Lundin announces capital expenditure budget of EUR 368 mm in 2010

Lundin Petroleum has announced the details of its $ 540 mm (appr. EUR 368 mm) development and exploration budget for 2010. The 2010 budget is a 4 % increase on the forecast 2009 capital expenditure.
The development budget for 2010 is $ 250 mm with a major focus on development drilling in the United Kingdom and Norway.

1. In the United Kingdom, development drilling will commence on the Thistle field (WI 99 %) following the reinstallation of platform drilling facilities. Four workover and development wells are planned on Thistle for 2010. In addition a further development well will be drilled on the Broom field (WI 55 %).
2. In Norway, Phase 2 drilling of the Volund development (WI 35 %) is ongoing with two further multi-lateral production wells to be completed in 2010. In 2010 Phase 2 of development drilling on the Alvheim field will commence consisting of a further three multi-lateral wells.

The exploration and appraisal budget for 2010 is $ 290 mm with a continued major focus upon Norway which accounts for $ 190 mm of this amount.
The work programme involves the drilling of eleven exploration wells in Norway, Vietnam and Congo (Brazzaville).

1. Norway: Eight exploration wells will be drilled in 2010 of which five will be operated by Lundin Petroleum. Four of the wells will be drilled in the Greater Luno Area on PL 359 (WI 40 %), PL501 (WI 40 %), PL410 (WI 70 %) and PL 409 (WI 70 %). Further exploration wells will be drilled on the EARB Prospect in PL505 (WI 30 %), Barchan Prospect PL400 (WI 50 %), Frusalen Prospect PL 476 (WI 30 %) and in PL 340 (WI 15 %) close to the Marihone discovery.
2. Vietnam: Two exploration wells will be drilled on Block 06/94 (WI 33.3 %) offshore Vietnam.
3. Congo (Brazzaville): One exploration well will be drilled on Block Marine XIV (WI 21.55 %) on the Makoula Prospect.
4. Russia: A self elevating platform will be constructed commencing in 2010 to allow for further exploration and appraisal drilling on the Lagansky Block (WI 70 %) which will commence in 2011.

Ashley Heppenstall, President & CEO of Lundin Petroleum comments: "The major development drilling programme in 2010 will result in further production increases. We are maintaining our exposure to exploration drilling in Norway with a particular focus on the Greater Luno Area."
"We are moving forward with selection of a development concept for the Luno field and hope that the 2010 exploration programme will result in the discovery of further reserves in the Luno area."