Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Norway AS (Lundin Norway) has successfully completed the PDO development drilling programme at its operated Edvard Grieg field on the Utsira High in the Norwegian North Sea. A significant reserves upgrade and extension of the production plateau have been made since the PDO with additional resource potential identified in the area.

The Edvard Grieg field in PL338 started production in late 2015. The drilling programme, consisting of 14 development wells, has successfully been completed under budget by the Rowan Viking jack-up drilling rig, which is now being demobilised.

Alex Schneiter, President and CEO of Lundin Petroleum comments: “Edvard Grieg is a key asset for Lundin Petroleum. I am very pleased with the performance of the field on all fronts and convinced that we will eventually see the gross ultimate recovery grow to over 300 MMboe. The exciting tie-back opportunities in the area have the potential to double the volumes produced through Edvard Grieg, allowing us to keep the facilities full for many years to come.”

Overall reservoir results from the development drilling have exceeded the pre-drill expectations. Combined with a strong reservoir performance, that has seen no material water production to date, these positive results have led to a 47 percent increase of the best estimate gross ultimate recovery for the Edvard Grieg field since the PDO. In addition, further contingent resources are identified associated with infill drilling opportunities.  

The reserves upgrade has led to the field production plateau being extended from the PDO by two years to end 2019. An infill development drilling programme is being planned for 2020 which has the potential to further extend the production plateau. A 4D seismic survey is being acquired over the field in 2018 to refine the infill well targets.

Current gross production from Edvard Grieg is approximately 95 Mboepd, which reflects the facilities capacity allocation with the Ivar Aasen field. The capacity of the Edvard Grieg production wells is currently more than double the available facilities capacity, which provides flexibility to optimally manage the reservoir. The facilities continue to perform ahead of guidance with a production efficiency of 97 percent year to date. Total gross production from Edvard Grieg from first oil to end of the first quarter 2018 amounted to 74 MMboe.

The operated oil discoveries Luno II in PL359 and Rolvsnes in PL338C are being matured as subsea tie-back development opportunities to the Edvard Grieg facilities. The recent Lille Prinsen oil discovery in PL167 is also a possible area tie-back opportunity. Additionally, further area prospectivity is being matured for drilling in 2019. In total, there is potential to double the resources to be produced through the Edvard Grieg facilities.

The resource upside at Edvard Grieg and the additional resource potential in the area are incremental to Lundin Petroleum’s long-term production guidance and have the potential to keep the Edvard Grieg facilities full for many years, maintaining the current operating cost for the field of below USD 4 per barrel.

Lundin Norway is the operator of PL338 with a 65 percent working interest. The partners are OMV with 20 percent and Wintershall with 15 percent.

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

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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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• Lundin Petroleum - development drilling completion - V5 20180705en