Lundin Petroleum Announces Its Year End 2014 2P Reserves

OREANDA-NEWS. Lundin Petroleum AB ("Lundin Petroleum") is pleased to announce that as at 31 December 2014 its proven and probable working interest 2P reserves ("reserves") are 187.5 million barrels of oil equivalent (MMboe) and its best estimate ("2C") contingent resources ("contingent resources") excluding the Johan Sverdrup field are 404 million barrels of oil equivalent (MMboe). The production forecast for 2015 is between 41,000 and 51,000 barrels of oil equivalent per day (boepd).

Lundin Petroleum is predominantly an oil company with 92 percent of its reserves being oil2 and 92 percent of the reserves being located in OECD regions.

The reserves have been positively impacted by the inclusion of the Viper/Kobra accumulations within the Alvheim field and the inclusion of one infill well on the Volund field, both offshore Norway. The reserves have been further positively impacted by the inclusion of a unitised interest in the Ivar Aasen field, offshore Norway.

Lundin Petroleum's contingent resources, excluding the Johan Sverdrup field, amount to 404 MMboe in aggregate of which oil accounts for 65 percent. The most significant addition to Lundin Petroleum's contingent resources during 2014 was from the Alta discovery in the Norwegian Barents Sea. The Johan Sverdrup field contains gross contingent resources of between 1,800 and 2,900 MMboe as disclosed by pre-unit operator Statoil. The Johan Sverdrup field is situated in licences PL501, PL502 and PL265 in Norway. Lundin Petroleum has a 40 per cent interest in PL501 and a 10 per cent interest in PL265.

Lundin Petroleum's forecast production for 2015 is between 41,000 to 51,000 boepd with a forecast exit rate in excess of 75,000 boepd. The production from Norway represents approximately 70 percent of forecast 2015 production and oil represents approximately 90 percent.

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) and have been reviewed for compliance with the Canadian Oil and Gas Evaluation Handbook (COGEH) and the Canadian National Instrumental 51-101 Standards of Disclosure for Oil and Gas Activities. The reserves were calculated using an oil price of USD 70 per barrel in 2015 and USD 90 per barrel thereafter with prices and costs escalating at 2 percent per annum.