Production
Production for the financial year ended 31 December 2007 amounted to 12,662.9 (10,832.9) thousand barrels of oil equivalent (mboe) representing 34.7 mboe per day (mboepd) (29.7 mboepd) for the financial year ended 31 December 2007. The average price achieved for a barrel of oil equivalent for the financial year ended 31 December 2007 amounted to USD 65.65 (USD 59.70). The average Dated Brent price for the financial year ended 31 December 2007 amounted to USD 72.39 (USD 65.13) per barrel.
Net sales of oil and gas for the year ended 31 December 2006 amounted to MSEK 4,233.3 (MSEK 3,995.5) and MSEK 1,105.4 (MSEK 968.4) for the fourth quarter of 2006. Production for the year ended 31 December 2006 amounted to 10,832.9 (12,083.5) thousand barrels of oil equivalent (mboe) and 3,175.5 mboe (2,840.1 mboe) for the fourth quarter of 2006 representing 29.7 mboe per day (mboepd) (33.2 mboepd) for the year ended 31 December 2006 and 34.5 mboepd (30.9 mboepd) for the fourth quarter of 2006.
Reserves
As at 1 January 2007 Lundin's net proven and probable reserves increased to 176.4 million barrels of oil equivalent (MMBOE). This equates to a 29 percent increase to reserves since 1 January 2006 taking into account actual 2006 production.
The reserves are based upon a third party independent audit conducted by Gaffney Cline with the exception of the Russian reserves. The Russian reserves acquired during 2006 are substantially based upon earlier completed third party reserve reports completed by Ryder Scott and DeGolyer & MacNaughton as adjusted for actual production up to 1.1.2007.
Proven and Probable Reserves (MMBOE)
Gaffney Cline Reserves at 1.1.2006: 146.1
2006 Production (excluding Russia): -9.8
Venezuela (converted to a mixed enterprise companyand removed from reserves): -4.4
Reserve Additions (excluding acquisitions): +12.0
Acquisitions: +32.5
Proven and Probable Reserves at 1.1.2007: 176.4
Reserve increase: 29%
Reserve replacement ratio*: 122%
*As per industry standards the reserve replacement ratio is defined as the ratio of reserve additions to production during the year, excluding acquisitions and the conversi on to a mixed enterprise company in Venezuela.
The reserves do not include the recent acquisition of an interest in the Peik gas/ condensate field in the United Kingdom (33.3%)/Norway (50%) which awaits completion.
The proven and probable reserves have been calculated using the Society of Petroleum Engineers (SPE) and World Petroleum Congress joint definitions.