The Lundin Petroleum Annual Report 2016

The Lundin Petroleum Annual Report 2016

04 april 2017

The Lundin Petroleum Annual Report 2016 is now available for download on www.lundinpetroleum.com

The Annual Report will be distributed by mail to those shareholders who have requested the information.

The Annual General Meeting of shareholders will be held on Thursday 4 May 2017 at 1 pm (CEST) at Vinterträdgården, Grand Hôtel, Södra Blasieholmshamnen 8 in Stockholm, Sweden.

 

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker “LUPE”). Lundin Petroleum has proven and probable reserves of 743.5 million barrels of oil equivalents (MMboe) as at 31 December 2016.

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
orTeitur Poulsen
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00

Extraordinary General Meeting of Lundin Petroleum AB – 22 March 2017

Extraordinary General Meeting of Lundin Petroleum AB – 22 March 2017

22 March 2017

An Extraordinary General Meeting of Shareholders of Lundin Petroleum AB (publ) (the “Company”) was held today Wednesday 22 March 2017 in Stockholm.

The Meeting was convened in connection with the proposed transaction to spin-off the Company’s non-Norwegian producing assets into a newly formed company called International Petroleum Corporation (IPC) and to distribute the shares of IPC, on a pro-rata basis, to Lundin Petroleum shareholders as announced by the Company on 13 February 2017.

The Meeting resolved, in accordance with the Board of Directors’ proposal, to approve the dividend in kind of all shares in IPC to Lundin Petroleum shareholders. Three (3) shares in Lundin Petroleum shall entitle the holder to one (1) common share in IPC. If the shareholding in Lundin Petroleum is not evenly divisible by three, the holder will receive an entitlement to a fraction of a share. Such fractions will be added together with the fractions held by other shareholders into whole shares in IPC, which will be sold on the market by Pareto Securities. The proceeds, without deduction of any commissions, will then be paid to the relevant IPC shareholders via Euroclear Sweden. The Board of Directors is authorised to resolve upon the record date for the right to the distribution of IPC shares.

Completion of the distribution and the listing of the IPC shares remain subject to the receipt of the necessary approvals regarding the reorganisation of Lundin Petroleum to form IPC and the receipt of conditional listing approval for the IPC shares to be listed on the Toronto Stock Exchange (TSX) and the Nasdaq First North stock exchange. IPC plans to initially list its shares on Nasdaq First North, with an intention to move to NASDAQ Stockholm. Listing of IPC’s shares on the TSX and Nasdaq First North, and then NASDAQ Stockholm, will be subject to IPC fulfilling the requirements of the respective exchange. There can be no assurance that the shares will be accepted for listing on the TSX, Nasdaq First North or NASDAQ Stockholm.

Completion is expected to occur during April 2017.

Questions regarding the distribution of IPC shares will be answered by Pareto Securities at the following telephone number +46 8 402 51 40 during normal office hours in Sweden, or at the following email address issueservice.se@paretosec.com, until the distribution has been completed.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker “LUPE”). Lundin Petroleum has proven and probable reserves of 743.5 million barrels of oil equivalents (MMboe) as at 31 December 2016.

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
orTeitur Poulsen
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00

¹ Since the value of the assets to be distributed is determined in USD and the reorganisation has not yet been carried out, the final value of the dividend in SEK will depend on the exchange rate between USD/SEK as per the day of completion of the reorganisation. The value as stated herein is based on the Swedish Central Bank’s (Sw. Riksbanken) USD/SEK exchange rate of USD 1 / SEK 8.9724 as per 24 February 2017.

Forward looking statement link

The Johan Sverdrup development proceeds with concept selection (DG2) for Phase 2

The Johan Sverdrup development proceeds with concept selection (DG2) for Phase 2

21 March 2017

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that the Johan Sverdrup partnership has decided to proceed with (DG2) Phase 2 of the Johan Sverdrup development.

Phase 1 of Johan Sverdrup is under development with first oil scheduled for late 2019. The partners will now proceed with maturing Phase 2 for the investment decision and submission of the plan for development and operations (PDO) in the second half of 2018. Phase 2 is scheduled to come onstream in 2022.

