Lundin Petroleum AB
TSX : LUP
OMX : LUPE

Lundin Petroleum AB

February 08, 2012 01:49 ET

Lundin Petroleum AB-Year End Report 2011

STOCKHOLM, SWEDEN--(Marketwire - Feb. 8, 2012) - Lundin Petroleum AB (Lundin Petroleum) (TSX:LUP)(OMX:LUPE) -

Twelve months ended 31 December 2011

  • Production of 33,300 boepd up 9 percent from 2010
  • Net result of MUSD 155.2 up 20 percent from 2010
  • EBITDA of MUSD 1,012.1 up 68 percent from 2010
  • Operating cash flow of MUSD 676.2 up 18 percent from 2010
  • Net debt of MUSD 133 down from MUSD 410 at 2010 year end
  • Johan Sverdrup discovery (the combined discoveries have been renamed from Avaldsnes/Aldous Major South) contains between 1.7 billion and 3.3 billion of gross recoverable contingent resources. One of the largest ever discoveries on the Norwegian Continental Shelf.
  • 21 percent increase in proven and probable reserves compared to 31 December 2010 and a reserve replacement ratio of 264 percent
  • Two gas discoveries and one oil discovery, offshore Malaysia
  • Brynhild field plan of development offshore Norway approved
  • Ten Norwegian licences awarded in the 2011 Norwegian licensing round, four as operator

Fourth Quarter ended 31 December 2011

  • Production of 34,700 boepd
  • Net result of MUSD -14.0
  • EBITDA of MUSD 244.8
  • Operating cash flow of MUSD 89.4
  • Janglau oil discovery in block PM308A, offshore Malaysia

Comments from C. Ashley Heppenstall, President and CEO

2011 was transformational for the Company when it became clear that Avaldsnes/Aldous (now renamed Johan Sverdrup) is one of the largest discoveries ever made in the North Sea. Our strategy, which is predicated on organic exploration growth, has delivered excellent success which resulted in a 100 percent increase in the share price of Lundin Petroleum during 2011 equating to increased shareholder value of SEK 27 billion.

Lundin Petroleum produced excellent financial results in 2011 with a net result for the year of MUSD 155.2. The strong production performance has continued and resulted in operating cash flow of MUSD 676.2 and EBITDA of MUSD 1,012.1 for the year.

During 2011, production averaged 33,300 barrels of oil equivalent per day (boepd) which was at the high end of our guidance range. The fourth quarter production of 34,700 boepd was particularly strong as a result of the continued out-performance of the Volund field, offshore Norway. Our forecast for 2012 is for production of between 32,000 and 38,000 boepd which represents an increase of 5 percent from 2011 if we assume the mid point of our guidance range.

We have created significant shareholder value over the last 10 years since Lundin Petroleum was formed. We are today one of the largest independent exploration and production companies in Europe. We are confident that there is more success to come. We have the people, the licences, access to technology and the financial capacity to further increase our resources which will deliver more increases to shareholder value.

Listen to President & CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the webcast presentation 8 February 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 the document at: http://file.marketwire.com/release/lup207_YearEnd.pdf.

Visit our website: www.lundin-petroleum.com.

Contact Information

  • Lundin Petroleum AB
    C. Ashley Heppenstall
    President and CEO
    +41 22 595 10 00
    www.lundin-petroleum.com

    Lundin Petroleum AB
    Maria Hamilton
    Head of Corporate Communications
    +41 22 595 10 00 or +46 8 440 54 50
    Mobile: +41 79 63 53 641
    maria.hamilton@lundin.ch