Financial presentation

Page 1
Financial Results - Year End 2006
February 2007
WF9376
C. Ashley Heppenstall, President & CEO
Geoff Turbott, Vice President Finance & CFO
Page 2
Disclaimer
DISCLAIMER
Certain statements made in this presentation involve a number of risks and uncertainties
that could cause actual results to differ materially from those projected. Certain statements
relating to Lundin Petroleum’s business and operations are based on management’s
expectations, estimates and projections. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult to predict.
Certain statements are based upon assumptions as to future events that may not prove to
be accurate. Therefore, actual outcomes and results may differ materially from what is
expressed or forecasted in such statements. Lundin Petroleum makes no commitment, and
disclaims any duty, to update or revise any of these statements.
This presentation is for informational purposes only and is not intended as a solicitation or
offering of securities in any jurisdiction. The information contained in this presentation is not
intended to qualify, supplement or amend information disclosed under corporate and securities
legislation of any jurisdiction applicable to Lundin Petroleum and should not be relied upon for
the purpose of making investment decisions concerning any securities of Lundin Petroleum.
WF8278
Page 3
Financial Results - Year End 2006
Turnover
Year End
2006
Fourth Quarter
2006
4,415
1,139
794
196
2,271
618
2,732
559
Million SEK
Net Profit
Million SEK
Operating Cashflow
Million SEK
EBITDA
Million SEK
WF6909 02.07
Page 4
Financial Performance
MSEK
4,000
3,500
Operating Cash Flow
EBITDA
3,000
Net Profit
2,500
2,000
1,500
1,000
500
0
2002
WF8508 02.07
2003
2004
2005
2006
Page 5
Financial Highlights
Production for the year 29,400 boepd
Production for the quarter 33,800 boepd
End 2006 at 40,000 boepd
Cost of operations USD 18.49 per barrel for fourth quarter
Tax rate 57% for 2006
WF8603 02.07
Page 6
2006 Margin Netback USD/boe
2006 Actual
(USD/boe)
Production (MMboe)
10.8
Brent oil price
Revenue
65.15
55.30
Cost of operations
Tariffs
Production & sales taxes
Stock movements
-17.01
-1.87
-1.94
1.09
35.57
WF9289 02.07
Depletion
-9.73
Margin Netback
25.84
Page 7
Production 2006
boepd
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Q1
Q2
Q3
2006
WF9378 02.07
Q4
Page 8
Cost of Operations 2006
9.5% over budget of which 5.5% foreign exchange movements
USD millions
210
210
$/boe
20.00
mboepd
70
184
180
18.00
168
180
60
Avg 17.01
150
150
50
120
120
40
16.00
14.00
12.00
10.00
90
90
30
60
60
20
8.00
6.00
4.00
30
30
10
2.00
0
0
Actual
Forecast
0
0.00
Q1
Q2
Production mboepd (LHS)
WF9306 01.07
Q3
Q4
USD Cost of Operations per Barrel (RHS)
Average Cost of Operations (RHS)
Page 9
Taxation
2006 effective rate of tax 57%
2006 includes increase in deferred tax liability to
record the increase in supplemental tax in UK
2007 effective rate of tax 55%
WF9377 02.07
Page 10
Balance Sheet - 31 December 2006
Fixed Assets
Net Current Assets (excluding cash)
Net Bank Debt
Shareholder Equity
Net Debt/Equity Ratio
31 Dec 2006
31 Dec 2005
16,188
6,329
(45)
(213)
1,094
347
10,568
3,683
10%
9%
numbers in million SEK
WF6917 02.07
