DNO INTERNATIONAL ASA PARETO SECURITIES 2008 OIL & OFFSHORE CONFERENCE
OUR MISSION DNOS KEY FOCUS IS TRANSFORMING RESOURCES TO RESERVES AT LOW COSTS. GOING FORWARD THE COMPANY WILL GROW PRODUCTION FROM AN INCREASING RESERVE BASE.
GROWING IN CYCLES GROWTH IN CYCLES RESERVES First cycle from 1996 until divestment of UK and NCS assets in 2003 Realized and returned values to shareholders Second cycle from 2003 with exploration focused strategy Restructured NCS…
FAST TRACK DEVELOPMENT PROJECT TIMING PARETO SECURITIES OIL AND OFFSHORE CONFERENCE 2008 4
HIGHLY RANKED IN THE MEA REGION* 3-YEAR F&D COST (2005-07) 3-YEAR RESERVE REPLACEMENT (2005-07) Source: JS Herold Inc. Note: * MEA: Middle East and Africa PARETO SECURITIES OIL AND OFFSHORE CONFERENCE 2008 5
DNO RANKED 6 WORLDWIDE ON F&D/BOE 3-YEAR F&D COST (2005-07) 3-YEAR RESERVE REPLACEMENT (2005-07) Source: JS Herold Inc. PARETO SECURITIES OIL AND OFFSHORE CONFERENCE 2008 6
2008 HIGHLIGHTS INCREASED PRODUCTION AND STRONG CASH FLOW Q2 Working interest production increased 70 percent Y/Y Q2 Revenues of NOK 412.5 million, up 30 percent from Q207 Year to date netback of NOK 416.9 million, up 18 percent…
OPERATIONAL REVIEW
BUSINESS OVERVIEW NORWAY (PARTICIPATING INTEREST) 36.9 % equity interest in Det norske oljeselskap ASA UNITED KINGDOM 50 % in an exploration license 1 promote licenses KURDISTAN REGION OF IRAQ Three PSCs signed March 2008 Tawke…
HIGH OPERATIONAL ACTIVITY OPERATIONAL ACHIEVEMENTS Increased oil production from Tawke Production in Yemen above expectations due to successful inll drilling HIGH EXPLORATION ACTIVITY Four new discoveries in 2008 Four seismic…
DEVELOPMENT IN 2008 KURDISTAN Inll, appraisal and development: Tawke PSC Appraisal: Hawler discovery (Erbil PSC) YEMEN Appraisal: Bayoot (Block 53) Initiated development: Bayoot (Block 53) Inll drilling: Sharyoof (Block 53),…
PRODUCTION UPDATE DAILY PRODUCTION (PER MONTH)* GROSS DAILY PRODUCTION (PER MONTH) * Working interest production net to DNO ** Volume Q1 corrected with 82 558 bbls additional entitlement production until 12 March 2008; 907 bopd…
OPERATIONS IN YEMEN
OPERATIONAL UPDATE BL 32 Exploration/Drilling Godah 9 completed 15 April, initial gross rate of 340 bopd Tasour 17S spudded 2 August BL 53 Projects Bayoot area: Field development project initiated permanent production facilities…
WELLS GOING FORWARD BL 52 BL 44 Q3/Q4 Exploration/Drilling Q3/Q4 Exploration/Drilling Drill exploration well spud December Drill exploration well Gahtel 1 spud October BL 53 Q3/Q4 Exploration/Drilling BL 32 Complete Bayoot 6…
OPERATIONS IN KURDISTAN
OPERATIONAL UPDATE Tawke PSC Projects Phase I completed and Phase II in progress Topping plant for diesel production being assembled at CPF location Exploration/Drilling Tawke 11 re-entered; tested gross 8,000 bopd, to be…
TAWKE: PROJECT DEVELOPMENT PHASE I COMPLETED Phase I completed to the extent possible for production and export Physical tie-in will be completed when approval for export from KRG has been granted PHASE II IN PROGRESS Additional…
FINANCIAL REVIEW
QUARTERLY FINANCIALS SALES NETBACK NET PROFIT* High level of exploration expensed * Before discontinued operations PARETO SECURITIES OIL AND OFFSHORE CONFERENCE 2008 21
SOLID CASH FLOW COVERAGE SOURCES AND USES OF CASH STRONG YTD COVERAGE Netback before exploration covered 63% of high Q208 investments Netback before exploration covered 76% of Netback before YTD08 investments exploration Total…
SUMMARY EXPLORATION New discoveries in 2008 will add new reserves Additional potential from remaining exploration program PRODUCTION 2008 production expected to be higher than guided Step change in production with export of oil from…
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