Annual Report 2011

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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. On 24 March 2011, Lundin Petroleum’s shares were also listed on the Toronto Stock Exchange (TSX). Lundin Petroleum’s capital structure and to secure Lundin Petroleum’s costs in relation to the LTIP. The total number of repurchased shares held by Lundin Petroleum at 31 December 2011 amounted to 6,882,638. AGM resolution Trading and market capitalisation Trading of Lundin Petroleum shares takes place on the OMX and on the TSX. Lundin Petroleum’s market capitalisation as at 31 December 2011 was MSEK 52,626. During the AGM in 2011 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 shareholder’s 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. Liquidity During the year a total of 521.1 million shares were traded on the OMX to a value of approximately MSEK 57,061. A daily average of 2.0 million Lundin Petroleum shares were traded on the OMX in Stockholm. 3.3 million shares were traded on the TSX to a value of approximately CAD 57.9 million. A daily average of 18,405 Lundin Petroleum shares were traded on the TSX. 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. Share capital and voting rights The registered share capital at 31 December 2011 amounts to SEK 3,179,106 represented by 317,910,580 shares of quota value SEK 0.01 each and representing one vote each. All outstanding shares are common shares and carry equal rights to participation in Lundin Petroleum’s assets and earnings. Own purchased shares The Annual General Meeting (AGM) of Lundin Petroleum held on 5 May 2011 resolved to authorise the Board of Directors to decide on the repurchase and sale of Lundin Petroleum shares on the OMX and TSX 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 a means to optimise Share data Since Lundin Petroleum was incorporated in May 2001 and up to 31 December 2011 the Parent Company share capital has developed as shown below. Share data Formation of the Company Share split 10,000:1 New share issue Warrants Incentive warrants Valkyries Petroleum Corp. acquisition Total Year 2001 2001 2001 2002 2002–2008 2006 Quota value (SEK) 100.00 0.01 0.01 0.01 0.01 0.01 Change in number of shares 1,000 9,999,000 202,407,568 35,609,748 14,037,850 55,855,414 317,910,580 Total number of shares 1,000 10,000,000 212,407,568 248,017,316 262,055,166 317,910,580 317,910,580 Total share capital (SEK) 100,000 100,000 2,124,076 2,480,173 2,620,552 3,179,106 3,179,106 Number of shares in circulation 2011 Number of shares issued Number of shares repurchased by Lundin Petroleum Number of shares in circulation 317,910,580 -6,882,638 311,027,942 58 Lundin Petroleum ANNUAL REPORT 2011

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