Lundin Petroleum
Corporate Presentation
November 2014
WF11879 05/11/14
Lundin Petroleum
1
Lundin Petroleum AB
Company Overview and History
Introduction
Lundin Petroleum AB
Ticker - Nasdaq Stockholm
LUPE
An organic growth success story
Ticker - Toronto Stock Exchange
Shares in Issue, million
of which held in Treasury, million (1)
Market Cap, USD billion (1)
WF11541 p1 07.14
52 Week High/Low in SEK/share (1)
LUP
311.1
2.0
No cash equity raised since
4.4
139 / 100
Equity end Q3 14, USD billion
1.1
Net Debt end Q3 14, USD billion
2.1
Credit Facility, USD billion
4.0
(1)
Raised cash equity ~USD 50 million in 2001
Market Cap ~USD 4.4 bn + Distribution (UK) ~ USD 0.7 bn
Resource Base (2P + 2C) at YE 2013 > 1bn bbls
Bloomberg: 23 October 2014
Lundin Petroleum
2
Lundin Petroleum
Asset Overview
Core Areas: Europe, SE Asia
Norway
Exploration
Development
Production
Russia
France
Netherlands
Malaysia
WF11304 p1 02.14
TOTAL
Indonesia
2P reserves: 194 MMboe (1)
Contingent resources: 342 MMboe (2)
(1)
End 2013 Reserves
(2)
Excludes Johan Sverdrup
Lundin Petroleum
3
Financial
Performance
Full Year
2012
Full Year
2013
1,144.1
960.9
Operating cash flow (MUSD)
831.4
975.6
Net result (MUSD)
102.2
72.9
Production (boepd)
35,700
32,700
Average Brent oil price (USD/boe)
111.67
108.66
8.09
9.60
EBITDA (MUSD)
Cost of operations (USD/boe)
1800
1600
Net Profit
Operating Cash Flow
EBITDA
Total Capex
1400
1200
1000
800
MUSD
600
400
200
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
WF11543 p1 02.14
-200
-400
-600
(1)
(1)
Impairment of Russia
Lundin Petroleum
4
Lundin Petroleum
Liquidity [MUSD]
at 30 September 2014
Debt Outstanding
2,166
WF11543 p2 11.14
Cash Balances
112
Net Debt Position
2,054
New Reserve Based Lending Credit Facility
4,000
7 year facility
26 banks in the syndicate
5th RBL facility since inception
Lundin Petroleum
5
2P Reserves
31 December 2013
Gas, 8%
Total 194.1 MMboe
Malaysia, 13.7
Indonesia, 1.9
Russia, 6.1
Bøyla, 3.3
France, 22.5
Oil & NGL, 92%
Netherlands, 3.4
Brynhild
20.7
MMboe
End 2012
Alvheim
21.7
201.5
- 2013 Production
-11.9
+ Reserve additions (excl. sales/acquisitions)
Gaupe, 0.2
Volund
7.8
End 2013
194.1(1)
Reserves increase
2%
WF11866 p2 01.14
Reserves replacement ratio
Edvard Grieg
92.9
Norway, 146.6
(1)
4.5
38%
Oil Price (Brent) USD 100/bbl + 2% escalation on oil price and costs
Numbers in chart may not add up due to rounding
Lundin Petroleum
6
2P Reserves
History
250
200
Malaysia
Russia
MMboe
150
Norway
Tunisia
Netherlands
100
Indonesia
France
50
WF11866 p3 01.14
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Year End
Lundin Petroleum
7
Contingent Resource
Growth
1,200
1,000
Norway - J. Sverdrup
Malaysia
MMboe
800
Russia
Others
600
Norway
400
200
WF11866 p6 01.14
0
Includes
Johan Sverdrup
2005
2006
2007
2008
2009
2010
2011
2012
2013
Excludes
Johan Sverdrup
Year End
Lundin Petroleum
8
Targetted
Contingent Resources to Reserves
2014 appraisal drilling programme
successfully completed
Commercial assessment of Luno II, Gohta
& Tembakau ongoing
Johan Sverdrup comes in addition
Gross Contingent Resources:
1,800 - 2,900 MMboe(1)
6 wells
Low range
350
300
250
