Looking ahead: Lundin
Lundin shrugs off slippage
Swedish explorer Lundin Petroleum has seen its profit for 2005 surge, despite a slip in net profit for the fourth quarter of the year.
Lundin booked net profit of Skr108.1 million ($13.7 million) for the fourth, down from the Skr213.6 million it booked in the same quarter a year earlier.n the same period the previous year.
For the full year, its net profit rose to Skr994 million, up from Skr605.3 million in 2004.
"Our continued ability to increase reserves and production coupled with strong world oil prices has driven the strong financial performance," said Ashley Heppenstall, president and chief executive officer.
The company said operating cash flow rose to Skr616.4 million in the fourth quarter compared with Skr571.4 million in the same period the previous year.
The company said that the performance of the Broom field, in which it has a working interest of 55%, has exceeded expectations and resulted in a 24% reserve increase at the year end of 2005. Net production from the Broom field averaged 14,100 barrels of oil per day in 2005.
The development of the Alvheim field, off Norway, in which Lundin has a 15% stake moved ahead in 2005. Development drilling is due to start in the first half of this year, with first production scheduled for early 2007 at a rate of 85,000 bpd.
The company said development drilling on the Oudna field, off Tunisia, in which it has a 50% interest, has already started. Initial net production from the Oudna field is forecast at 10,000 bpd.
The company said it forecasts a net profit after taxes of Skr1.32 billion in 2006, assuming an average Brent oil price of $55 per barrel.