Financial Presentation First Quarter 2014

Transcription

1 Financial Presentation First Quarter 2014 C. Ashley Heppenstall, President & CEO; Mike Nicholson, CFO Stockholm, 7 th May 2014 WF

2 First Quarter 2014 Financial Highlights Production (boepd) - including Russia - excluding Russia First Quarter ,800 26,600 Average Brent oil price (USD/boe) Cost of operations (USD/boe) EBITDA (MUSD) Operating cash flow (MUSD) Net result (MUSD) WF11896 p

3 First Quarter 2014 Financial Results % Million USD % 50 WF11896 p Net Result First Quarter First Quarter Operating Cash Flow First Quarter First Quarter 2013 (1) 2014 EBITDA First Quarter First Quarter 2013 (1) (1) Restated following adoption of IFRS11 Joint Arrangement 3

4 First Quarter 2014 Financial Results Revenue MUSD ,600 boepd USD 97.6/boe Operating Costs MUSD 38.4 Cost of Operations USD 12.8/boe Depletion MUSD Cash Margin MUSD Exploration MUSD Million USD Million USD WF11896 p G&A + Financial MUSD 5.2 Share of Result of Onshore Russia MUSD 0.1 Tax MUSD 26.5 Effective rate 89% Net Result MUSD Gross Profit MUSD

5 First Quarter 2014 Netback (USD/boe) First Quarter 2014 Average Brent oil price USD/boe Revenue 98.5 Cost of operations Tariff & transportation Production taxes Inventory movements Other - Base - Projects Cash Margin 82.5 Cash taxes 24.7 Operating Cash Flow WF11896 p General and administration costs (1) EBITDA (1) Adjusted for depreciation 5

6 First Quarter 2014 Cost of Operations USD/boe 16 Alvheim workovers Alvheim/Volund shutdown Alvheim workover 16 Including Projects Base USD/boe Forecast 2014 Including Projects USD 13.00/boe (CMD Guidance USD11.35/boe) Base Forecast USD 10.00/boe (CMD Guidance USD10.00/boe) 8 8 WF11896 p Q actual Q forecast Q forecast Q forecast 7 6

7 First Quarter 2014 Exploration Costs First 3 Months 2014 MUSD First 3 Months 2014 after Tax MUSD Norway PL501 - Torvastad, PL659 - Langlitinden Indonesia Baronang - Balqis/Boni, Cakalang Others Exploration Costs WF11896 p

8 First Quarter 2014 G & A / Financial Items General & Administration Expenses General & administration Long Term Incentive Plan First Quarter 2014 MUSD Net Financial Items Foreign exchange gain (1) Interest expense (2) 1.9 Loan commitment fees 4.9 Amortisation of loan fees 2.8 Other WF11896 p (1) Includes MUSD 1.2 gain on settled currency hedges (2) An additional amount of interest expense of MUSD 8.7 has been capitalised 8

9 First Quarter 2014 Tax First Quarter 2014 USD/boe Current tax credit Deferred tax charge Effective tax rate 89% Operational tax rate (1) 54% WF11896 p (1) Excluding exploration costs impact 9

10 First Quarter 2014 Liquidity MUSD at 31 March 2014 Debt Outstanding 1,570 Cash Balances 95 Net Debt Position 1,475 Financing facility increased to USD 4 billion in Feb 2014 under similar terms Margin on Loan Facility: 2.75% WF11896 p

11 First Quarter 2014 Debt Position 1,600 1,500 1,400 Exploration & Appraisal MUSD 143 G&A MUSD 14 Financial MUSD 15 Working Capital MUSD 15 1,600 1,500 1,400 Closing Net Debt 31 March 2014 MUSD 1,475 Opening Net Debt 1 Jan 2014 MUSD 1,192 Million USD 1,300 1,200 1,100 1, Operating Cash Flow MUSD 256 Development MUSD 352 1,300 1,200 1,100 1, Million USD WF11896 p