The breakeven price for the full field development is now less than USD 25 per barrel with a total resource estimate for the Johan Sverdrup field of between 2.0 and 3.0 billion barrels of oil equivalents.

Phase 1 of the development consists of a field centre consisting of four platforms on the field. Phase 2 builds on this infrastructure, adding another processing platform to the field centre. This will result in a processing capacity for the full field of 660,000 barrels of oil per day.

The current estimated capital cost for Phase 1 is NOK 97 billion and for Phase 2 is in the range of between NOK 40 and 55 billion.

For further information please refer to the Statoil press release dated 21 March 2017.

Lundin Norway holds a 22.6 percent working interest in the Johan Sverdrup project. Statoil is the operator with 40.0267 percent and the remaining partners are Maersk Oil with 8.44 percent, Petoro with 17.36 percent and Aker BP with 11.5733 percent working interest.

 

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker “LUPE”). Lundin Petroleum has proven and probable reserves of 743.5 million barrels of oil equivalents (MMboe) as at 31 December 2016.

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
orTeitur Poulsen
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00

Forward looking statement link

Lundin Petroleum spuds appraisal wells on the Edvard Grieg field and on the Gohta discovery

Lundin Petroleum spuds appraisal wells on the Edvard Grieg field and on the Gohta discovery

06 March 2017

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Norway AS (Lundin Norway) has commenced appraisal drilling on the Edvard Grieg field and the Gohta discovery.

The appraisal well 16/1-27 in PL338 on the Edvard Grieg field is being drilled on the southwestern flank of the field by the semi-submersible drilling rig Island Innovator. Following the 2016 year end reserves additions on Edvard Grieg in relation to a larger oil column being proven in the northwestern flank of the field, further resource potential has been identified in the southwestern flank of the field. The well is being drilled 3 km west of the Edvard Grieg platform and is targeting additional gross resources of up to 30 MMboe. The drilling operation is expected to take approximately 30 days.

The appraisal well 7120/1-5 in PL492 on the Gohta discovery is being drilled by the semi-submersible drilling rig Leiv Eiriksson. The appraisal well is being drilled approximately 4 km north of the original discovery well 7120/1-3 and is the second appraisal well drilled on the Gohta discovery. The main objective of well 7120/1-5 is to delineate the northeastern extent of the discovery and to provide a calibration point for the drilling of a horizontal well for a possible extended well test. The drilling operation is expected to take approximately 75 days.

Lundin Norway is operator for both PL338 and PL492 and holds a 65 percent and 40 percent interest respectively in the two licences.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker “LUPE”). Lundin Petroleum has proven and probable reserves of 743.5 million barrels of oil equivalents (MMboe) as at 31 December 2016.

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
orTeitur Poulsen
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00

Forward looking statement link

Notice to the Extraordinary General Meeting of Lundin Petroleum AB (publ)

Notice to the Extraordinary General Meeting of Lundin Petroleum AB (publ)

26 February 2017

The shareholders of Lundin Petroleum AB (publ) (“Lundin Petroleum”) are hereby given notice of the Extraordinary General Meeting to be held on Wednesday, 22 March 2017 at 2.00 p.m. (Swedish time). Location: Näringslivets hus, Wallenbergsalen in Stockholm, Sweden.

Attendance at the Extraordinary General Meeting
Shareholders wishing to attend the Extraordinary General Meeting shall:

– be recorded in the share register maintained by Euroclear Sweden AB on Thursday, 16 March 2017; and
– notify Lundin Petroleum of their intention to attend the Extraordinary General Meeting no later than on Thursday, 16 March 2017 through the website www.lundin-petroleum.com (only applicable to individuals) or by mail to Computershare AB, ”Lundin Petroleum AB’s EGM”, P.O. Box 610, SE – 182 16 Danderyd, Sweden, by telephone Int +46-8-518 01 554 or by e-mail info@computershare.se.

Shareholders whose shares are registered in the name of a nominee (Sw. förvaltare) must temporarily register, through the nominee, the shares in their own names in order to be entitled to attend the Extraordinary General Meeting. Such registration must be effected no later than by Thursday, 16 March 2017.

