Dry Well Hits Lundin's 3Q 2015 Profitability
Swedish independent explorer and producer Lundin Petroleum reported Wednesday that its profitability for the third quarter of 2015 has been adversely impacted by exploration costs, after it drilled a dry well offshore Norway.
Lundin said that it will incur pre-tax exploration costs of approximately $10 million. These costs mainly related to an exploration well drilled offshore Norway during 3Q 2015 on the Zeppelin prospect in Norwegian production license PL734. This well was reported as a dry hole.
Lundin also said that it will recognize a net foreign exchange loss of approximately $201 million in its income statement for the third quarter of 2015. The FX loss mainly relates to the revaluation of loan balances at the prevailing exchange rates at the end of the reporting period, with the Norwegian krone weakening by 8 percent against the euro and the U.S. dollar.
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