Annual Report 2010

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THE LUNDIN PETROLEUM SHARE AND SHAREHOLDERS Lundin Petroleum share Lundin Petroleum’s shares are listed on the Large Cap list of the Nasdaq OMX (“OMX”) Stockholm in Sweden. Lundin Petroleum’s share is part of the OMX 30 index, at the OMX in Stockholm, Sweden. On 24 March 2011, Lundin Petroleum’s shares were listed on the Toronto Stock Exchange (TSX). Petroleum’s capital structure and to secure Lundin Petroleum’s costs in relation to the LTIP. On 24 May 2010 the Board of Directors resolved to mandate the management to execute repurchases of Lundin Petroleum shares on OMX. Under this mandate Lundin Petroleum acquired 2,417,926 of its own shares during June and July 2010. The total number of repurchased shares held by Lundin Petroleum at 31 December 2010 amounted to 6,882,638. Trading and market capitalisation Trading of Lundin Petroleum shares takes place on the OMX. Lundin Petroleum’s market capitalisation as at 31 December 2010 was MSEK 26,017. AGM resolution Liquidity During the year a total of 543,156 million shares were traded on the OMX to a value of approximately MSEK 27,421. A daily average of 2,146,859 Lundin Petroleum shares were traded on the OMX in Stockholm. During the AGM in 2010 it was resolved that the Board of Directors is authorised to issue no more than 35,000,000 new shares, without the application of the shareholders pre-emption rights, in order to enable the Company to raise capital for the Company’s business operations and business acquisitions. If the authorisation is fully utilised the dilution eﬀect on the share capital will amount to ten percent. Share capital and voting rights The registered share capital at 31 December 2010 amounts to SEK 3,179,106 represented by 317,910,580 shares of quota value SEK 0.01 each and representing 1 vote each. All outstanding shares are common shares and carry equal rights to participation in Lundin Petroleum’s assets and earnings. One trading unit consists of 200 shares. Dividend policy Lundin Petroleum’s primary objective is to add value to the shareholders, employees and society through proﬁtable operations and growth. This added value will be expressed partly by dividends paid and partly by a long-term increase in the share price. This will be achieved by increased hydrocarbon reserves, developing discoveries and thereby increasing production and ultimately cash ﬂow and net income. The size of any dividend would have to be determined by Lundin Petroleum’s ﬁnancial position and the possibilities for growth through proﬁtable investments. Dividends will be paid when Lundin Petroleum generates sustainable cash ﬂow and net income from operations to maintain long-term ﬁnancial strength and ﬂexibility. Over time the total return to shareholders is expected to accrue to a greater extent from the increase in share price than from dividends received. Due to the nature of Lundin Petroleum’s operations, the dividend policy is to give priority to the funding of ongoing projects, and satisfy the immediate capital requirements of Lundin Petroleum. Long-term Incentive Plan As part of the remuneration package to employees, the Group operate a Long-term Incentive Plan (LTIP). The LTIP up to and including 2007 included the granting of incentive warrants and are detailed in Note 46 on pages 91–92. There were no outstanding incentive warrants as at 31 December 2010. Own purchased shares The Annual General Meeting (AGM) of Lundin Petroleum held on 6 May 2010 resolved to authorise the Board of Directors to decide on the repurchase and sale of Lundin Petroleum shares on the OMX during the period until the next AGM. The maximum number of shares that can be repurchased and held in treasury from time to time cannot exceed ﬁve percent of all shares of Lundin Petroleum. The purpose of the authorisation is to provide the Board of Directors with an instrument to optimise Lundin Share data Since Lundin Petroleum was incorporated in May 2001 and up to 31 December 2010 the Parent Company share capital has developed as shown below. Share data Formation of the Company Share split 10,000:1 New share issue New share issue New share issue Warrants Incentive warrants Incentive warrants Incentive warrants Incentive warrants Incentive warrants Valkyries acquisition Incentive warrants Incentive warrants Total Month and year May 2001 June 2001 June 2001 July 2001 November 2001 June 2002 2002 2003 2004 2005 2006 2006 2007 2008 Quota value (SEK) 100.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 Change in number of shares 1,000 9,999,000 92,861,283 3,342,501 106,203,784 35,609,748 667,700 2,840,450 2,222,900 3,391,800 1,219,500 55,855,414 1,335,500 2,360,000 317,910,580 Total number of shares 1,000 10,000,000 102,861,283 106,203,784 212,407,568 248,017,316 248,685,016 251,525,466 253,748,366 257,140,166 258,359,666 314,215,080 315,550,580 317,910,580 317,910,580 Total share capital (SEK) 100,000 100,000 1,028,613 1,062,038 2,124,076 2,480,173 2,486,850 2,515,255 2,537,484 2,571,402 2,583,597 3,142,151 3,155,506 3,179,106 3,179,106 54 Lundin Petroleum ANNUAL REPORT 2010

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