Shareholders may attend the Extraordinary General Meeting through a proxy. A shareholder shall in such a case issue a written and dated proxy signed by the shareholder. Proof of authorization (through a certificate of registration or similar) should be attached to proxies issued by legal entities. A proxy form is available on www.lundin-petroleum.com and will be sent to shareholders upon request. To facilitate registration at the general meeting, proxy forms, certificates of registration and other documents of authority should be submitted to the company at the address above by no later than Monday, 20 March 2017.

Proposed agenda
1. Opening of the Extraordinary General Meeting.
2. Election of Chairman of the Extraordinary General Meeting.
3. Preparation and approval of the voting register.
4. Approval of the agenda.
5. Election of one or two persons to approve the minutes.
6. Determination as to whether the Extraordinary General Meeting has been duly convened.
7. Resolution regarding the Board of Director’s proposal on distribution of shares in International Petroleum Corporation to the shareholders of Lundin Petroleum.
8. Closing of the Extraordinary General Meeting.

Proposals for resolutions to be presented at the Extraordinary General Meeting of Lundin Petroleum AB on Wednesday, 22 March 2017 in Stockholm.

Resolution on the distribution of all shares in International Petroleum Corporation to the shareholders of Lundin Petroleum (item 7).
The Board of Directors of Lundin Petroleum, proposes that the Extraordinary General Meeting resolves on a dividend in kind of all shares in the Canadian wholly-owned subsidiary International Petroleum Corporation, reg. no. BC1103721 (“IPC”), on mainly the following conditions.

Three (3) shares in Lundin Petroleum shall entitle to one (1) common share in IPC. If the shareholding in Lundin Petroleum is not evenly divisible by three, the holder will receive an entitlement to a fraction of a share. Such fractions will be added together with the fractions held by other shareholders into whole shares in IPC, which will be sold on the market by Pareto Securities. The proceeds, without deduction of any commissions, will then be paid to the relevant IPC shareholders via Euroclear Sweden.

The Board of Directors proposes that the Board of Directors shall be authorised to resolve upon the record date for the right to the distribution in the form of common shares in IPC.

The Board of Director’s proposed dividend corresponds to a total amount of MSEK 3,678.7 (corresponding to MUSD 410¹), based on the accounting value of the shares in IPC after the reorganisation, implying a dividend per share of SEK 10.81.

The distribution of the common shares in IPC is made in accordance with the “Lex-ASEA rules”, implying that no immediate taxation will arise to shareholders in Sweden.

The dividend in accordance with this proposal is conditional upon:

1. that the necessary approvals and consents regarding the reorganization of Lundin Petroleum have been received; and
2. receipt of conditional listing approval for the common shares of IPC from a reputable stock exchange.

The reorganisation is inter alia described in the information brochure which will be available on Lundin Petroleum’s website www.lundin-petroluem.com.

The resolution according to the Board of Directors’ proposal above is valid only with a simple majority of the votes cast.

Further information
Lundin Petroleum’s share capital amounts to SEK 3,478,713.38, represented by 340,386,445 shares. Each share carries one vote. Lundin Petroleum holds, as per the day of this notice, no own shares. The Company’s Articles of Association are available on www.lundin-petroleum.com.

The Board and the Chief Executive Officer shall, if a shareholder so requests and the Board considers that it may do so without significant damage to the Company, give information at the Extraordinary General Meeting regarding circumstances that could affect the assessment of an item on the agenda, any circumstances which may affect the assessment of the company’s financial position and the Company’s relation to other companies within the group.

Additional documentation
The Board of Director’s complete proposal for resolution in accordance with the above, including reports and statements related thereto, will be available at the Company’s address (Hovslagargatan 5 in Stockholm) and on www.lundin-petroleum.com. These documents will also be sent, free of charge, to those shareholders who so request and provide their postal address.

Stockholm in February 2017
Lundin Petroleum AB (publ)
The Board of Directors

 

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker “LUPE”). Lundin Petroleum has proven and probable reserves of 743.5 million barrels of oil equivalents (MMboe) as at 31 December 2016.