...strong financial flexibility
Page 11
Liquidity
2007 work programme 520 MMUSD
Funded from cash flow and existing bank facility
WF9379 02.07
Page 12
2007 Margin Netback USD/boe
2006 Actual
2007 Forecast
(USD/boe)
(USD/boe)
10.8
15.4
Brent oil price
Revenue
65.15
55.30
55.00
49.15
Cost of operations
Tariffs
Production & sales taxes
Stock movements
-17.01
-1.87
-1.94
1.09
-14.55
-1.60
-3.15
-0.25
35.57
29.60
Depletion
-9.73
-10.75
Margin Netback
25.84
18.85
Production (MMboe)
2007 foreign exchange rates assumption: USD/Euro 1.30, USD/GBP 1.90, NOK/USD 6.25
WF9289 02.07
Page 13
Cost of Operations 2007
USD/boe
17.00
16.50
16.00
15.50
15.00
Average
14.50
14.00
13.50
13.00
12.50
12.00
Q1
Q2
Q3
2007
WF9306 01.07
Q4
Page 14
2006 - A Year of Consolidation after 4 Years of Growth
UK
Norway
Russia
Production
Tunisia - Oudna producing at > 20,000 bopd
UK - Facilities problems negatively impacted
production forecast
Development
Tunisia
Vietnam
Congo
Singapore
Ethiopia
Norway - Alvheim development on target for first oil 2Q 2007
Norway - Volund POD approved
Exploration
Drilling delays in Norway, Sudan and Russia
UK - Acquisition of exploration assets
SE Asia - Opening of a new ventures office in Singapore
- Signed new Block 06/94, offshore southern Vietnam
Africa - New venture focus in Africa with signing of Marine XI Block,
offshore Congo and 2 new blocks onshore Ethiopia
Acquisitions
Valkyries acquisition in Russia creates a new core area
UK/Norway - Acquisition of undeveloped Peik gas condensate field
Indonesia - Acquisition of a further 10% in the Lematang Block (Singa Development)
WF9190 01.07
Indonesia
Page 15
2006 Production
bopd
50,000
45,000
Tunisia
40,000
Russia
(excl. minority)
35,000
Venezuela
30,000
France
Netherlands
25,000
Indonesia
20,000
Norway
15,000
UK
10,000
5,000
0
Jan
WF9247 01.07
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Page 16
2006 Production
2006
Actual
29,400 BOEPD
WF8262 02.07
Page 17
2007 Production Forecast
End 2007
Exit Rate Forecast
>50,000 BOEPD
2007
Forecast
41,000 BOEPD
2004
Actual
28,900 BOEPD
2003
Actual
16,100 BOEPD
WF8262 02.07
2005
Actual
33,100 BOEPD
2006
Actual
29,400 BOEPD
Page 18
2006 Year End Production 40,000 boepd
Tunisia - Oudna field
Lundin Petroleum 50% (operator)
Atlantis 50% (Tunisian Govt 20%
buy in option)
Original production forecast
20,000 bopd (gross)
WF9193 01.07
Page 19
Oudna Performance
Average production for 2007 forecast at >14,000 bopd (gross)
Average production from 1st January 2007 to date > 21,000 bopd
Gross Barrels
Oil Rate
Water Injection Rate
Oil Rate Budget
30,000
25,000
20,000
15,000
10,000
5,000
0
11-Nov
WF9251 02.07
31-Dec
19-Feb
10-Apr
30-May
19-Jul
7-Sep
27-Oct
16-Dec
Page 20
Historical Reserves
200
180
160
140
Russia
Norway
MMboe
120
U.K.
Venezuela
100
Tunisia
Indonesia
80
Netherlands
60
France
40
20
0
WF9192 01.07
2003
2004
2005
2006
2007
Page 21
2007 Proven & Probable Reserves
Total 176.4 MMboe
Russia (30.3)
France (22.6)
Netherlands (5.4)
Gas 10.9%
176.4
Oil 89.1%
Indonesia (17.6)
Norway (47.2)
Tunisia (3.8)
01.01.2006
UK (49.3)
mmboe
146.1
- Produced (excl Russia)
- Venezuela Mixed Enterprise
+ new reserves (excl Acquisitions)
+ Acquisitions
01.01.2007
-9.8
-4.4
12.0
32.5
176.4
