Lundin Petroleum updates its 2P reserves and ... - Energy-pedia

Lundin Petroleum has announced that as at 31 December 2012 its net proven and probable working interest reserves ('2P reserves') are 201.5 million barrels of oil equivalent (MMboe) and that the production forecast for 2013 is between 33,000 and 38,000 barrels of oil equivalent per day (boepd).

Lundin Petroleum is predominantly an oil company with 91 percent of its 2P reserves being oil(3) and 89 percent of the 2P reserves being located in OECD regions.

The 2P reserves have been positively impacted by the Bertam field, offshore peninsular Malaysia, which has been added to 2P reserves. Further increases result from Lundin Petroleum's main producing assets, the Alvheim and Volund fields offshore Norway which yet again delivered better than expected reservoir performance, as well as the Brynhild field offshore Norway which gained reserves through the addition of one extra production well and an equity increase in the field from 70 percent to 90 percent. These additions were offset by reserves reductions predominantly on the Gaupe gas/condensate field offshore Norway and producing assets in the Komi Republic in northern Russia.

Lundin Petroleum's forecast production for 2013 is between 33,000 to 38,000 boepd. The production from Norway represents approx. 74 percent of forecast 2013 production and oil represents approx. 81 percent.

The reserves are based upon a third party independent audit conducted by ERC Equipoise Limited ('ERCE'). The Proven and Probable Reserves have been calculated using 2007 Petroleum Resources Management System (SPE PRMS) Guidelines of the Society of Petroleum Engineers (SPE), World Petroleum Congress (WPC), American Association of Petroleum Geologists (AAPG) and Society of Petroleum Evaluation Engineers (SPEE) and have been reviewed for compliance with the Canadian Oil and Gas Evaluation Handbook (COGEH) and the Canadian National Instrumental 51-101 Standards of Disclosure for Oil and Gas Activities. The reserves were calculated using an oil price of USD 100 per barrel in 2013, with prices and costs escalating at 2 percent per annum.

Ashley Heppenstall, President and CEO of Lundin Petroleum, comments as follows; 'I am pleased that our Malaysian business is now contributing to our 2P reserves through the inclusion of the Bertam field. I am confident that our reserves will continue to increase particularly when the Johan Sverdrup resource is booked as reserves and hope that our continued exploration program will result in further resource additions. We have been very pleased with the continued outperformance from the Alvheim and Volund fields and we expect these two fields again to be the main production contributors during 2013. We forecast to exit 2013 with a production rate in excess of 40,000 boepd with the Brynhild field coming onstream late in 2013.'

(1) 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.
(2) As per industry standards the reserve replacement ratio is defined as the ratio of reserve additions to production during the year, excluding acquisitions/sales. The reserves increase is calculated as the ratio of the 31.12.2012 reserves additions over the 31.12.2011 reserves adjusted for sales and production.
(3) Includes NGL volumes

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Source: Lundin Petroleum

Source: http://www.energy-pedia.com/news/general/new-153319

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