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
orTeitur Poulsen
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00

¹ Since the value of the assets to be distributed is determined in USD and the reorganisation has not yet been carried out, the final value of the dividend in SEK will depend on the exchange rate between USD/SEK as per the day of completion of the reorganisation. The value as stated herein is based on the Swedish Central Bank’s (Sw. Riksbanken) USD/SEK exchange rate of USD 1 / SEK 8.9724 as per 24 February 2017.

Forward looking statement link

IPC files preliminary prospectus in Canada and plans share repurchase

IPC files preliminary prospectus in Canada and plans share repurchase

23 February 2017

In connection with the previously announced proposed reorganisation and spin-off by Lundin Petroleum AB (“Lundin Petroleum” or the “Company”) of its assets in Malaysia, France and the Netherlands into International Petroleum Corporation (“IPC”), the Company is pleased to announce that IPC has filed a preliminary prospectus with the Alberta Securities Commission (“ASC”) in Canada.

The filing of the preliminary prospectus with the ASC initiates the securities regulatory review process that is required in connection with IPC becoming a public reporting issuer in Alberta, Canada. IPC furthermore expects to file a prospectus with the Swedish Financial Supervisory Authority (“SFSA”) to qualify the shares of IPC for trading in Sweden. IPC has applied to the Toronto Stock Exchange (“TSX”) to list its shares on such exchange under the ticker IPCO, and also intends to list its shares on NASDAQ Stockholm. Listing of IPC’s shares on the TSX and NASDAQ Stockholm will be subject to IPC fulfilling the requirements of the respective exchange. There can be no assurance that the shares will be accepted for listing on either of the TSX or NASDAQ Stockholm.

In addition, the Company is pleased to announce that IPC’s Board of Directors has resolved to cause a subsidiary of IPC, following the spin-off and establishment of the credit facility described below, to make an offer to all post-spin-off holders of IPC shares to purchase up to USD 100 million of IPC shares for consideration of CAD 4.77 per IPC share. As previously announced, all of the shares of IPC are expected to be distributed to existing Lundin Petroleum shareholders on the basis of one IPC share for every three shares held in Lundin Petroleum, and therefore this offer assumes that there will be approximately 113.5 million IPC shares outstanding following the spin-off. If made, the offer is expected to be open for acceptance for approximately three weeks from the spin-off date, and any shares acquired under the offer are expected to be subsequently cancelled.

IPC believes that the offer would facilitate an orderly exit for some initial shareholders of IPC, recognising that the strategic and investment goals of some Lundin Petroleum shareholders (who will become IPC shareholders immediately following the spin-off) may or may not correspond to IPC’s assets and proposed strategy. The Company and IPC have been advised by Statoil ASA (“Statoil”) that, while it supports the spin-off, continuing to hold shares in IPC post-spin-off is non-core for Statoil, given IPC’s size and geography. Accordingly, Statoil has advised the Company of its intention to tender its IPC shares to the offer if the offer is made. The Company has also been advised that Nemesia Sàrl, an investment company related to the Lundin family (“Nemesia”), along with Landor Participations Inc., another investment company related to a member of the Lundin family, and members of IPC’s proposed Board and management, do not intend to tender to the offer.

In addition, the Company understands that Statoil and Nemesia have entered into an agreement pursuant to which, following the expiry of the offer, Nemesia will acquire any IPC shares held by Statoil that have not been acquired by IPC’s subsidiary in the offer.

In order to finance the offer, certain subsidiaries of the Company that will be subsidiaries of IPC following the reorganisation, and IPC in the capacity of guarantor, have received credit approved terms for a new USD 100 million Reserves Based Lending Facility with a syndicate of banks led by BNP Paribas, Australian and New Zealand Banking Group (ANZ), BMO Capital Markets and ScotiaBank Europe.

Further details regarding the proposed reorganisation and the proposed offer are contained in the preliminary prospectus, a copy of which can be found on IPC’s profile on SEDAR at www.sedar.com. As previously announced, the reorganisation and spin-off are subject to satisfactory receipt of all necessary approvals and consents, including the approval of Lundin Petroleum’s shareholders. The Company expects to shortly convene an extraordinary meeting of shareholders, expected to be held during March 2017.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker “LUPE”). Lundin Petroleum has proven and probable reserves of 743.5 million barrels of oil equivalents (MMboe) as at 31 December 2016.

