Update on second quarter 2021 financial results and audio broadcast details for July 28, 2021

Lundin Energy AB (Lundin Energy) will publish its financial report for the second trimester 2021 at Wednesday, 28 July 2021. For the second trimester 2021, Lundin Energy to Expense Pre-Tax Exploration and evaluation costs around MUSD 119 and recognize a net change Gain about MUSD 45.

Exploration and evaluation fresh
It is the Company’s policy to capitalize the costs associated with its exploration and evaluation activities and if it is determined that a commercial discovery has not been made, the associated costs are charged to the income statement. . For the second quarter of 2021, Lundin Energy will incur a pre-tax charge in the income statement of approximately USD 119 million related to exploration and evaluation costs. These costs will be offset by a tax credit of approximately USD 93 million. The costs are mainly related to the Shenzhou well in PL722, the Iving wells in PL820S and the licenses transferred.

Ticket issue and fgold exchange Gain
Lundin Energy issued $ 2 billion of senior notes (the Notes) during the second quarter of 2021 with a fixed interest rate. The Company used the gross proceeds from the Bond issuance, in combination with available cash, to repay $ 2 billion of variable interest rate corporate credit facility term loans. As a result, part of the current interest rate hedging contracts are no longer considered effective in the framework of the hedge effectiveness tests. The fair value at market value of these ineffective contracts of approximately -38 MUSD (loss) will be recognized as a non-cash item in the income statement during the second quarter of 2021. Following the repayment of 2 billion USD of the business credit facility term borrowings, a portion of unamortized capitalized financing costs were expensed in the second quarter.

Lundin Energy will recognize a net foreign exchange gain of approximately USD 45m for the second quarter of 2021. The Norwegian krone has remained stable against the US dollar and the euro has strengthened against the US dollar by around 1% over the course of the year. for the second quarter of 2021. the foreign exchange gain is largely non-cash and relates primarily to the revaluation of loan balances at the exchange rates in effect at the balance sheet date.

Change in under / overlift balances
Lundin Energy recognizes revenue based on its volume sold (sales method). Consequently, changes in inventories and under / overconsumption balances are recognized as a cost adjustment, valued at production cost, including depletion. During the second quarter of 2021, Lundin Energy was under-raised by 10.1 Mboepd.

Relocation of third party crude oil sales
Lundin Energy markets its own production of crude oil and occasionally markets crude oil to third parties. For the second quarter of 2021, revenues from the sale of crude oil to third parties amounted to $ 171.8 million offset by the purchase of crude oil from third parties of $ 170.4 million, resulting in a gross margin of 1 , USD 4 million on third-party activities for the second quarter of 2021.

Release reporting and audio broadcasting on 28 July 2021
Lundin Energy’s second quarter 2021 financial report will be released on Wednesday, July 28 at 7:30 a.m. CEST, followed by a live audio broadcast at 2:00 p.m. CEST where Nick Walker, chairman and CEO, and Teitur Poulsen, chief financial officer, will comment on the report. and the latest developments from Lundin Energy.

Watch the presentation live at www.lundin-energy.com or call the following phone numbers:

Sweden +46 8 56642651
United Kingdom +44 333300804
United States +1 6319131422
Norway +47 23500243
Access pin: 44982316
Connect: https://edge.media-server.com/mmc/p/42amzuhx/ftagmax/aud

For more information, please contact:

Edward Westropp
VP Investor Relations
Phone. : +41 22 595 10 14
[email protected]

Robert Eriksson
Media communication manager
Phone. : +46 701 11 26 15
[email protected]

Lundin Energy is an experienced Nordic oil and gas company that explores, develops and produces resources economically, efficiently and responsibly. We focus on creating value for our shareholders and stakeholders at large 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 sustainability approach and commitment to decarbonization, firmly establishes our leadership role. into a low carbon energy future. (Nasdaq Stockholm: MOON). For more information, 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 laws). These statements and information (together, “forward-looking statements”) relate to future events, including the future performance, business prospects or opportunities of Lundin Energy. Forward-looking statements include, without limitation, statements regarding 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. The final recovery of reserves or resources is based on forecasts of future results, estimates of amounts not yet determinable and management assumptions.

All statements other than statements of historical fact may be forward-looking statements. Statements regarding proved and probable reserves and resource estimates may also be considered forward-looking statements and reflect conclusions based on certain assumptions that the reserves and resources can be exploited economically. Any statement that expresses or involves discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions or future events or performance (often, but not always, using words or phrases such as what to plan ”,“ continue ”,“ estimate ”,“ expect ”,“ can ”,“ will ”,“ plan ”,“ foresee ”,“ potential ”,“ target ”,“ intend ”, “Could”, “could”, “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 of the date of information and Lundin Energy does not intend, and assumes no obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating, among other things, to operational risks (including exploration and development risks), production costs, availability of drilling equipment, dependence on of key personnel, estimates of reserves, health, safety and environmental issues, risks and regulatory changes, competition, geopolitical risk and financial risks. These risks and uncertainties are further described 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 considered exhaustive. Actual results may differ materially from those expressed or implied by these forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.

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