The firm confirmed on Friday that it has made a significant oil discovery in the Avaldsnes prospect, 25 kilometres east of the Lundin Petroleum operated Luno field.
"The Avaldsnes discovery is a major milestone for Lundin Petroleum and has confirmed our view that following the Luno discovery additional hydrocarbons would be found in the Greater Luno Area," said CEO Ashley Heppenstall in a statement.
The find is reported to be estimated to contain recoverable resources of 100 - 400 million barrels of oil equivalent (MMboe) with further appraisal wells set to be drilled in 2011 to establish the extent of the find.
"We have found at Avaldsnes excellent reservoir quality within a large mapped structure and as a result the potential resources are larger than our pre-drill estimates. The discovery will result in further additional exploration potential in the Greater Luno Area," said Heppenstall.
Lundin Petroleum's stock is listed at the NASDAQ OMX, Stockholm and was up over 14 percent by 10am on Friday on the back of the announcement and the impact of Hurricane Karl on oil production in the Mexican Gulf.