Stockholm, 2012-08-01 07:30 CEST (GLOBE NEWSWIRE) --
HIGHLIGHTS
Six months ended 30 June 2012 (30 June 2011)
· Production of 35.1 Mboepd (32.3 Mboepd)
· Net result of MUSD 111.7 (MUSD 130.3)
· EBITDA of MUSD 580.6 (MUSD 505.3)
· Operating cash flow of MUSD 375.6 (MUSD 390.3)
· New USD 2.5 billion seven year secured revolving borrowing base facility signed on 25 June 2012
· Edvard Grieg field PDO approved
· Pre-unit agreement signed for the Johan Sverdrup field
· Production commenced from the Gaupe field on 31 March 2012
· Bøyla field PDO submitted to the Norwegian Ministry of Petroleum and Energy
· Ten Norwegian licences awarded in the 2011 Norwegian APA licensing round, four as operator
Second quarter ended 30 June 2012 (30 June 2011)
· Production of 35.5 Mboepd (31.1 Mboepd)
· Net result of MUSD 64.5 (MUSD 76.9)
· EBITDA of MUSD 271.5 (MUSD 266.9)
· Operating cashflow of MUSD 209.0 (MUSD 196.7)
Comments from C. Ashley Heppenstall, President and CEO
I am pleased to report that we have now received Norwegian parliament approval for the development of the Edvard Grieg field. The major contracts for this USD 4 billion development project have already been awarded to Kværner, Rowan Companies and Saipem.
In June we completed a new USD 2.5 billion bank loan facility with a syndicate of 25 international banks. This funding was successfully completed in a difficult bank market environment and clearly highlights Lundin Petroleum's ability to access capital from the international banking markets.
Production for the first six months of 2012 of 35,100 boepd was above our capital markets day forecast. Production was positively impacted by strong performance from the Alvheim and Volund fields, offshore Norway. The uptime on the Alvheim FPSO was above forecast and the Volund reservoir continues to perform above expectation.
Our three ongoing development projects in Norway, Edvard Grieg, Brynhild and Bøyla are all progressing satisfactorily.
The appraisal of the Johan Sverdrup field continues with an aggressive ongoing drilling programme. Lundin Petroleum as operator of PL501 has already completed two appraisal wells this year, a third appraisal well is ongoing and two further appraisal wells will be completed this year. In addition, Statoil, as operator of PL265 will drill three further wells this year, one of which will be an exploration well in the southern part of Aldous Major North.
Listen to President and CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the live audiocast presentation on Wednesday 1 August at 15.00 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 numbers:
UK: + 44 (0) 203 043 24 36
International Toll Free Number: +1 866 458 40 87
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:
C. Ashley Heppenstall,
President and CEO
Tel: +41 22 595 10 00
or
Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
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"). 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 and Resources" in the Company's annual report.
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.