200
WF11866 p7 01.14
150
Statoil working operator estimates Dec 2013
(2)
Based on 50% WI
(1)
High range
400
Net Reserves/Resources (MMboe)
2014 appraisal Budget USD 300 million
2P Reserves
end 2013
Gohta
Luno II (2)
Tembakau
Appraisal to move contingent
resources to reserves
Johan
Sverdrup
Subject to
unitisation
Lundin Petroleum
9
Lundin Petroleum
Production
Nine months 2014 Actual (2)
Russia, 7%
Netherlands, 7%
First nine months 2014 production: 25,900 boepd
Indonesia, 6%
Alvheim outperformed, Volund underperfomed
Sold onshore Russian production July 2014
Third quarter production on forecast but negatively impacted by
Alvheim FPSO planned shut-in
France, 11%
Brynhild - first oil Q4 2014
2014 production guidance: 24,000–29,000 boepd
2014 First Nine Months Actual and
Revised Production Guidance
2009-2013 Production
(1)
WF11866 p5 11.14
Thousand boepd net
50
50
40
40
30
30
20
20
10
Alvheim FPSO
10shut-in
planned
0
2009
2010
2011
2012
2013
Q1
Actual
Excluding discontinued operations which include United Kingdom, Salawati Basin & Island in Indonesia
(1)
Norway, 70%
Q2
Actual
2014
Q3
Actual
0
(2)
Guidance high
Guidance low
Actual production
Not adding due to rounding
Lundin Petroleum
10
Production Forecast
2014-2015
2015 average approximately 50,000 boepd (1)
Bøyla first oil Q1 2015
Bertam field first oil in Q2 2015
Edvard Grieg first oil Q4 2015
To exceed 75,000 boepd by end 2015
Edvard Grieg
start-up
Bøyla
start-up
WF11866 p4 07.14
Q1 Actual
2014
(1)
Q2 Actual
2014
21,700 boepd
27,500 boepd
28,800 boepd
Brynhild
start-up
Bertam
start-up
Q3 Actual
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Guidance includes onshore Russian production of ~ 2,000 bopd
Lundin Petroleum
11
Production Forecast
From Ongoing Development
10-15
exploration wells
per year
Johan
Sverdrup
35,700
32,700
24-29,000
WF11866 p1 07.14
boepd
2012
2013
2014
(1)
Ivar
Aasen
75,000 boepd
~ 50,000 (1)
Edvard
Bertam Grieg
Bøyla
Brynhild
Other existing contingent and
prospective resources not
included in production forecast
2015
2016
2017
2018
2019
2020
.......
Guidance includes onshore Russian production of ~ 2,000 bopd
Lundin Petroleum
12
Lundin Petroleum
13
Overview
France & Netherlands
France
Hydrocarbon Type
Netherlands
Oil
Gas
2013 Production Net, boepd
2,890
2,000
2P Reserves Net, MMboe
22.5
3.4
Best Estimates Contingent
Resources Net, MMboe
12.8
–
2013 Operating Cash Flow
Netback, USD/Boe
57
Asset Description
Exploration
"
Offshore
Netherlands
Onshore
44
Mature low decline
onshore production
Mature on/offshore
production
1.1 Million acres
1 exploration well in 2014
3 exploration wells in 2014
"
"
Paris Basin
France
Aquitaine Basin
10,000
France historical production (bopd gross)
4,500
Aquitaine Basin
8,000
Netherlands historical production (boepd net)
4,000
Paris Basin
"
3,500
Plaines du Languedoc
3,000
(boepd)
bopd
6,000
4,000
2,500
2,000
WF11672 p8 01.13
1,500
1,000
2,000
500
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0
KM
400
"
Lundin Petroleum
14
Norway & Malaysia
Development Projects
Norway
United
Kingdom
Ongoing Norwegian Developments
Bøyla
Stavanger "
Ivar Aasen Unit
Edvard Grieg
