Q2 Presentation CEO Karl Johnny Hersvik CFO Alexander Krane Oslo, 17 July 2014 NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
Highlights Acquisition of Marathon Norge AS Cash consideration of USD 2.1 billion Closing of the transaction is expected in fourth quarter 2014 136 mmboe1 of proven and probable reserves, 24 mmboe in contingent resources2 and…
Creation of a strong Norwegian E&P company Complementary production profiles Diversified asset base across the full E&P life cycle Strategic fit Organisations with supplementary skills Unique opportunity, at the right timing…
Complementary production and cash flow profiles Strategic rationale Illustrative production outlook Alvheim fields high near term production and cash Marathon Norge Base case flows reduce funding need significantly Upsides…
Acquiring a high quality North Sea portfolio Key Alvheim area facts Greater Alvheim fields Alvheim is a mid-life operated FPSO producing Working Field 100 mboepd1 (gross) with ongoing development Alvheim interest 65,0% activity and…
A transformed company Listed European E&P independents Reserves & contingent resources end 2013 (mmboe) 2013 working interest production (mboe/d) 2C contingent resources - Sverdrup 84 84 2C contingent resources (ex. Sverdrup) 74 2P…
Diversified asset base on the NCS Diversification of reserves (mmboe) Over 200 mmboe1 in combined reserves with approximately 60% in production Portfolio balanced across all stages of the E&P lifecycle Significant production Large…
Integration process on track Integration topics New Executive Management team appointed Management and organisation Governing systems Emergency preparedness Karl Johnny Hersvik, Gro G. Haatvedt yvind Bratsberg, EVP Kjetil…
Financials Q2 2014
Statement of income Income statement (NOK mill) Q2 2014 Q2 2013 Q1 2014 Revenues 454 286 158 Production costs 45 57 43 Payroll and payroll-related expenses 5 29 5 Other operating expenses 79 57 13 EBITDAX 325 143 98 Exploration…
Statement of financial position Assets Equity and Liabilities (NOK mill) 30.06.14 30.06.13 31.03.14 (NOK mill) 30.06.14 30.06.13 31.03.14 Intangible assets 2 949 3 446 2 520 Equity 3 339 3 674 3 173 Property, plant and equipment 4…
Q1 Pro forma financials* Pro forma Income Statement as of 31.03.14 (MNOK) Pro forma Balance Sheet as of 31.03.14 (MNOK) Income statement DETNOR MONAS Adjust. Pro forma Assets DETNOR MONAS Adjust. Pro forma Revenues 158 4 130 -75 4 214…
Long-term financing secured Committed and uncommitted debt financing Funding secured for current programme (end of period) 4 417 USD 3.0 bn reserve based lending (RBL) facility (MUSD*) Facility has been fully underwritten by BNP 1 000…
Rights issue currently ongoing Proposed rights issue of approximately NOK 3.0 billion (USD 500 million) 61,911,239 new shares to be issued at NOK 48.50 per share Shareholders registered in the VPS per the cut-off date 14 July were…
Production Q2 2014
Oil and gas production last 12 months 9 000 Jette Varg Glitne Jotun Atla 8 000 Average production in Q2 7 000 2014 of 2,698 boepd 6 000 Total production in Q2 2014 of 245 kboe 5 000 4 000 3 000 2 000 1 000 boepd 0 jul. 13…
Oil and gas production (including Marathon*) Through April 2014 (latest available NPD date*) 100 000 Exisiting Det norske Alvheim Volund Vilje 90 000 80 000 70 000 60 000 50 000 40 000 30 000 Shaded production not part of…
Ivar Aasen Q2 2014
Increasing the stake in Ivar Aasen Two swap agreements Spike Exploration swap agreement Swapped a 10% interest in PL 554/B/C (containing Garantiana) for a 20% interest in PL 457 PL 457 is located adjacent and to the east of licence…
Ivar Aasen grows bigger Unitisation completed Ivar Aasen map Unit agreement Agreement signed between licencees in PL001B, PL242, PL457 and PL338 Det norske will have 34.7862% in the unit Unit comprises the Ivar Aasen and West Cable…
Ivar Aasen project update Ivar Aasen project status Project timeline Project is on schedule and on cost for first oil in 1H 2013 Approval of development the Q4 2016, but the project is in an early phase Detailed design of jacket and…
Construction ongoing Sardinia: Jacket roll-up on July 15 Singapore: Follow-up of topside and drilling rig construction 24
Johan Sverdrup Q2 2014
Johan Sverdrup project status Phase 1 DG3/PDO work ongoing The front-end engineering and design (FEED) scheduled to be completed by November The Johan Sverdrup concept Aker Solutions is the main FEED contractor (platform facilities)…
Milestones December 2013 FEED contract for phase 1 awarded to Aker Solutions February 2014 Decision Gate 2 passed Q1 2015 Phase 1 PDO submittal to the authorities and unitisation process finalised Q2 2015 Phase 1 PDO…
Exploration Q2 2014
Second quarter exploration results Dry well at Terne Dry well at Gotama The 6507/5-7 exploration well on the Terne The 31/2-21 S exploration well in PL 550 did not prospect in PL558 in the Norwegian Sea did not encounter reservoir…
PL 494 Heimdalshe License located east of the Ekofisk field Potential gross resources: 30-230 mmboe Prospect information: Main target: Upper Jurassic Volgian & Kimmeridge Source: Upper Jurassic shales Trap: Structural, fault…
PL 553 Kvitvola License located west of the Visund Field Potential gross resources: 13-115 mmboe Prospect information: Main target: Upper Jurassic sandstones Source: Upper Jurassic shales Trap: Stratigraphic with fault-dependent…
Outlook Q2 2014
Summary and outlook Business development Completion of the Marathon acquisition Integration work has commenced Maintain aggressive portfolio optimisation through business development Financial Rights issue of USD 500m to be…
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