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First oil from the Rolvsnes field

First oil from the Rolvsnes field

10 August 2021

Lundin Energy AB (Lundin Energy) announces first oil from the Extended Well Test (EWT) at the operated Rolvsnes field, the first subsea tie back development for the Edvard Grieg platform.

The Rolvsnes field is located in PL338C on the southern side of the Edvard Grieg field and is a weathered and fractured granite basement reservoir. During 2018, the successful drilling and testing of a horizontal appraisal well (16/1-28) was completed, which flowed 7,000 bopd, demonstrating good reservoir productivity. The appraisal well has been converted to a development well and tied back the 3 km distance to the Edvard Grieg platform, with the project being completed on schedule and on the budget cost estimate. The resource estimate for the Rolvsnes field is between 14 and 78 million barrels of oil equivalent (MMboe) gross.

The objective of the EWT is to gain a better understanding of the reservoir properties, reservoir connectivity and long term production performance of the field and if successful, this test has the potential to unlock a full field development for Rolvsnes, further extending the plateau production period for Edvard Grieg. Once sufficient data and production experience has been gathered, a Plan for Development and Operation (PDO) could be submitted by the end of 2022, benefitting from the temporary tax regime in Norway. A successful test could also derisk significant additional resource potential in weathered and fractured granite basement reservoirs on the Utsira High.

Lundin Energy Norway AS, a wholly owned subsidiary of Lundin Energy, is the operator of PL338C with an 80 percent working interest, with the remaining interest held by OMV (Norge) AS.

Nick Walker, President and CEO of Lundin Energy, commented:
“One of our strategic priorities is to extend plateau production on Edvard Grieg keeping the facilities full in the long term. We have successfully managed to extend the Edvard Grieg plateau by over 5 years already, through successfully unlocking resources within the Edvard Grieg field and through near field tie-back developments. The Rolvsnes EWT is the first tie-back development into our operated Edvard Grieg hub and production data from the EWT will provide vital information to potentially unlock the full field development of the Rolvsnes field, as well as further weathered and fractured basement reservoir opportunities on the Utsira High.”


 

Lundin Energy audiocast – Q2 report 2021 presentation

Lundin Energy to present at a virtual town hall meeting for investors on 18 March 2021

Lundin Energy audiocast – Q2 report 2021 presentation

28 July 2021

Listen to Nick Walker, President and CEO, and Teitur Poulsen, CFO, commenting on the report and the latest developments in Lundin Energy in a live audiocast, held today, 28 July 2021 at 14:00 CEST.

Follow the presentation live on www.lundin-energy.com by following the link below or dial in using the following telephone numbers:

Sweden +46 8 56642651
UK +44 3333000804
United States +1 6319131422
Norway +47 23500243
Access Pin : 44982316
Link : https://edge.media-server.com/mmc/p/42amzuhx/ftagmax/aud

 

 

 

Pricing of USD 2 billion senior notes offering

Pricing of USD 2 billion senior notes offering

Pricing of USD 2 billion senior notes offering

17 June 2021

Lundin Energy AB (the “Company”) is pleased to announce that it has priced its senior notes offering (the “Offering”) of USD 1 billion aggregate principal amount of 2.0 percent senior notes, due 2026 (the “2026 Notes”) at a price equal to 99.827 percent of the aggregate principal amount thereof and USD 1 billion aggregate principal amount of 3.1 percent senior notes, due 2031 at a price equal to 99.81 percent of the aggregate principal amount thereof, (the 2031 Notes and together with the 2026 Notes, the “Notes”). Interest will be payable semi-annually. The Offering is expected to close on or about 23 June 2021, subject to customary conditions precedent for similar transactions.

The Company intends to use the gross proceeds of the Offering to repay certain amounts outstanding under its corporate credit facility term loans, as well as to pay transaction fees and expenses.

In connection with the Offering, the initial purchasers may engage in stabilising transactions with a view to supporting the market price of the Notes at a level higher than that which might otherwise prevail. Any stabilization action must be conducted in accordance with all applicable laws and rules.

