Lundin Petroleum announces its 2016 budget and updated reserves

Lundin Petroleum AB (Lundin Petroleum) has announced its 2016 development, appraisal and exploration budget which totals US$ 1.08 billion and represents a 26% decrease on 2015 capital expenditure. Lundin Petroleum is also pleased to announce that as at 31 December 2015 its proven and probable working interest reserves (reserves) are 685 million boe and its best estimate contingent resources (contingent resources) are 386 million boe. The production guidance for 2016 is between 60 000 to 70 000 boe/d.

Reserves, contingent resources and 2016 production guidance

Lundin Petroleum's reserves as at 31 December 2015 are 685 MMboe 12 and represent an increase of 292% compared to the reserves position a year earlier.

End 2014                           187.5

Produced                             -11.8

Sales / + Acquisitions          -0.8

+ revisions                          +510.4

End 2015                           685.3

Reserves increase 292%

Reserves replacement 4329%

The main reason for the increase in reserves as at year end 2015 relates to Johan Sverdrup resources being included as reserves for the first time. There are further reserves increases from the successful appraisal of the Edvard Grieg field during 2015 as well as positive reserves revisions to the Volund field partially offset by a negative reserves revision on the Brynhild field. Reserves as at 31 December 2015 assume closure of the Singa sale in Indonesia. 95% of the reserves relate to Norway and oil accounts for 96 percent of Lundin Petroleum's reserves.

The reserves are based upon a third party independent audit conducted by ERCE. The reserves have been calculated using 2007 Petroleum Resources Management System (SPE PRMS), Guidelines of the Society of Petroleum Engineers (SPE), World Petroleum Congress (WPC), American Association of Petroleum Geologists (AAPG) and Society of Petroleum Evaluation Engineers (SPEE).

Lundin Petroleum's production guidance for 2016 is between 60 000 to 70 000 boepd with approximately 80% of the production contribution relating to production from Norway.

The contingent resources as at 31 December 2015 are 386 million boe. The contingent resource additions during 2015 relate to the Luno II North and Rolvsnes in the Utsira High in the Norwegian North Sea. Lundin Petroleum divested certain of its contingent resources during 2015 with the farm-out of a 20% working interest in the gas discoveries in SB303 offshore east Malaysia, the farm-out of a 75% working interest in SE Tor gas discovery offshore Norway and the sale of the Indonesia business.

Adapted from a press release by Louise Mulhall

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