Open Letter

28 November 2016

Open Letter from Ian H. Lundin

Dear Shareholders,

We are writing to update you on the Swedish Prosecutor’s preliminary investigation surrounding Lundin’s activities in Sudan over the period 1997 – 2003. We continue to cooperate fully with the investigation, which is now in its seventh year and, we hope, in its final stage.

For many years we have requested interviews with the Prosecutor so that we could share with him all the information that we have relating to our time in Sudan. The Prosecutor has now called Alex Schneiter and me for interview and notified us about the suspicions that are the basis for the investigation. This process is a normal part of Swedish legal procedure for any investigation. It is important to note that no charges have been brought and nor does this part of the process mean that they will be brought.

The Board remain convinced that there are no grounds for any allegations of wrongdoing against any representative of Lundin. Lundin has always been an advocate for peace by peaceful means in Sudan. It remains our firm belief that Lundin’s presence in Block 5A contributed to improving living conditions in the region, through our infrastructure investment, community development and humanitarian assistance, which made life better for thousands of people.

For those of you who would like further information, I invite you to explore our dedicated website and report, “Lundin history in Sudan”, which provides a detailed account of our activities in the region through the period 1997-2003.

This process is not impacting the value of our assets or the operations of the business, which continue to deliver excellent results. Regarding the outlook for Lundin Petroleum’s business, we are excited for the future. At our recent third quarter results we increased our production guidance for the year to between 70,000 and 75,000 boepd and reported a record low cash operating cost for the third quarter of USD 7.2 per barrel, leaving us on target to achieve the guided full year cash operating cost of USD 9.0 per barrel. We are also well positioned for our next phase of growth, forecasting 120,000 boepd by the time Johan Sverdrup Phase 1 comes onstream at the end of 2019.

In closing, I would like to take this opportunity to express my sincere thanks to all our stakeholders for your continued support in Lundin Petroleum and the exciting future of the Company.

Ian H. Lundin
Chairman of the Board

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