rofile Q2 CORPORATE PROFILE Lundin Petroleum

Transcription

1 rofile Q2 CORPORATE PROFILE Lundin Petroleum Q2 2011

2 Organic value creation a successful business strategy exploration - organic growth through the drill bit reserves and production - converting discoveries into cash flow opportunistic value realisation - unlocking value in our asset portfolio Our business model Lundin Petroleum s strategy of organic growth involves identifying core areas of focus and then establishing a team of professional technical staff with experience in that area to use the latest technologies to explore for oil and gas. Commercial discoveries will be appraised and then, where they are deemed to be economic, progressed through to the production stage. The cashflow generated from production will be reinvested in the exploration and development stages. Lundin Petroleum believes that it is the development of this business model that has achieved success in the past and will continue to deliver results in the future. REINVESTMENT EXPLORATION DEVELOPMENT PRODUCTION CASH FLOW INVESTMENT REINVESTMENT > 2 <

3 Lundin Petroleum explores for, develops and produces oil and gas in ten countries across the globe IRELAND 1 licence 41 exploration FRANCE 21 licences 414 production 47 exploration The Hague Villeperdue Geneva Stockholm Oslo Tunis NETHERLANDS 19 licences 418 production 41 exploration NORWAY 47 licences 44 production 41 development 442 exploration TUNISIA 2 licences 41 production 41 development Moscow Astrakhan RUSSIA 2 licences 41 production 41 exploration Dubai VIETNAM 1 licence 41 exploration CONGO 2 licences 42 exploration Lundin Petroleum office MALAYSIA 5 licences 45 exploration INDONESIA 7 licences 41 production 46 exploration Kuala Lumpur Jakarta 2010 ACHIEVEMENTS 2011 OUTLOOK MUSD 599 Operating Cash Flow MUSD 636 EBITDA 32,700 boepd Production 187 MMboe Reserves MUSD 540 Investment Capex 483 MMboe Prospective Unrisked Resources (Targeted by 21 Wells) 31,000-34,000 boepd Forecast Production > 3 <

4 Words from the CEO Development We are still forecasting to increase our production over the next 5 years from various Norwegian development projects to over 60,000 boepd. Our various development projects are positively moving forward. The Gaupe field development is still forecast to commence production this year with a plateau production adding 5,000 boepd net to Lundin Petroleum. On 1 August 2011 we submitted the plan of development of the Brynhild field (formerly called Nemo) to the Norwegian Ministry of Petroleum and Energy for approval. The Brynhild field will be developed as a subsea tieback to Shell s Pierce field in the United Kingdom with first oil forecast for late 2013 at a plateau net production rate of 6,000 boepd. Conceptual development plans have been agreed for the subsea development of the Bøyla field through the Alvheim FPSO and a plan of development will be submitted in Lundin Petroleum achieved excellent results in the second quarter of 2011 with increased profitability and cash flow. What is extremely pleasing however, is the continued exploration success. I have always highlighted that the major valuation creation for our company will be achieved through increasing our oil and gas resources, and the best way to do that is through exploration. Norway continues to deliver with a third discovery this year from our first well in the Barents Sea and I m particularly pleased that our first Malaysian exploration well resulted in a discovery. I hope that in South East Asia we are now on the way to creating a new core development and production area for our Company. The Tellus discovery which was made earlier this year and subsequently appraised with a sidetrack will now be developed as part of the Luno field development. The front end engineering and design studies for the development of the Luno field are progressing satisfactorily and it is still planned to submit a plan of development in We will not be proceeding with the marginal Krabbe development following further technical analysis of this field but we will more than make up the future production from increases to the Luno production plateau and the addition of the Tellus development. Financial Performance Lundin Petroleum produced a net result for the first six months of MUSD The strong production coupled with oil prices achieved of well over USD 100 per barrel resulted in operating cash flow of MUSD and EBITDA of MUSD Despite our significant exploration and development investment programme net debt during the first half of the year has reduced from MUSD 410 to below MUSD 120. Production During the first half of the year production averaged 32,300 barrels of oil equivalent per day (boepd) which was at the high end of our forecasts. This performance was achieved despite a 13 day unplanned shutdown of Alvheim and Volund production during the second quarter to carry out preventative maintenance on the Alvheim FPSO. In particular Volund production has performed significantly above forecast during the period. We expect a further two Alvheim development wells to come on production during the second half of the year as well as first oil from the Gaupe field offshore Norway. As a result of the strong production performance we have revised our production guidance for 2011 upwards from the previous 28-33,000 boepd to 31-34,000 boepd. Norway: Drilling operations, Tellus discovery > 4 <

