Second quarter 2011 presentation - CEO Erik Haugane - CFO Teitur Poulsen
Agenda g Highlights and Operations Financials Exploration E l ti Projects Transactions and Outlook
Successful exploration campaign g More than 100 MBOE in discovered resources net to Det norske Net resources to Det norske (MBOE) Gross recoverable resources (MBOE) Aldous Aldous Krafla Krafla Norvarg g Norvarg g Skalle…
Resource growth g MBOE 350 300 Mid point of estimate range 250 65 percent growth in undeveloped resources (mid-point estimate) 200 150 100 50 0 Resources as of Krafla/Krafla Norvarg Aldous Major 31 12 2010 31.12.2010…
Agenda g Highlights and Operations Financials Projects P j t Exploration Transacations and Outlook
Financial Highlights g g Q2 2011 Q2 2010 % change Production boe/day 1399 2062 -32% Achieved Oil Price (/bbl) 116.3 79.9 46% Cashflow from Production, MNOK 41.1 49.5 -17% Expensed Exploration, MNOK 177.8 367.2 -52% Net…
High g oil price, p but reduced output p Historical Oil Production Producing assets boe/day Net Production USD/bbl Four producing fields: 3000 120 Vargg 5% 2500 100 Jotun Unit 7% 2000 80 Glitne 10 % 1500 60 Enoch 2% 1000 40 500 20…
Liquidity y position as of end 1H 2011 Liquidity position as of end 1H 2011 (MNOK) 1H Cash flow Movement (MNOK) 4500 Cash 4000 826 Short term debt 3500 3000 Bond Repaid 2169 2500 Bond Issue 2000 2367 Exploration (wells) 316…
Profit & Loss MNOK Q2 2011 Q2 2010 Comment High sales prices and sale of stock crude offset by Operating revenues 96.3 88.7 lower production and weaker USD costs. 3rd party tariff Varg well maintenance costs Production cost 52.3…
Exploration expenses MNOK Q2 2011 Q2 2010 Comment Seismic, license G&G etc 91.6 89.0 Expensed E pensed capitali capitalized ed exploration e ploration wells ells 2.4 9.8 relating to previous quarter Expensed dry wells 29.2…
Q2 2011 Financial summary y Cash flow from production MNOK 41.1 high oil price but reduced production Low exploration expenses due the successful exploration results in the quarter MNOK 900 in net cash In excess of MNOK 700…
Agenda g Highlights and Operations Financials Exploration E l ti Projects Transactions and Outlook
Aldous Major j South A company y maker Gross volumes 200 to 400 MBO Aldous Major North Net to Det norske 40 to 80 MBO Excellent reservoir p properties p Avaldsnes Strong partnership Aldous Major South Operated by…
Excellent reservoir properties Large volumes 200-400 MBO With further upside Large oil column 65 meter Excellent reservoir properties More than 90% net High oil flow potential Few pproduction wells required q High quality…
High-quality g y reservoir properties Oil sipping out of the core Unconsolidated sandstone 17
Upside potential Aldous Major North Basement in PL 265 Aldous North will be drilled back-to-back. Large volumes also in basement To be spudded in a few weeks Production test in 16/1-15 16/1 15 A Tellus well Potentially significant…
Krafla/Krafla W high-value g discoveries Gross reserves of 50 80 MBOE Net to Det norske 12.5 to 20 MBOE Probably a fast track development 16 kilometres from Oseberg South K-frame Low capex per barrel W 30/11-8S E Very good…
Norvarg g - a Barents Sea gas g discovery y Gross reserves of 63 315 MBOE Net to Det norske 12.5 to 63 MBOE Successful production test Stable flow rate of 180 000 m3/day O Operator t - Total T t l 7225/3-1 Det norske 20…
Skalle a marginal g discovery y with upside Gross volumes of 2.5 to 8 BCM Proved P d gas att three th l levels l Kolmule Knurr St Additional potential Deeper oil leg in the cretaceous Upside in Skalle substructures…
Skaugumssen g our next target g Located in the Norwegian Sea Well spud in mid August Prospect Gross unrisked resources 20 90 MBOE Main risk is source and migration Water depth in area is 390 meters 6508/1-2 6508/1 2 Drilled…
Ulvetanna a chalk play y Located in southern North Sea Drilling start in mid September Prospect: Gross unrisked resources - 70 to 250 MBO Main risk is reservoir presence and quality Water depth p 51 meters Det norske is…
More high-impact g wells lined up in 2011 PL Prospect & (operator) Net Drilling Gross % Start resources Mboe 265 Aldous North (Statoil) 20 Q3 Significant 482 Skaugumssen (DN) 65 Ongoing 20-90 356 Ulvetanna (DN) 50 Q3 70-250 PL 482…
Agenda g Highlights and Operations Financials Projects P j t Exploration Transactions and Outlook
Development portfolio Discoveries Key features Krafla Fulla Pure North Sea portfolio East Frigg Storklakken 11 diversified p projects j in size/capex p Fry Atla Draupne/Aldous two world-class Jetta Stavanger developments…
Atla PDO submitted near-term production Total submitted a PDO for Atla in July Subsea tie-back via Skirne to Heimdal Atla First gas/condensate scheduled for late 2012 Potential plateau volumes of 1 000 boepd net to Det norske…
Approaching g a decision on Jette (Jetta) ( ) Still evaluating whether to proceed with the project Subsea tie-back to Jotun 2 horizontal production wells Det norske holds 60% interest Gross reserves of 13,7 mmboe 28
Two alternatives for Draupne Platform & Quarters (PdQ) Well head platform with FPSO E Earliest li fifirst oilil iin 2016 E Earliest li fifirst oilil iin 2015 Oil export to Grane Oil export by shuttling Gas export to Sage or…
Agenda g Highlights and Operations Financials Projects P j t Exploration Transactions and Outlook
Portfolio optimisation 2011 PL 522 Gullris Farmed out 10 percent to Centrica for carry of remaining 10 percent share PL 438 Skalle Farmed in 10 percent for carry discovery is under evaluation PL 450 Storebjrn Farmed out 15 percent…
Outlook and Summary Exploration Added more than 100 MBOE in resources since Q1 Det norske has created a large project portfolio through the drill drill bit bit Strategically, we have created a good foothold in the Aldous/Draupne…
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