Swedish oil and gas company Lundin Petroleum saw its revenue and net profit rise in the first quarter on the back of better than expected production levels.
Lundin’s first-quarter net profit was $228.8 million, up from $59.2 million reported in the first quarter of 2017. Production rose to 83.1 thousand barrels of oil equivalent per day, up from 82.6 thousand barrels in 1Q 2017, which was above its guidance, Lundin said.
Revenue was around $693 million, up from $421.5 million a year ago
Alex Schneiter, President, and CEO of Lundin Petroleum said: “With production above guidance and a further reduced operating cost, I am pleased to report that Lundin Petroleum has delivered a strong financial performance for the first quarter 2018.
He said Lundin’s production guidance for 2018 remains unchanged at between 74 to 82 Mboepd.
“The exploration programme for 2018 has been updated to ten wells, targeting a revised total of approximately 600 MMboe of net unrisked resources in our six core exploration areas. I firmly believe in our ability to continue to find new resources and with a clear and active organic growth strategy, the future looks as promising as ever for our Company,” Schneiter said.
Two PDOs. Rolvsnes could be tied to Edvard Grieg
The company is this year looking to submit plans for development and operations for the Phase 2 of the giant Johan Sverdrup development offshore Norway, and also, for the Luno II discovery.
Schneiter said: “The very active offshore installation programme for Phase 1 of Johan Sverdrup has recently begun. The steel jacket for the drilling platform and the topsides for the riser platform were successfully installed on the field in April...Work on Phase 2 is also well underway and we will submit the Phase 2 PDO before September 2018.”
“Our organic growth strategy continues to deliver with the recent successful appraisal of the Luno II discovery, located just south of the Edvard Grieg field, where development studies will be progressed with the aim of submitting a PDO around the end of 2018.
“We are also looking forward to the results from the appraisal of the nearby Rolvsnes discovery, which if successful, could be another likely tie-back development to the Edvard Grieg platform. In addition, drilling is ongoing for an extended well test at the Alta discovery in the southern Barents Sea, which will give us important information for further appraisal and development activities and improve our understanding of this frontier area,” Schneiter said.