Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that Lundin Petroleum and its wholly-owned subsidiary Lundin Norway AS (Lundin Norway) have entered into agreements with Statoil ASA (Statoil) and its wholly-owned subsidiary Statoil Petroleum AS (Statoil Norway) under which Lundin Norway will acquire Statoil Norway's entire 15 percent interest in the Edvard Grieg field in PL338, offshore Norway and all associated assets including a nine percent interest in the Edvard Grieg oil pipeline and a six percent interest in the Utsira High gas pipeline. The effective date of the acquisition of these assets is 1 January 2016.

In consideration for the acquisition of the assets, Lundin Petroleum has agreed to issue to Statoil 27,580,806 new shares of Lundin Petroleum (the Consideration Shares) based upon an agreed average share price of SEK 138 per share and a SEK/USD exchange rate of 8.098. In addition, Lundin Petroleum will transfer 2,000,000 shares held in treasury (the Treasury Shares) and issue 1,735,309 new shares (the New Shares) to Statoil in exchange for a cash consideration based upon a share price of SEK 145.66 per share (the ten day volume weighted average closing share price prior to and including the date of signing). Statoil currently owns approximately 37.1 million shares of Lundin Petroleum, representing 11.93 percent of the current issued and outstanding shares of Lundin Petroleum. Following completion of the transaction, including issuance of the Consideration Shares and New Shares and the transfer of the Treasury Shares, Statoil will own approximately 68.4 million shares of Lundin Petroleum, representing 20.1 percent of the then issued and outstanding shares of Lundin Petroleum. Following the transaction Lundin Petroleum will have 340,386,445 shares outstanding.

Benefits of the Transaction

For Lundin Petroleum this transaction secures access to additional high quality reserves, production and cash flow in the Utsira High core area. The Edvard Grieg field was discovered by Lundin Norway in 2007, and the Company is confident that the strong start-up performance of the field from both a facilities and subsurface perspective will continue in the years ahead. Following this transaction, Lundin Petroleum's platform to grow and mature its resource base becomes stronger than ever allowing the Company to continue maximising value for all of our stakeholders. Following the transaction, Statoil will further increase their indirect exposure to world class assets such as Edvard Grieg, Johan Sverdrup and an industry leading exploration portfolio. As a consequence of the transaction, Statoil will equity account their interest in Lundin Petroleum.

The two companies will continue to operate independently, and act as separate entities in all licences on the NCS. Statoil remains supportive of Lundin Petroleum’s management, its Board of Directors and strategy.

Alex Schneiter, CEO and President of Lundin Petroleum comments:
"I am pleased to say that this transaction was the initiative of Lundin Petroleum. We saw a unique win-win opportunity to acquire a direct interest in a world class asset such as Edvard Grieg for an increased shareholding in Lundin Petroleum by Statoil. Increasing our resource base, production and cash flow at the bottom of the cycle will, in my view, lead to Lundin Petroleum emerging stronger than ever as an independent company, and continue to build upon the transformational growth already well under way, creating greater sustainable long term value for our shareholders in the process."

Impact on Market Guidance

Assuming the transaction completes by 30 June 2016, production in the second half of 2016 will increase by 10,000 boepd resulting in an increased full year 2016 production guidance of 65,000 to 75,000 boepd (from 60,000 to 70,000 boepd). Full year 2016 development capex guidance will increase by USD 35 million to USD 970 million.

The 2P net reserves to Lundin Petroleum will increase by 30.9 million boe (1 January 2016) to 716.2 million boe.

About Statoil

Statoil ASA (OSE: STL, NYSE: STO) is an international energy company with operations in 36 countries. Building on 40 years of experience from oil and gas production on the Norwegian continental shelf, we are committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. We are headquartered in Stavanger, Norway, with approximately 23,000 employees worldwide, and are listed on the Oslo and New York stock exchanges.

About Lundin

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker "LUPE").
Lundin Petroleum has proven and probable reserves of 685 million barrels of oil equivalents (MMboe) as at 31 December 2015.