Completion of Wisting acquisition
Lundin Energy has successfully completed its acquisition of an additional 25 percent working interest in the Wisting development from OMV (Norge) AS for USD 320 million. This transaction boosts Lundin's stake from 10 percent to 35 percent and adds approximately 130 million barrels of oil equivalent (MMboe) in fully appraised contingent resources. The company has also established a cooperation agreement with Equinor ASA to enhance operational efficiency and establish Lundin as the operator for surrounding exploration licenses.
- Increased working interest in Wisting from 10% to 35%.
- Addition of 130 MMboe in contingent resources at a cost of approximately 2.5 USD/boe.
- Strengthened long-term production outlook and resource replacement ratio of ~190% in 2021.
- None.
Lundin Energy AB (Lundin Energy) is pleased to note the completion of the previously announced transaction to acquire a further 25 percent working interest from OMV (Norge) AS in the Wisting development, for USD 320 million. Lundin Energy has also entered in to a cooperation agreement with Equinor ASA (Equinor) regarding the operatorship of Wisting and nearby exploration licences.
The transaction to acquire a further 25 percent working interest in the Wisting development has completed following the closing of all pre-requisite conditions, including regulatory and government approvals and is effective from 1 January 2021. In addition, Lundin Energy has concluded a cooperation agreement with Equinor for the Wisting development with the following key terms, which will see Lundin Energy:
- Propose Equinor to retain operatorship of the Wisting development into the operations phase, allowing operational synergies across their various developments in the Barents Sea
- Become operator for the exploration acreage surrounding Wisting (PL1133 and PL1134), including an increase in Lundin Energy’s working interest to
35% 1 - Collaborate further with Equinor in the Wisting development by secondment of Lundin Energy employees into key technical and operational positions within the Wisting project
This agreement further strengthens the relationship between Equinor and Lundin Energy and sets out a strong collaboration for exploration and operations in what will be the next Barents Sea production hub.
Wisting Acquisition 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
- Project concept selection and award of front-end engineering and design (FEED) contracts has taken place with the project on track to submit a Plan for Development and Operation (PDO) by end of 2022
- Wisting’s development concept is in line with Lundin Energy’s decarbonisation plan 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
(1) Operatorship and additional working interest in licences PL1133 (15 percent) and PL1134 (5 percent) as well as for licence applied for in the 2021 APA round
For further information, please contact:
Edward Westropp
VP Investor Relations and Communication
Tel: +41 22 595 10 14
edward.westropp@lundin-energy.com
Robert Eriksson
Director Media and Corporate Affairs
Tel: +46 701 11 26 15
robert.eriksson@lundin-energy.com
Lundin Energy is an experienced Nordic oil and gas company that explores for, develops and produces resources economically, efficiently and responsibly. We focus on value creation for our shareholders and wider stakeholders through three strategic pillars: Resilience, Sustainability and Growth. Our high quality, low cost assets mean we are resilient to oil price volatility, and our organic growth strategy, combined with our sustainable approach and commitment to decarbonisation, firmly establishes our leadership role in a lower carbon energy future. (Nasdaq Stockholm: LUNE). For more information, please visit us at www.lundin-energy.com or download our App www.myirapp.com/lundin
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.
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FAQ
What is the significance of Lundin Energy's acquisition of a 25% interest in Wisting?
How much did Lundin Energy pay for the additional 25% working interest in Wisting?
What are the expected benefits of the cooperation agreement with Equinor ASA?
How many barrels of oil equivalent (boe) were added through this acquisition?
When did the acquisition of Wisting become effective?
