Stockholm, 2016-05-11 07:00 CEST (GLOBE NEWSWIRE) --
Three months ended 31 March 2016 (31 March 2015)
| · | Production of 62.4 Mboepd (25.8 Mboepd) |
| · | Revenue of MUSD 191.3 (MUSD 121.3) |
| · | EBITDA of MUSD 124.9 (MUSD 86.0) |
| · | Operating cash flow of MUSD 162.6 (MUSD 155.7) |
| · | Net result of MUSD 114.3 (MUSD -230.9) including a net foreign exchange gain of MUSD 158.6 |
| · | Net debt of MUSD 4,172 (31 December 2015: MUSD 3,786) |
| · | Record production level achieved following the Edvard Grieg field start-up in late 2015. |
| · | Signing of a new reserve-base lending facility of USD 5 billion with an initial firm commitment of USD 4,303 million subsequently increased by USD 185 million to USD 4,488 million. |
Comments from Alex Schneiter, President and CEO
The world has presented us with a challenging market environment since I assumed the position as CEO of Lundin Petroleum in October 2015. During challenging periods successful companies are those which can embrace the situation and see it as a time of opportunity. This is exactly what Lundin Petroleum managed to achieve when we approached Statoil with a proposal to acquire their 15 percent interest in the Edvard Grieg field in exchange for newly issued shares in the Company. For Lundin Petroleum it increases our exposure to a world class asset, adding significant reserves, production and cash flow in the heart of our core area in Norway. Acquiring additional exposure in Edvard Grieg at the bottom of the industry cycle will, in my view, lead to Lundin Petroleum emerging stronger than ever as an independent company and continue to build upon the transformational growth already well under way.
In terms of operational efficiency we have delivered a strong first quarter performance with high average uptime across all our operations resulting in a record high first quarter average production rate for the Company of 62,400 boepd which is eight percent ahead of our mid-point capital market day guidance. We achieved a record low cost of operations per barrel of USD 7.45 for the first quarter of this year.
On the financial side a major milestone was achieved when announcing in February the signing of a new reserve-base lending facility of USD 5 billion with an initial firm commitment of USD 4,303 million. Subsequently, commitment levels have been increased by USD 185 million to USD 4,488 million from both existing and new banks.
I am pleased to also report that the Johan Sverdrup development is progressing according to plan. We have recently completed a debottleneck study for Phase 1 of the project which concludes a potential of an increased processing capacity from the previously guided range of 315,000 to 380,000 bopd up to a revised 440,000 bopd.
Our organic growth strategy continues with a particular focus on the southern Barents Sea where we will resume drilling activities in the second half of this year, with two exploration wells and one appraisal well on the Alta discovery.
Lundin Petroleum is in strong health with a solid production base that will continue to grow and with an operating cost below USD 10 per barrel, combined with strong access to liquidity to withstand the current low oil price environment.
Web cast presentation
Listen to President and CEO Alex Schneiter and CFO Mike Nicholson comment on the report at a live webcast on Wednesday 11 May 2016 at 09.00 CET.
The presentation slides will be available on www.lundin-petroleum.com prior to the commencement of the web cast. Please dial in to listen to the presentation on the following telephone numbers: Sweden: +46 8 519 993 55, International: +44 203 194 05 50, International Toll Free Number: +1 855 269 26 05.
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 685 million barrels of oil equivalents (MMboe) as at 31 December 2015.
For further information, please contact:
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Maria Hamilton Head of Corporate Communications E-mail: maria.hamilton@lundin.ch Tel: +41 22 595 10 00 Tel: +46 8 440 54 50 |
Teitur Poulsen 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).
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.
