Lundin Petroleum AB (“Lundin Petroleum”) announces that its wholly owned
subsidiary Lundin Norway AS as operator has, with its partners Wintershall
Norge ASA (Wintershall) and RWE Dea Norge AS (RWE Dea), submitted a plan for
development and operation (PDO) for the Luno field to the Norwegian Ministry of
Petroleum and Energy (the Ministry). Lundin Petroleum is in ongoing
negotiations with Det norske Oljeselskap ASA, operator of license PL001B, in
relation to a coordinated development solution for the Luno and Draupne fields
and we expect an agreement to be concluded shortly.
The Luno field is an oil field located in the Norwegian sector of the North Sea
which incorporates both the Luno and Tellus discoveries. First production from
the Luno field in PL338 is expected in late 2015 with a forecast gross peak
production of approximately 90,000 barrels of oil per day (bopd). The capital
cost of the Luno development including platform, pipelines and production wells
is estimated at USD 4 billion. The Luno platform design capacity will
accommodate in excess of 120,000 bopd when Draupne production is combined with
that from the Luno field.
The Luno PDO includes 15 wells drilled from a jack-up rig, a processing
platform on a jacket structure and export pipelines tied back to existing
infrastructure. Luno contains 186 million barrels of oil equivalents (MMboe) of
gross proved and probable reserves. The oil will be processed and transported
in a new pipeline to the Grane area and further via the Grane oil pipeline to
the Sture terminal for sale. The facilities on the Luno platform will be
prepared for power from shore when capacity and technical solutions are
available in order to contribute to the development of a long term
electrification of the area.
The Draupne discovery is located 10 km to the northwest of Luno in PL001B. The
proposed development solution for the Draupne field is a platform which will
transport partly processed oil and gas to the Luno platform for stabilization
and export of oil and gas.
At the same time as submitting the PDO to the Ministry, Lundin Petroleum has
started placing contracts for the Luno development. A letter of intent has been
awarded to Kvaerner after an international tendering process, covering
engineering, procurement and construction of the jacket for the Luno platform.
A contract has been awarded to Rowan Companies Inc. for a jack-up rig to drill
the Luno development wells. Contracts for the topside and marine installations
will be awarded in due course.
Ashley Heppenstall, president and CEO of Lundin Petroleum comments as follows;
”The submittal of the Luno plan of development is a major milestone for Lundin
Petroleum. Production from the Luno field will be the major contributor in
doubling our production to 70,000 boepd by late 2015. Our production will
increase further with the subsequent development of the Johan Sverdrup
discovery located in the southern Utsira High.”
Lundin Petroleum is the operator and has a 50 percent working interest in the
Luno field. Wintershall and RWE Dea hold a 30 percent and a 20 percent
interest, respectively.
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 211
million barrels of oil equivalent (MMboe).
For further information, please contact:
C. Ashley Heppenstall,
President and CEO
Tel: +41 22 595 10 00
or
Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
The above information has been made public in accordance with the Securities
Market Act and/or the Financial Instruments Trading Act.
FORWARD-LOOKING STATEMENTS
Certain statements made and information contained herein constitute
"forward-looking information" (within the meaning of applicable Canadian
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
unduly relied upon. These statements speak only as on the date of this news
release 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 and access,
reliance on key personnel, reserve estimates, health, safety and environmental
issues, legal risks and regulatory changes, competition, geopolitical risk,
financial risks. These risks and uncertainties are described in more detail
under the heading “Risk Factors” and elsewhere in the Company’s 2010 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 included in this new release are expressly qualified by this
cautionary statement.
RESOURCES
The recovery and production estimates of the Company’s resources provided
herein are only estimates and there is no guarantee that the estimated
resources will be recovered or produced. Actual resources may be greater than
or less than the estimates provided here. There is no certainty that it will be
commercially viable for the Company to produce any portion of these resources.
