Lundin Petroleum acquires an additional 15% interest in Edvard Grieg field offshore Norway

STOCKHOLM -- Lundin Petroleum AB has announced that Lundin Petroleum and its wholly-owned subsidiary Lundin Norway AS have entered into agreements with Statoil ASA and its wholly-owned subsidiary Statoil Petroleum AS, under which Lundin Norway will acquire Statoil Norway's entire 15% interest in Edvard Grieg field in PL338, offshore Norway. This is in addition to all associated assets, including a 9% interest in Edvard Grieg oil pipeline and a 6% interest in the Utsira High gas pipeline. The effective date of the acquisition of these assets is January 1, 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, 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 and issue 1,735,309 new shares to Statoil in exchange for a cash consideration, based upon a share price of SEK 145.66 per share (the 10-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% 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% 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. 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, allowing the company to continue maximizing value for all stakeholders. Following the transaction, Statoil will further increase their indirect exposure to assets. 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.