Stockholm, 2012-10-31 09:06 CET (GLOBE NEWSWIRE) --
Swedish language text replaced by English language text.
REPORT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2012
HIGHLIGHTS
Nine months ended 30 September 2012 (30 September 2011)
- Production of 35.6 Mboepd (32.8 Mboepd)
- Net result of MUSD 156.6 (MUSD 169.3)
- EBITDA of MUSD 854.3 (MUSD 767.3)
- Operating cash flow of MUSD 594.0 (MUSD 586.8)
- New USD 2.5 billion seven year secured revolving borrowing base facility signed on 25 June 2012
- Edvard Grieg field PDO approved
- Pre-Unit agreement signed for the Johan Sverdrup field
- Extensive appraisal drilling on the Johan Sverdrup field
Third quarter ended 30 September 2012 (30 September 2011)
- Production of 36.6 Mboepd (33.9 Mboepd)
- Net result of MUSD 44.9 (MUSD 38.9)
- EBITDA of MUSD 273.6 (MUSD 262.0)
- Operating cashflow of MUSD 218.4 (MUSD 196.5)
- Geitungen oil discovery of between an estimated 140 and 270 MMboe gross recoverable resources located north of the Johan Sverdrup field within PL265
- Berangan-1 gas discovery on Block SB303, offshore Sabah, Malaysia
- Bøyla field PDO approved in October 2012
Comments from C. Ashley Heppenstall, President and CEO
I am pleased that our Company has once again delivered excellent financial results and outperformed market expectations. This performance has been driven by a combination of record quarterly production and low operating costs.
Our financial performance will further improve in forthcoming years driven by our exciting pipeline of development projects which will deliver increased production. The Edvard Grieg, Brynhild and Bøyla Norwegian developments, all of which are now in the execution or construction phase, are expected to result in our production doubling to over 70,000 barrels of oil equivalent per day (boepd) following first oil from Edvard Grieg in late 2015.
Production for the first nine months of 2012 was 35,600 boepd and again exceeded our forecasts. As a result of the strong production we have revised our 2012 production forecast from the previous range of 33,000 boepd to 37,000 boepd to a range between 34,000 boepd to 37,000 boepd. We will provide our 2013 production guidance in January 2013.
I am extremely pleased that, despite the manpower and cost pressures being experienced within our industry, our three ongoing development projects in Norway are all progressing well. The Brynhild and Edvard Grieg operated projects are well into the execution phase.
Both ourselves and Statoil continue to be busy with the appraisal of the Johan Sverdrup discovery. The results of the 2012 appraisal drilling programme will be used to update recoverable resources for Johan Sverdrup which we expect will be announced in the first quarter of 2013.
Listen to President and CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the live webcast presentation on Wednesday 31 October at 8.30 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:
UK: + 44 (0) 203 043 24 36, International Toll Free Number: +1 866 458 40 87
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 2011, 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 and Resources" 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.
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.
BOEs
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.