 

 

For further information, please contact:

Edward Westropp
VP Investor Relations
Tel: +41 22 595 10 14
edward.westropp@lundin-energy.com

Espen Hennie
Corporate Finance & Planning Director
Tel: +41 22 595 10 03
espen.hennie@lundin-energy.com

 

Cautionary Statements
This announcement is for information purposes only and is not intended for publication, release or distribution to, or use by, any person or entity in any jurisdiction or country where such publication, release, distribution or use would be contrary to law or regulation. In particular, this announcement does not constitute a prospectus or an offer or sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities in the United States (including its territories and possessions, any state of the United States and the District of Columbia) and this announcement may not be distributed except to (1) persons that are qualified institutional buyers (“QIBs”) as defined in Rule 144A under the U.S. Securities Act of 1933 (the “Securities Act”); or (2) to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act (and, if investors are resident in (i) a member state of the European Economic Area (“EEA”), a qualified investor within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) or (ii) the United Kingdom, a qualified investor within the meaning of the Prospectus Regulation as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the “EUWA”). Such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No public offering of securities will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited.

No securities are intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the EEA or the United Kingdom. For these purposes, a retail investor in (i) the EEA means a person who is one (or more) of: (a) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”); or (b) a customer within the meaning of Directive 2016/97/EU, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (ii) the United Kingdom means a person who is one (or more) of: (a) a retail client as defined in point (8) of Article 2 of Regulation (EU) No. 2017/565 as it forms part of domestic law by virtue of the EUWA; or (b) a customer within the meaning of the Financial Services and Markets Act 2000, as amended to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No. 600/2014 as it forms part of domestic law by virtue of the EUWA.

Manufacturer target market (MiFID II product governance / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document has been prepared as not available to retail in the EEA. No United Kingdom PRIIPs key information document has been prepared as not available to retail in the United Kingdom.

This announcement may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Lundin Energy AB (“Lundin Energy”) about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections. Lundin Energy undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement.

Neither the content of Lundin Energy’s website nor any website accessible by hyperlinks on Lundin Energy’s website is incorporated in, or forms part of, this announcement.

The distribution of this announcement into certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

2021 production guidance increased

2021 production guidance increased

2021 production guidance increased

14 June 2021

Lundin Energy AB (Lundin Energy) is pleased to announce that following better than expected production performance across all key fields, the production guidance for 2021 has been increased to between 180 to 195 thousand barrels of oil equivalent per day (Mboepd), from the original guidance of 170 to 190 Mboepd.

Production year to date (to end May 2021) has been 185 Mboepd, which is above the mid-point of the original guidance range. This has been driven by excellent production efficiency across all assets, an earlier than forecast increased plateau rate of 535 thousand barrels of oil per day (Mbopd) gross at Johan Sverdrup Phase 1 and additional capacity available at the Edvard Grieg field. The additional facilities capacity at Edvard Grieg has been due to the Ivar Aasen field not utilising their contractual capacity, and it is expected that this will continue for the remainder of the year.

 

Open Letter from the Board of Directors of Lundin Energy

Open Letter from the Board of Directors of Lundin Energy

Open Letter from the Board of Directors of Lundin Energy

10 May 2021

Dear Shareholders,

We write to update you about the publication of an independent expert report that has been commissioned by the Board of Directors in relation to the Swedish Prosecution Authority’s ongoing preliminary investigation into the Company’s activities in southern Sudan from 1997 to 2003.

As you will be well aware by now, the Company has serious and longstanding concerns about the accuracy and reliability of the information on which the Swedish Prosecution Authority is acting in this case, as well as about the fairness and integrity of the wider investigation process itself. These concerns have been set out in detail on the “Lundin: Sudan Legal Case” website maintained by the Company to provide publicly available information about the investigation.

Given those concerns, the Board of Directors of Lundin Energy commissioned the Chambers of 9 Bedford Row, led by Steven Kay QC, and RPC Solicitors, independent international lawyers with specialist expertise in international criminal prosecutions, human rights, corporate conduct, and the Rule of Law, to prepare a review and assessment of public source materials relating to the investigation and on which the Swedish Prosecution Authority seems to be relying.

The report, entitled “A Report on The Lundin Case” (“the Report”), was published today and its findings support the Company’s longstanding concerns. You can download a copy of the Report and read more about its content here.

