STOCKHOLM, SWEDEN — (Marketwire) — 05/09/12 — Lundin Petroleum AB (Lundin Petroleum) (TSX: LUP)(OMX: LUPE) –
HIGHLIGHTS
Three months ended 31 March 2012
Comments from C. Ashley Heppenstall, President and CEO
The major news during the first quarter of 2012 has been progress with the Luno field, now named Edvard Grieg after the famous Norwegian composer. The Edvard Grieg project, estimated to cost approximately USD 4 billion is now moving forward following approval by the Ministry of Petroleum and Energy and major contract awards have already been announced. This field is the first standalone development project operated by Lundin Petroleum on the Norwegian Continental Shelf and is a major milestone for our Company.
During the first quarter, Lundin Petroleum as operator of PL501 signed a Pre-Unit Agreement with Statoil as operator of PL265 in respect of the development of the Johan Sverdrup field.
Our financial performance in the first quarter of 2012 was again very strong following the excellent results in 2011. Production which was up four percent compared to 2011 was again the major catalyst for the strong performance resulting in record quarterly EBITDA of USD 309.2 million, operating cash flow of USD 166.6 million and net profit of USD 47.2 million for the period.
We expect that our strong operating cash flow will continue as production increases over the forthcoming years and will be our primary source of funding to develop our pipeline of new projects. Our balance sheet remains strong with net debt of less than USD 100 million. I am very pleased to report that we have seen strong support from the banking market in respect of our proposed new borrowing facility and I expect the new facility which is likely to be in excess of USD 2 billion to be completed during the second quarter of 2012.
First quarter production of 34,700 boepd was at the upper end of our forecast and driven by the continued strong performance from the Alvheim and Volund fields, offshore Norway. The Gaupe field, offshore Norway commenced production at the end of the first quarter and will have a positive impact on production going forward.
Listen to President & CEO Ashley Heppenstall and CFO Geoffrey Turbott comment on the report at the webcast presentation 9 May 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 number: + 44 (0) 203 043 24 36.
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Contacts:
Lundin Petroleum AB
C. Ashley Heppenstall
President and CEO
+41 22 595 10 00
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