Lundin Petroleum reports a net profit for the three month period ended 31 March 2008 of MSEK 395.5 (MSEK 212.0) representing earnings per share on a fully diluted basis of SEK 1.25 (SEK 0.67) for the three month period ended 31 March 2008.
Operating cash flow for the three month period ended 31 March 2008 amounted to MSEK 678.1 (MSEK 611.2) representing operating cash flow per share on a fully diluted basis of SEK 2.15 (SEK 1.94) for the three month period ended 31 March 2008.
Earnings before interest, tax, depletion and amortisation (EBITDA) for the three month period ended 31 March 2008 amounted to MSEK 726.4 (MSEK 765.1) representing EBITDA per share on a fully diluted basis of SEK 2.30 (SEK 2.43) for the three month period ended 31 March 2008.
Net sales of oil and gas for the three month period ended 31 March 2008 amounted to MSEK 1,199.0 (MSEK 1,319.6). Production for the three month period ended 31 March 2008 amounted to 2,528.0 (3,655.3) thousand barrels of oil equivalent (mboe) representing 27.8 mboe per day (mboepd) (40.6 mboepd) for the three month period ended 31 March 2008.
Comments from Ashley Heppenstall, President and CEO
The start-up of production from the Alvheim fie ld, offshore Norway, will commence shortly and is a major milestone for us. When the field reaches plateau production in the next 5 to 6 months it will contribute about 14,000 barrels of oil equivalent per day (boepd) net to Lundin Petroleum which represents over 50 percent of our total first quarter 2008 production. It will have a material impact on our cash flow and profitability, particularly at today's oil prices. The Alvheim field will commence production in May following the successful installation of the Alvheim FPSO during the first quarter. The extended delays to production start-up have been frustrating but we now look forward to a strong production contribution from this world class project.
In Russia, our exploration drilling programme in the Northern Caspian Sea is about to commence. A four well exploration programme is planned in 2008/2009.
Exploration drilling commenced in Block 5B in Sudan during the first quarter. Unfortunately, the results of the f irst two wells were disappointing with two dry holes. Exploration drilling will continue with two further wells planned during 2008.
We continue to believe that the best way to create shareholder value is to have exposure to a continued and diverse exploration programme. 2008 will be our most active year ever in respect of exploration activity with 17 exploration wells planned to be drilled.
I am pleased that following our success in acquiring 28 new licences in 2007 we have started 2008 with the award of 10 new licences. As I continue to reiterate, it is critical that to deliver on our organic exploration led strategy, we continue to identify new areas for exploration which will deliver our drilling opportunities of tomorrow.