Norway
Edvard Grieg (Lundin 50% operator)
North Sea
Brynhild (Lundin 90% operator)
Bøyla (Lundin 15%)
Ivar Aasen Unit (Lundin 1.385%)
Brynhild
0
Ongoing Malaysian Development
KM
40
Malaysia - Natuna Sea
0
KM 100
Bertam (Lundin 75% operator)
2014 Budget USD 1.4 Billion
Malaysia
Bertam
WF11383 p1 07.14
Kuala Lumpur
Indonesia
Indonesia
Malaysia
Singapore
Lundin Petroleum
15
Norway
Edvard Grieg Development
Norway - Southern Utsira High
PL546
PL501
Ivar Aasen Unit
PL674
Apollo
Edvard Grieg
2P reserves: 186 MMboe gross
Plateau production: 100,000 boepd gross
20
PL625
PL167 & PL167B
PL673
Lundin Petroleum interest: 50% (operator)
OMV 20%, Wintershall 15%, Statoil 15%
KM
0
UK
Luno South
Production startup Q4 2015
PL501B
PL338 PL265
PL359
Luno II
PL410
Johan Sverdrup
Capital costs: 25 NOK billion - on budget
(1)
0015
PL544
Norway
Drilling 15 wells from jack-up rig – commenced drilling operation
0016
Lundin Petroleum Operator
Lundin Petroleum Partner
Jacket completed and installed
Edvard Grieg Schematic
Topside and oil pipelines construction ongoing
Edvard Grieg Platform
One appraisal well in south east of the field completed and one further
appraisal planned during 2015
Ivar Aasen Platform
Gas Export to SAGE
Q1
Decision Gate / PDO
Engineering/Procurement
WF11585 p01 10.14
Construction/Assembly
Topside Execution
Pipelaying
Offshore Hook-up/Commissioning
Installation
Contract Award
Q3
Q4
Q1
2013
Q2
Q3
Q4
Q1
2014
Q2
Q3
Q4
Q1
2015
Q2
Q3
Oil Export
to Grane
Q4
PDO Approved by Authorities
Ivar Aasen
Jacket Execution
Load out/Seafastning &
Marine Operations
Drilling
2012
Q2
Gas
Oil
Oil & Gas Export Pipeline
Pre Drilling & Drilling
Luno South
Edvard Grieg
First Oil
(1)
Escalated @ 2.5%
Lundin Petroleum
16
Norway
North Sea Developments
Norway - North Sea
Brynhild Development (Lundin 90% operator)
Subsea tie-back to Pierce field, UK
Subsea installations successfully completed
New riser successfully hooked-up to FPSO
Two development wells successfully completed
– Longer reservoir section completed
2P Reserves 23.1 MMbo gross
Plateau production: 12,000 boepd gross
First oil Q4 2014
United
Kingdom
Bøyla
Edvard Grieg
Norway
North Sea
Bøyla Development (Lundin 15%)
Tie-back to Alvheim FPSO
Production manifold and pipelines successfully installed
2 development wells completed, third well to be completed 2015
2P reserves: 22 MMboe gross
Plateau production: 20,000 boepd gross
First oil Q1 2015
Stavanger"
Ivar Aasen Unit
Brynhild
KM
40
WF11383 p02 11.14
0
Lundin Petroleum
17
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: Q2 2015
Development plan
Wellhead platform
14 horizontal wells with ESP’s
Utilise 100% owned FPSO
Bertam Location Map
0
PM319
KM
20
PM307
Sotong
Field
Mengkuang Prospect
Tembakau Gas Discovery
Malaysia
Gross CAPEX MUSD 400 (1)
Malong
Field
Jacket and topsides installed
Rengas Prospect
FPSO upgrade to be completed by end 2014
Gurita
WF11667 p1 10.14
Development drilling has commenced
Bertam Oil Field
PM308B PM308A
(1)
Indonesia
Excludes capex related to the FPSO
Lundin Petroleum
18
Development Projects
Current Work Status
Bøyla Development
Manifold sail away
Manifold on location
