (Sw) Lundin Services BV (N) Ikdam Production SA (F) 40% Etrion Corporation (C) 45% Lundin Norway AS (No) Lundin Britain Ltd (UK) Lundin Heather Ltd 1 (UK) Lundin Thistle Ltd 1 (UK) 1 Lundin Russia BV (N) Lundin Lagansky BV (N) Petroresurs (R) Lundin Russia Services BV (N) Lundin Russia Ltd (C) Lundin Neft 2 (R) 2 Lundin South East Asia BV (N) Lundin Malaysia BV (N) Lundin Vietnam BV (N) Lundin Indonesia Holding BV (N) Lundin Lematang BV (N) Lundin Indonesia BV (N) Lundin Netherlands BV (N) Lundin Tunisia BV (N) Cyprus Holding 2 (Cy) Lundin International SA (F) Lundin Gascogne SNC (F) Pechoraneftegas 2 (R) 50% Recher-Komi 2 (R) 50% Lundin Rangkas BV (N) Lundin Cakalang BV (N) Lundin Baronang BV (N) JURISDICTION (C) (Cy) (F) (N) Canada Cyprus France Netherlands (No) (R) (S) (Sw) (UK) Norway 1 Russia 2 Sold to EnQuest plc on 6 April 2010 See Group Financial Statements Note 17 and Parent Company Financial Statements Note 6 for full legal names and all subsidiaries Note: The Group structure shows signiﬁcant subsidiaries only Sweden Switzerland United Kingdom FORMATION Lundin Petroleum AB was formed in connection with the SEK 4 billion take-over of Lundin Oil AB by Talisman Energy Inc. during 2001. As a result of the transaction Lundin Oil AB shareholders received SEK 36.50 in cash plus one share in Lundin Petroleum AB for each share held in Lundin Oil AB. On 6 September 2001 the shares of Lundin Petroleum AB started trading on the Nya Marknaden (New Market) administered by Stockholmbörsen. On 2 October 2003 the shares in Lundin Petroleum AB were listed on the O-list of the Stockholmbörsen. On 1 July 2004 Lundin Petroleum AB was transferred to the Large Cap list (now NASDAQ OMX), Stockholm. On 19 September 2002 the Company completed the acquisition of 95.3 percent of the outstanding shares of Lundin International SA (formerly Coparex International SA) from BNP Paribas. Subsequent acquisitions increased the Company’s ownership to 99.86 percent. On 13 January 2003 the Company completed the acquisition of 75.8 percent of OER oil AS. OER oil AS subsequently acquired interests in two producing fields offshore Norway and a 100 percent interest in OER energy AS (formerly called Aker Energy AS). On 23 November 2004, Lundin Petroleum divested its shareholding in OER oil AS to Endeavour International. On 13 February 2004, Lundin Petroleum completed the acquisition from DNO ASA of its United Kingdom and Irish oil and gas interests. On 17 June 2004, Lundin Petroleum completed the acquisition of certain Norwegian assets from DNO ASA. On 31 July 2006, Lundin Petroleum completed the acquisition of 100 percent of the shares in Valkyries Petroleum Corporation (“Valkyries”). In February 2008 Lundin Petroleum completed the sale of its wholly owned subsidiary Lundin Latina de Petróleos S.A. to PetroFalcon Corporation (“PetroFalcon”) in exchange for approximately 57.3 million shares of PetroFalcon and the acquisition of approximately 6.7 million shares and 5.0 million warrants in PetroFalcon through a private placement. In April 2008, PetroFalcon entered into an agreement to acquire the Venezuelan assets of Anadarko Petroleum Corporation. Lundin Petroleum agreed to guarantee certain of PetroFalcon’s obligations under that agreement and received 7.1 million shares of PetroFalcon as consideration. As a result, Lundin Petroleum has become the largest shareholder in PetroFalcon with a 45 percent interest. During the third quarter of 2009, PetroFalcon changed its name to Etrion Corporation (Etrion) and acquired a 90 percent interest in a renewable energy company (Solar Resources Holding Sarl) which will be Etrion’s primary business focus going forward. Etrion is a public company listed on the Toronto Stock Exchange with proven and probable reserves of 30.0 MMboe as at 1 January 2010. In April 2009, Lundin Petroleum completed the sale of its 100 percent owned subsidiaries Lundin Kenya B.V. and Lundin East Africa B.V., holding the Group’s Kenyan and Ethiopian assets, to Africa Oil Corporation (AOC). In July 2009, Lundin Petroleum sold its 50 percent shareholding in CJSC Oilgaztet (Oilgaztet), holding the Ashirovskoye field in the Orenburg region. In November 2009, Lundin Petroleum sold its 51 percent shareholding in CJSC Kalmeastern (Kalmeastern), the company holding the operated onshore production assets in Kalmykia, Russia. The address of Lundin Petroleum AB’s registered office is Hovslagargatan 5, Stockholm, Sweden. OPERATIONS FINANCIALS The main business of Lundin Petroleum is the exploration for, the development of and the production of oil and natural gas. In accordance with Lundin Petroleum’s stated objective of increasing reserves through a strategy of acquisitions and exploration, reserves were acquired during 2002 through the acquisition of Lundin International SA (formerly Coparex International SA). Further reserves were acquired during 2003 in Norway through OER oil AS. During 2004, reserves were acquired through the purchase of all of the United Kingdom and Irish assets and substantially all of the Norwegian assets of DNO ASA. During 2006 reserves were acquired through the acquisition of Valkyries giving the Group assets in Russia. In 2007 further reserves were acquired through the acquisition of CARR. 45

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