Lundin completes Luno II appraisal well. Cuts contingent resources estimate

Lundin Petroleum has completed drilling of the appraisal well 16/4- 8 S in the Luno II discovery, offshore Norway.

The Luno II discovery is located approximately 15 km south of the Edvard Grieg field in the North Sea sector of the Norwegian Continental Shelf (NCS). The well was drilled 4 km southeast of the Luno II discovery well. The main objectives of well 16/4-8 S were to confirm the reservoir properties and petroleum potential of the Central South segment. The well encountered about 500 metres of gross sandstone section of Jurassic/Triassic age.

A gross oil column of 30 metres has been proven, underlying a thin gas cap. The pressure data indicates a barrier towards the discovery well 16/4-6 S. Extensive data acquisition and sampling was carried out in the reservoir, including conventional coring and fluid sampling. One production test (DST) was performed in the oil zone, producing at a rate of 450 barrels per day through a 28/64” choke.

Reservoir properties were lower than expected in this part of the structure. Following the results of 16/4-8 S the revised gross contingent resource range for Luno II is estimated at between 27 and 71 million barrels of oil equivalents, down from the previously estimated range of 25 to 120 MMboe. The Luno II discovery is located wholly in PL359.

Contingent Resources (2C) are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. There is no certainty that it will be commercially viable for the Company to produce any portion of
the Contingent Resources.

Appraisal well 16/4-8 S is the third well drilled in production license PL359 after it was awarded in 2006. The well was drilled to a total depth of 2,700 metres below mean sea level in a water depth of 100 metres. The well was drilled using the semi-submersible drilling rig Bredford Dolphin.

The well will be permanently plugged and abandoned before the rig proceeds to drill exploration well 33/12-10 S targeting the Vollgrav South prospect in production license PL631 where Lundin Norway is operator.

Two interest transactions in PL359 have been announced on the 17th June 2014 and 4th of July 2014. Following these transactions, and subject to government approval, Lundin Norway holds a 50 percent interest in PL359, OMV Norge AS a 20 percent interest, Statoil Petroleum ASA a 15 percent interest and Wintershall Norge AS a 15 percent interest.