Report for the three months ended 31 March 2015

Stockholm, 2015-05-06 07:30 CEST (GLOBE NEWSWIRE) --  

Three months ended 31 March 2015 (31 March 2014)

·  Production of 25.8 Mboepd (26.6 Mboepd)¹
·  Revenue of MUSD 121.3 (MUSD 235.4)
·  EBITDA of MUSD 86.0 (MUSD 177.8)
·  Operating cash flow of MUSD 155.7 (MUSD 256.0)
·  Net result of MUSD -230.9 (MUSD 3.2) including pre-tax exploration expenses of MUSD 45.4 and a net foreign exchange loss of MUSD 204.0
·  Net debt of MUSD 3,063 (31 December 2014: MUSD 2,609)
·  The Bøyla field, Norway and the Bertam field, Malaysia commenced production in January 2015 and April 2015 respectively
·  The Plan for Development and Operations (PDO) for Johan Sverdrup Phase 1 was submitted to the Norwegian Ministry of Petroleum and Energy
·  Eight exploration licences awarded in the Norwegian 2014 APA licensing round, six as operator

¹ Excluding production from Russian onshore assets following the sale of the assets in July 2014.


Comments from C. Ashley Heppenstall, President and CEO

I am very pleased to report that we are on track to deliver our 2015 objectives which I outlined in my year end 2014 Letter to Shareholders.

We brought onstream the Bertam field, offshore Malaysia, in early April 2015. Bertam is our first development project in South East Asia and we are very pleased that we have completed this fast-track project safely, on schedule and within budget. Edvard Grieg is our final project for delivery this year and it remains on schedule for first oil in the fourth quarter of 2015.

The Johan Sverdrup Phase 1 plan of development was completed and submitted to the Norwegian Ministry of Petroleum and Energy for approval on schedule in February 2015. Johan Sverdrup is one of the five largest fields ever developed on the Norwegian Continental Shelf and is estimated to produce between 550,000 and 650,000 boepd and will ultimately recover reserves between 1.7 and 3.0 billion boe. At plateau, the field will contribute over 40 percent of total Norwegian oil production.

Our access to liquidity remains very strong. Our existing production, low operating costs and minimal cash taxes ensure that we continue to generate positive operating cash flow even down to low oil prices.

We will deliver significant production growth with Edvard Grieg coming onstream later this year. The Johan Sverdrup project is moving forward and will be approved this year and will deliver further production growth in years to come. I am confident that our exploration activities will yield further positive discoveries and I remain particularly excited about the southern Barents Sea prospectivity.

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.