Lundin Petroleum AB subsidiary, Lundin Britain Ltd., has brought the first well on the Broom field onstream. Broom lies offshore the UK in the North Sea.

Production began on well 2/05-19Y at an average natural flow rate of 16,000 b/d. Operations are progressing as planned, with two additional pre-drilled production wells and a water injection well to be completed along with the drilling of a further injection well. The program should be complete by late 3Q or early 4Q 2004. Plateau production is expected to be in excess of 20,000 b/d.

The field is being developed as a subsea tieback to the Heather platform, 7 km east of Broom. The Heather platform has been upgraded and modernized to accommodate the Broom tieback.

Oil reserves are estimated to be 36 MMbbl for the first phase of the Broom development. There are additional development opportunities in the vicinity and within the Broom field concession area that are also being evaluated. Broom development will assist substantially in extending the Heather field life.

UK Energy Minister Stephen Timms said, "It's great news that the Broom field is producing oil so soon after I granted approval at Offshore Europe last year. Today's announcement from Lundin Petroleum is further proof that for companies with the right skills, ingenuity, and determination the UKCS is still a vibrant and rewarding basin."

Lundin Petroleum operates Broom with 55% interest. Partners include Challenger Minerals Inc. with 16% and Palace Exploration Co. with 29%.

8/5/04