Report for the six months ended 30 June 2017

Stockholm, 2017-08-02 07:30 CEST (GLOBE NEWSWIRE) --  

Lundin Petroleum reports record high production at continued low cash operating cost for the first half of 2017 with solid operating cash flow generation.

Continuing operations: six months ended 30 June 2017 (30 June 2016)
·    Production of 86.1 Mboepd (49.2 Mboepd)
·    Revenue of MUSD 886.1 (MUSD 354.8)
·    EBITDA of MUSD 689.3 (MUSD 260.5)
·    Operating cash flow of MUSD 705.9 (MUSD 314.0)
·    Net result of MUSD 204.8 (MUSD 93.6) including a net foreign exchange gain of MUSD 139.2 (MUSD 110.2)
·    Net debt of MUSD 4,081 (31 December 2016: MUSD 4,075)
·    Net result from discontinued operations of MUSD 47.9 (MUSD -27.6)

Continuing operations: second quarter ended 30 June 2017 (30 June 2016)
·    Production of 89.5 Mboepd (50.6 Mboepd)
·    Revenue of MUSD 464.6 (MUSD 209.7)
·    EBITDA of MUSD 333.5 (MUSD 163.1)
·    Operating cash flow of MUSD 340.0 (MUSD 180.6)
·    Net result of MUSD 145.6 (MUSD -72.1) including a net foreign exchange gain of MUSD 118.8 (MUSD -78.1)

Comments from Alex Schneiter, President and CEO
I am pleased to report that Lundin Petroleum has delivered excellent results for the second quarter 2017 while maintaining a strong HSE performance. The quarter was characterised by strong production at low cash operating cost, solid operating cash flow generation, good progress on development projects and successful appraisal activity and organic growth in the southern Barents Sea. At the end of April, the spin-off of IPC was also successfully completed, resulting in a dividend distribution, through IPC shares, of USD 410 million to Lundin Petroleum's shareholders.

Lundin Petroleum's production for the second quarter 2017 was above the upper end of the quarter production guidance. Edvard Grieg in particular continues to outperform at both the subsurface and facilities levels and I expect a reserves increase by year end. This performance has led us to revise, for the second time this year, Lundin Petroleum's full year guidance to a new increased production level of between 80 and 85 Mboepd and cash operating costs down to USD 4.60 per barrel from the previous guidance of USD 4.90 per barrel.

Our major world class development project Johan Sverdrup is progressing according to plan with Phase 1 now over 50 percent completed and first oil remaining firmly on track for end of 2019. We also continue to be active on the organic growth front, successfully completing the Alta-4 appraisal well. In August we begin a very active exploration drilling campaign in the southern Barents Sea, starting with the significant Korpfjell prospect. Our organic growth story is as exciting as ever with significant growth potential.

Audio cast presentation
Listen to Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, commenting on the report at a live audio cast held on Wednesday 2 August 2017 at 09.00 CEST.

Follow the presentation live on www.lundin-petroleum.com or by dialling in on the following telephone numbers:
Sweden:         +46 8 519 993 55
Norway:         +47 23 500 211
UK/International:     +44 203 194 05 50
International Toll Free:     +1 855 269 26 05

Lundin Petroleum is one of Europe's leading independent oil and gas exploration and production companies with operations focused on Norway and listed on NASDAQ Stockholm (ticker "LUPE"). Read more about Lundin Petroleum's business and operations at www.lundin-petroleum.com.

For further information, please contact:

This is information that Lundin Petroleum AB is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons set out above, at 07.30 CEST on 2 August 2017.

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.