Increase in Reserves 29%
Reserves Replacement Ratio 122%
WF9192 01.07
Page 22
A Diversified Portfolio
United Kingdom
5 production licences,
20 exploration licences
Norway
Russia
1 production licence,
1 development licence,
22 exploration licences
4 producing blocks,
1 exploration licence
Ireland
4 exploration
licences
France
14 production licences,
2 exploration licences
Netherlands
18 production licences,
1 exploration licence
Vietnam
Albania
1 exploration licence
1 exploration licence
Tunisia
1 production licence,
3 development licences
Ethiopia
2 exploration
licences
Sudan
Congo Brazzaville
1 exploration
licence
Indonesia
2 production licences,
4 exploration licences
1 exploration licence
WF9189 01.07
Four Core Areas: Europe, Africa, Russia, Far East
Page 23
USD 520 Million Capital Investment - 2007
UK
Norway
Russia
France
Development - USD 290 million
Norway
- Alvheim field, onstream 2007
- Volund field, onstream 2009
UK
- Broom field, infill drilling
- Heather field, infill drilling
- Thistle field, redevelopment
Russia
- Ashirovskoye field, Orenburg
- Sotchemyu-Talyu field, Komi Republic
Sudan
Indonesia
Ongoing development drilling
France
- Villeperdue field, infill drilling
Indonesia - Singa field development, onstream 2009
Exploration - USD 230 million
WF9263 02.07
UK
5 Wells
100 MMBOE
Norway
3 Wells
130 MMBOE
Russia
2 Wells
600 MMBOE
Sudan
3 Wells
500 MMBOE
Indonesia
6 Wells
30 MMBOE
Total wells to be drilled
Total Unrisked Prospective
Resource Potential
19
~1.4 billion barrels
Page 24
Norway - Alvheim Development
Lundin Licences
Oil Field
Gas Field
Vilje
Alvheim Facility
PL088
Well Manifold
Water Disposal/Wells
Gas Export
Umbilical
PL203
Flowline
Gas Lift Line
Water Pipeline
PL036c
ALVHEIM
Alvheim project (15%)
Operator - Marathon
2P reserves 189.1 MMboe gross
FPSO development - shuttle tanker
oil export to Norway and gas pipeline
to UK
First oil 2Q 2007 - 85,000 boepd
(gross plateau production)
Heimdal
2 water disposal wells drilled
way
U.K
.
4 production wells drilled
Nor
JOTUN
PL150
0
WF6326 02.07
KM
6
PL103
...first oil 2007
Page 25
Alvheim Status
Development drilling ongoing
Divers and ROV work on buoy installation
Topsides installation ongoing
Subsea installation completed (except wells tie-in)
Buoy installed offshore and ready for hook up
into turret
WF9066 02.07
Alvheim FPSO topsides installation in Norway
Page 26
Greater Alvheim Area - Upside Potential
Alvheim Field 28.5 MMboe (15%):
Boa, Kameleon, Kneler
FALLOW ACREAGE
GE
Volund Field 17 MMboe (35%)
Contingent Resources 5.3 MMboe:
East Kameleon branch wells
Gekko
Kobra
EAST
E
EA
S KAMELEON
LE
EAST KNELER
EAS
K
WEST
KNELER
ES
ST K
NELE
H
B
H-B
H-A
H
H-C
H
KOBRA
KOBR
VOLUND
IBSEN
PL 340 Marathon
WF9195 01.07
G
R
E ST
GRIEG
EAST
Prospective Resources
Unrisked 52.8 MMboe:
South Kneler
Alvheim Deep
Hermod A
East Kneler
West Kneler + H-B
Python
Grieg East + Ibsen N (35%)
Ibsen(35%)
PL 340 (15%):
- Contingent Resources 1.6 MMboe
- Unrisked Prospective
Resources 14.4 MMboe
Page 27
Norway - Volund Development
Lundin Licences
Oil Field
Gas Field
Vilje
Alvheim Facility
PL088
Well Manifold
Water Disposal/Wells
Gas Export
Umbilical
PL203
Flowline
Gas Lift Line
Water Pipeline
PL036c
Heimdal
way
U.K
.
