Lundin Petroleum AB: Report For the Three Months Ended 31 March 2012

STOCKHOLM, SWEDEN -- (Marketwire) -- 05/09/12 -- Lundin Petroleum AB (Lundin Petroleum) (TSX: LUP)(OMX: LUPE) -

HIGHLIGHTS

Three months ended 31 March 2012

--  Production of 34.7 Mboepd up 4 percent from first quarter 2011
--  Net result of MUSD 47.2 down 12 percent from first quarter 2011
--  Record EBITDA of MUSD 309.2 up 30 percent from first quarter 2011
--  Operating cash flow of MUSD 166.6 down 14 percent from first quarter
    2011
--  Net debt of MUSD 89 down from MUSD 133 at 2011 year end

--  Production commenced from Gaupe field, Norway on 31 March 2012
--  Pre-unit agreement signed for the Johan Sverdrup field
--  Edvard Grieg field PDO approved by the Norwegian Ministry of Petroleum
    and Energy
--  Increased working interest in the Brynhild field to 100 percent, subject
    to government approval
--  Ten Norwegian licences awarded in the 2011 Norwegian APA licensing
    round, four as operator

Comments from C. Ashley Heppenstall, President and CEO

The major news during the first quarter of 2012 has been progress with the Luno field, now named Edvard Grieg after the famous Norwegian composer. The Edvard Grieg project, estimated to cost approximately USD 4 billion is now moving forward following approval by the Ministry of Petroleum and Energy and major contract awards have already been announced. This field is the first standalone development project operated by Lundin Petroleum on the Norwegian Continental Shelf and is a major milestone for our Company.

During the first quarter, Lundin Petroleum as operator of PL501 signed a Pre-Unit Agreement with Statoil as operator of PL265 in respect of the development of the Johan Sverdrup field.

Our financial performance in the first quarter of 2012 was again very strong following the excellent results in 2011. Production which was up four percent compared to 2011 was again the major catalyst for the strong performance resulting in record quarterly EBITDA of USD 309.2 million, operating cash flow of USD 166.6 million and net profit of USD 47.2 million for the period.

We expect that our strong operating cash flow will continue as production increases over the forthcoming years and will be our primary source of funding to develop our pipeline of new projects. Our balance sheet remains strong with net debt of less than USD 100 million. I am very pleased to report that we have seen strong support from the banking market in respect of our proposed new borrowing facility and I expect the new facility which is likely to be in excess of USD 2 billion to be completed during the second quarter of 2012.

First quarter production of 34,700 boepd was at the upper end of our forecast and driven by the continued strong performance from the Alvheim and Volund fields, offshore Norway. The Gaupe field, offshore Norway commenced production at the end of the first quarter and will have a positive impact on production going forward.

Listen to President & CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the webcast presentation 9 May at 8.00 CET.

The presentation and slides will be available on www.lundin-petroleum.com following the presentation. Please dial in to listen to the presentation on the following telephone number: + 44 (0) 203 043 24 36.

To view the whole report please visit: http://file.marketwire.com/release/lup509.pdf.

Visit our website: www.lundin-petroleum.com

Contacts:
Lundin Petroleum AB
C. Ashley Heppenstall
President and CEO
[phone]

Lundin Petroleum AB
Maria Hamilton, Head of Corporate Communications
[phone] or [phone]
Mobile: [phone]
[e-mail]
www.lundin-petroleum.com