Our Strategy
Lundin Petroleum is pursuing the following strategy:

•	Proactively investing in exploration to organically grow its reserve base. Lundin Petroleum has an inventory of drillable prospects with large upside potential and continues to actively pursue new ex-ploration acreage around the world.
•	Exploiting its existing asset base with a proactive subsurface strategy to enhance ultimate hydrocarbon recovery. Lundin Petroleum is investing actively in mature assets through infill drilling, workovers and enhanced recovery techniques to increase value.
•	Acquiring new hydrocarbon reserves, resources and exploration acreage where opportunities exist to enhance value.

Our Vision
As an international oil and gas exploration and production company operating globally, our aim is to explore for and produce oil & gas in the most economically efficient, socially responsible and environmentally acceptable way, for the benefit of shareholders, employees, and co-ventures.

Lundin Petroleum applies the same standards to all activities worldwide to satisfy both the commercial, ethical and local requirements. Lundin Petroleum strives to continuously improve the performance and to act in accordance with good oilfield practice and high standards of corporate citizenship.

Lundin Petroleum business concept
Lundin Petroleum is an independent upstream oil and gas company and in order to grow our business we seek to be involved in all aspects of the upstream business. The heart of an oil and gas company is our reserves – the oil and gas which we have discovered and which can be economically and commercially extracted. This reserve base provides our production which in turn generates cash flow and profitability.

Our objective is to increase our reserve base through organic growth and at times supplemented by acquisitions. Where our reserve replacement ratio is greater than 100 percent then for every barrel produced we have been successful in replacing that barrel with at least another barrel and thereby have been able to grow our business.

To achieve this growth we are continually making investments to increase our oil and gas licences, prospective resources and contingent resources. We increase our licences predominantly through direct negotiations with host governments as well as acquiring interests from other oil and gas companies. We then invest in the likes of aeromagnetic and seismic studies and our geologists and geophysicists conduct studies to identify drillable exploration prospects on our licences.

An exploration prospect is a structure which has the potential to contain hydrocarbons but which has to be drilled to confirm success. We invest heavily in exploration drilling to confirm whether our exploration prospects contain oil and/or gas. When this exploration drilling is successful in identifying hydrocarbons the discovered resources are added to our contingent resource portfolio.

The economists, reservoir engineers, facilities engineers, development geologists and commercial team seek to put in place an economically viable plan to extract these resources. When we are successful, the contingent resources in question moves into reserves. Further investment is made to develop those reserves through building infrastructure and drilling further production wells. The end result is commercial production.

The upstream cycle from licence negotiation, through seismic acquisition, exploration drilling, development plan preparation and execution and finally production can take many years. As such we are constantly seeking to increase our exposure to all areas of this cycle. Our objective is to increase our licences, prospective resources, contingent resources, reserves and production to generate increased shareholder value.