ALVHEIM
JOTUN
Nor
VOLUND
PL150
0
WF6326 02.07
KM
6
PL103
Volund (35%)
Operator - Marathon
2P reserves 48.6 MMboe gross
Exploration discovery in 2004
Plan of development approved in 2007
Development tie-back to Alvheim
First production 23,000 bopd gross
in 2009
Page 28
Norway - Volund Development
Estimated Capex NOK 2.8 billion gross
(USD 9 per barrel)
Contracts awarded and drilling rig secured
Subsea development
4 slot manifold same as Alvheim
3 oil producers
Water injection
1 production riser
Some topside installation
WF9256 02.07
Page 29
UK Producing Assets
Otter
way
Nor
UK
THISTLE
Eider
Tern
Hudson
Statfjord
Melville
HEATHER
Hutton
Strathspey
Lyell
BROOM
Ninian
Alwyn
North
Cheviot
0
WF9225 01.07
KM
Dunbar
20
Page 30
UK - Broom Field
Ongoing Projects
First oil August 2004
Reserves 18.9 MMbbls net to Lundin
3D seismic shot in 2006
Contracted GSF Arctic II
for next 2 wells
2007 revamp of Broom reservoir
model integrating new seismic
Installation of water handling
equipment on Heather
Preparations for development
drilling programme
Heather Alpha
„
6 Gas Import
BROOM FIELD*
West
Heather
SSIV Manifold
Water Injector
16
ndle
7 km Bu
”O
il
HEATHER FIELD**
Producer
Pi
pe
lin
e
North Terrace
*(Lundin Petroleum WI 55%)
**(Lundin Petroleum WI 100%)
WF9233 01.07
Page 31
UK Broom 2005 to 2007 – Improving Performance
Recovery from 2Q 2006
Stable water injection at 45,000 bwpd
Oil production ahead of forecast
Gross Oil
Gross Oil 2007 Budget
Gross Liquid
BSW
Liquid Forecast
Oil Forecast
BSW forecast
200%
40,000
180%
35,000
160%
30,000
25,000
120%
100%
20,000
80%
15,000
60%
10,000
40%
5,000
0
20%
Jan
Feb Mar Apr May Jun
Jul
2006
WF9228 02.07
Aug Sep Oct Nov Dec Jan
Feb Mar Apr May Jun
Jul
2007
Aug Sep Oct Nov Dec
0%
Water Cut
Oil rate (bopd)
140%
Page 32
UK - Thistle Redevelopment
Value Creation
409 MMboe produced – STOIIP 846 MMboe
No drilling since 1990
No active reservoir management since 1990’s
Water injection critical
Lundin Petroleum commitment to Thistle regeneration in May 2006
Contingent Resources assumes 2.5% recovery increase from infill and workovers
Adds resources of 25.6 MMbbls with capex of USD 9.1/boe
Ongoing Projects
3D seismic
Rig reactivation
Direct oil export
Process debottlenecking
Potential third party business (combined potential resources of up to 100 MMboe)
WF9229 02.07
Page 33
UK - Heather Development and Production Hub
Value Creation
131 MMboe produced – STOIIP 507 MMboe
Broom host
Drilling facilities reactivated
Life extension investment
Greater Heather area 3D seismic shot in 2006
WF9232 01.07
Page 34
USD 230 Million Exploration Work Programme - 2007
Other + NV (14)
Vietnam (8)
Indonesia
Salawatis (10)
UK (57)
Sudan (27)
Total 230 MUSD
Norway (41)
Russia (73)
Country
Wells
UK
5
PL1301, PL1129, PL1107/1109
PL1399, PL1089/1295
100
Norway
3
PL335, PL338, PL292
140
Russia
2
Lagansky
600
Sudan
3
Block 5B
500
Indonesia
6
Salawati Island/Basin 5 wells
Blora Licence
19
WF9198 01.07
Area
Unrisked Prospective Resource
Potential MMboe Net Lundin
30
~1.4 billion barrels
Page 35
Exploration Activity 2007
Exploration budget of USD 230 MM in 2007
Unrisked finding cost USD 0.16 /boe
Risked finding cost USD 1.71 /boe
Country
Norway
UK
Indonesia
Russia
Sudan
WF9199 02.07
Licence
Net Interest
Contracted
Rig
Operator
PL338
50%
Lundin
Bredford Dolphin
PL335
18%
BG
Maersk Giant
PL292
40%
BG
Maersk Giant
P1399
15%
Endeavour
Galaxy II
P1129
25%
Lundin
Galaxy II
P1301
30%
Lundin
Galaxy II
P1109 & P1107
40%
Lundin
Galaxy II
P1089 & P1295
10%
OilExCo
Sedco 712
Salawati Basin
25.93%
PetroChina Int.