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
orTeitur Poulsen
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00

Important Information
This press release does not contain or constitute an invitation or an offer to acquire, sell, subscribe for or otherwise trade in shares or other securities in Lundin Petroleum or IPC. This press release has not been approved by any regulatory authority and is not a prospectus or other offering document, accordingly investors should not purchase any securities referred to in this press release.

Forward looking statement link

Oil discovery in the Filicudi prospect in the southern Barents Sea

Oil discovery in the Filicudi prospect in the southern Barents Sea

13 February 2017

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Norway AS (Lundin Norway) has made an oil and gas discovery in the main well 7219/12-1 and is presently drilling a sidetrack 7219/12-1A on the Filicudi prospect.
The wells are located in PL533 approximately 40 km southwest of Johan Castberg and 30 km northwest of the Alta and Gohta discoveries on the Loppa High in the southern Barents Sea.

The main objective of the well was to prove oil in Jurassic and Triassic sandstone reservoirs.

The well encountered a gross 129 metres hydrocarbon column of high quality sandstone reservoir characteristics, with 63 metres of oil and 66 metres gas in the Jurassic and Triassic targets. Extensive data acquisition and sampling has been carried out including coring, logging and oil and gas sampled from the wireline tools. The sidetrack well has reached total depth and has confirmed the reservoir and hydrocarbon column. The gross resource estimate for the Filicudi discovery is between 35 and 100 million barrels of oil equivalents (MMboe). Well results indicate significant upside potential that require further appraisal drilling.

Filicudi is on trend with the Johan Castberg discovery, with resources of approximately 500 MMboe, in similar reservoir intervals. Multiple additional prospects have been identified on the Filicudi trend within PL533 with total gross unrisked prospective resource potential for the trend of up to 700 MMboe. The partnership is considering the drilling of up to two additional prospects in 2017. There are two independent high graded prospects within PL533, Hufsa containing gross unrisked prospective resources of 285 MMboe and Hurri with gross unrisked prospective resources of 218 MMboe. The success at Filicudi has reduced the risk and both prospects carry a 25 percent chance of success.

The semisubmersible drilling rig Leiv Eiriksson will after completion of the well on the Filicudi prospect in PL533 move to the Gohta discovery in PL492 to drill a second delineation well on this discovery.

Lundin Norway is the operator of both PL533 and PL492 and holds a 35 percent and 40 percent working interest in these respective licences.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker “LUPE”). Lundin Petroleum has proven and probable reserves of 743.5 million barrels of oil equivalents (MMboe) as at 31 December 2016.

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
orTeitur Poulsen
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00

This information is information that Lundin Petroleum AB is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons set out above, at 07.30 CET on 13 February 2017.

Forward looking statement link

Lundin Petroleum announces 2017 production guidance

Oljefyndighet på Filicudistrukturen i södra Barents hav

13 February 2017

Lundin Petroleum AB (“Lundin Petroleum”) is pleased to announce its production guidance for 2017.

Lundin Petroleum’s 2017 production guidance is between 79,000 to 91,000 barrels of oil equivalent per day (boepd).

Further to the announcement earlier today regarding the proposed spin-off of Lundin Petroleum’s assets in Malaysia, France and the Netherlands (the “IPC Assets”) into a newly formed company called International Petroleum Corporation (“IPC”), the pro-forma production guidance for Lundin Petroleum, comprising only the assets in Norway, is between 70,000 to 80,000 boepd, whilst the IPC production guidance is between 9,000 to 11,000 boepd.

The pro-forma production guidance for the respective companies is provided on the basis of an effective date of 1 January 2017 for the proposed spin-off of the IPC Assets. However, Lundin Petroleum will account for the production from the IPC Assets up to the date of the completion of the spin-off, with a net financial settlement to account for the cash generation from the effective date to the completion date.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker “LUPE”). Lundin Petroleum has proven and probable reserves of 743.5 million barrels of oil equivalents (MMboe) as at 31 December 2016.

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
orTeitur Poulsen
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00

This information is information that Lundin Petroleum AB is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons set out above, at 07.30 CET on 13 February 2017.