12 First Quarter 2014 Hedges BUY MNOK Currency SELL MUSD Average rate NOK : USD , , Borrowings MUSD Interest rate Floating LIBOR rate per annum Apr 2013 Mar % 2H , % , % Q , % Q2-Q , % , % WF11894 p , % 12

13 First Quarter 2014 Highlights Q Production 28,800 boepd (within guidance) Full year 2014 guidance 30,000 35,000 boepd Forecast 2015 at ~ 50,000 boepd Developments major milestones reached on Johan Sverdrup and Edvard Grieg Norway: Johan Sverdrup Concept development plan for phase 1 agreed Edvard Grieg Jacket completed and installed Brynhild First oil June 2014 Bøyla Production manifold installed, drilling commenced Malaysia: Bertam On schedule and cost. Jacket substantially completed Appraisal Johan Sverdrup: Two appraisal wells completed on PL501 and PL265 respectively Edvard Grieg South East appraisal well currently testing WF p Exploration Norway: Completed one Barents Sea and one Utsira High well: non-commercial oil discoveries Indonesia: Completed two wells on the Baronang PSC, both dry 13

14 Lundin Petroleum Production Q production: 28,800 Boepd Alvheim outperformed, Volund underperfomed Brynhild - first oil June production guidance: 30,000-35,000 boepd Russia, 8% Netherlands, 7% Indonesia, 5% France, 10% 2014 Q1 Actual (2) Strong record in meeting guidance Norway, 69% Thousand boepd net Production (1) 2014 Q1 Actual and Production Guidance Guidance high Guidance low Actual production Production Guidance High Production Guidance Low Brynhild start-up Alvheim FPSO shut-in Thousand boepd net WF11866 p Q1 Actual Q Q3 Q4 0 (1) Excluding discontinued operations which include United Kingdom, Salawati Basin & Island in Indonesia (2) Not adding due to rounding 14

15 Production Forecast average approximately 50,000 boepd Bøyla first oil Q Bertam field first oil in Q Edvard Grieg first oil Q To exceed 75,000 boepd by end Production Guidance High 2014 Production Guidance Low Edvard Grieg start-up Bøyla start-up Bertam start-up 28,800 boepd WF11866 p Q Q Q Q Q Q Q Q

16 Norway - Greater Alvheim Area Q Net Production: 19,300 boepd PL088 PL088BS PL203b 2P Reserves (net): 21.7 MMboe 2C Contingent Resources (net): 6.2 MMboe Q net production : 9,500 boepd PL203 PL036c Alvheim cost of operations (1) < 5.5 USD/boe Alvheim Field (WI 15%) MMboe Gross Volund Estimated Ultimate Recovery 50 PDO 2C Contingent Resources Cumulative Production End of Year Reserves 46 GCA GCA 2007 GCA 2008 GCA GCA GCA ERCE ERCE % Kobra Gekko MMboe Gross Alvheim Estimated Ultimate Recovery 184 2C Contingent Resources Cumulative Production End of Year 2P Reserves % Volund Field (WI 35%) 2P Reserves (net): 7.8 MMboe PL150b Viper 0 PDO GCA 2005 GCA 2006 GCA 2007 GCA 2008 New award, APA2013 GCA 2009 GCA 2010 GCA 2011 ERCE C Contingent Resources (net): 1.6 MMboe PL150 WF11820 p Q net production : 9,800 boepd Operating cost for Q Cost of operations < 3.5 USD/boe Tariff to Alvheim < 3.0 USD/boe Kobra/Viper likely development project approval 2015 PL736 S 2P reserves /15 drilling Contingent resources - potential future drilling Contingent Resources (1) Excluding well intervention and project specific cost 16

