|By Marketwired .||
|February 5, 2014 01:41 AM EST||
STOCKHOLM, SWEDEN -- (Marketwired) -- 02/05/14 -- Lundin Petroleum AB (TSX: LUP)(OMX: LUPE) -
Fourth quarter ended 31 December 2013 (31 December 2012)
-- Production of 31.1 Mboepd (35.9 Mboepd) -- Revenue of MUSD 288.2 (MUSD 346.9) -- EBITDA of MUSD 218.6 (MUSD 289.8) -- Operating cash flow of MUSD 204.8 (MUSD 237.4) -- Net result of MUSD 23.0 (MUSD -52.7)
Twelve months ended 31 December 2013 (31 December 2012)
-- Production of 32.7 Mboepd (35.7 Mboepd) -- Revenue of MUSD 1,195.8 (MUSD 1,375.8) -- EBITDA of MUSD 960.9 (MUSD 1,144.1) -- Operating cash flow of MUSD 975.6 (MUSD 831.4) -- Net result of MUSD 72.9 (MUSD 103.9) -- Net debt of MUSD 1,182 (MUSD 335) -- Oil discovery in PL359 Luno II, offshore Norway -- Gohta oil discovery in the Barents Sea, Norway -- Heads of Agreement signed with Rosneft for the sale of a 51 percent interest in the Lagansky Block, Russia
Comments from C. Ashley Heppenstall, President and CEO
As Lundin Petroleum grows we continue to mature our development and operational capabilities. Our four development projects in Norway are progressing well overall and we remain confident of achieving significant growth in our production, operating cash flow and profitability over the next few years. We forecast our average production will exceed 50,000 barrels of oil equivalent per day (boepd) in 2015 and indeed will increase to over 75,000 boepd by the end of 2015 when Edvard Grieg comes onstream.
The primary source of funding for our development, appraisal and exploration programmes is operating cash flow from our existing production. Our current production activities are Brent oil dominated with low operating costs and cash taxes which therefore generate high operating cash flow.
We have recently taken the opportunity to increase our credit facility to USD 4 billion which has been supported by all our existing lenders. This larger facility will improve our financial flexibility as the Johan Sverdrup development expenditures start to be incurred and allow us to continue our aggressive exploration programmes.
In Norway we believe that there are more hydrocarbons to be found in the Utsira High. We are at the forefront of exploration activity in the region and still have the largest acreage position as this area develops infrastructure with the Edvard Grieg and Johan Sverdrup developments proceeding. We are also very excited with progress in the Barents Sea which we see emerging as an oil producing province in the next few years.
In summary, Lundin Petroleum is in an excellent position. We are fully funded with exposure to major projects such as Johan Sverdrup with Brent oil exposure in low political risk areas and which will produce for many years to come. The long term investments we are making today will in my opinion deliver long term increases in value to our shareholders.
Listen to President and CEO Ashley Heppenstall and CFO Mike Nicholson comment on the report at the live webcast presentation on Wednesday 5 February at 09.00 CET.
The presentation and slides will be available on www.lundin-petroleum.com following the presentation. Please dial in to listen to the presentation on the following telephone numbers:
Sweden: + 46 8 505 564 74, International: +44 203 364 5374, International Toll Free Number: +1 855 753 2230
To view the whole report, please visit the following link: http://media3.marketwire.com/docs/925895.pdf.
Visit our website: www.lundin-petroleum.com
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.
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