Stockholm, 2014-01-21 08:06 CET (GLOBE NEWSWIRE) --
During the fourth quarter of 2013 Lundin Petroleum achieved a production rate of 31,100 barrels of oil equivalent per day (boepd) resulting in production for the full year of 32,700 boepd. The average Brent oil price for the fourth quarter of 2013 was USD 109 per barrel.
The profitability of the fourth quarter of 2013 will be negatively impacted by certain expensed exploration costs. These items are non-cash charges which will impact profitability but will have no impact on operating cash flow or EBITDA.
During the fourth quarter of 2013, exploration costs of MUSD 135 will be expensed. In Norway, the costs of drilling the Sverdrup prospect on PL330 and the Luno II south well on PL410, with associated costs for each licence and costs on two other licences which are likely to be relinquished, have been expensed in the quarter resulting in an after tax charge to the income statement of MUSD 30.
Net Debt and Increased Credit Facility
The net debt position of Lundin Petroleum at 31 December 2013 amounted to MUSD 1,182. Lundin Petroleum has increased its existing USD 2.5 billion credit facility to USD 4.0 billion with our existing group of 25 banks. The increased credit facility, which is subject to final documentation, has been secured on similar terms to the existing facility. It will further strengthen Lundin Petroleum's funding position complementing the existing strong operating cash flow expected to be close to USD 1 billion in 2013. The credit facility will provide the necessary financial flexibility to fund the ongoing development, exploration and appraisal programmes including the Johan Sverdrup development.
Ashley Heppenstall, President and CEO of Lundin Petroleum comments: "We are very pleased to announce this increased financing and the continued strong support from our group of 25 international banks. The new facility together with our strong operating cash flow will allow us to fund the development and appraisal costs of our existing discoveries as well as to continue to pursue our aggressive ongoing exploration programme. We will also now have additional funding capacity to carry out additional developments or other potential opportunities should they arise."
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 202 million barrels of oil equivalent (MMboe).
For further information, please contact:
Head of Corporate Communications
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
VP Corporate Planning & Investor Relations
Tel: + 41 22 595 10 00
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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