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Q2 2014 RESULTS – Noreco

Noreco · Aug 14, 2014 · 50 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q2 2014 RESULTS – Noreco – slide 1
    Second quarter 2014 14 August 2014
  2. Q2 2014 RESULTS – Noreco – slide 2
    Contents Headlines p. 3 Operations Production p. 4-7 Discoveries p. 8-10 Exploration p. 11-20 Svein Arild Killingland, Key financials Chief Executive Officer Second quarter and first six months p. 21-26 Concluding remarks p.…
  3. Q2 2014 RESULTS – Noreco – slide 3
    Second quarter headlines Revenue and EBITDA at a higher level Revenues NOK 318 million, up 29 per cent from Q2 2013 EBITDA NOK 175 million exclusive of exploration costs Towards end of production restrictions CATS1 maintenance…
  4. Q2 2014 RESULTS – Noreco – slide 4
    Production 4
  5. Q2 2014 RESULTS – Noreco – slide 5
    Q2 production Step up from last year, but no easy oil Huntington closed for 35 days Noreco production in Q2, with additional output (quarterly average in boepd) restrictions imposed by CATS 7000 Six month Nini producing well through…
  6. Q2 2014 RESULTS – Noreco – slide 6
    Huntington Towards more stable conditions CATS maintenance nearing Huntington production completion (monthly average in boepd) Production restriction since May 6 000 Shut-down since 31 July 5 000 Expected to ramp up quickly…
  7. Q2 2014 RESULTS – Noreco – slide 7
    Siri Fairway Siri repairs technically completed in July Production directly to tanker has worked Final documentation and authority well. Average 2 000 boepd to Noreco approval remain. Approval for use of since restart in February 2014…
  8. Q2 2014 RESULTS – Noreco – slide 8
    Discoveries 8
  9. Q2 2014 RESULTS – Noreco – slide 9
    Gohta discovery First appraisal well completed PL 492 Gohta Operated by Lundin Confirmed carbonate reservoir Johan Castberg formation with oil shows as expected 20% Coring and wireline logging over PL492 Noreco reservoir section…
  10. Q2 2014 RESULTS – Noreco – slide 10
    Huntington Deep Maturing the Maxwell discovery Forties The Maxwell discovery is a Fulmar Formation formation reservoir that underlies the main Huntington Forties Field Discovered in May 2007 by well 22/14b-8 22/14b-4 22/14b-5,…
  11. Q2 2014 RESULTS – Noreco – slide 11
    Exploration
  12. Q2 2014 RESULTS – Noreco – slide 12
    Noreco license portfolio 2005-2014 Refocusing towards mature, producing trends Barents Sea Norwegian Sea 12
  13. Q2 2014 RESULTS – Noreco – slide 13
    Noreco license portfolio 2005-2014 Refocusing towards mature, producing trends North Sea (Norway, UK and Denmark) Ref.: 127281-v6 13
  14. Q2 2014 RESULTS – Noreco – slide 14
    Since mid 2013 Key Focus areas matured PL639 Kanel North Sea North North Sea PL639 Kanel Seismic interpretation work near North completion. Drill-or-drop decision expected in PL519 Q3-Q4 2014 Albert PL519 Albert Seismic…
  15. Q2 2014 RESULTS – Noreco – slide 15
    Exploration strategy Overall objective: 3 - 5 wells per year High grade the portfolio through active portfolio Key criteria management Farm down or out in licenses with high 20 % equity or too high risk equity Identify and actively…
  16. Q2 2014 RESULTS – Noreco – slide 16
    Exploration and appraisal Drilling programme Noreco Opera- Pot. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Well share tor vol.1 2014 2014 2014 2014 2015 2015 2015 2015 DK 9/95 20.1 % Maersk 47-475 Xana (Gita S) P1889 22.5 % Suncor 7 157 Niobe PL616 30…
