Agenda Highlights, Reserves/Resources and Operational Review Helge Eide, Managing Director Financial Review Haakon Sandborg, CFO Q&A First Quarter 2010 2
Highlights Q1 2010 Production in line with expectation Total WI production of 12,442 bopd Yemen 7,437 bopd Kurdistan 5,005 bopd Encouraging appraisal and development in Yemen Successful appraisal drilling in Block 47 Bayoot…
4 year development in P50 reserves & resources, Class 1-7 200 178.4 172.8 180 156.8 160 140 MMBOE 120 88 100 80 60 40 20 0 2006 2007 2008 2009 First Quarter 2010 5
Distribution of Reserves and Resources DNOs WI Reserves & Resources as of Year End 2009 200.0 Kurdistan: 139.5 Tawke Euphrates: 1.1 Sharnah (BL47): 3.3 Mulle (UK): 10.0 180.0 172.8 Yemen: 9.9 Eq. Guinea: 1.5 Hekma (BL53): 1.2…
Annual statement of reserves at 31.12.2009 Total reserves WI 2P Reserves development 200 149.4 million boe at 31.12.2009 Changes in 2009: 180 162.6 3.3 -8.6 Production: - 7.9 million boe -7.9 160 149.4 Net revision: - 5.3…
OPERATIONS First Quarter 20108
Kurdistan Summary Tawke Production Q1 Gross Production: 5,561 bopd Q1 DNO WI Production: 5,505 bopd Q1 DNO NE Production: 3,337 bopd Benenan discovery Testing of Erbil-2 completed Forward plan to be submitted to the KRG in June…
Tawke Facilities Renery CPF First Quarter 2010 10
Kurdistan (Erbil): Benenan Discovery Benenan discovery Hydrocarbons in several reservoirs 3D seismic acquired post discovery well Complex structure with high pressure and several uid systems Hawler-1 The 2010 appraisal program…
Kurdistan leads/prospects Tawke Dohuk Peshkabir The 2010 license work program is to fullll the remaining two well work commitment Recommencement of exploration drilling expected in Q4 2010 First Quarter 2010 12
Kurdistan (Dohuk): Summail lead/prospect Summail is close to the Dohuk city Next exploration well to be drilled in Kurdistan First Quarter 2010 13
Yemen Summary 8,000 Yemen Quarterly Production (WI) 7,800 Production (Block 32, 43 and 53) 7,600 Q1 Gross Production: 18,963 bopd 7,400 Q1 DNO WI Production: 7,437 bopd 7,200 Q1 DNO NE Production: 4,889 bopd 7,000 Q1'09 Q2'09…
Yemen Block 47: Yaalen-3 testing Test-1 results (barrels of oil per day) Well logg and interpretation 2000 1800 1600 Oil, bbls/d 1400 1200 1000 Test-2 (in progress) 800 600 Test-1 Tested 1,400 bopd 400 Expected…
Sharnah/Yaalen oil discovery (Block 47) Fast-track eld development Resource potential prior to Yaalen-1: 10 million barrels Resource potential to be re-evaluated after Yaalen-3 nal results Drilling Sharnah-2 in Q2/Q3 Filing…
Bayoot basement eld (Block 53) Production prole Bayoot (gross) Bayoot 7 on stream in February 2010 7,000 Completed and brought on stream in February 6,000 Currently producing at a rate of ca 200 bopd 5,000 Bayoot 8 on stream in…
Yemen (BL72): Basement lead Basement fault blocks with possibilities for oil trapped in fractured basement These basement structures are located in a look alike position to the producing Bayoot and Kharir fractured basement elds The…
Mozambique Update Prospect evaluation has been performed based on the new 2D seismic acquired in 2009 The work has revealed several drilling targets in the unexplored Urema Graben Preparation for drilling Q410 Tendering process…
New ventures From current core areas Develop current positions in proven basins, both known and new plays Follow potential extensions of proven plays into adjacent basins Potential outside Kurdistan and Yemen Pursue entries into…
FINANCIALS First Quarter 2010 21
A solid quarter for DNO Quarterly key nancials Increased revenues and cash ow 300 Higher achieved oil prices Revenues EBITDAX EBITDA Lower administrative expenses 250 Strengthened nancial position 200 Capex and exploration as…
Condensed income statement NOK million Q1 2010 Q4 2009 Q1 2009 2009 2008 Sales 258.6 225.9 183.8 869.0 1,376.2 Cost of goods sold -133.3 -135.8 -190.2 -659.3 -745.5 Gross prot 125.3 90.2 -6.4 209.7 630.7 Dry well cost expensed - 1.2…
Cost of Goods Sold Lifting cost Lifting cost per barrel Yemen Kurdistan Yemen Kurdistan 150 20 NOK million USD/barrel 15 100 10 50 5 0 0 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 DD&A DD&A per barrel…
Cash ow statement NOK million Q1 2010 Q4 2009 Q1 2009 2009 2008 Prot from operations before exploration 111.1 -60.1 -18.9 -23.2 365.7 Exploration expenses -16.6 -15.1 -58.2 -155.8 -356.8 Taxes paid, DDA, other -29.0 -39.6 -43.7 126.3…
Cash ow coverage of investments Netback coverage Cash ow funding Netback before exploration CAPEX Exploration DNO seeks to fund a major part if 200.0 its investments from cash ow The cash ow coverage ratio 150.0 increased to 1.8x i…
Capital structure Assets Equity and liabilities 6000 Non-current assets Cash and cash equivalents 6000 Shareholders equity Non-current liabilities Other current assets Current liabilities 5000 5000 4000 4000 Cash: NOK 671…
Geographic shareholder distribution 31.12.2009 05.05.2010 International shareholding in DNO increased to 61.4% 100% Rest of World 8% 10 % RAK Petroleum held 30% as of 30 90% 4% 4% Sweden April, 2010 5% 4% Luxembourg 80% 5%…
Outlook Continued value creation Increase production from our strong reserve base Accelerate development programs in Yemen Seek additional reserves and resources through selective exploration Carry out planned 2010 investments,…
SECOND QUARTER 2010: 18 AUGUST 2010 WELCOME BACK First Quarter 2010 31
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