Lundin Petroleum Completes Tembakau-1 Well Offshore Peninsula Malaysia

Lundin Petroleum AB (Lundin Petroleum) announces that it has completed Tembakau-1 well in PM307 Block, offshore Peninsula Malaysia, as a gas discovery.

Tembakau-1 was a vertical well drilled to a depth of 1,565 metres in 67 metres water depth. The well discovered a series of stacked gas pay sands in the target Miocene objective. Overall the well penetrated approximately 60 m of net gas pay in five high quality sand intervals.

Tembakau-1 is located 30 km to the west of the nearest oil and gas infrastructure.

An extensive data acquisition program was completed, including rock and fluid samples, pressure profiles and mini-DST’s. Following logging the well was plugged and abandoned. Further work will follow to estimate recoverable resource ranges.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments: “Tembakau is very encouraging given its location in an unexplored area of PM307. We are hopeful this discovery has the potential to be commercial on a stand-alone basis given its close proximity to existing gas infrastructure and the strong demand for gas in Peninsular Malaysia. The discovery paves the way to evaluate further follow-up potential in an area where Lundin Petroleum acquired a large 3D survey in 2011. The discovery is the second successful well completed in PM307 in 2012 and continues our robust exploration performance in Malaysia that commenced in 2011 with six discoveries made from nine wells drilled.”

Following Tembakau-1 the West Courageous rig moves south to execute the fifth and final well of the 2012 exploration campaign, the Ara-1 well in the PM308A block where Lundin Petroleum holds a 35 percent interest and is operator. The well is due to spud imminently.

Lundin Petroleum holds 75 percent interest in PM307 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV’s partner is PETRONAS Carigali Sdn Bhd with 25 percent interest. Lundin Malaysia BV operates six blocks in Malaysia, namely PM307, PM308A, PM308B, SB303, SB307 & SB308.

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Press Release, November 21, 2012