Operational update

Stockholm, 2015-03-06 08:38 CET (GLOBE NEWSWIRE) --  

Lundin Petroleum AB (Lundin Petroleum) provides an update on the Brynhild production ramp-up phase and on Johan Sverdrup capital costs for 2015.

Brynhild
The Brynhild oil field commenced production on the 25th December 2014 with an initial production rate confirming that the field was capable of producing at the previously announced plateau rate of 12,000 barrels of oil per day (bopd). However due to certain operational issues in relation to the Haewene Brim FPSO, the field has been shut-in since the middle of January 2015. The operational issues which have caused the shut-in relate mainly to a leak identified in the gas injection flexible line and to a damaged connection point between one of the mooring chains and the riser buoy. The gas injection line has been successfully repaired and the damage to the mooring line connection point has been inspected and the process of rectifying the connection point has commenced. Production has now re-commenced with the ramp-up to plateau production expected to continue over the next few weeks.

The drilling of the third well of a four well campaign has now been completed. The Maersk Guardian jack up rig has now skidded to the fourth slot and the final well will be drilled before the rig begins simultaneous completion operations.

Lundin Petroleum holds a 90 percent working interest in Brynhild.

Lundin Petroleum's average net production during January and February 2015 was approximately 23,500 barrels of oil equivalent per day (boepd). Lundin Petroleum maintains its previously announced production guidance for 2015 of between 41,000 and 51,000 boepd with a 2015 exit production rate in excess of 75,000 boepd.

Johan Sverdrup
Following the Phase one PDO submission on the 13th February 2015 and the provisional allocation to Lundin Petroleum of 22.12 percent working interest in Johan Sverdrup the net development expenditure for Johan Sverdrup in 2015 is budgeted at USD 300 million.

Lundin Petroleum's total development budget for 2015 is thus revised from the previously announced USD 980 million to USD 1.28 billion.  

 

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 on NASDAQ Stockholm (ticker "LUPE"). Lundin Petroleum has proven and probable reserves of 187.5 million barrels of oil equivalent (MMboe).

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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.