|By Marketwired .||
|August 7, 2013 02:43 AM EDT||
STOCKHOLM, SWEDEN -- (Marketwired) -- 08/07/13 -- Lundin Petroleum AB (Lundin Petroleum) (TSX:LUP)(OMX:LUPE) -
Six months ended 30 June 2013 (30 June 2012)
-- Production of 35.2 Mboepd (35.1 Mboepd) -- Revenue of MUSD 627.8 (MUSD 685.6) -- EBITDA of MUSD 520.2 (MUSD 580.6) -- Operating cash flow of MUSD 502.9 (MUSD 375.6) -- Net result of MUSD 48.2 (MUSD 111.7) -- Net debt of MUSD 599 (31 Dec 2012 MUSD 335) -- Oil discovery in Luno II, offshore Norway -- Extensive appraisal drilling on the Johan Sverdrup field -- Seven licences awarded in the Norwegian 2012 APA licensing round and a further exploration licence located in the Barents Sea awarded in the 22nd Norwegian licensing round.
Second quarter ended 30 June 2013 (30 June 2012)
-- Production of 34.8 Mboepd (35.5 Mboepd) -- Revenue of MUSD 300.2 (MUSD 321.0) -- EBITDA of MUSD 244.0 (MUSD 271.4) -- Operating cash flow of MUSD 242.9 (MUSD 209.0) -- Net result of MUSD 1.2 (MUSD 64.5) -- Non-cash Norwegian impairment and expensed exploration costs amounted to MUSD 44.3 after tax. -- New Production Sharing Contract awarded offshore eastern Indonesia - Cendrawasih VII Block.
Comments from C. Ashley Heppenstall, President and CEO
The cash flow generation from our business remains strong. During the first six months of this year we achieved operating cash flow of USD 502.9 million primarily as a result of the continued excellent production performance from our offshore Norwegian assets Alvheim and Volund. We still remain firmly on target to generate over USD 1 billion in operating cash flow this year.
We retain our production guidance of 33,000 to 38,000 boepd for 2013 with the main variables being the start-up date of the Brynhild field and uptime levels on the Alvheim FPSO.
Our development projects on the Brynhild, Boyla and Edvard Grieg fields are all progressing satisfactorily in respect of budget and schedule. Collectively these three projects, where first oil is expected in late 2013, 2014 and 2015, will double our production by the end 2015 to over 70,000 boepd.
I am very pleased that we recently completed a plan of development for the Bertam field, offshore Malaysia. I expect the plan of development to be approved by Petronas in the next few months.
Our Company remains in strong health and I am very confident that our exploration and development project pipeline will continue the increase to shareholder value that we strive to achieve.
Listen to President and CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the live audiocast presentation on Wednesday 7 August at 14.00 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:
Sweden: + 46 8 505 564 74, International: +44 203 364 5374, International Toll Free Number: +1 855 753 2230
To view the whole report please visit the following link: http://media3.marketwire.com/docs/lup807.pdf
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).
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 2012, 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, Resources and Production" in the Company's annual report.
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 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 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.