Lundin Petroleum AB
TSX : LUP
OMX : LUPE

Lundin Petroleum AB

August 01, 2012 02:22 ET

Lundin Petroleum AB: Report for the Six Months Ended 30 June 2012

STOCKHOLM, SWEDEN--(Marketwire - Aug. 1, 2012) - Lundin Petroleum AB (TSX:LUP)(OMX:LUPE) -

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

To view the whole report, please visit the following link: http://file.marketwire.com/release/809315.pdf

Visit our website: www.lundin-petroleum.com

Contact Information

  • Lundin Petroleum AB
    C. Ashley Heppenstall
    President and CEO
    +41 22 595 10 00

    Lundin Petroleum AB
    Maria Hamilton
    Head of Corporate Communications
    +46 8 440 54 50 / +41 79 63 53 641
    www.lundin-petroleum.com