Steven Kay QC is an experienced Queen’s Counsel from the UK who specialises in international criminal law and human rights cases. He has been involved in landmark cases that have established modern international criminal law. RPC is likewise a respected international law firm.

While the Report has been commissioned by the Board of Directors, the content, analysis and conclusions contained in the Report are the authors’ own independently reached findings.

We hope you find the Report helpful in supporting our consistently held position that there are no grounds for any allegations of wrongdoing against the Company or its representatives.

Sincerely,

Board of Directors of Lundin Energy AB (publ)

More information regarding the Swedish Prosecutor’s ongoing investigation into the Company’s historic operations in Sudan and any related proceedings can be found on our dedicated
Lundin: Sudan Legal Case” website.

 


Lundin Energy audiocast – Q1 report 2021 presentation

Lundin Energy to present at a virtual town hall meeting for investors on 18 March 2021

Lundin Energy audiocast – Q1 report 2021 presentation

29 April 2021

Listen to Nick Walker, President and CEO, and Teitur Poulsen, CFO, commenting on the report and the latest developments in Lundin Energy at a live audiocast, held today, 29 April 2021 at 13:00 CEST.

 

Listen to the audiocast presentation by following the link

 https://edge.media-server.com/mmc/p/spnx35xe

or dial in using the telephone numbers below:

Sweden +46 8 56642651
UK +44 3333000804
United States +1 6319131422
Norway +47 23500243
Access Pin :98774705

Lundin Energy 2021 Capital Markets Day

Lundin Energy Capital Markets Day

2021 Capital Markets Day information

Lundin Energy will be hosting its 2021 Capital Markets Day on 28 January 2021 at 14.00 CET (08.00 EST) via a webcast and conference call facility. The Capital Markets Day will include presentations by the Company’s management team on its fourth quarter 2020 financial results, the business strategy, the 2021 budgeted development campaign, its exploration and appraisal programme and decarbonisation strategy. Please follow the event live at https://edge.media-server.com/mmc/p/oz7b59c2 or dial in using the following telephone numbers with the pin code shown below:

UK/International:+44 2071 928338
Sweden:+46 8 566 184 67
Norway:+47 21 56 30 15
USA:+1 646 741 3167
Access Pin :6247379
Webcast link: https://edge.media-server.com/mmc/p/oz7b59c2
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2021 Capital Markets Day
28.01.2021, 35 MB

Proposed 2020 dividend of USD 1.80 per share representing an 80 percent increase on 2019 dividend

Proposed 2020 dividend of USD 1.80 per share representing an 80 percent increase on 2019 dividend

Proposed 2020 dividend of USD 1.80 per share representing an 80 percent increase on 2019 dividend

27 January 2021

The Board of Directors of Lundin Energy AB (Lundin Energy) proposes a 2020 dividend of USD 1.80 per share, corresponding to MUSD 512.

The Board of Directors will propose to the 2021 Annual General Meeting, in accordance with the dividend policy as announced on 30 January 2019, a 2020 dividend of USD 1.80 per share, corresponding to MUSD 512 (rounded off), noting the reduced 2019 dividend of USD 1.00 per share, that was approved, to maintain financial prudence and further liquidity flexibility in light of the then prevailing market conditions. The proposed 2020 dividend is to be paid in quarterly instalments of USD 0.45 per share, corresponding to MUSD 128 (rounded off). Before payment, each quarterly dividend of USD 0.45 per share shall be converted into a SEK amount, and paid out in SEK, based on the USD to SEK exchange rate published by Sweden’s central bank (Riksbanken) four business days prior to each record date (rounded off to the nearest whole SEK 0.01 per share). The final USD equivalent amount received by the shareholders may therefore slightly differ depending on what the USD to SEK exchange rate is on the date of the dividend payment. The SEK amount per share to be distributed each quarter will be announced in a press release four business days prior to each record date.

Lundin Energy’s objective is to create attractive shareholder returns by investing through the business cycle with capital investments allocated to exploration, development and production assets. The plan is to maintain or increase the dividend over time, in line with the Company’s financial performance and being sustainable below an oil price of USD 50 per barrel. The dividend shall be sustainable in the context of allowing the Company to continue to pursue its organic growth strategy and to develop its contingent resources whilst maintaining a conservative gearing ratio and retaining an appropriate liquidity position within its available credit lines.