5 As I have previously indicated the capital cost of these developments will be funded from a combination of internally generated funds and bank borrowings without the requirement for additional equity funding. Exploration The positive exploration news has continued during the second quarter with further discoveries at Skalle in PL438 in the Barents Sea, Earb South in PL505 in the northern Norwegian north Sea and Tarap in Block SB303 offshore East Malaysia. In addition the results of the first Avaldsnes appraisal well were extremely encouraging confirming the extension of the Avaldsnes field to the south east. We have now achieved five discoveries from our first five exploration wells this year following the Tellus and Caterpillar discoveries during the first quarter. In PL501 the first appraisal well on Avaldsnes encountered excellent quality Jurassic reservoir of multi darcy permeability and 30 percent porosity with net pay thicker than the discovery well. The well tested 5,500 bopd from a restricted choke. The subsequent sidetrack, whilst having a thinner reservoir section, also encountered comparable reservoir quality and provided increased confidence that the part of the Avaldsnes structure previously assumed to be non-hydrocarbon bearing could be in fact be covered by Upper Jurassic hydrocarbon bearing reservoir. We are currently drilling the second Avaldsnes appraisal well. The gross resource estimates for the Avaldsnes field located in PL501 were estimated at MMboe following the discovery well last year and will be updated after the second appraisal well to reflect the results of the appraisal drilling programme. We believe that the Avaldsnes structure extends to the west into the Statoil operated PL265 where Lundin Petroleum is a non operated partner. Statoil are currently drilling the first of two wells to be drilled this year on PL265 to appraise the extension of Avaldsnes into PL265 where Lundin Petroleum holds 10%. I expect that Avaldsnes appraisal drilling in PL501 will continue in 2012 to fully appraise the field. We have put together a large acreage position in the Barents Sea over recent years, which has increased further with the award of PL609 in the Norwegian 21st Licensing Round. Our first well in the Barents Sea on the Skalle prospect in PL438 was a gas discovery with estimated gross contingent resources of between 88 and 280 billion cubic feet (bcf ). Whilst we were primarily targeting oil potential we will now look to commercialise the discovery which is located close to the producing Snøvhit gas field. The licence contains numerous additional prospects. The Pulk exploration well in PL533 operated by ENI has now slipped into Our first exploration well in Malaysia resulted in a large gas discovery on the Tarap prospect offshore Sabah containing 171 bcf of gross contingent resources. The Tarap discovery is in Block SB303 which already contains the nearby Titik Terang gas discovery with additional gross contingent resources of 66 bcf. The gas market in East Malaysia is developing with the construction of additional gas infrastructure to supply the Sabah oil and gas terminal. In the forthcoming months, we will be exploring the commercialisation of our gas resources in Tunisia: Ikdam FPSO East Malaysia. We will be drilling four further exploration and appraisal wells in Malaysia in 2011 and are already planning for a similar drilling campaign in Oil and Gas Industry Despite the continued uncertainty with regard to world economic growth the oil price has remained strong. As we have predicted there is a growing realisation that current oil prices are no longer a short term aberration but something to be expected as the norm. We maintain our belief that oil prices are and will continue to be driven by the fundamentals of supply and demand and that our low sulphur oil reserves located predominantly in Norway will continue to realise a premium above Brent benchmark prices. Our business is continuing to grow and I am confident we will continue to increase shareholder value. We are generating strong cash flow and profitability from our existing production which is outperforming, our development projects are proceeding well and our exploration success continues. Best Regards, C. Ashley Heppenstall President and CEO > 5 <

