Stockholm, 2012-05-09 07:03 CEST (GLOBE NEWSWIRE) --
HIGHLIGHTS
Three months ended 31 March 2012
• Production of 34.7 Mboepd up 4 percent from first quarter 2011
• Net result of MUSD 47.2 down 12 percent from first quarter 2011
• Record EBITDA of MUSD 309.2 up 30 percent from first quarter 2011
• Operating cash flow of MUSD 166.6 down 14 percent from first quarter 2011
• Net debt of MUSD 89 down from MUSD 133 at 2011 year end
• Production commenced from Gaupe field, Norway on 31 March 2012
• Pre-unit agreement signed for the Johan Sverdrup field
• Edvard Grieg field PDO approved by the Norwegian Ministry of Petroleum and Energy
• Increased working interest in the Brynhild field to 100 percent, subject to government approval
• Ten Norwegian licences awarded in the 2011 Norwegian APA licensing round, four as operator
Comments from C. Ashley Heppenstall, President and CEO
The major news during the first quarter of 2012 has been progress with the Luno field, now named Edvard Grieg after the famous Norwegian composer. The Edvard Grieg project, estimated to cost approximately USD 4 billion is now moving forward following approval by the Ministry of Petroleum and Energy and major contract awards have already been announced. This field is the first standalone development project operated by Lundin Petroleum on the Norwegian Continental Shelf and is a major milestone for our Company.
During the first quarter, Lundin Petroleum as operator of PL501 signed a Pre-Unit Agreement with Statoil as operator of PL265 in respect of the development of the Johan Sverdrup field.
Our financial performance in the first quarter of 2012 was again very strong following the excellent results in 2011. Production which was up four percent compared to 2011 was again the major catalyst for the strong performance resulting in record quarterly EBITDA of USD 309.2 million, operating cash flow of USD 166.6 million and net profit of USD 47.2 million for the period.
We expect that our strong operating cash flow will continue as production increases over the forthcoming years and will be our primary source of funding to develop our pipeline of new projects. Our balance sheet remains strong with net debt of less than USD 100 million. I am very pleased to report that we have seen strong support from the banking market in respect of our proposed new borrowing facility and I expect the new facility which is likely to be in excess of USD 2 billion to be completed during the second quarter of 2012.
First quarter production of 34,700 boepd was at the upper end of our forecast and driven by the continued strong performance from the Alvheim and Volund fields, offshore Norway. The Gaupe field, offshore Norway commenced production at the end of the first quarter and will have a positive impact on production going forward.
Listen to President & CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the webcast presentation 9 May at 8.00 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 number: + 44 (0) 203 043 24 36.
To view the whole report see attached document.
Visit our website: www.lundin-petroleum.com
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 211 million barrels of oil equivalent (MMboe).
For further information, please contact:
Maria Hamilton
Head of Corporate Communications
E-mail: maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
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").
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.
