Agenda 1. Welcome Tom Bratlie, Communication Director 2. Q3 Highlights and Operational Review Helge Eide, Managing Director 3. Q3 Financials Haakon Sandborg, CFO 4. Q&A For participants being present and by e-mail Bastora-1, the…
Drilling the Bastora-1 exploration well in the Erbil license in the Kurdistan Region of Iraq. Q3 Highlights and Operational Review Managing Director Helge Eide
Main items in Q3 2010 Crude oil distribution from Tawke based on truck loading at Fishkabour. Cash position further improved by NOK 114 million in Q3 Significant increase in production volumes from Q2 to Q3 Results negatively…
Q3 production summary The Tawke CPF has a lifting capacity of around 50,000 bopd. Kurdistan region of Iraq Significant increase in local deliveries of crude oil from Tawke Further reduction in unit lifting cost Yemen Minor…
Continued satisfactory HSE performance Incidents per million working hours 2009 2010 Q3 2010 presentation 6
Increase in production volumes DNO working interest production up from 15,748 bopd in Q2 to 24,956 bopd in Q3 Working interest production I barrels per day Total 10 786 11 316 13 413 13 581 12 442 15 748 24 956 Q3 2010…
Positive trend in financial results from operations This graph is adjusted for special (non-operational) items with negative effects in 2009 and 2010 on EBITDA and net back Q3 2010 presentation 8
Lower lifting costs Continued unit lifting cost reduction Q3 2010 presentation 9
Development in average sales price Increased share of the production delivered to the local market in the Kurdistan Region of Iraq at discounted prices Price for Yemen production close to Brent market price Q3 2010 presentation 10
Further increase in cash position Cash position increased by NOK 114 million in Q3 YTD cash position increase of NOK 633 million 1 000 936 900 822 800 700 671 600 NOK million 500 400 282 303 300 210 200 143 100…
Drilling the Bastora-1 exploration well in the Erbil license in the Kurdistan Region of Iraq. Operations Update
Kurdistan operational status Tawke PSC Further increase in local sales in Q3 Lower crude oil lifting in first part of Q4 Peshkabir-1 exploration well expected to commence in Q1/Q2 2011 Dohuk PSC Summail-1 exploration well now…
Tawke Facilities and Pipeline State Oil Marketing Organization (SOMO) Sales at outlet in Turkey DNO Iraq AS Tawke facilities (CPF and refinery) Tawke pipeline Truck loading facilities at Tawke & Fishkabour Turkeys…
The Tawke CPF Confirmed capacity of 56,000 bopd Q3 2010 presentation 15
The Tawke refinery Confirmed capacity of 6,000 bopd Q3 2010 presentation 16
Truck loading station at Fishkabour 40,000 bopd in capacity Q3 2010 presentation 17
The Summail-1 well site prepared for drilling Q3 2010 presentation 18
Drilling the Bastora-1 well in the Erbil license Q3 2010 presentation 19
Yemen operational overview Block 32 Wells Godah-12 completed Block 53 Further wells considered in 2011 Wells Bayoot-10 completed Block 43 No further drilling planned at this time Projects Cost saving project initiated Wells 8…
Signed MoU for new PSA in Block 48 in Yemen DNO has obtained exclusivity for concluding a PSA for Block 48 after having agreed a certain framework of terms and conditions (MoU) DNO: 87,5% TYC: 12,5% (carried) Block 48 will add…
The Inhaminga block in Mozambique Preparing to commence drilling in November First of several well defined leads & prospects Additional wells to be considered in 2011 Q3 2010 presentation 22
Road building in Mozambique Q3 2010 presentation 23
Well site prepared for the Chite-1 well in Mozambique Q3 2010 presentation 24
Additional acreage in Mozambique DNO holds 54% and is the operator on Inhaminga New Age holds 41% Lower Zambesi Harmattan holds 5% DNO awarded exclusive negotiation rights for the Lower Zambesi block in Mozambique, adding another…
Key priorities going forward Increase exploration efforts to add new reserves and resources at low costs Utilize our existing WI production capacity of 40,000 50,000 bopd Add new production based on DNOs proven record of fast…
FINANCIALS Haakon Sandborg CFO
Key financial indicators before special items EBITDAX margin EBITDAX Netback 80 % 350 350 77 % 70 % 300 300 67 % 60 % 64 % 250 250 56 % 50 % 53 % NOK million NOK million 200 200 40 % 150 150 30 % 100 100 20 % 50 50…
Special items Arbitration The London Court of International Arbitration disclosed a partial decision in the arbitration process in October, 2010. DNO recorded a provision for arbitration claims of USD 12 million in its year-end accounts…
Further strengthening of operational results Quarterly key financials Solid operations Revenue increase from growth in Kurdistan 400 production 350 Low exploration expenses 300 Doubling of quarterly operating profit, before special…
Key performance indicators Production net entitlement Achieved oil price Operational costs 14000 120 1600 1400 12000 100 1200 10000 80 1000 NOK million USD/bbl 8000 60 800 BOPD 6000 600 40 400 4000 20 200…
Condensed income statement NOK million Q3 2010 Q2 2010 Q3 2009 YTD 2010 YTD 2009 Sales 406.6 284.7 235.5 949.8 643.1 Cost of goods sold -185.1 -155.6 -149.3 -474.0 -523.5 Gross profit 221.4 129.0 86.1 475.8 119.6 Dry well cost…
Cash flow statement NOK million Q3 2010 Q2 2010 Q3 2009 YTD 2010 YTD 2009 Profit from operations before -120.4 110.1 31.9 100.8 36.9 exploration Exploration expenses -3.1 -11.1 -60.5 -30.8 -140.7 Taxes paid, DDA, other 263.2 83.6 192.3…
Capital structure Assets Equity and liabilities 6000 6000 Non-current assets Other current assets Cash and cash equivalents Shareholders equity Non-current liabilities Current liabilities 5000 5000 Cash: NOK 936 million 4000…
Outlook Oil production Deliveries to the local market in Kurdistan may continue to show significant fluctuations Some reduction in Yemen production until completion of Yaalen/Sharnah development Lifting costs expected at USD 2-5 per…
FOURTH QUARTER AND FULL YEAR 2010: 16 FEBRUARY 2011 WELCOME BACK
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