Land rig
Salawati Island
14.51%
JOB Pertamina
Petrochina
Land rig
Blora Licence
43.29%
Lagansky
70%
Lundin
Land rig*
Block 5B
24.5%
Petronas
Land rig**
Lundin
Q1
Likely Drilling Schedule 2007
Q2
Q3
2 wells
2 wells
Land rig
* Jack up pontoon mounted
3 wells
** Modular floater mounted
Q4
Page 36
Lundin NCS and UKCS Licences (49)
6204
6203
216
Lundin Petroleum assets prior 217
to 2007218
219
220 6201
6202
6203
0034
0035
6204
Lundin Petroleum
6103 licence awards 2007
6106
6105
6104
214
0033
208
209
213
6005
8 wells in 2007
210
211
6004
0
207
0029
205
Sullom001Voe
206
204
002
003
0030
0031
176
Unrisked reserve potential 237 MMboe
KM
200
Bergen
0032
004
010
NORW
WAY
WA
W
AY
Y
005
166
202
203
006
Rigs secured
0036 Tromso
007
008
009
0027
0026
0025
0024
156
201
011
0028
Flotta
012
North Sea exploration business
managed from Norway
013
014
015
016
0015
0016
0018
0017
0019
0020
017
018
0006
019
020
021
0011
0007
022
0008
0009
0002
0003
0010
023
Aberdeen
0004
0001
026
027
025
028
029
030
5605
5604
Edinburgh
031
033
5603
5503
UNITED
D KINGDOM
D
5504
A
034
5505
039
035
036
037
038
B
A
C
B
045
040
112
Netherlands
041
042
113
043
044
109
110
0
50
F
D
Kilometers
WF9375 02.07
E
G
G
100
046
047
048
049
J
K
L
M
Page 37
APA 2006 and UK 24th Round Awards
6204
6203
216
217
218
219
220 6201
6202
6203
0034
0035
6204
6103
6106
Norway APA 2006 - 7 licences awarded
6105
6104
214
0033
208
209
213
210
211
0036 Tromso
UK 24th Round 2006 - 6 licences awarded
6005
Lundin Petroleum awards risked resource
potential mmboe
6004
0
207
0029
205
Sullom001Voe
206
204
002
003
0030
0031
176
KM
200
Bergen
0032
004
010
UK
Norway
Prospects
Leads
29.3
23.3
64.1
46.9
Total
52.6
111.0
NORW
WAY
WA
W
AY
Y
005
166
202
203
006
007
008
009
0027
0026
0025
0024
156
201
011
0028
Flotta
163.6
012
013
014
015
016
0015
0016
0018
0017
0019
0020
017
018
0006
Awards from APA 2006 & UK 24th Rounds
(2) (1) (4)
No of Licences
12
019
(0)
0007
022
0008
0009
0002
0003
0004
026
027
025
(1) (0) (1)
028
029
030
5605
(1) (2) (0)
5604
(3) (2) (0) (0) (1)
Edinburgh
4
031
033
036
037
038
5505
B
A
Dana
Edison
EON
Serica
Premier
Sterling
OilExco
Ithaca
Talisman
Granby
Noreco
RWE
Maersk
PetroCanada
Revus
Faroe
Nexen
Statoil/Hydro
Endeavour
5504
A
039
035
Lundin
5603
5503
UNITED
D KINGDOM
D
034
0
0010
023
0001
(0) (1) (0) (1)
8
021
Aberdeen
Non-operated
Operated
(2) Well commitments
(1)
020
0011
C
B
045
040
112
Netherlands
041
042
113
043
044
109
110
0
50
F
D
Kilometers
WF9375 02.07
E
G
G
100
046
047
048
049
J
K
L
M
Page 38
Sudan - Block 5B
Block B Central
Thar Jath (Dev)
0
Km
20
nal
Duar
lei Ca
Thar Jath
Jarayan 1
Block 5A
1500 km 2D seismic survey programme
509 km of seismic acquired during as at 23.01.07
Jong
Block 5B
Baang 1
Haar
3 exploration wells in 2007
Bahr El Zaraaf
Fagil
Pakwak
Laer
White Nile
Riang
Tungrab
Wau
Bei
Shotfeng
Adok
Goakni
Wan Machar
AYOD
Upper Nile
Puldwot
Woi
Khawr Jurwel
Mer
Jonglei
Duk Padiet
Nyal
Dorok
Pakam
B
Agok
Puldwot
Jolong
Lake Nuong
Ganyiet
Nuong Dock
Seismic Camp
Werneyol
Paraken
El Buheyrat
Kongor
Shambe
Block B Central
Lualajokbl
Prospect
Lead
Petronas 2006-2007 Proposed Seimic Programme
Petronas 2006 Acquired Seismic as at Jan 2007
WF9171 02.07
Partners
Lundin Petroleum
Petronas Carigali
Sudapet
ONGC Videsh Ltd
5B interest
24.5%
39.0%
13.0%
23.5%
Joint operators
(WNPOC)
Page 39
Sudan - Block 5B
Seismic operations
2D seismic: 520 km acquired (15/02/07), acquisition ongoing
Drilling preparation
Modular floater
21 Crane barge and 2 Transport Barges completed and shipped
1st delivery of 24 units in Port Sudan undergoing customs clearance
2nd delivery of 33 units in transit to Port Sudan
2 transport barges and 1 drilling barge including ancillary equipment
remain outstanding. Estimated final delivery is mid March.
