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2016-02-03

LUNDIN PETROLEUM AB: Year End Report 2015

Lundin Petroleum AB
Financial Statement Release

Year End Report 2015

Stockholm, 2016-02-03 07:02 CET (GLOBE NEWSWIRE) --

Twelve months ended 31 December 2015 (31 December 2014)
· Production of 32.3 Mboepd (23.8 Mboepd)1
· Revenue of MUSD 569.3 (MUSD 785.2)
· EBITDA of MUSD 384.7 (MUSD 671.3)
· Operating cash flow of MUSD 699.6 (MUSD 1,138.5)
· Net result of MUSD -866.3 (MUSD -431.9) including a net foreign exchange
loss of MUSD -507.3 and an after tax
impairment charge of MUSD -296.3
· Net debt of MUSD 3,786 (31 December 2014: MUSD 2,609)
· Edvard Grieg facilities successfully installed offshore Norway and first
oil was achieved in November 2015.
· The Bøyla field, Norway and the Bertam field, Malaysia commenced
production in January and April 2015.
· The Norwegian Ministry of Petroleum and Energy approved the Plan for
Development and Operations (PDO) for
Johan Sverdrup Phase 1 in August 2015.
· Alta appraisal and sidetrack wells in the southern Barents Sea, Norway
completed successfully.
· Eight exploration licences awarded in the Norwegian 2014 APA licensing
round, six as operator.
· Production licence obtained for the Morskaya field in the Caspian Sea,
Russia.
· NOK 4.5 billion financing facility for Norwegian exploration was signed in
April 2015.

Fourth quarter ended 31 December 2015 (31 December 2014)
· Production of 38.3 Mboepd (22.0 Mboepd)1
· Revenue of MUSD 136.0 (MUSD 135.2)
· EBITDA of MUSD 93.6 (MUSD 164.4)
· Operating cash flow of MUSD 175.4 (MUSD 334.5)
· Net result of MUSD -493.7 (MUSD -437.0) including a net foreign exchange
loss of MUSD -129.2 and an after tax
impairment charge of MUSD -296.3

1 Excluding production from Russian onshore assets following the sale of the
assets in July 2014.

Comments from Alex Schneiter, President and CEO
We continue to witness extreme volatility in oil prices with falls to levels
not seen in over a decade and it is clear to me that the battle for market
share is approaching its final conclusion. Our Company is in strong health with
reserves of close to 700 MMboe and a production base that will grow
significantly. Our cost of operations will fall below USD 10 per barrel and
with strong access to liquidity to withstand the current low oil price
environment we will emerge from this downturn as a company that is stronger
than ever.

Edvard Grieg commenced production on 28 November 2015 and since then has
achieved a remarkable average uptime of 95 percent. This excellent performance
has allowed us to achieve spot production rates in excess of 90,000 boepd when
our third Edvard Grieg production well was brought on stream. Edvard Grieg
marks the beginning of a transformational increase in Lundin Petroleum's
production levels and cash flow generation going forward. For 2016 our
production guidance is between 60,000 and 70,000 boepd. This equates to a
doubling of 2015 levels.

The execution of the Johan Sverdrup Phase 1 development is going according to
plan. Johan Sverdrup is ideally positioned to take the full benefit of this
challenging environment and corresponding low oil price. I anticipate we will
see further cost savings in Johan Sverdrup which will further improve the
economics of this world class project.

In 2016 our strategy remains unchanged and our main focus will be the southern
Barents Sea where we will be active on both fronts; exploration and appraisal
with a particular focus on the existing Alta discovery area. Further
exploration drilling will also be taking place on the Utsira High and in the
Sabah area in Malaysia.

Our 2016 objectives are very clear. We will maximise our existing operational
efficiency to establish a solid foundation of strong cash flow for the next
growth phase of the Company. We will continue to work very hard to maintain a
robust balance sheet and strong access to liquidity. We will continue to play a
proactive role towards the execution of the Johan Sverdrup field. Finally, our
organic growth strategy remains intact and we will continue to explore for new
resources.

Web cast presentation
Listen to President and CEO Alex Schneiter and CFO Mike Nicholson comment on
the report at a live webcast on Wednesday 3 February 2016 at 09.00 CET.

The presentation slides will be available on www.lundin-petroleum.com prior to
the commencement of the web cast. Please dial in to listen to the presentation
on the following telephone numbers: Sweden: +46 8 519 993 55, International:
+44 203 194 05 50, International Toll Free Number: +1 855 269 26 05.

Lundin Petroleum is a Swedish independent oil and gas exploration and
production company with a well balanced portfolio of world-class assets
primarily located in Europe and South East Asia. The Company is listed on
NASDAQ Stockholm (ticker "LUPE"). Lundin Petroleum has proven and probable
reserves of 685 million barrels of oil equivalents (MMboe) as at 31 December
2015.

For further information, please contact:

Maria Hamilton Teitur Poulsen
Head of Corporate Communications VP Corporate Planning & Investor Relations
E-mail: maria.hamilton@lundin.ch Tel: + 41 22 595 10 00
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50

This information has been made public in accordance with the Securities Market
Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980).

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.

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