YEAR END REPORT 2012
2/6/2013 1:00 AM EST
Lundin Petroleum AB
Financial Statement Release
YEAR END REPORT 2012
Stockholm, 2013-02-06 07:00 CET (GLOBE NEWSWIRE) --
HIGHLIGHTS
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.
1 Estimated 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 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 see attached document.
Visit our website: www.lundin-petroleum.com
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.