6 Operational Review EUROPE Norway The net production in Norway to Lundin Petroleum for the six month period ended 30 June 2011 (reporting period) was 22,300 barrels of oil equivalent per day (boepd). Production was adversely impacted in the second quarter due to a 13 day unplanned shutdown of the Alvheim and Volund fields due to preventative maintenance on the Alvheim FPSO s fire prevention system. The net production for the reporting period from the Alvheim field (Lundin Petroleum working interest (WI) 15%), offshore Norway, was 11,300 boepd. The Alvheim field has been on production since June 2008 and continues to perform above expectations. The excellent reservoir performance has resulted in increased gross ultimate recovery reserves during 2010 to 276 million barrels of oil equivalent (MMboe) representing a 65 percent increase in ultimate recovery from when the Alvheim plan of development was completed in Phase 2 of Alvheim development drilling commenced in 2010 and is ongoing with a further two development wells to begin production in the second half of A third well is being drilled and will begin production early The forecast cost of operations for the Alvheim field in 2011 is approximately USD 5.00 per barrel. The net production from the Volund field (WI 35%) amounted to 11,000 boepd for the reporting period and significantly exceeded forecast. First production from the Volund field commenced in April 2010 and production increased during the year to the plateau production as development drilling was successfully completed. Volund field production during the reporting period was above the 8,700 boepd net Volund field firm capacity on the Alvheim FPSO as it took advantage of additional spare capacity. It is likely that further development drilling will take place on Volund in In October 2009, a new oil discovery on the Bøyla prospect in PL340 (WI 15%) was announced. Bøyla contains gross recoverable resources of 20 MMboe and will be developed as a subsea tieback to the Alvheim FPSO. A plan of development will be submitted for the Bøyla field in the first half of 2012 with first oil expected in During the first quarter of 2011, the Caterpillar exploration well in PL340BS was completed as an additional new oil discovery. Caterpillar, located close to Bøyla will now most likely be developed through the Bøyla development facilities. The Luno field located in PL338 (WI 50%) was discovered in 2007 and has subsequently been appraised by two further wells. The results of these appraisal wells have been incorporated into the reservoir model being used for development planning and has resulted in an upgrade of gross proven and probable (2P) reserves from 95 MMboe to 148 MMboe for the Luno field. The reserves have been audited by third party reserves auditors Gaffney Cline & Associates. Conceptual development studies for a Luno field standalone development and in relation to a joint development of the Luno field and the nearby Draupne field have been completed. The decision has been made to proceed with a standalone development and FEED studies are now ongoing. A plan of development for the Luno field will be submitted in It is likely that further exploration drilling in PL338 on additional prospects will take place in In April 2011, the Tellus exploration well in PL338 was completed as an oil discovery. The Tellus discovery is most likely a northern extension of the Luno field and is estimated to contain gross contingent resources of between 11 and 55 MMboe. Two reservoir tests were completed in the Tellus well, the first of which, in the fractured basement, was the first successful full scale basement test on the Norwegian Continental shelf. The potential commercial production from the fractured basement has positive implications to add resources from this interval in the Luno South discovery and in the surrounding area. In May 2011 the Tellus exploration well was successfully sidetracked to appraise the discovery and as a result the Tellus development will now be included as part of the Luno development programme. An exploration well in PL501 (WI 40%) targeting the Avaldsnes prospect was successfully completed in the third quarter of 2010 as an oil discovery. After the discovery well it was estimated that the Avaldsnes discovery contained gross recoverable resources of 100 to 400 MMboe within PL501 and that the fault controlled structure extended to the west into PL265 (WI 10%). The first Avaldsnes appraisal well and sidetrack were successfully completed in July 2011 confirming the extension of the Avaldsnes field to the south east of the discovery well. The appraisal well encountered oil bearing reservoir of thickness and quality better than the discovery well and tested at an average production rate in excess of 5,500 boepd through a restricted choke. A second appraisal well is currently being drilled following which the Avaldsnes resource estimates will be updated to reflect the results of the appraisal programme. Two further wells will be drilled in 2011 by Statoil, operator of PL265, to test the extension of the Avaldsnes structure into PL265, the first of which is currently being drilled as Aldous Major South. The element of the Avaldsnes structure in PL265 has been named Aldous Major South and Aldous Major North. The Avaldsnes discovery and the Apollo discovery in PL338 made in 2010 have both opened up additional prospectivity in the Greater Luno area and further exploration drilling in PL359 (WI 40%) and PL410 ( WI 70%) will likely take place in The plan of development for the Gaupe field in PL292 (WI 40%) was approved in June 2010, where first production is expected in late The Gaupe field operated by BG Group has estimated gross reserves of approximately 31 MMboe and is estimated to produce at a plateau production rate net to Lundin Petroleum of 5,000 boepd. A plan of development of the Brynhild field (formerly called Nemo) in PL148 (WI 50%) has been submitted to the Norwegian Ministry of Petroleum and Energy for approval. The Brynhild field contains gross proven plus probable reserves of 22 MMboe and is expected to produce at a plateau production rate net to Lundin Petroleum of 6,000 boepd with first oil forecast in late Lundin Petroleum has decided not to proceed with the development of the Krabbe discovery in PL301 (WI 40%) due to uncertainty regarding the recoverable resources from the field. > 6 <

