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Lundin Petroleum AB signs farm-out agreements in France with Gaz de France and SPPE

Nordic Business Report, May 8, 2008

Swedish oil company Lundin Petroleum AB (OMX Stockholm:LUPE) said on Thursday (8 May) that it has signed farm-out agreements in France with Gaz de France (Euronext Paris:GAZ) and Societe Petroliere de Production et d'Exploitation (SPPE).

Under the agreements Lundin Petroleum will transfer to Gaz de France a 50% interest in the Pays de Saulnois licence in the Lorraine region, and to SPPE, a private French independent oil company, a 35% share in the Ferrieres exploration licence in the Paris Basin.

In exchange Lundin Petroleum's partners will pay "disproportionate" shares of the drilling costs of two exploration wells.

"These two deals ensure that we will have an active exploration program in France this year. Our existing French assets are generating strong cash flow in today's oil price environment. The Pays de Saulnois prospect is of material size and any exploration success in France being close to market and existing infrastructure can easily be monetised," said Alex Schneiter, COO of Lundin Petroleum.

Lundin Petroleum, headquartered in Stockholm, Sweden, is an independent oil and gas exploration and production company with assets in Europe, Africa, Russia and the Far East. The company's existing proven and probable reserves amount to over 148m barrels of oil equivalent.

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