17 Norway & Malaysia Development Projects Norway - North Sea Ongoing Norwegian Developments Brynhild (Lundin 90% operator) Bøyla (Lundin 15%) Edvard Grieg (Lundin 50% operator) United Kingdom Bøyla Edvard Grieg Norway Stavanger " Brynhild 0 KM 40 Ongoing Malaysian Development Bertam (Lundin 75% operator) Malaysia - Natuna Sea 0 KM Budget USD 1.4 Billion Malaysia Bertam WF p Kuala Lumpur Indonesia Singapore Indonesia Malaysia 17

18 Norway Edvard Grieg Development Lundin Petroleum interest: 50% (operator) OMV 20%, Wintershall 15%, Statoil 15% 2P reserves: 186 MMboe gross Plateau production: 100,000 boepd gross Production startup Q Capital costs: 25 NOK billion Drilling 15 wells from jack-up rig Jacket completed and installed Topside and pipelines construction ongoing One appraisal well in south east of discovery ongoing - testing Norway - Southern Utsira High UK 0015 PL544 PL625 PL167 & PL167B PL673 Norway Apollo Edvard Grieg Luno South Luno II PL338 PL359 Edvard Grieg Schematic Ivar Aasen PL265 PL410 Edvard Grieg Platform KM 20 PL546 PL501 PL501B Johan Sverdrup Lundin Petroleum Operator Lundin Petroleum Partner Ivar Aasen Platform Gas Export to SAGE WF11585 p Engineering/Procurement Construction/Assembly Load out/seafastning & Marine Operations Pipelaying Offshore Hook-up/Commissioning Drilling Contract Award Decision Gate / PDO Jacket Execution Topside Execution Installation Oil & Gas Export Pipeline Pre Drilling & Drilling First Oil Q Q2 Q3 Q4 Q Q2 Q3 PDO Approved by Authorities Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gas Oil Luno South Ivar Aasen Oil Export to Grane Edvard Grieg 18

19 Edvard Grieg Jacket Project Status Jacket EPC Completed & Installed Sail away from Verdal yard, April 15 th Jacket installed on location, May 4 th Jacket at location WF11888 p

20 Norway - North Sea Developments Brynhild Brynhild Development (Lundin 90% operator) Subsea tie-back to Pierce field, UK Norway - North Sea Subsea installations successfully completed New riser successfully hooked-up to FPSO Topside close to completion First development well successfully completed and tested Longer reservoir section completed 2P Reserves 23.1 MMbo gross Plateau production: 12,000 boepd gross First oil June 2014 Brynhild Riser United Kingdom Bøyla Edvard Grieg North Sea Norway " Stavanger Pierce FPSO after Docking WF11383 p Brynhild 0 KM 40 20

21 Norway - North Sea Developments Bøyla Bøyla Development (Lundin 15%) PDO approved Tie-back to Alvheim FPSO Production manifold successfully installed Development drilling commenced 2P reserves: 22 MMboe gross Plateau production: 20,000 boepd gross First oil Q Norway - North Sea United Kingdom Bøyla Edvard Grieg Norway Stavanger " Manifold sail away Manifold on location North Sea Brynhild 0 KM 40 WF11383 p

22 Peninsular Malaysia Bertam Development Bertam Development Facilities PM307 - Lundin Petroleum 75% (operator), Petronas Carigali 25% PDO approved in October 2013 Gross 2P reserves: 18.2 MMbo Gross plateau production: 15,000 bopd First oil: Q Development plan Wellhead platform 14 horizontal wells with ESP s Utilise 100% owned Ikdam FPSO Gross CAPEX MUSD 400 (1) Jacket and Topside Construction ongoing in Malaysia Ikdam FPSO life extension work well advanced Bertam Location Map PM319 PM307 Sotong Field Mengkuang Prospect Tembakau Gas Discovery Malong Field Rengas Prospect Malaysia Bertam Oil Field 0 KM 20 Gurita WF11667 p PM308B PM308A Indonesia (1) Excludes capex related to the Ikdam FPSO 22