Forward looking statement link

Lundin Petroleum proposes spin-off of its non-Norwegian producing assets into an independent oil and gas company

Lundin Petroleum proposes spin-off of its non-Norwegian producing assets into an independent oil and gas company

13 February 2017

Lundin Petroleum AB (“Lundin Petroleum” or the “Company”) is pleased to announce that its Board of Directors has proposed to spin-off its assets in Malaysia, France and the Netherlands (the “IPC Assets”) into a newly formed company called International Petroleum Corporation (“IPC”) and to distribute the IPC shares, on a pro-rata basis, to Lundin Petroleum shareholders (the “Distribution”).

Subsequent to an internal reorganisation of Lundin Petroleum whereby the various subsidiaries holding the IPC Assets will be acquired by IPC, and subject to satisfactory receipt of all necessary approvals and consents, including the approval of Lundin Petroleum’s shareholders, all of the shares of IPC will be distributed to existing Lundin Petroleum shareholders on the basis of one IPC share for every three shares held in Lundin Petroleum. IPC has applied to the Toronto Stock Exchange (“TSX”) to list its shares following the Distribution on such exchange under the ticker IPCO, and also intends to list its shares on the NASDAQ Stockholm stock exchange.

Background and reasons for the Distribution and listing
The Board of Directors and management of the Company routinely review and assess strategic alternatives available to the Company to enhance shareholder value. As part of that review, the Board of Directors and management concluded that given ongoing developments and successes with the Company’s assets in Norway, the IPC Assets, held within a separate and independent entity, would benefit from enhanced strategic flexibility and management focus, as well as be ascribed increased focus, visibility, and value from investors.

With a renewed strategy and focus, management believes that IPC can be built into a leading international independent oil and gas company, focused on the production and development of high quality assets around the world. Management believes an independent IPC will be well positioned to pursue both organic and inorganic growth opportunities over time. The significant cash flows generated from IPC’s long-lived assets will provide financial capacity to pursue this strategy.

The proposed spin-off of the IPC Assets will allow Lundin Petroleum’s management to solely focus on maximising shareholder value from its Norwegian portfolio which has continuously grown in size and value since Lundin Petroleum entered Norway in 2004, with the Norwegian assets now accounting for 96 percent of Lundin Petroleum’s reserves and 88 percent of Lundin Petroleum’s 2017 production guidance. Lundin Petroleum’s strong liquidity position of USD 1 billion of headroom coupled with its operating cashflow generation allows the Company to retain all external bank debt and still be able to fully fund its committed capital expenditure up to Johan Sverdrup first oil in late 2019. The Company’s net debt at year end 2016 amounted to approximately USD 4 billion.

Ian H. Lundin, Chairman of the Board of Lundin Petroleum, comments:

“The spin-off of our international assets into IPC creates an exciting new company with a strong balance sheet and a proven Board and management team. Their focus will be to create value at a time in the cycle when the industry remains under-capitalised and multiple opportunities are available as companies rationalise their portfolios. With the spin-off, Lundin Petroleum will become fully focused on Norway, which I am convinced will serve to further crystallise the value of our high-growth asset portfolio in the North Sea and the southern Barents Sea.”

Strong Management and Board of Directors of IPC and the ongoing commitment of the Lundin Family
IPC will be led and directed primarily by current members of the Lundin Petroleum management team and Board of Directors. Mike Nicholson, current Chief Financial Officer of Lundin Petroleum, will serve as President and Chief Executive Officer and a Director of IPC. Christophe Nerguararian, current Vice President Corporate Finance of Lundin Petroleum, will serve as Chief Financial Officer of IPC. Jeffrey Fountain, current Vice President Legal at Lundin Petroleum, will serve as General Counsel of IPC. Lukas H. Lundin, who is a director of Lundin Petroleum, will serve as Chairman of the Board of Directors of IPC. IPC’s other Directors will include Ashley Heppenstall, Chris Bruijnzeels, Torstein Sanness and Donald Charter.

The Lundin Family remains committed to the success of IPC, and entities related to the Lundin Family will continue to be the largest shareholders of IPC following the completion of the Distribution.

