Swedish Lundin sells East Africa interests after negative results in Sudan

February 7, 2009 (LONDON) — Swedish oil explorer, Lundin Petroleum AB announced the selling of its investments in eastern Africa following its negative drilling results in southern Sudan.

Lundin Petroleum announced on February 5 the signing of an agreement for the sale of its wholly owned subsidiaries, Lundin East Africa and Lundin Kenya to Africa Oil Corporation (“Africa Oil”).

Lundin East Africa covers Ogaden Basin, southern Ethiopia and the Adigala Area in northern Ethiopia. Lundin Kenya holds interest in the Anza Basin region in the northwest of Kenya. Also, the contract includes unexploited fields in Somalia due to the political situation there.

“The strategy to grow our business in East Africa was particularly driven by the prospectively of our exploration acreage in Sudan,” said Lundin President Ashley Heppenstall.

However, due to the unsuccessful drilling results in Sudan, Lundin presence in the region has less weight and “as a result we have decided to divest our interests,” Heppenstall added.

Swedish oil explorer failed after three drilling operations since March to October 2008 to find oil in Sudan’s oil Muglad Basin in Block 5B.

The partners in Block 5B are Petronas Carigali White Nile (5B) Ltd (“Petronas”) (39%), Lundin Petroleum (24.5%), ONGC Videsh Ltd (23.5%) and Sudapet Ltd (13%).

(ST)