7 In January 2011, Lundin Petroleum was awarded ten exploration licences in the 2010 APA Licensing Round of which six licences will be operated by Lundin Petroleum. In April 2011 Lundin Petroleum was awarded license PL609 as operator in the 21st Norwegian Licensing Round. PL609 (WI 40%) is located in the Barents Sea to the east of Statoil s large new Skrugard oil discovery which is estimated to contain between 150 and 250 MMboe. Lundin Petroleum has now interests in five exploration licences in the Barents Sea. In July 2011 the Skalle exploration well in PL438 (WI 25%) was completed as a gas discovery with estimated gross contingent resources of between 88 and 280 billion cubic feet (bcf). The Skalle discovery is located approximately 25 kms from the producing Snøvhit gas field. Additional prospectivity for further hydrocarbons exists in the Skalle substructure and in additional prospects in PL438. In May 2011 Lundin Petroleum acquired a 30 percent interest in PL330 located in the northern Norwegian Sea. In July 2011, Lundin Petroleum completed the drilling of well 25/10-11 on the Earb South prospect in PL505. The well encountered three separate hydrocarbon bearing Jurassic sandstones sequences with poor reservoir quality. The well was tested and flowed oil and gas to surface but the reservoir was tight and further work will be required to determine whether the discovery can be commercialised. France The net production in the Paris Basin (WI 100%) averaged 2,450 boepd and in the Aquitaine Basin (WI 50%) averaged 650 boepd for the reporting period. The redevelopment of the Grandville field in the Paris Basin involving the drilling of eight new development wells and the installation of new production facilities has commenced. Development drilling will continue into The Netherlands The net gas production to Lundin Petroleum from the Netherlands averaged 2,000 boepd for the reporting period. Ireland Interpretation of the 3D seismic acquired in 2010 on the Slyne Basin licence 04/06 (WI 50%) is completed. SOUTH EAST ASIA Indonesia Lematang (South Sumatra) The net production to Lundin Petroleum from the Singa gas field (WI 25.9%) during the reporting period amounted to 900 boepd. Production from the Singa field commenced in Current gross production from the first production well is in excess of 20 million standard cubic feet per day (MMscfd) of sales gas. A second development well has been completed during the reporting period and is having a positive impact on production rates. Rangkas (Java) A 474 km 2D seismic acquisition programme has been completed on the Rangkas block (WI 51%). Baronang/Cakalang (Natuna) A 975 km² 3D seismic acquisition programme on the Baronang and Cakalang block (WI 100%) was completed in Interpretation has been completed and exploration drilling will commence in In addition a 1,500 km 2D seismic acquisition programme will be completed on Cakalang in South Sokang (Natuna Sea) A new Production Sharing Contract for the South Sokang block was signed in December 2010 (WI 60%). A 2,400 km 2D seismic acquisition program will be completed in Gurita (Natuna Sea) A new Production Sharing Contract for the Gurita block was signed in March 2011 (WI 100%). A 400km² 3D seismic acquisition programme will be completed in Malaysia The D seismic data programme identified numerous drilling targets for the 2011/2012 drilling campaign. Five exploration and appraisal wells will be drilled in The Tarap exploration well drilled in SB303 (WI 75%), offshore Sabah, East Malaysia was completed in July 2011 as a gas discovery. The well encountered gas in each of the five independently sealed Miocene sands targeted finding gross vertical pay of approximately 150 metres. The gross contingent resources of the Tarap discovery are 171 bcf. There are various options for the commercialisation of gas in the Sabah area. The Cempulut exploration well also in SB303 is currently drilling. In June 2011 Lundin Petroleum acquired a 75 percent working interest in Block PM307 offshore Peninsula Malaysia. A 2,100 km² 3D seismic acquisition programme is planned for 2011 plus the drilling of an appraisal well on the Bertram discovery. RUSSIA The net production from Russia for the period was 3,200 boepd. In the Lagansky Block (WI 70%) in the northern Caspian a major oil discovery was made on the Morskaya field in The discovery due to its offshore location is deemed to be strategic by the Russian Government under the Foreign Strategic Investment Law. As a result a 50 percent ownership by a state owned company is required prior to appraisal and development. During 2010, 103 km² of new 3D seismic was acquired on the Lagansky block which will target new exploration drilling locations. AFRICA Tunisia The net production from the Oudna field (WI 40%) was 800 boepd for the reporting period. Congo (Brazzaville) Exploration drilling will resume in 2011 with one well on Block Marine XI (WI 18.75%) and a further well on Block Marine XIV (WI 21.55%). > 7 <

