Annual Report 2011

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OPERATIONS – NORWAY GREATER LUNO AREA PL546 PL625 PL167 Apollo Aldous Major North Luno platform design capacity will accommodate in excess of 120,000 boepd when Draupne production is combined with that from the Luno field. The gross capital cost of the Luno field development is estimated at USD 4 billion to include platform, pipelines and 15 wells. The Luno field is estimated to contain 186 MMboe of gross reserves. A contract has been awarded to Kværner ASA covering engineering, procurement and construction of the jacket for the Luno platform. A contract has been awarded to Rowan Companies Inc. for a jack up rig to drill the Luno development wells. EXPLORATION Johan Sverdrup PL265 Johan Sverdrup PL501 PL338 PL265 Luno/Tellus Luno South Ragnarrock PL359 PL544 PL410 PL501 PL409 Lundin Petroleum (operator) Lundin Petroleum (partner) Oil ﬁeld Gas ﬁeld expected to produce at an estimated plateau production rate net to Lundin Petroleum of 8,400 boepd with first oil forecast in late 2013. The development involves the drilling of four wells tied back to the existing Shell operated Pierce field infrastructure in the UK sector of the North Sea. In March 2012, Lundin Petroleum announced that it had agreed to acquire the remaining 30 percent interest in PL148 from Talisman Energy subject to the approval of the Norwegian authorities. Luno The Luno field located in PL338 (WI 50%) was discovered in 2007 and subsequently appraised by two further wells supporting a gross reserves estimate of 148 MMboe. In April 2011, the Tellus exploration well in PL338 was completed as an oil discovery. The Tellus discovery is a northern extension of the Luno field and will be incorporated in the Luno field development. In January 2012, a plan of development was submitted for the Luno field to the Norwegian Ministry of Petroleum and Energy. The development plan incorporates the provision for a coordinated development solution of the Luno field with the nearby Draupne field located in PL001B and operated by Det norske oljeselskap ASA. An agreement with Det norske oljeselskap ASA with respect to a coordinated development solution has been completed in March 2012. First production from the Luno field is expected in late 2015 with forecast gross peak production of approximately 90,000 boepd. The In 2010, an exploration well on the Avaldsnes structure in PL501, found and tested good quality oil bearing sandstones. Initial estimates indicated that the discovery contained gross resources of between 100 and 400 MMboe on licence. In 2011, two Avaldsnes appraisal wells were successfully completed and confirmed the extension of the Avaldsnes discovery. In August 2011, Statoil, the operator of PL265, announced the discovery of Aldous Major South and an appraisal well was successfully completed in October 2011. As a result of the appraisal drilling on Avaldsnes and Aldous Major South, it was confirmed that the two discoveries are one connected giant oil field which in January 2012 was named the Johan Sverdrup field. Lundin Petroleum announced a range of gross recoverable contingent resources for the Avaldsnes discovery in PL501 of between 800 million and 1.8 billion barrels which have been audited by Gaffney, Cline & Associates. Statoil has announced a range of gross recoverable contingent resources in PL265 of between 900 million and 1.5 billion barrels of oil. The Johan Sverdrup discovery is therefore estimated to contain contingent gross resources of between 1.7 and 3.3 billion barrels of recoverable oil which is one of the largest ever discoveries on the Norwegian continental shelf and the largest since the mid-1980s. In January 2012, the third appraisal well 16/5-2S located in PL501 was completed. The well, despite encountering good Jurassic sandstone reservoir, was deep to prognosis and as a result the reservoir was below the oil water contact. The impact of the well will most likely reduce current resource estimates in the southern area of the Avaldsnes discovery. In July 2011, the Skalle exploration well in PL438 (WI 25%), approximately 25 km from the producing Snøvhit gas field, was completed as a gas discovery with estimated gross contingent resources of between 88 and 283 billion cubic feet (bcf ). In January 2011, Lundin Petroleum was awarded ten exploration licences in the 2010 APA licensing round of which six licences are operated by Lundin Petroleum. In April 2011, Lundin Petroleum was awarded licence PL609 as operator in the 21st Norwegian licensing round. PL609 (WI 40%) is located in the Barents Sea to the east of Statoil’s large new Skrugard and Havis oil discoveries. In January 2012, Lundin Petroleum was awarded a further ten exploration licences in the 2011 APA licensing round of which four will be operated by Lundin Petroleum. Lundin Petroleum continues its active exploration and appraisal programmes with eight exploration and six appraisal wells in 2012. The key areas of activity are exploration and appraisal wells on the Johan Sverdrup discovery, the Apollo discovery and the Greater Luno area. 20 Lundin Petroleum ANNUAL REPORT 2011

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