As at 31 December 2011 Lundin Petroleum's net proven and probable working interest reserves are 210.7 million barrels of oil equivalent (MMboe) which equates to a 21 percent increase to reserves and a reserve replacement ratio of 264 percent, when compared to 31 December 2010.
The reserves are based upon a third party independent audit conducted by Gaffney Cline and Associates ("GCA"). The reserves were calculated using an oil price of USD 100 per barrel in 2012, with prices and costs escalating at 2 percent per annum.
Oil accounts for 85 percent of the total Proven and Probable Reserves. In addition 98 percent of the reserves are located in countries with a tax/royalty regime.
Increases in proven and probable reserves were mainly recorded in Norway. Reserves increases are related to the producing assets, Alvheim and Volund as well as the Luno field where reserves increased as a result of the inclusion of the Tellus discovery and updated reservoir models. Furthermore reserves for the Bøyla development were included for the first time. Reserves in Norway further increased due to the acquisition of an additional 20 percent interest in the Brynhild field.
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