Report for the six months ended 30 June 2018

• Record high quarterly EBITDA and operating cash flow.
  
  
• Production above guidance. Full year guidance increased to 78–82 Mboepd from previous guidance of 74–82 Mboepd.

• Operating cost of USD 3.30 per barrel for the first six months 2018. Full year guidance reduced to below USD 4 per barrel.
  
  
• Dividend of SEK 4 per share distributed on 11 May 2018.

• Improved borrowing terms re-negotiated for reserve-based lending facility, resulting in a net accounting gain of MUSD 166.4.

• Phase 1 of the Johan Sverdrup project about 75 percent completed. Two platforms successfully installed on the field.

• Development drilling programme on Edvard Grieg completed under budget and on schedule.

The numbers included in the table above for 2017 are based on continuing operations.
¹ Based on net result attributable to shareholders of the Parent Company.

Comments from Alex Schneiter, President and CEO of Lundin Petroleum:
"I am pleased to report another quarter with strong EBITDA and operating cash flow for Lundin Petroleum, driven by production above guidance, continued low operating cost and higher oil prices. This strong performance has led us to increase our production guidance for the full year to between 78 and 82 Mboepd and reduce the operating cost guidance to below USD 4 per barrel.

During the second quarter, we also re-negotiated improved borrowing terms for our reserve-based lending facility, which has resulted in the reduction of the current interest rate margin over LIBOR from 3.15 percent to 2.25 percent. This re-negotiation demonstrates our lenders confidence in our ability to continue to successfully fund the future growth of the Company.

Our key operated asset Edvard Grieg continues to outperform on all fronts. We recently announced the completion of the PDO development drilling programme, achieved under budget and on schedule. With the significant resource upside and tie-back opportunities that are being identified in the area, I believe there is potential to double the total resources produced through the Edvard Grieg facilities, relative to the current best estimate gross ultimate recovery for the field, allowing us to keep the facilities full for many years to come. In addition, we await the appraisal results of the nearby Rolvsnes discovery, expected in August, which could be another tie-back development to Edvard Grieg in addition to Luno II.

The offshore installation programme for Johan Sverdrup has progressed well over the summer. Phase 1 is now about 75 percent complete with still just over a year to go until first oil. The drilling platform, installed last month, is among the largest modules to have ever been installed in one go, taking only two days from sail away to installation. This is a great achievement not only for the Johan Sverdrup project but for the industry as a whole. The remaining two steel jackets are scheduled for installation in August and the PDO for Phase 2 will be submitted before September.

We remain as focused as ever on pursuing organic growth opportunities in our core areas and have had a good start to 2018 with three successful wells on Luno II, Frosk and Lille Prinsen. I look forward to the active drilling programme that is planned for the remainder of the year, updated to include two follow-up exploration wells to the Frosk oil discovery. Furthermore, the extended production test on the Alta discovery in the southern Barents Sea has started and initial results look promising. A successful outcome of this extended test, lasting for two months, will take us one step closer to a field development in this region.”

Audiocast presentation
Listen to Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, commenting on the report at an audiocast held on Tuesday 31 July 2018 at 09.00 CEST.

Follow the presentation live at www.lundin-petroleum.com or by dialling in on the following telephone numbers:

Sweden: +46 8 519 993 55
Norway: +47 23 500 211
UK:  +44 203 194 05 50
International Toll Free: +1 855 269 26 05

https://lundinpetroleum.videosync.fi/2018-07-31_q2

Lundin Petroleum is one of Europe’s leading independent oil and gas exploration and production companies with operations focused on Norway and listed on Nasdaq Stockholm (ticker "LUPE"). Read more about Lundin Petroleum’s business and operations at www.lundin-petroleum.com

For further information, please contact:

This information is information that Lundin Petroleum AB is required to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.30 CEST on 31 July 2018.

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 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, 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.

Attachment

• Lundin Petroleum-Q2 report 2018-V2-20180731en