Highlights
- Transaction increases Lundin Energy’s working interest in the Wisting development from 10 percent to 35 percent
- Strengthens Lundin Energy’s position in a core area with significant remaining prospectivity and meaningfully contributes to the Company’s long-term production outlook
- Adds net 130 million barrels of oil equivalent (MMboe) fully appraised contingent resources at an acquisition price of approximately
2.5 USD /boe - Targeting to submit a Plan for Development and Operation (PDO) by end of 2022 to qualify for the temporary Norwegian tax incentives
- Wisting’s development concept is in line with Lundin Energy’s decarbonisation strategy with a power from shore solution being matured
- Addition of Wisting resources alone delivers total resource replacement ratio for the Company of approximately 190 percent in 2021
The acquisition of an additional 25 percent working interest in the Wisting oil development solidifies the Company’s position in the Wisting area, which will become a core production area for
With first oil scheduled to be in 2028, the acquisition of a further 25 percent working interest provides a material contribution to sustaining the Company’s production in the long-term. The Wisting development is also planned to have power supplied from shore, which is firmly aligned with the Company’s decarbonisation strategy and the commitment to becoming carbon neutral by 2023.
The transaction, which has an effective date of
“The acquisition of a further stake in the high quality Wisting development, is a perfect example of how we look to supplement our organic growth strategy with opportunistic acquisitions, fitting our ambition to sustain the Company long term. With strong project economics, Wisting will be powered from shore and will be a significant contributor to sustaining our long-term production profile. I am excited to have increased our position in Wisting, at a price which I believe is very value accretive to the business.”
For further information, please contact:
VP Investor Relations
Tel: +41 22 595 10 14
edward.westropp@lundin-energy.com
Head of
Tel: +46 701 11 26 15
robert.eriksson@lundin-energy.com
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 Lundin Energy’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
Attachment
Lundin Energy - Acquisition of Wisting from OMV - V5 - 28102021en
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