Kosti Logistics base is 96% completed
Equipment for site setup
Harvester, shredder and dredger are in Port Sudan undergoing
customs clearance
2 Tug boats have arrived at Kosti logistics base
Target start of shredding/dredging operations is late 1Q 2007
Drill barge equipment layout
Accomodation
Catamaran accommodation barge arrived at Kosti.
Topside is 70% complete.
Trimaran accommodation barge fabrication has commenced
in Khartoum with estimated 50% completion.
Trimaran topside accommodation (125 man) in Singapore
with estimated 80% completion
WF9164 02.07
Rig
Shipment of rig from France is scheduled for end March 2007
Estimated spud date is mid-year 2007
Offices and workshops at Kosti logistics base
Page 40
Russia Exploration - Lagansky Block
Tengutinskoye
2 exploration wells in 2007
Lundin
Concession
Oil Field
Promyslovskoye
Sallkhinskaya
Oleynikovskoye
Mezhevoye
Dorozhnoye
Gas Condensate
Prospects
Laganskaya Prospect
Kamyshanskoye V.
Morskaya Prospect
Ulan-Khol
Krasnokamysh
Gas Field
Petroskaya Lead
Kurgannoye
Kamyshanskoye S.
Kaspiiskoye
Naryn-Khuduk
Northern Caspian
Ermolinskoye
Rakushechnoye
Rak-4
45º
Viktor Filanovski
Rak-1
SeveroRakushechny
Rak-2
Oernoye
Stepnoye
Lagansky Block
Solonchaskovoye
Talovskoye
Kumukhskoye
Kumukhskoye Yu.
Yubileinoye
Tyuleniy
Net unrisked resource
> 600 million boe
from two prospects
46º
47º
WF9201 01.07
Rakushechnoye-1, 2001
Gas condensate discovery
Flow rate: 14 MMscf/d
Rakushechnoye-2, 2005
Oil and gas discovery
Flow rates: 6,400 bopd
16.5 MMscf/d
0
KM
48º
Yuri Korchagin
Severny (Northern)
Sarmatskoye
40
49º
Page 41
Russia - Lagansky Block
Alterations being made on the mud barge
Drilling rig pontoon at winter wharfage
WF9212 01.07
Volga canal down towards the Lagansky Block
Load testing on drilling rig pontoon
Page 42
Vietnam - Block 06-94
11-2
Ho Chi Minh
Lundin Petroleum (33.3%)
Pearl Energy (33.3% operator)
Serica Energy (33.3%)
VIETNAM
05-3
05-2
06-94
Lan Tay
(1.6 TCF)
Lan Do
(0.4 TCF)
06-1
Work programme - 2D/3D
seismic & 3 exploration wells
Capacity
700 MMCF/D
Overall on block prospective
resources: 434 MMboe unrisked
net Lundin Petroleum
0
KM
5
Hai Tach
(1.8 TCF + 90 MMBC)
PSC signed February 2007
Rong Doi
(940 BCF + 22 MMBC)
KCT
(~30 MMBO)
Lan Tay & Lan Do
(2.0 TCF)
Dua Field (~20-30 MMBO)
Dua-5X well test (Premier Oct 06)
flowed 5,800 bopd &
6.76 MMscf/d
WF8748 02.07
Oil Field
Gas Field
Condensate Field
Prospect / Lead
06-94
Blackbird discovery
(Premier Nov 06)
70 m net pay
Tested approx 6,000 boepd
07
Page 43
Congo (Brazzaville) - Marine XI
Gabon
Nyanga Mayombe
Marine XI partnership
Soco International 37.5% (operator)
Lundin Petroleum 18.75%
3 undeveloped post-salt discoveries and
1 pre-salt undeveloped discovery
- Viodo-Moedji field, 35 MMBO
M'Bya Marin
M'Wengui
Noumbi
Dussafu Marin
Congo Brazzaville
Marine IV
Kouilou B
Marine III A
Loango
Mwafi
Zatchi Marine
M'Boundi
Tilapia
Kombi
Likalala-Libondo
Many leads identified on 2D. 1200 km 3D