8 Reserves and Resources PROVEN AND PROBABLE RESERVES Norway - excl Luno Tunisia Russia Norway - Luno Proven and Probable Reserves (2P) MMboe net Lundin Petroleum France Indonesia Netherlands Reserves As of end 2010, Lundin Petroleum had million barrels of oil equivalent (MMboe) of proven and probable (2P) oil and gas reserves. This is an increase of 18 percent when compared to last year, taking into account production of 11.9 MMboe in 2009 and the sales of 85.5 MMboe of reserves related to UK assets which were spun off into EnQuest PLC and the Salawati assets in Indonesia which were sold to RH Petrogas. The reserves replacement ratio, which is calculated by dividing the increase in reserves during 2010 by the production in 2010 is 237 percent. Of the MMboe of 2P reserves, 84 percent is related to oil reserves and 98 percent of the total 2P reserves are situated in tax-royalty regimes. Lundin Petroleum is quoting all of its reserves in working interest barrels of oil equivalent. All reserves are externally audited by Gaffney, Cline and Associates. Norway - excl. Avaldsnes Netherlands Congo (Brazzaville) CONTINGENT RESOURCES Russia Norway - Avaldsnes Contingent Resources Internal Estimate MMboe net Lundin Petroleum Malaysia France Indonesia 2011 TARGETED PROSPECTIVE RESOURCES Norway Following two years of reporting a reserves replacement ratio of close to 400 percent, Lundin Petroleum has had another year with a strong reserves replacement of 237 percent. In other words, every barrel produced in 2010 has been replaced by almost 2.4 barrels of 2P reserves, giving a strong reserves base for future production growth. Contingent resources At end 2010 Lundin Petroleum has MMboe of contingent resources. This compares to 285 MMboe at end Major changes are related to the removal of 54.3 MMboe of UK related contingent resources and a 53.2 MMboe downgrade of the contingent resources in the Morskaya field following the results of the interpretation of 3D seismic. This reduction was offset by the inclusion of 97.6 MMboe contingent resources for the Avaldsnes and Apollo fields in Norway, which were discovered in Lundin Petroleum has an active work programme to mature contingent resources into reserves. Two appraisal wells are scheduled for 2011 to apprise the Avaldsnes discovery following which conceptual field development work will start. Conceptual development studies for the Krabbe field are progressing with the aim to choose a concept in The Apollo discovery will likely be appraised in boepd net 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Prospective Resources Internal Estimate 483 MMboe unrisked net Lundin Petroleum 2011 PRODUCTION FORECAST 33,500 boepd Q1 Actual 31,100 boepd Q2 Actual FPSO Shutdown Gaupe production start-up Q3 Revised high Revised low CMD Forecast high CMD Forecast low Actual production Q4 Prospective resources Lundin Petroleum has a substantial portfolio of exploration licences. In 2011 Lundin Petroleum is planning to drill (operated and non-operated) 21 exploration and appraisal wells targeting in total 483 MMboe of net unrisked prospective resources. Ten of these exploration and appraisal wells are expected to be drilled in Norway and five are planned to be drilled as part of a new drilling campaign in Malaysia. The other wells are planned to be drilled in the Netherlands and Congo (Brazzaville). Production Lundin Petroleum produced a total of 11.9 MMboe in 2010 from fields in Norway, France, Netherlands, Russia, Tunisia and Indonesia and from the United Kingdom for the first quarter only. Production throughout the year has been at the upper end of the production guidance. Lundin Petroleum s production forecast for 2011 is in the range of 28,000 to 33,000 boepd. This compares to 28,400 boepd in 2010, excluding the production from the divested UK and Indonesian assets. > 8 <