  17. Q2 2014 RESULTS – Noreco – slide 17
    North Energy and Noreco asset swap PL 616 (Operator: Edison) PL 484 (Operator: Noreco) Featuring Haribo, Nanna and Amma Several prospects identified Noreco increases equity in PL 616 from 20 to 30 % Reduces equity in PL 484 from…
  18. Q2 2014 RESULTS – Noreco – slide 18
    Exploration programme PL616 Haribo Slumped chalk prospect on the flank of Valhall/Hod inside structural megaclosure CoS: 42 % Primary risk element: Trap PL616 Haribo Operated by Edison 69 192 mmboe gross on block, 24 mmboe net P50 to…
  19. Q2 2014 RESULTS – Noreco – slide 19
    Exploration programme DK 09/95 Xana DK 09/95 Xana Upper Jurassic target in close vicinity (up-dip) to the Operated by Maersk Svane gas discovery and south of Gita discovery CoS: 27% Primary risk element: Trap 47 475 mmboe gross…
  20. Q2 2014 RESULTS – Noreco – slide 20
    Building portfolio 2014 licence rounds Norway APA 2014 Focusing on mature areas in the North Sea and Mid Norway Deadline 2 September UK 28th Round Submitted applications in late April focusing on prospectivity in producing areas…
  21. Q2 2014 RESULTS – Noreco – slide 21
    Key financials 21
  22. Q2 2014 RESULTS – Noreco – slide 22
    Income statement NOK million Q2 14 Q1 14 Q4 13 Revenues 2013 Total revenues 318 384 255 Production 894 shortfall on Production expenses (132) (138) (139) Huntington, (430) Nini performing well. Favourable USD/NOK and oil…
  23. Q2 2014 RESULTS – Noreco – slide 23
    Revenue & EBITDA (NOK mill) Revenues EBITDA / Exploration expenses 450 300 400 Six month 200 average 350 100 300 0 + 63 % 250 -100 200 -200 150 -300 -400 100 -500 50 -600 0 -700 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4…
  24. Q2 2014 RESULTS – Noreco – slide 24
    Balance sheet NOK million 30.06.14 31.03.14 31.12.13 Equity ratio 27 % Assets Small increase from Non-current assets 1 4 960 4 669 4 797 Q1 Current assets 1 1 041 1 084 1 005 Restricted cash Cash (non-restricted) 507 497 403 502…
  25. Q2 2014 RESULTS – Noreco – slide 25
    Siri insurance claim Status o Gross book value at the end of Q2 is NOK 363 mill, NOK 318 mill after tax o USD amount unchanged at 59 mill o Total claim is well above NOK 2 billion ( USD 400 mill plus interests) o Writ filed for…
  26. Q2 2014 RESULTS – Noreco – slide 26
    Cost consciousness Number of permanent staff SG&A1 development and consultants reduced; (Last 18 months) organisation well aligned 70 with business needs Other G&A 60 Pension scheme adjusted to Salary defined contribution 50…
  27. Q2 2014 RESULTS – Noreco – slide 27
    Tommy Sundt new CFO CFO for ten years at Rocksource, an exploration company with focus on the Norwegian continental shelf Has held positions in companies dealing with business development, entrepreneurial activities Tommy Sundt, and…
  28. Q2 2014 RESULTS – Noreco – slide 28
    Recap from Q1 2014 presentation 28
  29. Q2 2014 RESULTS – Noreco – slide 29
    Main priorities going forward Work with operators to improve production Towards a more stable production level Move Maxwell forward to extend field life at Huntington Continue focused development of license portfolio Continue…
  30. Q2 2014 RESULTS – Noreco – slide 30
    Presentation Second quarter 2014 30
  31. Q2 2014 RESULTS – Noreco – slide 31
