|By Marketwired .||
|August 6, 2014 03:07 AM EDT||
STOCKHOLM, SWEDEN -- (Marketwired) -- 08/06/14 -- Lundin Petroleum AB (TSX: LUP)(OMX: LUPE) -
Six months ended 30 June 2014 (30 June 2013)
-- Production of 28.1 Mboepd (35.2 Mboepd) -- Revenue of MUSD 460.8 (MUSD 594.1) -- EBITDA of MUSD 349.3 (MUSD 517.6) -- Operating cash flow of MUSD 497.0 (MUSD 498.6) -- Net result of MUSD 0.8 (MUSD 48.2) -- Net debt of MUSD 1,777 (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
Second quarter ended 30 June 2014 (30 June 2013)
-- Production of 27.5 Mboepd (34.8 Mboepd) -- Revenue of MUSD 225.4 (MUSD 283.8) -- EBITDA of MUSD 171.5 (MUSD 243.1) -- Operating cash flow of MUSD 241.0 (MUSD 240.8) -- Net result of MUSD -2.4 (MUSD 1.2)
Comments from C. Ashley Heppenstall, President and CEO
Our business model is that if we are able to grow Lundin Petroleum's oil and gas resources and production then this will result in the increase of value to our shareholders. We have been successful in recent years in increasing our resources particularly in Norway where we have arguably been the leading exploration company with a number of discoveries including Edvard Grieg and Johan Sverdrup. We are now very well advanced in bringing these discoveries to production and as a result you will see over the forthcoming months a significant growth in production, cash flow and profitability.
Our forecast production will increase significantly in 2015 with production start-up from the Boyla, Bertam and Edvard Grieg oil field developments. We retain our 2015 average production forecast of approximately 50,000 boepd and expect to exit 2015 in excess of 75,000 boepd when all these projects are onstream.
I continue to be encouraged by the progress on the Edvard Grieg development following the successful installation of the jacket in the North Sea earlier this year. The topsides construction is progressing according to plan and we expect to achieve mechanical completion by the end of this year.
We remain firmly committed to our organic growth model which is based upon our continued exploration drilling activity with a particular focus in Norway and Malaysia. Activity in the second half of 2014 will increase with 13 exploration wells forecast to be drilled before the end of the year.
It is very clear from recent M&A activity in Norway and South East Asia that companies are paying premium values for good quality resources and with our historical track record of low finding costs we believe the best way to create this value is with the drill bit.
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).
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 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 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.
To view the Report for the Six Months Ended 30 June 2014, please visit the following link:
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
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