23 Peninsular Malaysia Bertam Development FPSO in Dry Dock Jacket Fabrication Topside Fabrication Cellar Deck Framing WF11667 p

24 Norway Johan Sverdrup Field Working Interest PL501 PL265 PL502 Lundin Norway 40% (OP) 10% 0% 22 wells + 7 sidetracks drilled to date on Johan Sverdrup Statoil Maersk 40% 20% 40% (OP) 44.44% (OP) Gross Contingent Resources: 1,800-2,900 MMboe (1) Det norske 20% 22.22% Appraisal drilling programme completed Petoro 30% 33.33% /2014 PL501 PL501 PL501 PL501 16/2-9S 16/2-19 &19A 16/2-12 Norway 16/2-6 & 6 T2 $ 16/ /2-8 $ 16/3-4 & 4A 16/ /2-11 & 11A $ 16/2-16S & 16A & 16 T2 16/2-13S & 13A 16/2-17S $ 16/3-8S 16/3-6 PL265 PL265 16/2-7 & 7A PL265 16/2-15 PL265 16/ /3-5 16/5-2 PL502 16/5-3 16/3-7 PL502 PL502 PL502 16/5-4 J. Sverdrup 0 KM 5 0 KM 5 0 KM 5 0 KM 5 Avaldsnes discovery Aldous Major South discovery Avaldsnes and Aldous MS 7 wells in 2013 WF11602 p well + 1 sidetrack 5 wells + 2 sidetracks renamed Johan Sverdrup 7 wells + 3 sidetracks 2 wells in sidetracks (1) Statoil working operator estimates Dec

25 Johan Sverdrup Appraisal Programme Avaldsnes Crest appraisal well 16/3-8S Successfully completed in March 2014 Encountered good Volgian sands Excellent permeability (65 Darcy) Production tested at 4,900 bopd Geitungen appraisal well 16/2-19 Delineate the north eastern part of Geitungen (northern part of Johan Sverdrup discovery) Completed in April 2014 Encountered a mixture of speculitic sands and Draupne sands Luno II Edvard Grieg 16/3-8S 16/2-19 WF11877 p Wells 25

26 Johan Sverdrup Phase I Development Schematic Concept selection for Phase I agreed in February 2014 Concept Selected PDO Approval - Phase I Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q First Oil - Phase I Johan Sverdrup Phase I Topside Layout Phase I CAPEX NOK Bn Production Capacity: ,000 boepd Wellhead & Drilling platform Full field Gross Contingent Resources: 1,800-2,900 MMboe Plateau Production : ,000 boepd Processing platform Riser platform Living Quarter WF11877 p

27 Production Forecast From Ongoing Development Johan Sverdrup exploration wells per year Other existing contingent and prospective resources not included in production forecast Edvard Bertam Grieg Bøyla Brynhild 75,000 boepd WF11866 p boepd 35,700 32, ,000 50,

28 Targetted Contingent Resources to Reserves 2014 appraisal Budget USD 300 million 6 wells Aggressive 2014 drilling programme 400 Low range High range MMboe of resources to reserves through appraisal of Gohta, Luno II & Tembakau Johan Sverdrup comes in addition Gross Contingent Resources: 1,800-2,900 MMboe (1) Net Reserves/Resources (MMboe) P Reserves end 2013 Gohta Luno II Tembakau Johan Sverdrup WF11866 p Appraisal to move contingent resources to reserves Subject to unitisation (1) Statoil working operator estimates Dec

