Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly-owned subsidiary Lundin Norway AS (Lundin Norway) has entered into an agreement with Equinor Energy AS (Equinor), under which Lundin Norway will acquire Equinor's entire 15 percent working interest in the Lundin Norway operated licence PL359, containing the Luno II oil discovery.

The acquisition takes Lundin Norway’s working interest in PL359 to 65 percent and creates commercial and operational alignment between the Edvard Grieg and Luno II partnerships, realising significant benefits through  optimisation of production and enhanced value from both fields. The transaction involves a cash consideration payable by Lundin Norway to Equinor, as well as Lundin Norway transferring its 20 percent working interest in PL825, containing the Rungne exploration prospect, to Equinor. 

The effective date of the transaction is 1 January 2018 and completion is subject to customary government approvals.

Luno II is situated approximately 15 km south of the Lundin Norway operated Edvard Grieg platform on the Utsira High and has a gross resource range of between 40 and 100 million barrels of oil equivalent (MMboe). The development concept for Luno II is a subsea tie back to the Edvard Grieg platform and the objective is to submit a PDO and sanction the project in early 2019.

Lundin Norway is the operator of PL359 with a current 50 percent working interest. The partners are OMV with 20 percent and Equinor and Wintershall with 15 percent each.

Alex Schneiter, CEO and President of Lundin Petroleum commented:“I am very pleased to announce this strategic acquisition on the Utsira High of a further 15 percent working interest in the high quality Luno II discovery, where the development is set to be sanctioned in early 2019. This transaction not only fully aligns the Edvard Grieg and Luno II partnerships, but also demonstrates our commitment to supplementing our proven organic growth strategy with accretive asset acquisitions.”

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:

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

• Lundin Petroleum - Acquisition of Luno II V5 20181003en