Lundin Petroleum Q2 Indonesian activities

The following is excerpt from Swedish oil company Lundin Petroleum AB Interim Report for the quarter ended June 30, 2006:

Salawati Island and Basin (Papua)
The net production from Salawati (Salawati Island WI 14.5% and Salawati Basin WI 25.9%) was in line with expectations at 2,300 boepd during the period. The Salawati basin production was positively impacted by successful infill drilling. The development of the TBA field offshore Salawati Island is ongoing with first oil expected in the third quarter of 2006 following the conversion of an FPSO in Singapore. The TBA field will add 1,000 boepd net production to Lundin Petroleum.

Banyumas (Java)
The Jati-1 exploration well (WI 25%) has been plugged and abandoned as a dry hole.

Blora (Java)
It is planned to drill an exploration well Tengis-1 (WI 43.3%) in 2006 and field regulatory approvals are being sought prior to commencement of operations.

Lematang (South Sumatra)
A plan of development for the Singa gas Field (WI 15.88%) is currently awaiting Indonesian Government approval. A heads of agreement in relation to the sale of gas from the Singa field has been signed with the state gas distribution company PT Persusahaan Negara (PGN) to supply gas to PGN customers in West Java for 10 years starting in 2008. A gas sales agreement with PGN is currently being finalised.

Lundin Petroleum signed an agreement in June 2006 to acquire an additional 10 percent working interest in the Lematang Block from Serica Energy plc for USD 5 million. Following completion of the transaction which is subject to government approval, Lundin Petroleum will own a 25.88% working interest in the Lematang Block containing the Singa Field. (end of report)