(Adds production guidance, CEO quotes)
OSLO May 3 Sweden's Lundin Petroleum
lifted its full year production guidance on Wednesday and said
it still expected to find more oil in the Barents Sea despite a
Lundin, a partner in Norway's giant Johan Sverdrup field,
reported $355.8 million in earnings before interest, tax,
depreciation and amortisation (EBITDA), above the forecast of
$325 million in a Reuters survey of analysts.
Lundin said it was able to increase production capacity at
its Edvard Grieg platform to 145,000 barrels of oil equivalents
per day (boepd) from its designed capacity of 126,000.
"This outstanding performance has led us to revise Lundin
Petroleum's full year production guidance to between 75,000 and
85,000 boepd, and to reduce our cash operating cost guidance for
the full year to $4.90 per barrel," it said in a statement.
The previous guidance was 70,000-80,000 boepd and $5.30 per
barrel respectively, excluding output from Lundin's assets
outside Norway that were spun off to International Petroleum
Corporation (IPC) in April.
A recent appraisal well at Edvard Grieg's southwestern flank
confirmed the resource upside of gross 10–30 million boe.
Lundin's Chief Executive Alex Schneiter said it was "fair to
assume" that Edvard Grieg plateau production would be extended
beyond the original two-year period due to better reservoir
Lundin has a 65 percent stake in the Edvard Grieg field,
Austria's OMV 20 percent and Germany's Wintershall
, a unit of chemicals giant BASF, 15
Separately, Lundin said it would have to reduce its previous
resource estimate of between 91 million and 184 million boe at
the Gohta prospect in the Barents Sea after the latest appraisal
well turned out to be dry.
The setback, however, would not jeopardise the development
of the nearby Alta find, estimated to contain 125-400 million
boe, added the firm.
"Clearly there will be a reduction on Gohta, but Alta is the
main discovery where we have been focusing the development
(plans)," Schneiter said.
Lundin plans to drill an appraisal well at its Alta prospect
later this year, and Schneiter confirmed on Wednesday plans to
drill two more exploration wells near the Filicudi 35-100
million boe discovery made in February.
It is also a partner in the Korpfjell prospect in the
Barents Sea near the border with Russia, which Statoil plans to
drill this summer.
Shares in Lundin were down 0.77 percent at 1048 GMT, roughly
in line with a European oil and gas index down 0.41
(Reporting by Gwladys Fouche and Nerijus Adomaitis; editing by