Edvard Grieg Development
Development drilling
Topsides - LQ and Helideck en route to Stord
Brynhild Development
WF11898 p01 11.14
Pierce FPSO after Docking
Topsides modules under construction, Stord
Bertam Development
Brynhild Riser
FPSO upgrade
Development drilling
Topside installed
Lundin Petroleum
19
Norway
Johan Sverdrup Development
22 wells + 7 sidetracks drilled to date on Johan Sverdrup
Working Interest
PL501
PL265
PL502
Lundin Norway
40% (OP)
10%
0%
Statoil
40%
40% (OP)
44.44% (OP)
Maersk
20%
–
–
Gross Contingent Resources: 1,800–2,900 MMboe(1)
Det norske
–
20%
22.22%
Appraisal drilling programme completed
Petoro
–
30%
33.33%
2010
2011
PL501
2012
PL501
2013/2014
PL501
PL501
16/2-19 &19A
16/2-9S
16/2-12
16/2-10
Norway
16/2-6 & 6 T2
$
16/2-14
$
16/2-8
PL265
PL265
$
16/3-4 & 4A
16/2-16S & 16A & 16 T2
16/2-13S & 13A
16/2-11 & 11A
16/2-15
16/2-7 & 7A
PL265
PL265
PL502
16/3-6
$
16/2-17S
16/5-2
PL502
16/3-8S
16/3-5
16/2-21
PL502
16/3-7
16/5-3
16/5-4
PL502
J. Sverdrup
0
KM
WF11602 p01 03.14
Avaldsnes discovery
5
0
KM
5
Aldous Major South discovery
5 wells + 2 sidetracks
1 well + 1 sidetrack
0
KM
5
0
KM
5
Avaldsnes and Aldous MS
7 wells in 2013
renamed Johan Sverdrup
2 wells in 2014 + 1 sidetrack
7 wells + 3 sidetracks
(1)
Statoil working operator estimates Dec 2013
Lundin Petroleum
20
Norway - Johan Sverdrup
Phase I - Concept Development – Key Facts
Facilities – Phase 1
Four bridge linked steel jacket platforms to be installed during 2018 and 2019
Power supply from shore
Wells – Phase 1
40-50 production and injection wells to be drilled in total for Phase 1 – majority drilled from wellhead platform
Of the above 11-17 production and injection wells to be drilled prior to first oil
Export facilities
Dedicated 274km 36” oil pipeline to the Mongstad oil terminal
Dedicated 165km 18” gas pipeline to Kårstø gas terminal for processing and onward transportation
Gross capital investment for Phase 1 of between NOK 100 – 120 billion
Includes: Platforms, wells, power supply from shore and export facilities
Includes contingencies and market allowances for cost increases over and above inflation
Partners working to optimise the investment costs for phase 1
WF11877 p02 03.14
Production – Phase 1
Gross production capacity of 315,000 to 380,000 boepd
Lundin Petroleum
21
Norway - Johan Sverdrup
Phase I Development Schematic
Concept selection for Phase I agreed in February 2014
Phase I FEED ongoing
Letter of intent awarded in Q2 2014 for two steel jackets to be built in Norway
Impact assessment (first step of PDO process) submitted
Phase I FEED
Q1
Q2
Q3
2013
Q4
Concept Selected
Q1
Q2
Q3
2014
Q4
PDO Approval - Phase I
Q1
Q2
Q3
2015
Q4
Q1
Johan Sverdrup Phase I Topside Layout
Q2
First Oil - Phase I
Q3
2016
Q4
Q1
Q2
Q3
2017
Q4
Q1
Q2
Q3
2018
Q4
Q1
Q2
Q3
2019
Q4
Phase I
CAPEX NOK 100-120 Bn
Production Capacity: 315-380,000 boepd
Full field
Wellhead & Drilling
platform
Gross Contingent Resources: 1,800-2,900 MMboe
Plateau Production : 550-650,000 boepd
Processing platform
WF11877 p03 03.14
Riser platform
Living Quarter
Lundin Petroleum
22
Appraisal Programme 2014/2015
9 Wells
2014 Budget : 300 Million USD
