|By Marketwired .||
|January 8, 2014 02:53 AM EST||
STOCKHOLM, SWEDEN -- (Marketwired) -- 01/08/14 -- Lundin Petroleum AB (Lundin Petroleum) (OMX:LUPE)(TSX:LUP) is pleased to announce its 2014 development, appraisal and exploration budget which totals USD 2.1 billion.
The 2014 expenditure on development projects is budgeted at USD 1.4 billion which represents a 25 percent increase on forecast 2013 development expenditure. The 2014 budgeted expenditure on exploration activity is USD 380 million which is approximately the same as the forecast 2013 exploration expenditure. The budgeted 2014 appraisal expenditure amounts to USD 300 million.
75 percent of the 2014 budgeted development expenditure, corresponding to USD 1.1 billion, relates to ongoing development projects in Norway with the majority of the balance being spent on the Bertam development in Malaysia.
1. The development of the Edvard Grieg field (WI 50% and operated by Lundin Petroleum) commenced in 2012 and progress during 2013 has been on schedule and costs remain within budget. The 2014 net expenditure is budgeted at approximately USD 700 million which will involve the completion and installation of the jacket, continued construction of the topside, construction and installation of the oil and gas pipelines and the pre-drilling of some development wells. Edvard Grieg is scheduled to come onstream in the fourth quarter 2015 and is estimated to produce 50,000 barrels of oil equivalent per day (boepd) net to Lundin Petroleum at plateau production.
2. The Brynhild field (WI 90% and operated by Lundin Petroleum) is scheduled to come onstream in the second quarter 2014 and is anticipated to produce 10,800 boepd net to Lundin Petroleum at plateau production. All subsea installation work is completed, the first of four development wells has been successfully completed, the Haewene Brim FPSO modification and life extension work is substantially completed and the FPSO has returned to its offshore location at the Shell operated Pierce field offshore United Kingdom. The 2014 budgeted net capital expenditure of USD 265 million relates to the drilling of the remaining three development wells as well as certain FPSO hook-up costs. The Brynhild development drilling has been slower than forecast, predominantly related to poor North Sea weather conditions and this has resulted in increased project costs.
3. The non-operated Boyla field (WI 15%) is scheduled to come onstream during the first quarter 2015 at an estimated production level of 3,000 boepd net to Lundin Petroleum. The first-oil date has slipped by one quarter from the previously forecast fourth quarter 2014 due to the late arrival of the Transocean Winner rig which will drill the development wells. The 2014 net development expenditure is budgeted at approximately USD 80 million which involves the drilling of 3 development wells and installation of a flowline to the Kneler A manifold on the Alvheim field.
4. Net budgeted expenditure for 2014 on the non-operated Alvheim and Volund fields (WI 15% and WI 35% respectively) is approximately USD 25 million which involves the drilling of one infill well on Alvheim in 2014, long-lead items for 2 additional infill wells on Alvheim in 2015 and long-lead items for a possible 2 infill wells on Volund in 2015.
5. The Bertam oil field (WI 75%) in Malaysia is scheduled to reach plateau production in 2015 at a net rate of 11,000 bopd. The budgeted net capital expenditure for 2014 is USD 325 million. The development activity during 2014 will involve the completion and installation of the wellhead platform, the drilling of development wells and the completion of the modification work on the Ikdam FPSO vessel which will receive the Bertam oil production.
The exploration budget for 2014 is USD 380 million with a major focus on Norway which accounts for approximately 75 percent of this amount. The exploration programme involves the drilling of 19 exploration wells in Norway, Malaysia, Indonesia, France and the Netherlands targeting total net unrisked prospective resources of 620 million barrels of oil equivalent (MMboe).
The budgeted net exploration expenditure for 2014 is approximately USD 285 million. A total of seven exploration wells will be drilled in Norway during 2014 targeting net unrisked prospective resources of 390 MMboe. The 2014 exploration campaign is targeting prospects in all three areas on the Norwegian Continental Shelf, namely the North Sea, the Norwegian Sea and the Barents Sea. The North Sea campaign comprises of two wells on the Utsira High on PL625 (WI 40%, Kopervik) and PL359 (WI 40%, Luno II North) respectively and one well on PL631 (WI 60%, Vollgrav) in the northern North Sea. Two operated wells will be drilled in the Norwegian Sea on PL555 (WI 60%, Storm) and on PL584 (WI 60%, Lindarormen). The Barents Sea exploration campaign consists of one non-operated well on PL659 (WI 20%, Langlitiden) and one operated well on PL609 (WI 40%, Alta). Rigs have been secured for all seven wells.