Management changes at Lundin Petroleum
Teitur Poulsen, current Vice President Corporate Planning and Investor Relations at Lundin Petroleum will replace Mike Nicholson as Chief Financial Officer of Lundin Petroleum. Alex Budden will assume the role of Vice President Communications and Investor Relations for Lundin Petroleum. Alex Budden is joining Lundin Petroleum from Africa Oil where he held the position of Vice President External Relations. Henrika Frykman, current Senior Legal Counsel at Lundin Petroleum, will assume the role of Vice President Legal at Lundin Petroleum replacing Jeffrey Fountain. The other senior positions within Lundin Petroleum will remain unchanged.

Accounting Implications
The spin-off of the IPC Assets will have an effective date of 1 January 2017, however Lundin Petroleum will account for the production from the IPC Assets up to the date of completion of the spin-off with a net financial settlement at completion to account for the cash generation from the effective date to the completion date.

Implementation of Distribution
If approved by shareholders, the Distribution will be executed by way of a Lex ASEA distribution under Swedish law, with the result that no immediate taxation will arise to shareholders in Sweden. Instead, the tax basis of the Lundin Petroleum shares that confer entitlement to participate in the distribution will be allocated between these shares and the IPC shares received. It is proposed that each three shares of Lundin Petroleum will entitle the holder to one share of IPC. If the shareholding in Lundin Petroleum is not evenly divisible by three, the holder will receive an entitlement to a fraction of a share. Such fractions will be added together with the fractions held by other shareholders into whole shares in IPC, which will be sold on the market by Pareto Securities. The proceeds, without deduction of any commissions, will then be paid to the relevant IPC shareholders via Euroclear Sweden.

Extraordinary General Meeting of Lundin Petroleum
An Extraordinary General Meeting to approve the Distribution is expected to be convened shortly and held in March 2017. The Distribution is expected to occur as soon as possible after receipt of all corporate and regulatory approvals. The entities related to the Lundin family have confirmed that they will vote in favour of the Distribution at the EGM.

Preliminary Prospectus
IPC expects to file a preliminary prospectus with the Alberta Securities Commission in connection with the application to list the shares on the Toronto Stock Exchange. IPC furthermore expects to file a prospectus with the Swedish Financial Supervisory Authority to qualify the shares of IPC for trading in Sweden.

Listing of IPC’s shares on the TSX and NASDAQ Stockholm will be subject to IPC fulfilling the requirements of the respective exchange. There can be no assurance that the shares will be accepted for listing on either of the TSX or NASDAQ Stockholm.

Advisors
BMO Capital Markets Limited is acting as exclusive financial advisor to the Company for the listing of IPC. Pareto Securities in Sweden is acting as issuing agent. Blake, Cassels & Graydon LLP and Gernandt & Danielsson Advokatbyrå KB are acting as legal advisors to the Company and IPC. PricewaterhouseCoopers AG are the auditors of IPC.

Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of worldclass assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker “LUPE”). Lundin Petroleum has proven and probable reserves of 743.5 million barrels of oil equivalents (MMboe) as at 31 December 2016.

For further information, please contact:

Maria Hamilton
Head of Corporate Communications
maria.hamilton@lundin.ch
Tel: +41 22 595 10 00
Tel: +46 8 440 54 50
Mobile: +41 79 63 53 641
orTeitur Poulsen
VP Corporate Planning & Investor Relations
Tel: +41 22 595 10 00

This information is information that Lundin Petroleum AB is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons set out above, at 07.30 CET on 13 February 2017.

Important Information
This press release does not contain or constitute an invitation or an offer to acquire, sell, subscribe for or otherwise trade in shares or other securities in Lundin Petroleum or IPC. This press release has not been approved by any regulatory authority and is not a prospectus, accordingly investors should not purchase any securities referred to in this press release.

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 the proposed Distribution, expectations that applicable regulatory approvals will be obtained, the expected future activities of IPC following the Distribution, the future growth and financial capacity of IPC, future investor interest in IPC, 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, risks associated with completion and execution of the Spin-off of the IPC Assets and the Distribution, the ability of IPC to perform as expected as a separate, independent entity, the requirement to obtain certain regulatory and other approvals and to fulfil the conditions of the Spin-off, the ability to retain key employees, other transaction-related and 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.