Lundin Petroleum reports a net profit for the financial year ended 31 December 2007 of MSEK 952.5 (MSEK 794.4) and MSEK 219.5 (MSEK 195.9) for the fourth quarter of 2007.
Operating cash flow for the financial year ended 31 December 2007 amounted to MSEK 3,126.1 (MSEK 2,271.0) and MSEK 900.5 (MSEK 618.1) for the fourth quarter of 2007.
Earnings before interest, tax, depletion and amortisation (EBITDA) for the financial year ended 31 December 2007 amounted to MSEK 3,048.6 (MSEK 2,731.5) and MSEK 637.0 (MSEK 558.9) for the fourth quarter of 2007.
Net sales of oil and gas for the financial year ended 31 December 2007 amounted to MSEK 5,353.7 (MSEK 4,233.3) and MSEK 1,390.9 (MSEK 1,105.4) for the fourth quarter of 2007. 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 margin for the financial year ended 31 December 2007 was substantially in line with the guidance given at the Company's Capital Markets Day on 30 January 2008.
Comments from Ashley Heppenstall, President and CEO
I am very pleased with Lundin Petroleum's progress in 2007, despite frustrating delays to first production from our Alvheim development project in Norway and to our exploration drilling programmes in Russia and Sudan.
In Norway the Alvheim FPSO has left port in preparation for offshore hook-up and first oil at the end of the first quarter 2008. The discovery of the Luno field in 2007 with our first operated well in Norway was a major achievement for the company. We estimate that the discovery contains between 65 mmboe and 190 mmboe of recoverable reserves in the Jurassic reservoir with further upside in the Triassic reservoir. We have completed a successful appraisal well on the Nemo field in Licence PL 148.
In Russia, we have made excellent progres s in relation to drilling our first exploration well on the Lagansky block in the Northern Caspian Sea. In 2007, we received approval from the Russian licensing agency Rosnedra to our proposed amendments to our licence commitments and early this year we received the drilling permit from Rosprirodnazor. The marine drilling complex is complete and will mobilise to the drilling location in early April for drilling of the Morskaya-1 exploration well in the second quarter of 2008.
Exploration drilling has finally commenced in Block 5B in Sudan. Our dry land exploration programme commenced last week with the drilling of the Nyal-1 well. We now look forward to an extended period of exploration drilling in Block 5B to test the large hydrocarbon potential of the area. Four exploration wells are planned in Block 5B in 2008.
Our organic growth strategy is exploration-driven. We acquired 28 new licences in 2007 with continued investment in our core areas particularly the North Sea but also with new deals in Vietnam, Cambodia, Kenya, Congo (Brazzaville) and Ethiopia. It is essential for our long term growth that we continue to identify new areas of exploration interest to generate the drilling opportunities of tomorrow. We will continue to seek new ground floor deals in direct negotiation with foreign governments and, when appropriate, enter into selective farm-in deals which complement our exploration strategy.