9 Financial Summary INCOME STATEMENT SUMMARY (TUSD) Q Operating income 618, , , , , ,957 Production costs -97, , , , ,947-89,378 Depletion of oil and gas properties -78, , ,128-95,046-80,008-47,392 Exploration and impairment costs -16, , , ,023-20,439-16,755 Impairment costs -644,766-78,572 Gross profit 426, , , , ,275 89,432 Sale of asset 66,126 4,589 20,481 General, administration & depreciation (net) -17,143-40,960-27,619-19,684-24,317-14,434 Operating profit/(loss) 409, , , , ,958 74,998 Financial items 10,829-12,507 29, ,121-5, Result from share in associated company -25,504 4,480 Profit/(loss) before tax 419, , ,137 42, ,488 74,690 Tax -289, ,865-45,669-40,824-76,196-31,640 Net result from continuing operations 130, , ,806 1,361 57,292 43,050 Net result from discontinued operations 368,992 8,737 59,042 83,794 55,459 Net result 130, , ,069 60, ,086 98,509 Net result attributable to Shareholders of the parent company 133, , ,268 93, , ,891 Net result attributable to non-controlling interest -2,804-13, ,801-33, ,164 NET RESULT 130, , ,069 60, , ,727 BALANCE SHEET SUMMARY (TUSD) Q Tangible fixed assets 2,362,364 2,014,242 2,556,275 2,704,555 2,631,890 2,116,029 Other non-current assets 91, , , , , ,214 Current assets 215, , , , , ,153 TOTAL ASSETS 2,668,529 2,429,136 2,950,658 3,236,690 3,282,596 2,576,396 Shareholders equity 1,095, ,416 1,141,658 1,462,442 1,513,340 1,304,219 Non-controlling interest 78,966 77,365 95, , , ,291 Total equity 1,174, ,781 1,237,213 1,642,235 1,723,233 1,539,510 Provisions 1,005, , , , , ,861 Interest bearing debt 176, , , , , ,649 Current liabilities 312, , , , , ,376 TOTAL SHAREHOLDERS EQUITY & LIABILITIES 2,668,529 2,429,136 2,950,658 3,236,690 3,282,596 2,576,396 ial statement for the year 2003 has been prepared under Swedish GAAP and are not in conformity with years 2007, 2006, 2005 and PRODUCTION (BOEPD) EBITDA (MUSD) CASH FLOW (MUSD) 40, , , , Q H H 11 > 9 <

