STOCKHOLM, SWEDEN -- (Marketwire) -- 10/31/12 -- Lundin Petroleum AB (TSX:LUP)(OMX:LUPE) -

HIGHLIGHTS

Nine months ended 30 September 2012 (30 September 2011)

--  Production of 35.6 Mboepd (32.8 Mboepd) 
--  Net result of MUSD 156.6 (MUSD 169.3) 
--  EBITDA of MUSD 854.3 (MUSD 767.3) 
--  Operating cash flow of MUSD 594.0 (MUSD 586.8) 
--  New USD 2.5 billion seven year secured revolving borrowing base facility
    signed on 25 June 2012 
--  Edvard Grieg field PDO approved 
--  Pre-Unit agreement signed for the Johan Sverdrup field 
--  Extensive appraisal drilling on the Johan Sverdrup field 

Third quarter ended 30 September 2012 (30 September 2011)

--  Production of 36.6 Mboepd (33.9 Mboepd) 
--  Net result of MUSD 44.9 (MUSD 38.9) 
--  EBITDA of MUSD 273.6 (MUSD 262.0) 
--  Operating cashflow of MUSD 218.4 (MUSD 196.5) 
--  Geitungen oil discovery of between an estimated 140 and 270 MMboe gross
    recoverable resources located north of the Johan Sverdrup field within
    PL265 
--  Berangan-1 gas discovery on Block SB303, offshore Sabah, Malaysia 
--  Boyla field PDO approved in October 2012

Comments from C. Ashley Heppenstall, President and CEO

I am pleased that our Company has once again delivered excellent financial results and outperformed market expectations. This performance has been driven by a combination of record quarterly production and low operating costs.

Our financial performance will further improve in forthcoming years driven by our exciting pipeline of development projects which will deliver increased production. The Edvard Grieg, Brynhild and Boyla Norwegian developments, all of which are now in the execution or construction phase, are expected to result in our production doubling to over 70,000 barrels of oil equivalent per day (boepd) following first oil from Edvard Grieg in late 2015.

Production for the first nine months of 2012 was 35,600 boepd and again exceeded our forecasts. As a result of the strong production we have revised our 2012 production forecast from the previous range of 33,000 boepd to 37,000 boepd to a range between 34,000 boepd to 37,000 boepd. We will provide our 2013 production guidance in January 2013.

I am extremely pleased that, despite the manpower and cost pressures being experienced within our industry, our three ongoing development projects in Norway are all progressing well. The Brynhild and Edvard Grieg operated projects are well into the execution phase.

Both ourselves and Statoil continue to be busy with the appraisal of the Johan Sverdrup discovery. The results of the 2012 appraisal drilling programme will be used to update recoverable resources for Johan Sverdrup which we expect will be announced in the first quarter of 2013.

Listen to President and CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the live webcast presentation on Wednesday 31 October at 8.30 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 numbers:

UK: + 44 (0) 203 043 24 36, International Toll Free Number: +1 866 458 40 87

To view the whole report, please visit the following link: http://media3.marketwire.com/docs/830053.pdf

Visit our website: www.lundin-petroleum.com