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Lundin Petroleum AB: Report for the Three Months Ended 31 March 2014

STOCKHOLM, SWEDEN -- (Marketwired) -- 05/07/14 -- Lundin Petroleum AB (TSX: LUP)(OMX: LUPE) -

Three months ended 31 March 2014 (31 March 2013)

--  Production of 28.8 Mboepd (35.6 Mboepd)
--  Revenue of MUSD 235.4 (MUSD 310.3)
--  EBITDA of MUSD 177.8 (MUSD 274.5)
--  Operating cash flow of MUSD 256.0 (MUSD 257.8)
--  Net result of MUSD 3.2 (MUSD 47.0)
--  Net debt of MUSD 1,475 (31 December 2013: MUSD 1,192)
--  Increased credit facility from USD 2.5 billion to USD 4.0 billion
--  Johan Sverdrup Phase 1 conceptual development plan was approved by the
    licence partners
--  Nine exploration licences awarded in the Norwegian 2013 APA licensing
    round, four as operator

Comments from C. Ashley Heppenstall, President and CEO

I strongly believe that the foundations which we have built over recent years in our core areas of operation of Norway, South East Asia and Continental Europe will allow us to successfully build our business. These foundations are predominantly driven from a team of experienced and motivated people, excellent relationships with local governments and other stakeholders and a corporate philosophy to invest and take calculated risk.

We forecast average production of approximately 50,000 boepd in 2015 with new production from our Boyla, Bertam and Edvard Grieg developments. Our production will exceed 75,000 boepd at the end of 2015 when all these projects are onstream.

Brynhild, offshore Norway is now close to first oil which is expected in June 2014. The new risers have been successfully installed and the upgrade and maintenance work on the Haewene Brim FPSO is substantially complete. The development drilling is ongoing with the first production well ready to be brought into production.

I was very pleased last month to visit the Kvaerner Verdal shipyard on the west coast of Norway to celebrate the completion of the Edvard Grieg jacket. Congratulations to the Kvaerner Verdal team on a job well done - safely, within budget and on schedule. The jacket has now been installed in the North Sea.

I believe that Lundin Petroleum is today well positioned to embark on our next phase of growth. We have been very successful over the last decade in building our resource and people skill base. This will mean that going forward we will be able to increase our reserves and production for the benefit of all our stakeholders. Certainly from my viewpoint and despite all the difficulties the world faces today the future looks bright for Lundin Petroleum.

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 194 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).

Forward-Looking Statements

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 2013, 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

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. . Unless otherwise stated, all contingent resource estimates contained herein are the best estimate ("2C") contingent resources.

Prospective 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.

The Report for the Three Months Ended 31 March 2014 is available at the following address: http://media3.marketwire.com/docs/Lundin_Petroleum-Q1_report-20140507en.pdf

Lundin Petroleum AB
Maria Hamilton
Head of Corporate Communications
+41 22 595 10 00 or +46 8 440 54 50
Mobile: +41 79 63 53 641
[email protected]

Lundin Petroleum AB
Teitur Poulsen
VP Corporate Planning & Investor Relations
+41 22 595 10 00
[email protected]

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