29 Norway - Utsira High 2014 Appraisal Activities Edvard Grieg / Luno II Luno II core sampling Luno II PL359, 40% (operator ) Tested over 2,000 boepd Good quality oil Luno II discovery Gross contingent resources estimate : MMboe (1) 1 appraisal well on PL359 in Q Edvard Grieg PL338, 50% (operator ) Appraisal well 16/1-18 well ongoing Appraising reservoir thickness and quality (1) the resource range quoted is effective May 2013 prior to the drilling of the 16/5-5 appraisal well in PL410. The 16/5-5 well encountered poor quality reservoir in the southern segment indicating that this segment is non-commercial. Hanz Kopervik 0 KM 10 PL673 Ivar Aasen Norway 16/1-18 SE Grieg Lundin Petroleum Partner Lundin Petroleum Operator Lundin Petroleum Partner Ivar Aasen West Cable Apollo Geitungen Edvard Grieg SE (16/1-18) Johan Sverdrup Edvard Grieg Luno II North prospect 0015 Edvard Grieg 0016 Lundin (50%) PL338 PL359 Lundin (10%) PL265 PL410 Lundin (40%) Lundin (70%) Luno II App 16/4-8 PL501B Lundin (40%) Johan Sverdrup Discovery Edvard Grieg South Luno II North/Fignon prospect Fignon Luno II discovery 16/4-6S Luno II Prospective resources North Luno II 2014 App (16/4-8) WF11381 p PL544 Lundin (40%) 16/4-6S Luno II App 16/5-5 Luno II discovery Lundin (40%) PL501 North Sea Contingent resources Luno II 29

30 Norway - Barents Sea 2014 Appraisal Activities Gohta Appraisal 0 KM 40 PL533 PL609 PL659 Gohta Discovery PL492 (Lundin 40%, operated) Gross Contingent Resources: MMboe MMbl Oil Bcf Gas Norway PL492 Gohta Discovery PL438 PL490 1 well on Gohta Snhøvit Area PL767 Barents Sea Gohta Karst Top Permian Karstified Carbonate Map Well defined 4-way closure ~ 50 km 2 Reservoir consisting of karstified carbonate 75m oil & 25m gas gross columns in Permian carbonate reservoir Gohta Appraisal 2014 Tested 4,300 bopd Gohta Appraisal in 2Q 2014 Gohta Discovery WF11786 p

31 Peninsular Malaysia Tembakau Appraisal Malaysia - Peninsular Malaysia Thailand PM319 Tembakau Gas Discovery Cakalang Baronang PM307 - Lundin Petroleum 75% operator (Petronas Carigali 25%) Discovered November 2012 Gross 2C gas resources 306 Bcf Medan Indonesia Malaysia Kemaman Harbor Kuantan New Port PM307 Gurita Kuala Lumpur PM308B PM308A Malacca LNG Terminal Singapore Natuna Sea Indonesia 0 KM 200 Appraisal objective to confirm 2C and to test upside potential 0 KM PM319 PM307 Prospects/Leads Rig secured - Drilling Q Close to infrastructure and Kerteh gas plant Malaysia 30 Tembakau Gas Discovery Sotong Sotong 40km Kerteh gas plant 110km Tembakau-2 Appraisal Malong 30km Malong Natuna Sea WF11673 p PM308B PM308A Bertam Discovery Gurita Indonesia 31

32 Asset Overview Exploration 2014 Norway 5 exploration wells Netherlands 3 exploration wells France 1 exploration well Malaysia 3 exploration wells Indonesia 1 exploration wells WF11433 p Budget USD 380 Million(1) 13 exploration wells remaining in 2014 (1) Full year budget Targetting net unrisked resources of ~425 MMboe 32

33 2014 Prospective Resources Target Unrisked 425 MMboe Target Risked >110 MMboe Unrisked 2014 net unrisked prospective resources Alta Vollgrav South Lindarormen Risked Norway SE Asia 2014 net risked prospective resources Norway Storm Kopervik Rengas Kitabu Mengkuang SE Asia Gobi France Hoplites France Million boe Million boe 20 WF11866 p Alta Vollgrav South Lindarormen Storm Kopervik Rengas Kitabu Mengkuang Gobi Hoplites 0 33

