LUNDIN PETROLEUM UPDATES ITS 2P RESERVES AND PROVIDES PRODUCTION GUIDANCE FOR 2013
4 Feb, 2013 08:05 CET
Lundin Petroleum AB
Company Announcement
LUNDIN PETROLEUM UPDATES ITS 2P RESERVES AND PROVIDES PRODUCTION GUIDANCE FOR
2013
Stockholm, 2013-02-04 08:05 CET (GLOBE NEWSWIRE) --
Lundin Petroleum AB ("Lundin Petroleum") is pleased to announce that as at 31
December 2012 its net proven and probable working interest reserves ("2P
reserves") are 201.5 million barrels of oil equivalent (MMboe) and that the
production forecast for 2013 is between 33,000 and 38,000 barrels of oil
equivalent per day (boepd).
MMboe1
Proven and Probable Reserves at 31.12.2011 210.7
2012 Production (forecast) -13.0
Reserve Additions (excl Sales/Acquisitions) -0.2
-Sales/+Acquisition 4.1
Proven and Probable Reserves at 31.12.2012 201.5
Reserves increase 2%
Reserve replacement ratio2 -2%
Lundin Petroleum is predominantly an oil company with 91 percent of its 2P
reserves being oil3 and 89 percent of the 2P reserves being located in OECD
regions.
The 2P reserves have been positively impacted by the Bertam field, offshore
peninsular Malaysia, which has been added to 2P reserves. Further increases
result from Lundin Petroleum's main producing assets, the Alvheim and Volund
fields offshore Norway which yet again delivered better than expected reservoir
performance, as well as the Brynhild field offshore Norway which gained
reserves through the addition of one extra production well and an equity
increase in the field from 70 percent to 90 percent. These additions were
offset by reserves reductions predominantly on the Gaupe gas/condensate field
offshore Norway and producing assets in the Komi Republic in northern Russia.
Lundin Petroleum's forecast production for 2013 is between 33,000 to 38,000
boepd. The production from Norway represents approximately 74 percent of
forecast 2013 production and oil represents approximately 81 percent.
The reserves are based upon a third party independent audit conducted by ERC
Equipoise Limited ("ERCE"). The Proven and Probable Reserves have been
calculated using 2007 Petroleum Resources Management System (SPE PRMS)
Guidelines of the Society of Petroleum Engineers (SPE), World Petroleum
Congress (WPC), American Association of Petroleum Geologists (AAPG) and Society
of Petroleum Evaluation Engineers (SPEE) and have been reviewed for compliance
with the Canadian Oil and Gas Evaluation Handbook (COGEH) and the Canadian
National Instrumental 51-101 Standards of Disclosure for Oil and Gas
Activities. The reserves were calculated using an oil price of USD 100 per
barrel in 2013, with prices and costs escalating at 2 percent per annum.
Ashley Heppenstall, President and CEO of Lundin Petroleum, comments as follow;
"I am pleased that our Malaysian business is now contributing to our 2P
reserves through the inclusion of the Bertam field. I am confident that our
reserves will continue to increase particularly when the Johan Sverdrup
resource is booked as reserves and hope that our continued exploration program
will result in further resource additions. We have been very pleased with the
continued outperformance from the Alvheim and Volund fields and we expect these
two fields again to be the main production contributors during 2013. We
forecast to exit 2013 with a production rate in excess of 40,000 boepd with the
Brynhild field coming onstream late in 2013."
1 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.
2 As per industry standards the reserve replacement ratio is defined as the
ratio of reserve additions to production during the year, excluding
acquisitions/sales. The reserves increase is calculated as the ratio of the
31.12.2012 reserves additions over the 31.12.2011 reserves adjusted for sales
and production.
3 Includes NGL volumes
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 202
million barrels of oil equivalent (MMboe).
For further information, please contact:
Maria Hamilton Teitur Poulsen
Head of Corporate Communications VP Corporate Planning & Investor Relations
E-mail: Tel: + 41 22 595 10 00
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
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.