Lundin sheds assets in Russia’s Sotchemyu-Talyu and North Irael fields

Submitted by Paddy Harris on Thu, 2014-07-10 09:35

10th July 2014

Lundin Petroleum has entered into an agreement with Arawak Energy Russia BV (Arawak), to sell Lundin’s entire interests in the Sotchemyu-Talyu and the North Irael fields, Komi Region, Russia

Lundin sheds assets in Russia’s Sotchemyu-Talyu and North Irael fields

Lundin Petroleum reported aggregate net reserves of 6.1 million barrels of oil equivalent (boe) as at 31 December 2013

Lundin Petroleum holds a 50 per cent interest in each of the two fields, with Arawak holding the other 50 per cent interest and acting as the operator.

In respect of the two fields, Lundin Petroleum reported aggregate net reserves of 6.1 million barrels of oil equivalent (boe) as at 31 December 2013, and net production for the first half of 2014 is estimated at 2,150 boe per day (boepd).

Assuming the sale of the two fields completes in July 2014, Lundin Petroleum’s revised full year 2014 production guidance is between 24,000 and 29,000 boepd.

As a result of the transaction, Lundin Petroleum will incur a non-cash financial expense of USD 12.5 million in the period ended 30 June 2014 related to the carrying value of these interests and the related funding loans.