2014 Appraisal Programme
2015 Appraisal Programme
Norway - 5 wells
Malaysia - 1 well
Norway - 3/4 wells
Utsira High
Peninsular Malaysia
Utsira High
4 wells completed
1 well completed
on Tembakau
Barents Sea
1 appraisal well
on Edvard Grieg
1 well completed
0
KM
PL167 PL501
16
0
KM
40
PL674
North Sea
1 well on Edvard Grieg
Edvard Grieg
1 well on Edvard Grieg
Norway
WF11796 p9 10.14
Luno II Discovery
PL533
PL659
2 wells on Alta
1 well on Gohta
Norway - Utsira High
Subject to Norwegian government approval
PL438
Johan Sverdrup
Discovery
1 well on Luno II
0
KM
80
PM319
PL492
PL338 PL265
PL359 PL410
(1)
2 wells on J. Sverdrup
2 appraisal wells
on Alta
1 appraisal well
on Gohta under review
PL609
Ivar Aasen Unit
PL673
Barents Sea
Gohta Discovery
PL501 B
Norway
PL490
1 well on Tembakau
Alta Discovery
1 well on Gohta
PL767
Barents Sea
Norway - Barents Sea
2014 appraisal wells completed
Tembakau Discovery
PM307
PM308B PM308A
Malaysia
Bertam Discovery
Natuna Sea
Gurita
Indonesia
Malaysia - Peninsular Malaysia
2015 appraisal wells
Lundin Petroleum Operator
Lundin Petroleum Partner
Lundin Petroleum
23
Norway - Barents Sea
2014 Appraisal Activities – Gohta Appraisal
0
KM
40
PL609
PL533
PL659
Alta Discovery
PL492
Gohta Discovery
PL438
PL492 (Lundin 40%, operated)
PL767
Norway
PL490
Gohta Discovery – PL492, 40%
Discovery well: 75 metres gross oil column
/ 25 metres gross gas column – tested 4,300 bopd
Snhøvit Area
Barents Sea
Alta Discovery
Appraisal well: 10 metre gross gas/condensate column
– tested 26.4 MMcfd and 880 bpd condensate
Results of well currently being analysed
OWC
GOC
Gohta Discovery
WF11786 p03 11.14
Gohta Appraisal
Lundin Petroleum
24
Malaysia - Peninsular Malaysia
Malaysia - 2014 Appraisal Activities
Tembakau Appraisal
Thailand
PM319
Kemaman Harbor
Natuna Sea
Medan
Gurita
Kuala Lumpur
Tembakau-2 appraisal well successfully completed
22 metres of gross gas sands in four sand intervals
Well test results
I20 sand - 15.8 MMscf per day of gas
I10 sand - 15.9 MMscf per day of gas
PM308B
4km
Indonesia
0
KM
20
Tembakau-2
F/H
PM319
Sotong
Tembakau
Gas Discovery
30”
I20
I30
I35
I80
Main appraisal
targets I10-I20
Kerteh gas p
200
PM307
S
I10
KM
Prospects/Leads
Malaysia
B
TEMBAKAU
1 km
Indonesia
Singapore
”
32
A
PM308A
Malacca LNG Terminal
0
bounding fault
Baronang
Kuantan New Port
Gross 2C gas resources 306 Bcf
Cakalang
PM307
Malaysia
PM307 - Lundin Petroleum 75% operator (Petronas Carigali 25%)
Tembakau-1
Tembakau
Gas Discovery
o
ot
ng
k
40
m
A
lant 110km
Malong 30km
Tembakau-2 Appraisal
B
Malong
Natuna Sea
WF11673 p4 01.03
J
Bertam Discovery
K-shale
1.5 km
Gurita
K-sand (wet)
Pre-tertiary
PM308B
PM308A
Indonesia
Lundin Petroleum
25
Asset Overview
2014/2015 Exploration
Norway
3 exploration wells in 2014
7 exploration wells in 2015
France
1 exploration well in 2014
Malaysia
WF11433 p9 11.14
2 exploration wells in 2014
1 exploration well in 2015
6 exploration wells remaining in 2014
280 MMboe
8 exploration wells scheduled in 2015
490 MMboe
Targeting net unrisked resources
770 MMboe
Lundin Petroleum
26
Norway - Barents Sea
Overview
0
KM
0
400
KM
400
Svalbard
Faroe Is.