The budgeted net exploration expenditure for 2014 is USD 40 million involving the drilling of three operated exploration wells. Two exploration wells will be drilled offshore east Malaysia in the Sabah region on SB 307/308 (WI 42.5%, Kitabu and Malagan). One exploration well will be drilled offshore Peninsular Malaysia on PM307 (WI 75%, Rengas). The three exploration wells are targeting net unrisked prospective resources of approximately 100 MMboe.
The budgeted net exploration expenditure for 2014 is approximately USD 45 million. Two exploration wells will be drilled on Barongang (WI 90%, Balqis and Boni) and one well will be drilled on Gurita (WI 90%, Gobi-1, formerly Gloria A). Total net unrisked prospective resources targeted with these three wells is 115 MMboe. The Hakuryu-11 jack-up rig has been contracted to drill all three wells.
One operated well is planned to be drilled in France in 2014 on Est Champagne (WI 100%, Hoplite-1) and five non-operated wells are planned to be drilled in the Netherlands during 2014 with a total budgeted expenditure of USD 10 million net to Lundin Petroleum.
The appraisal budget for 2014 is approximately USD 300 million with over 90 percent of the expenditure being allocated to appraisal wells in Norway. The appraisal programme involves the drilling of 5 appraisal wells in Norway and one appraisal well offshore Peninsular Malaysia.
The budgeted net appraisal expenditure for 2014 is USD 280 million. Four appraisal wells are planned to be drilled on the Utsira High area with two wells planned drilled on the Johan Sverdrup field (PL501, WI 40% and PL265, WI 10%), one well on the Edvard Grieg field (PL338, WI 50%) and one well on the Luno II discovery (PL359, WI 40%). The recently announced Gohta discovery (PL492, WI 40%) in the Barents Sea will also be appraised with one well during 2014. Rigs have been secured for all five appraisal wells.
The budgeted net appraisal expenditure for 2014 is approximately USD 20 million relating to one appraisal well to be drilled on the 2012 Tembakau gas discovery on PM 307 (WI 75%).
Ashley Heppenstall, President & CEO of Lundin Petroleum comments; "Lundin Petroleum remains a very active exploration company and I am pleased to announce our 19-well exploration campaign during 2014 which exposes the Company to over 600 MMboe of unrisked prospective resources. Our 2014 appraisal campaign can also make a material impact on our reserves base with a successful outcome from the 6 appraisal wells having the potential to double the Company's current 2P reserve base. We remain on track to more than double our 2013 production in less than two years from now with new production from Brynhild, Boyla, Bertam and Edvard Grieg. The 2014 budget will be funded from operating cashflow and bank borrowing facilities"
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets primarily located in Europe and South East Asia. The Company is listed at the NASDAQ OMX, Stockholm (ticker "LUPE") and at the Toronto Stock Exchange (TSX) (Ticker "LUP"). Lundin Petroleum has proven and probable reserves of 202 million barrels of oil equivalent (MMboe).
This information has been made public in accordance with the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980).
Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, including the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading "Risks and Risk Management" and elsewhere in the Company's annual report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.
Reserves and Resources
Unless otherwise stated, Lundin Petroleum's reserve and resource estimates are as at 31 December 2012, and have been prepared and audited in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook")."). Unless otherwise stated, all reserves estimates contained herein are the aggregate of "Proved Reserves" and "Probable Reserves", together also known as "2P Reserves". For further information on reserve and resource classifications, see "Reserves, Resources and Production" in the Company's annual report.
Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. There is no certainty that it will be commercially viable for the Company to produce any portion of the Contingent Resources.
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources. Unless otherwise stated, all Prospective Resource estimates contained herein are reflecting a P50 Prospective Resource estimate. Risked Prospective Resources reported herein are partially risked. They have been risked for chance of discovery, but have not been risked for chance of development.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Head of Corporate Communications
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
May. 3, 2016 08:00 PM EDT Reads: 1,290
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
May. 3, 2016 08:00 PM EDT Reads: 1,007
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
May. 3, 2016 07:30 PM EDT Reads: 1,907
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
May. 3, 2016 07:15 PM EDT Reads: 1,076
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
May. 3, 2016 06:45 PM EDT Reads: 1,187
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
May. 3, 2016 06:30 PM EDT Reads: 1,642
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
May. 3, 2016 06:30 PM EDT Reads: 1,253
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
May. 3, 2016 06:30 PM EDT Reads: 909
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
May. 3, 2016 06:30 PM EDT Reads: 1,124
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 3, 2016 06:30 PM EDT Reads: 699
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
May. 3, 2016 05:45 PM EDT Reads: 1,241
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
May. 3, 2016 05:45 PM EDT Reads: 253
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
May. 3, 2016 05:15 PM EDT Reads: 1,094
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
May. 3, 2016 05:15 PM EDT Reads: 1,210
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
May. 3, 2016 05:00 PM EDT Reads: 198