Lundin Petroleum AB

Lundin Petroleum AB

February 06, 2013 02:05 ET

Lundin Petroleum AB: Year End Report 2012

STOCKHOLM, SWEDEN--(Marketwire - Feb. 6, 2013) - Lundin Petroleum AB (TSX:LUP)(OMX:LUPE) -

Twelve months ended 31 December 2012 (31 December 2011)

  • Production of 35.7 Mboepd (33.3 Mboepd)
  • Operating income of MUSD 1,345.1 (MUSD 1,269.5)
  • EBITDA of MUSD 1,144.1 (MUSD 1,012.1)
  • Operating cash flow of MUSD 831.4 (MUSD 676.2)
  • Net result of MUSD 103.9 (MUSD 155.2)
  • New USD 2.5 billion seven year secured revolving borrowing base facility signed on 25 June 2012
  • PDOs approved for the Edvard Grieg and Bøyla fields, Norway
  • Pre-Unit agreement signed for the Johan Sverdrup field
  • Extensive appraisal drilling on the Johan Sverdrup field
  • Geitungen oil discovery of between an estimated 140 and 270 MMboe gross recoverable resources1 located north of the Johan Sverdrup field within PL265

Fourth quarter ended 31 December 2012 (31 December 2011)

  • Production of 35.9 Mboepd (34.7 Mboepd)
  • EBITDA of MUSD 289.8 (MUSD 244.8)
  • Operating cash flow of MUSD 237.4 (MUSD 89.4)
  • Net result of MUSD -52.7 (MUSD -14.0)
  • Tembakau-1 gas discovery of 306 bcf on Block PM307, offshore Peninsular Malaysia
  • New Block PM319 awarded offshore Peninsular Malaysia
  • Acquisition of an additional 20 percent interest in the Brynhild field, offshore Norway

Comments from C. Ashley Heppenstall, President and CEO

2012 was yet another successful year for our Company. We have exceeded our production forecasts once again and this, coupled with our low operating costs and cash taxes, has resulted in a record operating cash flow of more than MUSD 830 for the year.

Lundin Petroleum's success has been due to our ability to increase our resource base. Our 2P recoverable reserves at the end of 2012 were 201.5 million barrels of oil equivalent. Whilst last year's reserve replacement ratio was lower than in previous years, I think everyone would agree that this will change when the contingent resources from the Johan Sverdrup field in Norway are booked as reserves. There is little doubt that the Johan Sverdrup field is commercial but reserves will not be booked until the signing of a unitisation agreement and the submission of the field development plan both scheduled for the end of 2014.

In 2013 we expect our net production to average between 33,000 boepd and 38,000 boepd for the year and to exit the year at in excess of 40,000 boepd when the Brynhild field reaches plateau production.

We are very excited about our 2013 exploration programme which involves the drilling of 18 exploration wells in Norway, South East Asia, France and the Netherlands. The budget of over USD 460 million will be the largest in the Company's history and will be predominantly focused on Norway which will account for about 75 percent of the expenditure.

1Estimated by PL265 operator, Statoil

Listen to President and CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the live webcast presentation on Wednesday 6 February at 8.00 CET.
The presentation and slides will be available on 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:

Visit our website:

Contact Information

  • Lundin Petroleum AB
    Teitur Poulsen
    VP Corporate Planning & Investor Relations
    + 41 22 595 10 00

    Lundin Petroleum AB
    Maria Hamilton
    Head of Corporate Communications
    +46 8 440 54 50
    +41 79 63 53 641