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LUNDIN PETROLEUM AB: Year end report 2016

Lundin Petroleum AB
Financial Statement Release

Year end report 2016

Stockholm, 2017-02-01 07:29 CET (GLOBE NEWSWIRE) --

Twelve months ended 31 December 2016 (31 December 2015)

· Production of 72.6 Mboepd (32.3 Mboepd)
· Revenue of MUSD 1,159.9 (MUSD 569.3)
· EBITDA of MUSD 902.6 (MUSD 384.7)
· Operating cash flow of MUSD 1,010.8 (MUSD 699.6)
· Net result of MUSD -499.3 (MUSD -866.3) including an after tax impairment
charge of MUSD 548.6 (MUSD -296.3) and a net foreign exchange gain of MUSD
15.0 (loss of MUSD 507.3)
· Net debt of MUSD 4,075 (31 December 2015: MUSD 3,786)
· Annual record production of 72.6 Mboepd following the Edvard Grieg field
start up in November 2015.
· Record low cost of operations per boe of USD 6.25 and cash operating costs
per boe of USD 7.80 in 2016.
· In August 2016, the operator provided a guidance update on the Johan Sverdrup
project announcing reduced capital costs to NOK 99 billion gross for Phase 1
and NOK 140-170 billion gross for Phase 1 and Phase 2 and an increased Phase
1 and Phase 2 production capacity of 660,000 bopd gross. The resource range
increased to 1.9-3.0 billion boe.
· Secured new fully committed reserve-based lending facility of USD 5.0

Fourth quarter ended 31 December 2016 (31 December 2015)

· Production of 83.4 Mboepd (38.3 Mboepd)
· Revenue of MUSD 385.9 (MUSD 136.0)
· EBITDA of MUSD 317.9 (MUSD 93.6)
· Operating cash flow of MUSD 343.0 (MUSD 175.4)
· Net result of MUSD -739.1 (MUSD -493.7) including an after tax impairment
charge of MUSD 548.6 (MUSD -296.3) and a net foreign exchange loss of MUSD
-215.9 (MUSD -129.2).
· Quarterly record production of 83.4 Mboepd due to the exceptional performance
and uptime of the producing assets.
· Record low cost of operations per boe of USD 5.38 and cash operating costs
per boe of USD 6.51.

Comments from Alex Schneiter, President and CEO
2016 has been an outstanding year for Lundin Petroleum. We have seen record
production levels achieved with over 72,000 boepd produced for the year at a
record low cash operating cost of USD 7.80 per barrel. However, our net result
for the year was impacted by a non-cash after tax impairment charge of MUSD
548.6 following the decision taken to remove the booked contingent resources
associated with discoveries in Russia and in Malaysia. In addition, we have
seen the reserves in Edvard Grieg increasing from the original PDO estimate of
186 MMboe to 223 MMboe and we all know that big fields tend to get bigger.

The year was further marked by the acquisition of an additional 15 percent
equity in Edvard Grieg from Statoil. This transaction not only increased our
production and reserves but also strengthened our financial position further by
improving an already very solid liquidity position following the signing of the
USD 5.0 billion reserve-based lending facility earlier in the year.

In 2017 we will continue to see our production increasing while on the project
development side, we will have the most active year ever with Johan Sverdrup
Phase 1 project execution. In parallel, we will be drilling some world class
exploration targets in the southern Barents Sea while continuing to work on an
appraisal programme in our Alta and Gohta discoveries.

Our health, safety and environmental track record for 2016 has also been solid
and we will continue to keep a strong focus on HSE excellence as the Company

My first year as the new CEO of Lundin Petroleum has been a very rewarding one
and it is all down to the great team work and team spirit that exists within
the Company.

Webcast presentation
Listen to President and CEO Alex Schneiter and CFO Mike Nicholson comment on
the report at a live webcast on Wednesday 1 February 2017 at 09.00 CET.

The presentation slides will be available on prior to
the commencement of the webcast. 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 worldclass 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 743.5 million barrels of oil equivalents (MMboe) as at 31 December

For further information, please contact:

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

This information is information that Lundin Petroleum AB is required to make
public pursuant to the EU Market Abuse Regulation and the Securities Markets
Act. The information was submitted for publication, through the contact persons
set out above, at 07.00 CET on 1 February 2017.

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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