10 Corporate Responsibility Corporate Responsibility focuses on the way Lundin Petroleum conducts its operations Lundin Petroleum pursues its activities in a variety of physical, legal, social and economic environments; it is committed to maintain the same high technical and ethical standards wherever it is active. In order to fulfil this goal, it relies on the collective experience of its highly qualified staff as well as its corporate responsibility framework: its Code of Conduct, Health, Safety, Environment (HSE) and Community Relations Policies, HSE Management System (the Green Book) and Corporate Donations Programme. Lundin Petroleum s Code of Conduct sets out its responsibilities towards its shareholders, employees, host countries, local communities and society and the means to ensure that they benefit from its activities. The Code also sets out the values by which Lundin Petroleum is guided: fairness and honesty, as well as respect for local, national and international laws, and for generally accepted principles on the protection of human rights and the environment. Lundin Petroleum s Health, Safety and Environment (HSE) policies aim to ensure that its activities preserve the health and safety of the staff and nearby communities as well as the environment; they require integration of HSE elements in operational strategies and planning. The Green Book, modelled on ISO-14001, details how this integration is to take place in practice, namely through leadership commitment, attribution of HSE roles and responsibilities, setting of HSE plans, objectives and targets as well as continuous monitoring and review of HSE performance. In order to ensure that activities contribute to enhancing the living standards and well being of people in its areas of operations, Lundin Petroleum s Community Relations Policy promotes the hiring of local staff and participation in community projects; if the needs and circumstances are of relevant nature and extent, Lundin Petroleum may in addition contribute to community development projects aimed at improving health, education and welfare services available in the area. Lundin Petroleum has also established a Corporate Donations programme which involves making, from time to time, monetary or in-kind contributions to individuals, groups or projects anywhere in the world which enhance the welfare of particularly disadvantaged people, contribute to the better understanding of the oil & gas sector or promote positive values. > 10 <

11 Executive Management C. Ashley Heppenstall President and Chief Executive Officer Ashley Heppenstall has worked with public companies controlled by the Lundin family since He has been with Lundin Petroleum from the start in He was appointed President and CEO in 2002 and as such he is responsible for the overall leadership, strategy and vision of Lundin Petroleum. Ashley Heppenstall is a mathematics graduate of the University of Durham. Alexandre Schneiter Executive Vice President and Chief Operating Officer Alex Schneiter has worked with public companies controlled by the Lundin family since He has been with Lundin Petroleum from the start in He leads an experienced team who are responsible for Lundin Petroleum s worldwide exploration and production operations. Alex Schneiter is a graduate of the University of Geneva with a degree in Geology and a masters degree in Geophysics. Geoffrey Turbott Vice President Finance and Chief Financial Officer Geoffrey Turbott has worked with public companies controlled by the Lundin family since He has been with Lundin Petroleum from the start in He is directly responsible for Lundin Petroleum s financial reporting, internal audit, financial risk management, tax and treasury functions. Geoffrey Turbott is a member of the Institute of Chartered Accountants of New Zealand. Chris Bruijnzeels Senior Vice President Operations, Chris Bruijnzeels joined Lundin Petroleum in He is responsible for operations and development within Lundin Petroleum s asset portfolio. Chris Bruijnzeels is a graduate of the University of Delft with a degree in Mining Engineering. > 11 <

12 Corporate Head Office Lundin Petroleum AB (publ) Hovslagargatan 5 SE Stockholm Sweden Telephone: Telefax: info@lundin.ch