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Lundin reports high earnings after oil find

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17:40 CET+01:00
Swedish oil company Lundin Petroleum reported better than expected earnings on Wednesday following the news that one of its subsidiaries, Africa Oil, had struck oil in Kenya.

Share trades in Africa Oil were halted on Wednesday morning, and by early afternoon the company announced that it had found oil – a move which prompted their share value to skyrocket.

Meanwhile, Lundin Petroleum announced that production over the nine months in 2012 had exceeded expectations, according to CEO Ashley Heppenstall, who is also revaluing the expected production volume.

“We are counting on doubling our production up to 2015,” said Heppenstall.

The company also released better results than expected for the year with a pre-tax profit of almost $208 million, a figure $42 million higher than in the same period last year.

“I am pleased that we have delivered excellent results and exceeded the market's expectations,” he continued, explaining that the positive results are due to a combination of record-high production and low extraction costs.

Africa Oil reported that drilling would continue in the east African country and that results would be published in November.

The 30 metre column was discovered in Twiga South in Kenya, at a well joint-owned by Africa Oil and British petroleum company Tullow.

TT/The Local/og

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