Lundin Petroleum AB: Update on fourth quarter 2017 financial results

Stockholm, 2018-01-17 08:30 CET (GLOBE NEWSWIRE) --

Lundin Petroleum AB (Lundin Petroleum) will expense pre-tax exploration costs
of approximately MUSD 31 and recognise a net foreign exchange loss of
approximately MUSD 69 as well as an after tax loss on sale of assets of MUSD 15
for the fourth quarter of 2017. 

The profitability for the fourth quarter of 2017 will be impacted by certain
expensed exploration costs, a loss on sale of assets, as well as a net foreign
currency exchange loss mainly related to the revaluation of loan balances. 
These items are largely non-cash and will have no impact on operating cash flow
or EBITDA. 

Exploration Costs
During the fourth quarter of 2017, Lundin Petroleum will incur pre-tax
exploration costs of approximately MUSD 31 which will be charged to the income
statement and offset by a tax credit of approximately MUSD 24. The exploration
costs are mainly related to the non-commercial gas discovery on the Hufsa
prospect and the dry well on the Hurri prospect, both located in PL533. 

Loss on Sale of Assets
The previously announced transaction in relation to the divestment of a 39
percent working interest in the Brynhild field to CapeOmega was completed on 30
November 2017. Lundin Petroleum has previously announced that on completion of
the transaction a net loss on sale of assets would be recorded as a result of
the accounting for income taxes in accordance with IFRS. Consequently an after
tax loss of MUSD 15 will be charged to the income statement for the fourth
quarter 2017. 

Net debt and Foreign Exchange Loss
The net debt position of Lundin Petroleum at 31 December 2017 amounted to USD
3.9 billion resulting in available liquidity of USD 1.1 billion within its USD
5.0 billion reserve-based lending facility. 

Lundin Petroleum will recognise a net foreign exchange loss of approximately
MUSD 69 for the fourth quarter of 2017. The Norwegian Krone weakened against
the US Dollar by approximately 3 percent and the Euro strengthened against the
US Dollar by approximately 2 percent during the fourth quarter of 2017. The
foreign exchange loss mainly relates to the revaluation of loan balances at the
prevailing exchange rates at the balance sheet date. 

Lundin Petroleum is one of Europe's leading independent oil and gas exploration
and production companies with operations focused on Norway and listed on NASDAQ
Stockholm (ticker "LUPE"). Read more about Lundin Petroleum's business and
operations at www.lundin-petroleum.com. 

For further information, please contact:

Alex Budden                     Sofia Antunes         Robert Eriksson           
VP Communications &         Investor Relations    Manager, Media            
 Investor Relations              Officer               Communications           
Tel: [phone]           Tel: [phone]    Tel: [phone]     
[e-mail]            75                   robert.eriksson@lundin-pet
                                sofia.antunes@lundin  roleum.se                 
                                .ch                                             

This is information that Lundin Petroleum AB is required to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the contact persons set out above, at 08.30 CET on 17
January 2018. 

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.

Attachment:
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