Lundin Briefs 3Q Results

Lundin Petroleum reported a financial report for the nine months ended September 30, 2011.

  • Avaldsnes/Aldous Major South discovery contains between 1.7 billion and 3.3 billion of gross recoverable contingent resources. One of the largest ever discoveries on the Norwegian Continental Shelf
  • Production of 32,800 boepd up 10% from the first nine months 2010
  • Profit after tax of MUSD 169.3 up 295% from the first nine months 2010
  • EBITDA of MUSD 767.3 up 80% from the first nine months 2010
  • Operating cash flow of MUSD 586.8 up 41% from the first nine months 2010
  • Net debt of MUSD 123.9 down from MUSD 410 at 2010 year end
  • Two gas discoveries, offshore, East Malaysia
  • Brynhild field plan of development offshore Norway submitted for approval
  • Ten Norwegian licenses awarded in the 2010 Norwegian licensing round, six as operator
  • Operated license awarded in Barents Sea in the 21st Norwegian licensing round
  • Operated Gurita block awarded in the Natuna Sea, offshore, Indonesia

Third Quarter ended September 30, 2011

  • Production of 33,900 boepd
  • Profit after tax of MUSD 38.9
  • EBITDA of MUSD 262.0
  • Operating cash flow of MUSD 196.5

Comments from C. Ashley Heppenstall, President and CEO

The major news in the third quarter was clearly the announcement of increased resources in the Avaldsnes discovery offshore Norway. It is truly remarkable that a discovery of this size and quality could be made by Lundin Petroleum in the heart of the Norwegian North Sea 45 years after the first exploration activity began in area. There is no question in my mind that this discovery will contribute a significant percentage of total North Sea production in years to come and due to its size, location and quality of reservoir will one of the most valuable discoveries ever made in the North Sea.

Lundin Petroleum produced a net result for the first nine months of MUSD 169.3. The strong production performance continues and has resulted in operating cash flow of MUSD 586.8 and EBITDA of MUSD 767.3 for the period. Our balance sheet remains very much under leveraged with net debt of only MUSD 125.

I am very proud that we have been able to grow the company to a market value of USD 8 billion over the 10 years without asking our shareholders for any new equity. This success doesn't come without hard work and sacrifices from my management team and employees. Ten years ago in my first Letter to Shareholders when we started Lundin Petroleum I talked about our late founder Adolf Lundin's life long quest to find the elusive elephant - or billion barrel oil field. My parting quote was 'Lundin Petroleum plans to deliver'. Well Adolf we delivered and I know you are looking down on us all a very proud man. We are looking forward to the next 10 years and intend to continue to deliver.


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