Information about the proposed dividend to be paid out as follows:

Expected ex-dividend dateExpected record dateExpected payment date
31 March 20211 April 20218 April 2021
1 July 20212 July 20217 July 2021
1 October 20214 October 20217 October 2021
4 January 20225 January 202211 January 2022

In order to comply with Swedish company law, a maximum total SEK amount shall be pre-determined to ensure that the dividend distributed does not exceed the available distributable reserves of the Company and such maximum amount for the dividend has been set to a cap of MSEK 7,636 (i.e. MSEK 1,909 per quarter). If the total dividend would exceed the cap of MSEK 7,636, the dividend will be automatically adjusted downwards so that the total dividend corresponds to the cap of MSEK 7,636.

Update on Q4 2020 financial results and webcast details for Capital Markets Day presentation on 28 January 2021

Update on Q4 2020 financial results and webcast details for Capital Markets Day presentation on 28 January 2021

Update on Q4 2020 financial results and webcast details for Capital Markets Day presentation on 28 January 2021

13 January 2021

Lundin Energy AB (Lundin Energy) will publish its financial report for the fourth quarter 2020 and host its annual Capital Markets Day presentation on Thursday, 28 January 2021. For the fourth quarter 2020, Lundin Energy will expense pre-tax exploration costs of approximately MUSD 58, and recognise a net foreign exchange gain of approximately MUSD 256.

Exploration costs
It is the Company’s policy to capitalize costs associated with its exploration activities and when it is determined that a commercial discovery has not been achieved, the associated exploration costs are charged to the income statement. For the fourth quarter of 2020, Lundin Energy will incur pre-tax exploration costs of approximately MUSD 58, which will be charged to the income statement and offset by a tax credit of approximately MUSD 45. The exploration costs are mainly related to the dry wells on the Polmak prospect (PL609/PL1027) and the Spissa prospect (PL960) and relinquished licenses.

Net debt and foreign exchange gain
The net debt position of Lundin Energy at 31 December 2020, amounted to USD 3.9 billion resulting in available liquidity of USD 1.1 billion, within its recently refinanced and cheaper, USD 5.0 billion credit facility. As a result of the refinancing, unamortized capitalized financing fees and loan modification gain were expensed during the fourth quarter.

Lundin Energy will recognise a net foreign exchange gain of approximately MUSD 256 for the fourth quarter of 2020. The Norwegian Krone strengthened against the US Dollar by approximately 10 percent and the Euro strengthened by approximately 5 percent during the fourth quarter of 2020. The foreign exchange gain is largely non-cash and mainly relates to the revaluation of loan balances at the prevailing exchange rates at the balance sheet date.

Change in inventory and under/overlift balances
Lundin Energy recognises income based on its sold volume (sales method). Consequently, changes in inventory and under/overlift balances are reported as an adjustment to cost valued at production cost, including depletion. During the fourth quarter of 2020, Lundin Energy was overlifted by 2.1 Mboepd.

Revenue from the crude oil sales from third parties
Lundin Energy markets its own crude oil production and at times markets crude oil from third parties. For the fourth quarter 2020, revenue from the sale of crude oil from third parties amounted to MUSD 24.9 offset by the purchase of crude oil from third parties of MUSD 24.5, resulting in a gross profit of MUSD 0.4 on third party activities for the fourth quarter 2020.

Fourth Quarter 2020 results and Capital Markets Day 2021
Lundin Energy’s financial report for the fourth quarter 2020, will be published on Thursday, 28 January 2021 at 07:30 CET.

Lundin Energy management team will present the financial results for the fourth quarter 2020 and Capital Markets Day presentation by webcast at 14.00 CET on the 28 January 2021. Please follow the event live at www.lundin-Energy.com or dial in using the following telephone numbers with the pin code shown below:

UK/International: +44 2071 928338
Sweden: +46 8 566 184 67
Norway: +47 21 56 30 15
USA: +1 646 741 3167

Access Pin : 6247379

Link : https://edge.media-server.com/mmc/p/oz7b59c2

 

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