Year end report 2017

Stockholm, 2018-02-01 07:30 CET (GLOBE NEWSWIRE) -- Lundin Petroleum reports excellent results for 2017. Full year production at record level and at low cash operating costs resulted in highest operating cash flow and EBITDA to date. Following these strong results, Lundin Petroleum's Board of Directors proposes an inaugural cash dividend to be paid after the 2018 AGM.

·    Continued strong production from the Edvard Grieg field and the Alvheim area due to strong facilities and reservoir performance.
·    Full year cash operating costs of USD 4.25 per barrel, including netting off tariff income.
·    Johan Sverdrup project on schedule with over 65 percent of Phase 1 completed by end of 2017.
·    Increase of proved plus possible reserves to 726.3 MMboe with a reserves replacement ratio of 144 percent.
·    Record high award of 14 exploration licences in the 2017 Norwegian APA licensing round.
·    The Board of Directors proposes to the 2018 AGM an inaugural cash dividend for 2017 of SEK 4.00 per share (approximately MUSD 175).

The numbers included in the table above are based on continuing operations (including 2016 comparatives)
¹ Based on net result attributable to shareholders of the Parent Company


Comments from Alex Schneiter, President and CEO of Lundin Petroleum:
"Looking back on the full year results for 2017 it is pleasing to report a record setting performance for Lundin Petroleum. With a continued strong performance in the fourth quarter, we delivered above expectations both in terms of record high production and record low cash operating costs for the year. These results are driven by continued strong performance from our core producing assets which have generated the highest operating cash flow for the Company to date, close to doubling operating cash flow and EBITDA compared to 2016.

I am very pleased to announce that the Board of Directors will propose to the 2018 AGM that an inaugural cash dividend of SEK 4.00 per share, totalling approximately MUSD 175, be paid out after the AGM. Based on current market conditions we anticipate an annual cash dividend of at least USD 350 million from next year.

We also announced good progress on the Johan Sverdrup project with more than 65 percent of Phase 1 completed at end of 2017 with costs reduced by 25 percent compared to the PDO. 2018 will be a very busy offshore installation year with three additional jackets, two platform topsides and the export pipelines, progressing the field towards first oil in late 2019. We will also work with our partners to submit the PDO for Phase 2 in the second half of 2018. Our recently announced increase in reserves is another positive update, led by particular success at our operated Edvard Grieg field where the best estimate ultimate gross recovery of 274 MMboe at year end represents a remarkable increase of 47 percent compared to the PDO.

While I would have liked to have seen more success with our exploration activities in 2017, this is a long-term game and I remain confident in our strategy to grow organically and expect our 2018 drilling programme to allow us to continue to find new resources and to create value within our core areas.

As we move forward, our strategy remains to focus on operational and execution excellence alongside safe and sustainable practices while continuing to pursue an active organic growth strategy. The future looks promising for Lundin Petroleum and we have some very exciting years ahead of us, increasing our production significantly by the time Johan Sverdrup comes onstream. By maintaining very low cash operating costs we will be able to deliver increased free cash flows, be very active on the organic growth front and deliver sustainable dividends, thereby continuing to create long-term value for our shareholders."

Audiocast presentation
Listen to Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, commenting on the report at a live audiocast held on Thursday 1 February 2018 at 09.00 CET.

Follow the presentation on www.lundin-petroleum.com or by dialling in on the following telephone numbers:
Sweden:           +46 8 519 993 55
Norway:           +47 23 500 211
UK:                   +44 203 194 05 50
International Toll Free:     +1 855 269 26 05

Lundin Petroleum is one of Europe's leading independent oil and gas exploration and production companies with operations focused on Norway and listed on NASDAQ Stockholm (ticker "LUPE"). Read more about Lundin Petroleum's business and operations at www.lundin-petroleum.com.

For further information, please contact:

This is information that Lundin Petroleum AB is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons set out above, at 07.30 CET on 1 February 2018.

Forward-Looking Statements
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.