Swedish oil firm Lundin Petroleum warned today that it will book exploration costs and impairment charges of about $35million in its second quarter results.
But the firm will chalk up a net foreign exchange gain of $118million and a $52million surplus on asset sales in relation to the IPC spin-off completed in April.
Lundin said it would incur Q2 pre-tax exploration costs of $22million, offset by a $17million tax credit.
The exploration costs are mainly related to the unsuccessful Gohta appraisal well and a dry well on the Volund West prospect.
It is also in the process of relinquishing a number of its Norwegian exploration licences.
The non-cash impairment charge relates to the divestment of a 39% stake in the Brynhild field in the Norwegian North Sea.