OREANDA-NEWS. During the fourth quarter of 2014 Lundin Petroleum achieved an average production rate of 22,000 barrels of oil equivalent per day (boepd) resulting in an average production rate for the full year of 24,950 boepd. The average Brent oil price for the fourth quarter of 2014 was USD 76.58 per barrel.

The profitability for the fourth quarter of 2014 will be negatively impacted by certain expensed exploration costs and an impairment charge, as well as a foreign currency exchange loss, mainly related to the revaluation of loan balances. These items are largely non-cash charges and will have no impact on operating cash flow or EBITDA.

Exploration Costs

During the fourth quarter of 2014 pre-tax exploration costs of MUSD 257 will be charged to the income statement. The exploration costs in Norway relate mainly to the exploration wells drilled during the fourth quarter of 2014, including the Vollgrav South well on PL631, the Storm well on PL555, the Lindarormen well on PL584 and the Kopervik well on PL625. The total pre-tax exploration cost in Norway amounted to MUSD 198 resulting in an after tax charge of MUSD 44. The exploration costs relating to the Kitabu-1 well on SB307/SB308, offshore Malaysia and the Gobi-1 well on the Gurita PSC in Indonesia amounted to an after tax charge of MUSD 54.

Impairment Costs

As a result of the significantly lower oil price at the end of 2014, Lundin Petroleum will incur a non-cash impairment charge in the fourth quarter of 2014 relating to the Brynhild field, Norway, amounting to MUSD 91 after tax.

Foreign Exchange

Lundin Petroleum will recognise a largely non-cash foreign exchange loss in its income statement for the fourth quarter of 2014 of MUSD 290. This foreign exchange loss mainly relates to the revaluation of loan balances at the prevailing exchange rates at the end of each reporting period. The US Dollar strengthened against the Euro during the fourth quarter of 2014 resulting in a foreign currency exchange loss on the US Dollar denominated external loan which is borrowed by a subsidiary using a functional currency of the Euro. In addition, the Norwegian Krone significantly weakened in the fourth quarter of 2014, generating a foreign currency exchange loss on an intercompany loan balance denominated in Norwegian Krone.

Net Debt

The net debt position of Lundin Petroleum at 31 December 2014 amounted to USD 2.6 billion resulting in available liquidity of USD 1.4 billion within its USD 4.0 billion credit facility. Lundin Petroleum continues to receive the strong support of its syndicate of international financial institutions under the USD 4.0 billion credit facility. These lenders have confirmed Lundin Petroleum's access to the full facility amount.

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 187.5 million barrels of oil equivalent (MMboe).