Norway
North Sea
Denmark
Barents Sea
Underexplored ~ 100 wells
70°0'0"N
Barents Sea
Russia
Norway
Netherlands
Ireland
Sweden
5 recent oil discoveries
+ 2 gas discoveries
Lundin operator
Lundin partner
Discovery
Prospect
H
PL659
FE
Alta Discovery (125-400 MMboe)
ST
BA
Gohta Discovery (111–232
MMboe)
t Area
N
PL767
SI
AH
Neiden (204 MMboe)
IGH
ER
Børselv (303 MMboe)
M
PP
M
LO
A
~ 1 billion boe
discovered over
last 4 years
Wisting Discovery (117 MMboe)
Germany
United
Kingdom
Finland
Snhøv
i
Skalle Discovery (~28 MMboe)
PL609
Skavl, Drivis Discoveries
PL438
WF11421 p7 09.14
Johan Castberg Discoveries (550 MMboe)
BJ
OR
NO
YA
BA
PL490
PL492
PL533
SIN
Salina Discovery (~35 MMboe)
Lundin Petroleum
27
Norway - Barents Sea
Loppa High Exploration
Lundin Petroleum Licences
Fields
Non Operated
Operated
Oil
Gas
0
Alta Discovery
Prospects
KM
20
Bjørnøya Bassenget
pl
ex
PL609 (Lundin 40%, operated)
om
en
na
Fa
ul
tC
46 metres gross oil column / 11 metres gross gas column
– tested ~3,300 bopd
Neiden Prospect
Bj
Hi
ør
gh
nø
yr
Kramsnø
Johan Castberg
rm
Drivis
tfo
Neiden prospect
Skavl
pla
2015 Exploration programme
Iskrystall
b-
Alta Discovery
Ve
s
le
m
øy
Gross recoverable oil and gas resource estimate range:
125–400 MMboe
Børselv 609
Loppa High
lhe
Po
Rauto
533
Senilex well (1985)
im
Su
Gross prospective resources ~200 MMboe
Lakselv
North
Lakselv
Formica
WF11786 p02 10.14
Gohta Appraisal
Gohta Discovery
Development options
are being reviewed
South
Alta Discovery
Salina
492
Tromsø Basin
609 B
Gohta Appraisal
Ringvassøy-Loppa Fault Complex
Alta total resources:
125 – 400 MMboe
659
Gohta Discovery
Lavvo
Komag
438
Rein
Boazo
767
Noaide
Hammerfest Basin
Skalle
490
Trål
SNØHVIT
Lundin Petroleum
28
Norway
Utsira High Area Evolution
Lundin Petroleum Operator
Oil
Prospect
Lundin Petroleum Partner
Gas
Lead
NGL
2004 - 2007
024
2008 - 2010
024
025
PL338 (2004)
PL625
(2012) 025
024
PL546
PL501
Avaldsnes
Discovery 2010
Apollo
Discovery 2009
Luno South
Discovery 2009
PL338
PL625
Aldous MajorPL546
North
PL501
Discovery 2011
PL673 (2013)
Edvard Grieg
Discovery 2007
015
PL546
(2010)
025
Ivar Aasen
Discovery 2008
Ragnarrock
Discovery 2007
2011 - 2013
015
PL410016
PL673
Geitungen Discovery 2012
Aldous Major South
Discovery 2011
PL338
PL338 PL265
PL359 PL410016
015
PL265
PL359
PL501b (2011)
016
PL501b
PL410 (2007)
PL359
PL544
PL359 (2006)
PL501 (2009)
North Sea
North Sea
Luno II
Discovery 2013
PL544
PL409
PL409 (2007)
0
KM
8
First licence (PL338) in 2004
WF11749 p1 07.13
First discovery (Luno) in 2007
PL409
PL544 (2010)
0
KM
8
Luno (renamed Edvard Grieg) doubles
in size following appraisal
3 additional discoveries on western
side of Utsira High
1 major discovery (Avaldsnes) on
eastern side of Utsira High
Renamed In 2011
Johan Sverdrup
PL410
North Sea
0
KM
8
PL409
The Avaldsnes structure is extended with
another major discovery on Aldous MS.
The giant field is renamed Johan Sverdrup
Extensive appraisal on Johan Sverdrup
1 discovery (Luno II) on south western
corner of Utsira High
Lundin Petroleum
29
Norway Exploration - Utsira High
2014/2015 Exploration Drilling
Field
Discovery
Prospect
Ongoing Drilling
Zulu
Significant remaining potential in the Utsira High
Exploration – 5 wells
PL625 (40%): 25/10-12 Kopervik (1) – 163 MMboe (2) , ongoing
25/10-12 Kopervik
PL359 (50%): Luno II North – 24 MMboe (2)
PL338 (80%(3)): Gemini – 93 MMboe (2)
Hanz
Johan Sverdrup
PL674 (35%): Zulu – 153 MMboe (2)
PL544 (40%): Fosen – 192 MMboe (2)
Ivar Aasen
Apollo
Edvard
Grieg
Rolvsnes
Gemini
WF11976 p01 10.14
Targeting net unrisked resources of ~270 MMboe
Includes prospective resources on PL167 (20% W.I.)
