Lundin Petroleum announces reserves and contingent resources update

STOCKHOLM -- Lundin Petroleum AB has announced that as of Dec. 31, 2017, its proved plus probable net reserves (2P reserves) are 726 MMboe, its proved plus probable plus possible net reserves (3P reserves) are 895 MMboe and its best estimate net contingent resources (contingent resources) are 203 MMboe. Edvard Grieg field, Lundin Petroleum's main producing asset, represents an increase of 51 MMboe gross 2P reserves from year end 2016, excluding production, and a 47% increase in best estimate ultimate recovery from the original PDO.
 
Reserves

Lundin Petroleum's 2P reserves as at Dec. 31, 2017 are 726.3 MMboe and reflect a positive revision of 45.8 MMboe, excluding sales. The 3P reserves as at Dec. 31, 2017 are 895.5 MMboe and reflect a positive revision of 31.5 MMboe, excluding sales.
 

The main reason for the increase in reserves relates to Lundin Petroleum's two main assets, Edvard Grieg and Johan Sverdrup fields, both located on the Utsira High in the Norwegian North Sea. The reserves upgrade on Edvard Grieg is driven by the drilling results and production performance to date, which indicate more oil-in-place and with a greater proportion of the oil-in-place in the high quality high recovery factor sands as compared to the lower quality conglomerate reservoir. The best estimate gross ultimate recovery from Edvard Grieg as at end 2017 is 274 MMboe, which is cumulative production to end 2017 plus 2P reserves. This represents an increase of 51 MMboe from year end 2016 and a 47% increase from the original PDO. Additionally, the high estimate gross ultimate recovery from Edvard Grieg as at end 2017 is 337 MMboe, which is cumulative production to end 2017 plus 3P reserves. This represents an increase of 27 MMboe from year end 2016. Further contingent resources are identified associated with infill drilling opportunities

The upgrade of reserves in Johan Sverdrup field are consistent with the upgrade announced by Statoil during 2017 and reflects positive drilling results and optimization of the reservoir development plan. Further reserves increases have been attributed to the Alvheim and Volund fields. Oil accounts for 93% of Lundin Petroleum's 2P reserves.

The reserves are based upon a third party independent audit conducted by ERCE. The reserves have been calculated using 2007 Petroleum Resource Management System (SPE PRMS), Guidelines of the Society of Petroleum Engineers (SPE), World Petroleum Congress (WPC), American Association of Petroleum Geologists (AAPG) and Society of Petroleum Evaluation Engineers (SPEE).