seismic acquired in 2006
Drilling operations planned for 2008
Kouilou A
Yombo-Masseko-Youbi
Kouakouala A
Pointe Indienne
Foukanda
Yanga-Sendji
Djambala Marine
Mer Profonde
Nord
Kouakouala D
Marine III B Kouakouala B
Marine XI
Kouakouala C
Sounda Marine
Tchibouela
Kitina Marine
Tchibeli-Litanzi-Loussima
Tchendo
Emeraude
Marine X (Bloc B)
Cabinda A (North)
Angola
Haute Mer CMarine X (Bloc A)
Likouala
Mer Profonde Sud
N'Kossa
Moho-Bilondo
N'Soko N'Sangui
Nemba
Lomba
Block 14a
Cabinda B (Center)
Congo Kinshasa
Block 0 (Area A)
Kuito
Tomboco
Benguela
Vanza
Block
0
(Area
B)
Longui
Belize
Lobito
Block 14b
Landana
Tombua
Gabela
Bomboco
Kokongo
Cabinda C (South)
Rendus
Sanha
N'Dola
Minzu
N'Kassa
Sanzamo
Est Mibale No 179
M'Bili
N'Tene
Liawenda-Kinkasi No 180
Block 14c
Negage
DRC Offshore
Muanda Banana No 191
Xikomba
Safueiro
WF9245 02.07
Angola
Page 44
Overall Prospective Resources 2007 & Beyond
(net unrisked)*
2010+ Drilling
2007 Drilling
0.8 billion boe, 24%
1.4 billion boe, 40%
1.2 billion boe, 36%
2008/9 Drilling
WF9315 01.07
* Excludes prospect / lead additions from APA 2006 and UK 24th licensing rounds
Page 45
Production - Historical and Forecast
176 million barrels of proven and probable reserves
Production (Mboepd)
120
120
100
100
80
80
60
60
Peik acquisition
40
40
2P Reserves
20
20
0
0
2003
WF9259 01.07
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Page 46
Production - Historical and Forecast
A further 122 million barrels of contingent resources
Production (Mboepd)
120
120
100
100
80
80
Contingent resources
60
60
Peik acquisition
40
40
2P Reserves
20
20
0
0
2003
WF9259 01.07
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Page 47
Production - Historical and Forecast
Exploration and acquisitions to take production to greater then 100,000 boepd
Production (Mboepd)
120
120
100
Exploration
&
Acquisitions
80
100
80
Contingent resources
60
60
Peik acquisition
40
40
2P Reserves
20
20
0
0
2003
WF9259 01.07
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Page 48
Exploration Upside Potential
MMboe (unrisked, net to Lundin)
2000
2008 Russia, France, Norway,
UK, Vietnam, Ethiopia
1500
Block 5B success, Sudan 2007(500)
Indonesia - 6 wells, 2007 (30)
1000
UK, 2007 (100)
Lagansky, Russia 2007 (600)
500
0
WF9236 01.07
Luno success + 2 other wells - Norway, 2007 (137)
Contingent resources (122)
3P reserves (48.4)*
2P reserves (176.4)
* excludes 3P reserves from Russia
Page 49
Summary
Increase in reserves of 29%, reserve replacement ratio 122%
Current production over 40,000 boepd with Oudna field onstream
Production to increase to 50,000 boepd by end 2007 with Alvheim
project in Norway onstream
USD 290 million development budget in 2007 with major focus
upon drilling and redevelopment of production facilities
USD 230 million exploration programme in 2007 with exposure to
1.4 billion barrels of reserve potential
2007 budget funded fully from internally generated funds
plus bank facilities
WF9204 01.07