Annual Report 2011

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Even if repeating this type of extraordinary success seems unlikely, I would not be so sure. The 2012 exploration drilling campaign is targeting some very high potential prospects in Norway as well as in Malaysia. The Company’s significant licence position on the Norwegian Continental Shelf (NCS) will ensure that this level of drilling activity will be maintained for a number of years. Lundin Petroleum has established itself as a company that not only knows where to drill for oil but also delivers projects on time and on budget. The Luno field will be Lundin Petroleum’s largest development project ever undertaken to date. With a gross budget of USD 4 billion and a design capacity of 120,000 bopd, the Luno field will be a major development project offshore Norway. This project will also have a significant impact on the Norwegian construction industry and I am very glad that the Company has already secured both yard space for the jacket and rig capacity for the Luno development which is forecasted to be onstream by the end of 2015. I cannot talk about our success in Norway without mentioning our Norwegian team who has delivered beyond our wildest expectations. Led by Torstein Sanness and Hans Christen Rønnevik, Lundin Norway AS has demonstrated that the NCS is far from mature as an oil province. The only question that is being asked now is when and where will the next elephant be discovered. In November 2011, Lundin Petroleum received the first prize for excellence among all the exploration companies in the industry and our CEO Ashley Heppenstall received the first prize for excellence among all the company leaders in the industry. These prizes were awarded by The Oil Council in London. In addition, Hans Christen Rønnevik, Exploration Manager Norway, was awarded the Norwegian Petroleum Society’s highest honour for his and his team’s achievements in Norway. Lundin Petroleum’s amazing growth has been achieved without any cash equity issue since the initial USD 50 million that was raised when the Company was formed 10 years ago. We have demonstrated that it is possible to achieve substantial organic growth in the oil and gas business and I expect Lundin Petroleum to grow further over the next 10 years doing what we do best – finding and producing oil. I would like to leave you with some parting thoughts about Adolf H. Lundin, my father and the founder of Lundin Petroleum. My father strongly believed in the efficient and responsible exploration and development of natural resources for the benefit of mankind. This outlook, combined with his unfailing sense of optimism, would come to define and motivate him throughout his life and career. Adolf was convinced that the economic benefit of responsibly developed natural resources would have a profound impact when it comes to alleviating poverty, war and disease. Over the past decade, Lundin Petroleum and my family have become targets of harsh and unfounded accusations regarding some of our past operations, especially Sudan. These allegations that Lundin Petroleum and its officers and directors were involved in, or complicit in, wrongdoings are completely false. We at Lundin Petroleum are proud of what we have achieved, and I am certain that Adolf would be proud of us and our accomplishments. Yours sincerely, Ian H. Lundin Chairman of the Board 7

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