Lundin reports 2003 Indonesian activities

The following is an excerpt from Lundin Petroleum AB?s Year End Report 2003 released on February 24, 2004:

Banyumas (Java): A new 490 km seismic program was completed during the year. Several prospects have been identified. Lundin Petroleum holds a 50 percent interest.

Blora (Java): Preparations are underway for the drilling of the PADI-1 exploration well. It is anticipated that the well will spud during the 3rd quarter of 2004. The prospect has potential reserves in excess of 50 million barrels of oil equivalent (mmboe). Lundin Petroleum owns a 40 percent working interest in Blora.

Lematang (South Sumatra): Negotiations continue in relation to the completion of a gas sales agreement which will enable the development of the Singa gas discovery. A Memorandum of Understanding (MOU) and Heads of Agreement were signed in December 2003 providing a solid base for the negotiation and completion of a gas sales agreement. In parallel, preparations are ongoing for the drilling of the Banteng prospect although the well has been postponed until the second quarter of 2004. The Banteng prospect has potential reserves estimated at in excess of 500 billion cubic feet (bcf). Lundin Petroleum has a 15.88 percent interest having acquired an additional 0.88 percent interest in the fourth quarter 2003, subject to Government approval.

Salawati Island & Basin (Papua): a 12 well infill development well program in Salawati Basin and further development drilling in Salawati Island (Matoa field) is ongoing. Interpretation of the newly acquired 3D seismic (on Salawati Island) is almost complete. The acquisition of 3D seismic on Salawati Basin is expected to commence during the first half 2004. An exploration well on Salawati Island was spudded during the 4th quarter of 2003 (NEO-1) and further exploration drilling is scheduled for 2004. Lundin Petroleum has a 14.4 percent and 25.9 percent interest in Salawati Island and Basin, respectively.

Sales and production for the year ended 31 December 2003 were comprised as follows:

Editor?s note: Swedish independent oil and gas company Lundin acquired the blocks from French?s Coparex International S.A in September 2002 together with South Sokang PSC (Natuna; 10 percent), and Sareba PSC (Papua; 100 percent; operator).

Lundin?s liquids productions come from Salawati Basin and Salawati Island join operating body, which are operated PetroChina.