34 Norway Remaining 2014 Exploration Drilling Alta exploration well Barents Sea Barents Sea Area 5 exploration wells 5 operated wells Rigs secured for all wells Targeting ~330 MMboe net unrisked prospective resources Lindarormen exploration well Norwegian Sea Storm exploration well Vollgrav exploration well Kopervik exploration well North Sea Norway Greater Alvheim Area Utsira High Area WF11796 p UK 34

35 Norway - Barents Sea Overview 0 KM 400 Svalbard 0 KM 400 Faroe Is. Barents Sea Underexplored < 100 wells 70 0'0"N Norway Barents Sea Russia Norway North Sea Denmark Netherlands 4 recent oil discoveries Sweden Finland Ireland United Kingdom Germany New source rock and reservoir proven Wisting Discovery (~115MMboe) Lundin operator Lundin partner Discovery Prospect LOPPA HIGH Recent 22 nd licensing round very competitive Neiden PL659 HAMMERFEST BASIN NPD upgraded resource potential PL609 Skavl, Drivis Discoveries Pasvik Lakselv Alta Gohta Discovery (~170MMboe) PL767 Snhøvit Area Skalle Discovery (~28MMboe) PL490 Emerging oil province Johan Castberg Discoveries (~ 500MMboe) PL492 PL438 BJORNOYA BASIN WF11421 p PL533 Salina Discovery (~35MMboe) 35

36 Norway - Barents Sea Gohta Discovery & PL609 Prospects/Leads Alta Prospect Gohta Discovery PL492 (Lundin 40%, operated) Gross Contingent Resources: MMboe MMbbl Oil Bcf Gas tested 4,300 bopd Well defined 4-way closure ~ 50 km 2 PL609 Alta prospect (Lundin 40%, operated) Gross Unrisked Prospective Resources: 261 MMboe Drilling in Q Bjørnøya Bassenget Veslemøy High Lundin Petroleum Licences Fields Operated Non Operated Oil Gas Prospects Kramsnø Johan Castberg Bjørnøyrenna Fault Complex Drivis Iskrystall Rauto 533 Formica Skavl Polheim Sub-platform 609 Neiden Pasvik Alta Carbonate/karst prospectivity 0 KM 20 Loppa High 659 WF11786 p Gohta Appraisal OWC GOC Gohta Discovery Tromsø Basin Salina Gohta Appraisal Ringvassøy-Loppa Fault Complex Komag B Geres Lavvo 438 Rein Boazo Noaide Skalle 490 Trål Gohta Discovery SNØHVIT 767 Hammerfest Basin 36

37 South East Asia 2014 Activity WI: 75% WI: 85% PM307 PM319 Cambodia Vietnam Cakalang/Baronang Gurita Natuna Sea WI: 90% WI: 85% Penyu Core Area South Sokang Bertam Development Malaysia Tembakau appraisal Malaysia 2 Exploration Wells Natuna Sea Core Area Singapore Gobi exploration well SB303 WI:60% WI:75% Philippines Sabah Area Kitabu exploration well SB307/308 WI:42.5% Total Exploration Licences: Production Licences: WI:100% 11 1 Lundin Petroleum Operator Lundin Petroleum Partner Cendrawasih VII WI: 35% WI: 75% PM308A PM308B Sumatra Indonesia Borneo Sulawesi West Papua Papua WI:25.88% Lematang Singa gas production WF11852 p Java Timor-Leste 4 exploration wells, targetting net unrisked resources of ~80 MMboe 0 KM

