Annual Report 2009

Sivu: 96 Sivu: 94 Sivu: 95 Sivu: 93 Sivu: 92 Sivu: 91 Sivu: 89 Sivu: 90 Sivu: 87 Sivu: 88 Sivu: 86 Sivu: 85 Sivu: 84 Sivu: 83 Sivu: 82 Sivu: 81

Sivu: 80

NOTES TO THE FINANCIAL STATEMENTS OF THE GROUP NOTE 31 – FINANCE LEASE (TSEK) There are no finance leases within the Group. NOTE 32 – OPERATING LEASE (TSEK) Operating lease payments excluding rents in the income statement amounts to MSEK - (MSEK 15.6). Operating lease payments in 2008 related to the sale and leaseback transaction of a vessel employed on the Jotun field offshore Norway. On 31 July 2008 the sale of the Jotun field was completed due to which no operating lease payments were outstanding as at 31 December 2009. An additional MUSD 1 was due to the vendor of the Ashirovskoye Field, following the first calendar year in which production from this field exceeds 100,000 metric tons. With the sale during 2009 of CJSC Oilgaztet, this contingent liability has been transferred to the new owner. Valkyries had also agreed to pay an additional 1 USD per metric ton of oil discovered on newly discovered fields in the Orenburg licence area, assuming commercial quantities of oil. This was a contingent liability from the Oilgaztet acquisition which, with the sale during 2009 of CJSC Oilgaztet, has been transferred to the new owner. Contingent Asset In connection with the agreement of Gunvor to acquire a 30 percent interest in the Lagansky Block, Gunvor has agreed, subject to completion of the acquisition, to pay to Lundin Petroleum a contingency fee to be based on USD 0.15 per barrel of oil (up to gross 150 MMbbls) and USD 0.30 per barrel of oil (over gross 150 MMbbls) of the proven and probable reserves in the Lagansky Block as at the date a decision is made to proceed to a development. The amounts of the contingent asset and liability related to the Lagansky Block are dependent on the outcome of future exploration and production activities. Due to the uncertainties related to these activities, estimates of the cash inflow and outflow can not be calculated with certainty. NOTE 33 – ACCRUED EXPENSES AND PREPAID INCOME (TSEK) Accrued expenses and prepaid income comprises: Holiday pay Operating costs Social security charges Salaries and wages Other 31 December 2009 15,398 52,604 11,058 4,193 33,972 117,225 31 December 2008 11,180 39,163 8,409 2,652 41,433 102,837 NOTE 37– EARNINGS PER SHARE Earnings per share is calculated by dividing the net result attributable to shareholders of the Parent Company by the weighted average number of shares for the year. 2009 2008 560,011,000 315,682,981 1.77 Net result attributable to shareholders of the Parent Company (in SEK) NOTE 34 – OTHER LIABILITIES (TSEK) Other liabilities comprises: Overlift Acquisition liabilities Joint venture partners VAT payable Social charges payable Other liabilities 31 December 2009 9,161 42,167 44,836 8,691 8,866 29,656 143,377 31 December 2008 106,844 44,708 17,714 13,893 4,873 22,844 210,876 -2,890,510,000 313,420,280 -9.22 Weighted average number of shares for the year Earnings per share (in SEK) Diluted earnings per share is calculated by adjusting the weighted average number of shares for the year with the dilution effect of outstanding warrants and to divide the net result attributable to shareholders of the Parent Company by the diluted weighted shares. 2009 Net result attributable to shareholders of the Parent Company (in SEK) Weighted average number of shares for the year Dilution effect of outstanding warrants Weighted average number of shares for the year after considering the dilution effect of outstanding warrants. Earnings per share (diluted) (in SEK) -2,890,510,000 313,420,280 – 313,420,280 -9.22 2008 560,011,000 315,682,981 – 315,682,981 1.77 During 2002 the Group completed the acquisition of 95.3% of the outstanding shares in Lundin International SA (formerly Coparex International SA) for a cash payment of MUSD 172.5 and a deferred consideration of up to MUSD 27.5 payable depending upon the performance of certain Tunisian assets. In the annual accounts 2005 an amount of TSEK 38,615 (TEUR 4,113) was recorded against the purchase price of the shares for Lundin Petroleum’s estimate of the amount payable under the deferred consideration. The contingent liability to pay the deferred consideration continued up to 31 December 2005 and after that the deferred consideration has been fully accrued under other liabilities. The liability to Joint venture partners amounted to TSEK 44,836 (TSEK 17,714) and primarily relates to a unitisation settlement and settlements following joint liftings. NOTE 38 – ADJUSTMENT TO CASH FLOW FROM OPERATIONS (TSEK) Note 2009 1,425 6 5 4 13/14 10 9 12 10 39 9 7 847,196 3,741,279 1,051,024 1,321,114 19,354 -35,262 293,909 91,422 673,966 -369,649 -112,523 7,523,255 2008 13,718 – 613,693 901,683 1,056,980 11,415 -55,988 -77,107 107,774 711,044 871,052 -333,591 3,820,673 Other provisions Impairment cost for goodwill Impairment of oil and gas properties Exploration costs Depletion, depreciation and amortisation Amortisation of deferred financing fees Interest income in Income Statement Current tax in Income Statement Interest expense in Income Statement Other non-cash items Unrealised exchange gains NOTE 35 – PLEDGED ASSETS On 26 October 2007 the Group entered into a new credit facility under which an amount of MUSD 544.0 was outstanding as at 31 December 2009. The financing facilities consist of a MUSD 850 revolving borrowing base and letter of credit facility. This facility was secured by a pledge over the shares of the asset holding companies of the Group and future cash flows generated from the pledged companies. The amount stated for pledged assets of TSEK 4,978,037 (TSEK 4,605,804) as at 31 December 2009, represents the net asset book values of the pledged companies. NOTE 36 – CONTINGENT LIABILITIES At the time of the acquisition by Lundin Petroleum, Valkyries had four contingent liabilities outstanding. Two of the contingent liabilities related to the Lagansky Block and amounted to MUSD 12.5 to be paid in the event of a commercial discovery and MUSD 10.0 to be paid upon the award of a development licence for a resulting discovery. During 2009, these contingent liabilities were replaced, subject to completion of the agreement to acquire the 30 percent interest held by the minority partner, by the agreement of Lundin Petroleum to pay to the former owner of the Lagansky Block a contingency fee to be based on USD 0.30 per barrel of oil in respect of 30% of the proven and probable reserves in the Lagansky Block as at the date a decision is made to proceed to a development. Gain on sale of assets Adjustment to cash flow from operations 78 Lundin Petroleum ANNUAL REPORT 2009

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