Lundin Petroleum : Update on Q1 2020 financial results and audiocast details for 30 April 2020

Press Release

Stockholm 15 April 2020

Update on first quarter 2020 financial results and

audiocast details for 30 April 2020

Lundin Energy AB (Lundin Energy) will publish its financial report for the first quarter 2020 on Thursday 30 April 2020. For the first quarter 2020, Lundin Energy will expense pre-tax exploration costs of approximately MUSD 28 and recognise a net foreign exchange loss of approximately MUSD 359. In addition Lundin Energy announces that it has secured additional credit commitments of MUSD 340.

Exploration costs

It is the Company's policy to capitalize costs associated with its exploration activities and if it is determined that a commercial discovery has not been achieved, the associated exploration costs are charged to the income statement. For the first quarter of 2020, Lundin Energy will incur a pre-tax charge to the income statement of MUSD 28 relating to exploration costs. These exploration costs will be offset by a tax credit of approximately MUSD 22. The costs are mainly related to the appraisal of the Balderbrå discovery and other exploration costs on PL894, the Hasselbaink exploration well (PL917) and relinquished licences.

Foreign exchange

Lundin Energy will recognise a net foreign exchange loss of approximately MUSD 359 for the first quarter of 2020. The Norwegian Krone weakened against the US Dollar by approximately 20 percent and the Euro weakened against the US Dollar by approximately 2 percent during the first quarter of 2020. The foreign exchange loss is largely non-cash and mainly relates to the revaluation of loan balances at the prevailing exchange rates at the balance sheet date.

Change in under/overlift balances

Lundin Energy recognises income based on its sold volume (sales method). Consequently, changes in inventory and under/overlift balances are reported as an adjustment to cost, valued at production cost, including depletion. During the first quarter of 2020, Lundin Energy was overlifted by 0.7 Mboepd.

Revenue from the crude oil sales from third parties

Lundin Energy markets its own crude oil production and at times markets crude oil from third parties. For the first quarter 2020, revenue from the sale of crude oil from third parties amounted to MUSD 55.9 offset by the purchase of crude oil from third parties of MUSD 55.2, resulting in a gross profit of MUSD 0.7 on third party activities for the first quarter 2020.

Additional MUSD 340 credit commitments

During the current oil market uncertainty, Lundin Energy has taken the prudent measure of securing further credit commitments of MUSD 340 through an unsecured corporate facility with five banks. The credit commitments remain subject to legal documentation which is expected to be put in place over the next few weeks. This new facility comes in addition to the existing MUSD 5,000 reserve-based lending (RBL) facility and the existing MUSD 160 corporate facility for renewable investments and will provide the Company with further financing flexibility and optionality. It also has the effect of offsetting the impact of the RBL amortisation schedule which starts in the second half of 2020 and reduces the RBL from the current commitments of MUSD 5,000 to MUSD 4,000 by 1 January 2021. As at 31 March 2020, net debt stood at MUSD 3,694.

Release of report and audiocast on 30 April 2020

Lundin Energy's financial report for the first quarter 2020 will be published on Thursday 30 April at 07:30 CEST, followed by a live audiocast at 09:00 CEST where Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, will be commenting on the report and the latest developments in Lundin Energy.

Follow the presentation live on www.lundin-energy.com or dial in using the following telephone numbers:

Sweden	[phone]
UK	+44	3333000804
United States	[phone]
Norway	+47	23500243
Lundin Energy AB (publ)		Hovslagargatan 5	Tel. [phone]	www.lundin-energy.com
Registration No 556610-8055		SE-111 48 Stockholm	Fax. [phone]	e-mail:[e-mail]

Access Pin : 58812582

Link :https://lundinenergy.videosync.fi/2020-04-30-q1

Lundin Energy 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 LUNE). Read more about Lundin Energy's business and operations at www.lundin-energy.com

For further information, please contact:
Edward Westropp	Sofia Antunes	Robert Eriksson
VP Investor Relations	Investor Relations Officer	Head of Media Communications
Tel: [phone]	Tel: [phone]	Tel: [phone]
[e-mail]	[e-mail]	[e-mail]

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 Lundin Energy 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 "Risk management" and elsewhere in Lundin Energy'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.