38 Malaysia - Sabah Area SB307/308 Prospects SB307/308 (42.5%, Operator) Prospect: Kitabu Drilling in Q Gross prospective resources: 71 MMboe Trap: stratigraphic onlap and pinchout Reservoir: Miocene Stage IVC turbidites sands SB303 (75%, Operator) Tarap/Cempulut/Titik-Terang/ Berangan discoveries Gross contingent resources: ~350 Bcf Potential cluster development Malaysia - Sabah Area 0 KM 40 Cempulut Discovery NNW 0 EMERALD Maligan HIGH Prospect Kitabu Prospect SF 30 SOUTH FURIOUS HIGH South Furious U. IVD SSE SB303 Titik-Terang Tarap Discovery Berangan Discovery 1 IVE SANDS IVD SANDS IVD SEAL L. IVD U. IVC L. IVC Kitabu St Joseph SF30 km 2 SB307/308 WF11386 p km 4 Lundin IVC RESERVOIR TURBIDITES IVA/B SOURCE Shell IVA/B COASTAL PLAIN Lundin " Kota Kinabalu Malaysia Borneo 38

39 Malaysia - PM Exploration Wells Rengas/Mengkuang PM307 - Lundin Petroleum 75% operator (Petronas Carigali 25%) Rengas prospect Drilling Q3/Q Gross prospective resources: 22 MMbbl Malaysia - Peninsular Malaysia PM319 0 KM 80 Mengkuang prospect Drilling Q Gross prospective resources: 21MMbl Mengkuang Prospect Tembakau Discovery Rengas Prospect Bertam Discovery PM307 PM308B PM308A Malaysia Natuna Sea WF11897 p Gurita Indonesia 39

40 2014 Exploration & Appraisal Drilling Schedule WF11117 p Well LUPE Country Licence - Prospect type Operator WI % NUPR (1) CoGS (2) NRPR (3) 1 Norway PL501 - Johan Sverdrup 16/3-8 (central) app Lundin Norway PL359 - Luno II App. Central 16/4-8 app Lundin Norway PL631 - Vollgrav exp Lundin % 9 Norway PL584 - Lindarormen exp Lundin % 20 Norway PL501 - Torvastad exp Lundin Norway Norway PL338 - E. Grieg SE App. PL492 - Gohta Appraisal app app Lundin Lundin Norway PL609 - Alta exp Lundin % 24 Norway PL625 - Kopervik exp Lundin % 23 Norway PL555 - Storm exp Lundin % 10 Norway PL659 - Langlitinden prospect exp Det Norske Norway PL265 - Geitungen appraisal app Statoil Indonesia Indonesia Malaysia Malaysia Malaysia Baronang - Balqis-1 & Boni-1 Gurita - Gobi-1 PM307 - Tembakau appraisal PM307 - Rengas prospect PM307 - Mengkuang prospect Malaysia SB307&308 - Kitabu exp Lundin % 9 France Est-Champagne - Hoplites-1 (Nettancourt) exp Lundin % 5 operated non operated exp exp app Lundin Lundin Lundin % 24% 14 5 exp Lundin % 5 exp Lundin % 6 (1) (2) (3) Net Unrisked Prospective Resources (MMboe) Chance of Geological Success Net Risked Prospective Resources (MMboe) 2014 Q1 Q2 Q3 Q4 Dry Dry Completed successfully Dry Ongoing Completed Netherlands 3 exploration wells not included 40

41 Disclaimer 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. Reserves and Resources Unless otherwise stated, Lundin Petroleum s reserve and resource estimates are as at 31 December 2013, and have been prepared and audited in accordance with National Instrument Standards of Disclosure for Oil and Gas Activities ("NI ") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). Unless otherwise stated, all reserves estimates contained herein are the aggregate of Proved Reserves and Probable Reserves, together also known as 2P Reserves. For further information on reserve and resource classifications, see Reserves, Resources and Production in the Company s annual report. Contingent Resources Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. There is no certainty that it will be commercially viable for the Company to produce any portion of the Contingent Resources. Unless otherwise stated, all contingent resource estimates contained herein are the best estimate ( 2C ) contingent resources. Prospective Resources Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources. Unless otherwise stated, all Prospective Resource estimates contained herein are reflecting a P50 Prospective Resource estimate. Risked Prospective Resources reported herein are partially risked. They have been risked for chance of discovery, but have not been risked for chance of development. WF8278 p BOEs BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 41

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