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Sodra Petroleum AB
21 June 2001

June 21, 2001

                              SODRA PETROLEUM AB



Sodra Petroleum AB announces that its parent company, Lundin Oil AB ("Lundin")
has today issued the following announcement:-




LUNDIN OIL RECOMMENDS ACCEPTANCE OF PUBLIC CASH OFFER FROM TALISMAN AND SPINS
          OFF KEY EXPLORATION ASSETS INTO A NEW SWEDISH OIL COMPANY

Talisman Energy Inc ("Talisman") has today announced a recommended public cash
offer for all the shares and warrants in Lundin Oil AB ("Lundin Oil").
Shareholders of Lundin Oil are referred to the press release of Talisman made
today for the terms and conditions of the offer.


Recommendation from the Board of Directors of Lundin Oil to the shareholders


The Board of Directors of Lundin Oil at a Board Meeting on June 20, 2001
considered the proposed offer by Talisman to purchase each of the outstanding
Series A and Series B shares in Lundin Oil for SEK 36.5 each in cash. The
offer is for Lundin Oil exclusive of the Sudan and Russia assets. These assets
will be spun-off into Lundin Petroleum AB ("Lundin Petroleum"), which will be
distributed to Lundin Oil's shareholders. The management team of Lundin Oil
will continue and manage the operations of Lundin Petroleum.


After having evaluated the offer, the Board of Directors has unanimously
decided to recommend to the shareholders that they accept the public offer.


Ian H Lundin, President Lundin Oil comments, "We believe the offer represents
a very attractive opportunity for Lundin Oil's shareholders. The offer
provides a significant premium over the historical trading levels for Lundin
Oil shares, and through the spin-off shareholders will have continued equity
participation in a new exploration company with excellent potential for growth
through existing oil discoveries and with exposure to some of the largest oil
basins in the world."




Preliminary timetable


The offer documents relating to the offer are expected to be published on or
about July 21, 2001. Based on the expected date of publication of the offer
documents, the acceptance period is expected to run from July 22 through
August 19, 2001. Subject to the satisfaction of all conditions to the offer,
settlement is expected to be made on or about August 29, 2001.


Talisman reserves the right to extend the acceptance period, as well as to
defer the date for settlement of accounts.




Distribution of Lundin Petroleum to Lundin Oil's shareholders


The Board of Lundin Oil will propose at an Extra General Meeting of Lundin Oil
to be held on or about August 9, 2001, resolutions for the distribution of
Lundin Petroleum to Lundin Oil's shareholders and reduction of Lundin Oil's
share capital and restricted reserves.


It is proposed that Lundin Petroleum will seek a listing on the New Market in
Stockholm. The first day of trading in Lundin Petroleum will be as soon as
possible following the spin off of Lundin Petroleum. It is proposed in
conjunction with the listing of Lundin Petroleum that Lundin Petroleum
initiate a fund raising through a rights offering to the then existing
shareholders.




The Assets of Lundin Petroleum


Russia


Lundin Petroleum will own approximately 10 per cent of the undiluted share
capital of KMOC, a private U.S. corporation with producing oil and gas
interests in the West Siberia oil basin in the Russian Federation. The listing
of KMOC in the US is proposed to occur shortly. KMOC produced above 10,000
barrels of oil per day in the fourth quarter of 2000. Total third party
verified proved reserves as of December 31, 2000 were 420 million barrels of
oil. KMOC will drill approximately 50 new wells in 2001.


Sudan


Lundin Petroleum will have a 40.375 per cent interest in and operate Block 5A
in southern Sudan where partners are Petronas Carigali Overseas Sdn Bhd
("Petronas"), OMV Aktiengesellschaft ("OMV") and Sudapet Limited ("Sudapet")
covering an area of approximately 30,000 square kilometers. The first well
drilled on Block 5A was a large oil discovery at TharJath which flowed at
4,260 barrels oil per day. Appraisal of the discovery is underway with the
drilling of the first appraisal well and the acquisition of 3-D seismic
structure already completed. Further exploration potential exists with
numerous prospects and leads located on trend with the existing Thar Jath
discovery. Block 5A is located adjacent to and on the same geological trend as
the producing oilfields in Block 1, 2 and 4 currently being developed by a
consortium of international companies, known as the Greater Nile Petroleum
Operating Company (GNOPC). GNOPC is currently producing over 200,000 barrels
of oil per day.


Lundin Petroleum will also own a 24.5 per cent non-operated interest in Block
5B covering an area of approximately 20,000 square kilometers. Block 5B is
jointly operated by Petronas and Sudapet. OMV is also a partner. Block 5B
adjoins Block 5A which are both in the highly prospective Muglad Basin and
geologically on trend with the existing discoveries in the basin.


Somalia


Lundin Petroleum will have a 3-year option to purchase 100% of the existing
Lundin Oil interest in Somalia subject to receiving the requisite government
approvals. During the subsequent two years, Lundin Petroleum has an option to
purchase 50% of the Somalia interest. Lundin Oil has a 20 per cent working
interest in Blocks 35 and M-10A in northern Somalia which are currently in
force majeure.


Comments by Adolf H. Lundin


"Lundin Petroleum will start trading with a very strong asset base and a
management team with a proven track record at finding oil. The discovery at
the Thar Jath in Sudan Block 5A will probably be the corner stone of the
Company but plenty of additional potential exists on both Block 5A and 5B in
which the Company has a significant interest. The shareholding in Khanty
Mansiysk Oil Corporation (KMOC) is valued at well in excess of US$ 20 million.
The ultimate objective is to build Lundin Petroleum into another international
oil exploration and production company with a large asset base", says Adolf H.
Lundin, Chairman of Lundin Oil.




Stockholm on 21 June 2001


LUNDIN OIL AB (publ)

The Board of Directors




For further information, please contact:




Ian H. Lundin, President

Telephone: +41 22 319 66 00

or

C. Ashley Heppenstall

Telephone: +41 22 319 66 00




You should read the tender offer statement and other materials when they are
available because they will contain important information about the tender
offer. When it is available, you can obtain the tender offer statement without
charge from North American representative Office, Lundin Oil AB, by phoning +
1 604 689 7842.




Notes for editors:

1.     Lundin is the parent company of Sodra by virtue of its holding of
40,506,500 Ordinary Shares of SEK0.05 each. The 40,506,476 Convertible Shares
of SEK0.05 each in Sodra listed on the AIM market are effectively convertible
into the right to subscribe for B Shares in Lundin in November 2001. Upon
exercise of the conversion right, for every 12 Convertible Shares, the holder
will receive a warrant to subscribe for 1 new Lundin B Share at the nominal
value of SEK0.50.

2.     Convertible Shares in Sodra are also listed on the New Market of the
Stockholm Stock Exchange. Lundin B Shares are currently quoted on the
Stockholm Stock Exchange, Toronto Stock Exchange and the Nasdaq National
Market.

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