(2)
Gross unrisked prospective resources
(3)
Lundin carrying an 80% WI for the Gemini Propsect only
(1)
Luno II North
Luno II
Fosen
Lundin Petroleum
30
Norway
Exploration Story in Numbers
Second largest holder of operated acreage
25,000
Licence acreage
Cumulative km2
APA 2013
20,000
15,000
10,000
5,000
0
1,000
800
Discovered resources
40
Johan Sverdrup
Discovered Resources excl
Johan Sverdrup
35
600
400
200
0
Second most active explorer
Cumulative Wells
Cumulative MMboe (net)
WF11855 p01 02.14
Third largest contingent resources on the NCS
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
30
No. exploration wells
Commercial discovery
Non-commercial discovery
Dry Hole
25
20
15
10
5
0
2007
2008
2009
2010
2011
2012
2013
2007
2008
2009
2010
2011
2012
2013
Lundin Petroleum
31
Why Invest
in Norway?
Undiscovered Resources on the NCS
Source: NPD
18.5 Bn bbls
Norwegian Sea
5.4 Bn bbls
Excellent exploration potential remains
No independents until recently
Lower drilling density than UK
Close to existing infrastructure
Wells drilled
Barents Sea
8.0 Bn bbls
North Sea
5.1 Bn bbls
Stable and attractive fiscal regime
78% tax rate (effective rate ~73% with capital uplift)
89.2%(1) tax deduction on development expenditures due to tax uplift
Bergen
Lundin Petroleum Success Rate
Exploration wells success
(2003-2013)
WF11320 p01 0.314
30
25
25
20
20
15
10
5
5
0
0
Success
40% Hit Ratio
(1)
Stavanger
24
22
15
10
Drilled
Norway
Bergen
30
15
UK
35
36
Wells
Wells
35
Appraisal wells success
(2003-2013)
Aberdeen
Drilled
Success
92% Hit Ratio
Changed from 93% following the Norwegian Governments revised terms on uplift and special petroleum tax rate.
0
KM
120
Lundin Petroleum
32
Norway
Finding Cost & Value Creation
Lundin Petroleum most successful exploration company in Norway during the last decade
Continue to pursue value creation through exploration
OMV Acquisition of PL338 (20%)
2.00
Norway - Cumulative Finding Cost (USD/boe)(1)
PL338 (Edvard Grieg) Transaction value USD/bbl
PL338 transaction value (Post Tax)(2)
USD/boe
1.50
1.00
8.7 USD/boe
0.50
0
WF11855 p04 01.14
2007
(1)
(2)
2008
2009
2010
2011
2012
2013
Costs include cumulative exploration and appraisal costs since inception up to 31.12.2013. Discovered resources assume year end 2013 remaining 2P reserves for Edvard Greig, Volund, Gaupe, Bøyla and Brynhild. For Gaupe and Volund cumulative production up
to 31.12.2013 is also included in reserves. Brynhild 2P reserves have been adjusted for 50% ownership at the time of making the discovery. Johan Sverdrup contingent resources have been estimated by Lundin Petroleum. Gohta and Luno II contingent resources
included as per third party certification
based on consideration of €247.9 million converted to USD based on €1.31:USD
Lundin Petroleum
33
South East Asia
2014 / 2015 Activity
Total
Cambodia
Vietnam
Philippines
Cakalang WI: 90%
WI: 50% PM328
WI: 75% PM307
WI: 85% PM319
Penyu Core Area
Bertam development
Tembakau appraisal
2 exploration wells
Exploration Licences:
Production Licences:
Lundin Petroleum Operator
SB303 WI:75%
Gurita WI: 90%
Lundin Petroleum Partner
Sabah Area
Kitabu exploration well
Baronang WI: 85%
12
1
SB307/308 WI:42.5%
Natuna Sea
South Sokang WI:60%
Malaysia
WI: 35% PM308A
WI: 50% PM308B
Malaysia
WI:100% Cendrawasih VII
Singapore
West
Papua
Borneo
Sumatra
Indonesia
Sulawesi
Papua
WI:25.88% Lematang
WF11852 p2 11.14
Singa gas production
Java
Timor-Leste
3 exploration wells, targeting net unrisked resources of ~60 MMboe
0
KM
Lundin Petroleum
400
34
Malaysia - Sabah Area
