Lundin Petroleum: Tellus-Another Oil Discovery in PL338

STOCKHOLM, SWEDEN -- (Marketwire) -- 04/06/11 -- Lundin Norway AS, a wholly owned subsidiary of Lundin Petroleum AB (Lundin Petroleum) (TSX: LUP)(OMX: LUPE), operator of production licence 338, has completed well 16/1-15 on the Tellus prospect as an oil discovery. The well has been successfully tested and a comprehensive logging and coring program has been acquired. The well will now be sidetracked to appraise the Tellus discovery to ensure it will be included in the Luno development program.

Oil was proven in a 50 meter column including a 3 meter thick lower Cretaceous sandstone with excellent reservoir quality overlying porous, fractured basement. The oil is of the same type as found in Luno, and the Tellus discovery is most likely a northern extension of the Luno field.

Two successful reservoir tests have been completed. The first test was perforated in a fractured basement interval and produced 650 BOPD, through a 40/64' choke. This is the first successful full scale basement test on the Norwegian continental shelf. The second test was perforated in the overlying sandstone interval and produced 3900 BOPD through a 40/64' choke. This test showed very good flow properties and good pressure support.

An estimate of the discovered resources will be announced once the sidetrack has been completed.

Lundin Petroleum is the operator of PL338 with 50 percent interest. Partners are Wintershall Norge ASA with 30 percent and RWE Dea Norge AS with 20 percent interest.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments: 'We are very pleased with this latest discovery which has proven a likely extension of the Luno field. The location of the Tellus discovery to the Luno field will allow us to fast track the development of Tellus by including it into the Luno development plan. The basement discovery is also material and has the potential to open further prospectivity in the Greater Luno area and provides us with excellent data in relation to the earlier Luno South basement discovery.'

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in Europe, South East Asia, Russia and Africa. The Company is listed at the NASDAQ OMX, Stockholm (ticker 'LUPE') and at the Toronto Stock Exchange (TSX) (ticker 'LUP'). Lundin Petroleum has proven and probable reserves of 187 million barrels of oil equivalent (MMboe).

FORWARD-LOOKING STATEMENTS

Certain statements made and information contained herein constitute 'forward-looking information' (within the meaning of applicable Canadian securities legislation). Such statements and information (together, 'forward looking statements') relate to future events, including the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities, ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as 'seek', 'anticipate', 'plan', 'continue', 'estimate', 'expect', 'may', 'will', 'project', 'predict', 'potential', 'targeting', 'intend', 'could', 'might', 'should', 'believe' and similar expressions) are not statements of historical fact and may be 'forward-looking statements'. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as on the date of this news release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment and access, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, financial risks. These risks and uncertainties are described in more detail under the heading 'Risk Factors' and elsewhere in the Company's 2009 annual report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward- looking statements. Forward looking statements included in this new release are expressly qualified by this cautionary statement.

Contacts:

Lundin Petroleum AB

C. Ashley Heppenstall

President and CEO

+41 22 595 10 00


Lundin Petroleum AB

Maria Hamilton

Head of Corporate Communications

+41 22 595 10 00 / +46 8 440 54 50
maria.hamilton@lundin.ch
www.lundin-petroleum.com