DNO INTERNATIONAL ASA HMAN RAW MATERIALS DAY 2 JUNE 2010
Investment Highlights Potential for substantial increase in production without further investments Strong track record in delivering reserves and resources at low costs Strategic positions in low cost frontier basins in the…
Proven business model Solid track record Going forward Organic reserve growth at low cost Increase production from strong reserve base High margin production providing strong cash ow Build reserves through high potential exploration…
4 year development in P50 Reserves and Resources, Class 1-7 MMBOE hman Raw Materials Day 2010 5
Distribution of Reserves and Resources DNOs WI Reserves & Resources as of Year End 2009 Kurdistan: 139.5 Tawke Euphrates: 1.1 Sharnah (BL47): 3.3 Mulle (UK): 10.0 Yemen: 9.9 Eq. Guinea: 1.5 Hekma (BL53): 1.2 Benenan (Erbil): 4.7…
Highly ranked in the MEA region* 3-year F&D cost (2006-2008) 3-year reserve replacement (2006-2008) Source: JS Herold Inc. Note: * MEA: Middle East and Africa hman Raw Materials Day 2010 7
KURDISTAN
Kurdistan Summary Tawke PSC DNO (55%), Genel Enerji (25%), KRG (20%) DNO paying interest: 75% Royalty: 10% Net entitlement: R-factor Dohuk PSC DNO paying interest: 60% Royalty: 10% Net entitlement: R-factor Erbil PSC DNO (40%),…
Kurdistan Operational Overview Tawke Commenced export of crude oil from Tawke on 1 June which continued until 22 September 2009 Current focus is on local sales Ready for export when payment mechanism is in place Benenan discovery…
TAWKE FACILITIES Renery CPF Annual Global Oil & Gas Investor Forum 12
Tawke Production Monthly production since start-up hman Raw Materials Day 2010 13
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 hman Raw Materials Day…
Kurdistan (Dohuk): Summail lead/prospect Summail is close to the Dohuk city Next exploration well to be drilled in Kurdistan hman Raw Materials Day 2010 17
YEMEN
Yemen Summary 3 Production licenses (Block 32, 43 and 53) 5 producing assets with gross Production of 18,963 bopd Q1 DNO WI Production: 7,437 bopd Q1 DNO NE Production: 4,889 bopd 1 Appraisal and development license Sharnah/YYaalen…
Yemen Operational Overview Block 52 Block 32 Ansas-1 to be drilled in Q2 Next Godah inll wells 2010 planned for Q3 2010 Block 43 Drilling Nabrajah-10S (pilot Block 53 +horizontal) completed Results under evaluation Continue…
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 results 800 Tested 1,400 bopd and 2,650 bopd individually from the two…
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…
Yemen (BL43): Nabrajah-10S/S2 Combined Exploration and Production Well Re-entry of the top Nabrajah-10 into the deeper reservoir sections Directionally drilled 8 pilot hole Plugged back and drilled 6 horizontal section from 2887 m…
Bayoot basement eld (Block 53) Production prole Bayoot (gross) Bayoot 7 on stream in February 2010 Completed and brought on stream in February Currently producing at a rate of ca 200 bopd Bayoot 8 on stream in April 2010 The well…
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
Mozambique Summary Entered 4th exploration period for Inhaminga Block (onshore) Acquisition of 2D seismic completed 2009 Next exploration well planned in 2010 Possible farm-down prior to drilling hman Raw Materials Day 2010 27
The Inhaminga Block - Mozambique Block size : 10,715 sqkms Work Commitment 600 km 2D seismic (completed) 1 Exploration well Several drilling targets identied DNO currently holds 100%, farm-out process ongoing hman Raw Materials…
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
Quarterly key nancials Increased revenues and cash ow Higher achieved oil prices Revenues EBITDAX EBITDA Lower administrative expenses Strengthened nancial position Capex and exploration as guided Full cash ow coverage of…
Key nancial indicators EBITDAX margin EBITDAX Netback hman Raw Materials Day 2010 32
Performance metrics comparison F&D cost Lifting cost Source: JS Herold Inc. and Company data hman Raw Materials Day 2010 33
Cash ow coverage of investments Netback coverage Cash ow funding DNO seeks to fund a major part if its investments from cash ow The cash ow coverage ratio increased to 1.8x i Q1 2010 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010…
Capital structure Assets Equity and liabilities Cash: NOK 671 million Net debt to capitalization*: 31 per cent Financial assets: NOK 437 million Equity ratio: 40 per cent *Net interest bearing debt/capitalization…
2010 CAPEX Guiding Total investment per activity Plan for 2010 Planned investments Development CAPEX NOK 130 million Exploration NOK 230 million Contingent additional investments Development CAPEX NOK 25 million Exploration NOK 110…
Geographic shareholder distribution 31.12.2009 05.05.2010 International shareholding in DNO increased to 61.4% Rest of World RAK Petroleum held 30% as of 30 Sweden April, 2010 Luxembourg Netherland Top 20 shareholders account for…
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,…
Diclaimer This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are…
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