SB307/308 Prospects
Malaysia - Sabah Area
0
KM
Cempulut Discovery
40
SB303
SB307/308 (42.5%, Operator)
Prospect: Kitabu
Titik-Terang
Currently drilling
Gross prospective resources: 71 MMboe
Tarap
Discovery
Berangan
Discovery
Trap: stratigraphic onlap and pinchout
Reservoir: Miocene Stage IVC turbidites sands
SB303 (75%, Operator)
Kitabu
SF30
St Joseph
Tarap/Cempulut/Titik-Terang/
Berangan discoveries
Gross contingent resources: ~350 Bcf
Potential cluster development
SB307/308
WF11386 p1 03.14
Malaysia
Borneo
"
Kota Kinabalu
Lundin Petroleum
35
2014/2015 Exploration & Appraisal
Drilling Schedule
CoGS(2)
Well
LUPE
type Operator WI % NUPR(1)
NRPR(3)
Country Licence - Prospect
1 Norway
2 Norway
3 Norway
4 Norway
5 Norway
6 Norway
7 Norway
8 Norway
9 Norway
10 Norway
11 Norway
12 Norway
PL631 - Vollgrav South
PL584 - Lindarormen
PL359 - Luno II North
PL579 - Morkel
PL544 - Fosen
PL609 - Alta
PL625 - Kopervik
PL674 - Zulu
PL338 - Gemini
PL609 - Alta Appraisal 1
PL609 - Neiden
PL609 - Alta Appraisal 2
PL555 - Storm
14 Norway
PL708 - Ørnen
15 Norway
PL338 - E.Grieg Appraisal SE
16 Indonesia Gurita - Gobi
17 Malaysia SB307&308 - Kitabu
18 Malaysia PM307 - Mengkuang
19 Malaysia PM307 - Rengas
Est-Champagne - Hoplites-1 (Nettancourt)
20 France
WF11117 p1 01.11.14
13 Norway
operated
exp
exp
exp
exp
Lundin
60.00
Lundin
Lundin
Lundin
exp
exp
Lundin
Lundin
exp
-
-
-
60.00 116
50.00 12
50.00 37
23%
36%
21%
27
4
8
40.00
40.00
77
-
22%
-
17
-
Lundin
40.00
54
43%
23
exp
exp
Lundin
Lundin
35.00 54
80.00(4) 74
20%
24%
11
18
app
exp
app
Lundin
Lundin
Lundin
40.00
40.00
40.00
82
-
30%
-
25
-
exp
Lundin
60.00
52
20%
10
exp
app
Lundin
Lundin
exp
Lundin
40.00 142
50.00
90.00
-
20%
-
28
-
exp
Lundin
42.50
30
30%
9
exp
exp
Lundin
Lundin
75.00
75.00
16
16
35%
32%
6
5
exp
Lundin 100.00
14
14-35%
5
2014
Q4
2015
Q1
Q2
Q3
Q4
Dry
Ongoing
Discovery
Ongoing
Ongoing
Dry
Ongoing
Ongoing
Netherlands exploration wells not included
non operated
(1)
Net Unrisked Prospective Resources (MMboe)
(4)
Lundin carrying an 80% WI for the Gemini Propsect only
(2)
Chance of Geological Success
(3)
Net Risked Prospective Resources (MMboe)
Lundin Petroleum
36
Lundin Petroleum’s
Shareholders
Shareholder structure
Others, 15%
Lundin Family, 32%
Retail, 14%
Number of shares in issue: 311.1 million
Market Cap: USD 4.4 billion (1)
Institutional
Investors, 39%
Owned by Lundin Petroleum: approx. 2 million shares
Average traded volume per day, first 6 months 2014: approx. 1.3 million
Part of OMX30, NASDAQ OMX Stockholm
Geographically
Rest of the World, 15%
Sweden, 30%
Secondary listing on Toronto Stock Exchange
North America, 8%
WF11003 p01 07.14
Europe, 47%
(1)
WF11003 p1 06.12
Bloomberg 23 October 2014
Source: IPREO, August 2014
Lundin Petroleum
37
Production Forecast
From Ongoing Development
10-15
exploration wells
per year
Johan
Sverdrup
35,700
32,700
24-29,000
WF11866 p1 07.14
boepd
2012
2013
2014
(1)
Ivar
Aasen
75,000 boepd
~ 50,000 (1)
Edvard
Bertam Grieg
Bøyla
Brynhild
Other existing contingent and
prospective resources not
included in production forecast
2015
2016
2017
2018
2019
2020
.......
Guidance includes onshore Russian production of ~ 2,000 bopd
Lundin Petroleum
38
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 51-101 Standards
of Disclosure for Oil and Gas Activities ("NI 51-101") 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.
WF8278 p1 03.14
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.
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.
Lundin Petroleum
39
www.lundin-petroleum.com