    Table of contents Noreco at a glance 32 Strategy and objectives 33 Production per field 34 Revenue per field 35 Production expences per field 36 Reserves and resources 37 Additional Reserves by field 38 Exploration Committed…
  32. Q2 2014 RESULTS – Noreco – slide 32
    Noreco at a glance An exploration driven E&P company in the North Sea Exploration Production (number of licenses) (in boepd) 7000 6000 NOR 5000 4000 DEN 3000 2000 UK 1000 Year 2011 2012 2013 14E 0 Wells 4 7 4 3 Q1 Q2 Q3 Q4…
  33. Q2 2014 RESULTS – Noreco – slide 33
    Strategy and objectives Production and Financial and Exploration development human capital o 3-5 attractive wells per o Monetise producing o Sound financial basis year fields through efficent and a capex program o Monetise…
  34. Q2 2014 RESULTS – Noreco – slide 34
    Production per field (boepd) Noreco Field share Q2 14 Q1 14 Q4 13 Q3 13 Q2 13 Q1 13 Oselvar 15 % 552 574 850 221 407 897 Enoch 4.36 % 0 0 0 0 0 0 Lulita 28.2 % 204 330 196 45 79 246 Nini 30 % 1 753 1 415 0 469 2 541 2 566 Cecilie 61 %…
  35. Q2 2014 RESULTS – Noreco – slide 35
    Revenue per field (NOK million) Noreco Field share Q2 14 Q1 14 Q4 13 Q3 13 Q2 13 Q1 13 Oselvar 15 % 25 30 40 8 18 41 Enoch 4.36 % 0 0 0 0 0 0 Lulita 28.2 % 8 15 10 2 3 11 Nini 30 % 113 82 0 29 142 146 Cecilie 61 % 1 0 0 3 19 19…
  36. Q2 2014 RESULTS – Noreco – slide 36
    Production expenses per field (NOK million) Noreco Field share Q2 14 Q1 14 Q4 13 Q3 13 Q2 13 Q1 13 Oselvar 15 % 6 6 14 7 8 6 Enoch 4.36 % 0 2 15 -1 1 0 Lulita 28.2 % 2 3 4 1 2 3 Nini 30 % 55 48 38 67 48 45 Cecilie 61 % 7 14 7 11 9…
  37. Q2 2014 RESULTS – Noreco – slide 37
    Reserves and resources Certified reserves Contingent resources Annual Statement of Reserves as of Only including discoveries currently 31 Dec 2013, audited by DeGolyer and being matured by their licence groups MacNaughton (see next…
  38. Q2 2014 RESULTS – Noreco – slide 38
    Oil and gas reserves by field As of 31.12.2013 Reserves per field 1P 2P Liquids Liquids Gas Interest Net (mill. Gas Interest Net (mill bbl) (bscf) Mill. boe % mill. boe bbl) (bscf) Mill. boe % mill. boe Nini 0.9 0.0 0.9 30.0 0.3…
  39. Q2 2014 RESULTS – Noreco – slide 39
    PL492 Gohta Committed and potential wells Xana spud Q4 2014 Potential new wells being PL484 matured from our inventory of prospects PL639 Kanel Work to optimise risk reward balance continues PL519 Albert Committed well…
  40. Q2 2014 RESULTS – Noreco – slide 40
    UK P1889 Niobe P1889 Niobe Operated by Suncor Jurassic stratigraphic pinch-out trap, up-dip of proven oil discovery, located in Inner Moray Firth in proven play east of Beatrice Field Cos: 23 % Primary risk element: Trap 22.5 %…
  41. Q2 2014 RESULTS – Noreco – slide 41
    North Sea North Albert well (2012) discovered oil at several levels Appraisal well is being considered for Albert Chalk in 2015 Albert Paleocene has no commercial value, but oil discovery positive for our Kanel prospects Combined…
  42. Q2 2014 RESULTS – Noreco – slide 42
    APA 2013 licenses and total portfolio APA 2013 PL744 S PL748 PL755 PL761 PL762 Noreco role Licensee Licensee Licensee Operator Operator Equity 20 % 20 % 20 % 40 % 20 % Initial period 7 years 6 (8) years 7 years 6 years 8 years Acquire…
  43. Q2 2014 RESULTS – Noreco – slide 43
    Balance sheet specifications Producing assets (NOK million) Gross Asset Deferred book retirement tax Net book Asset value obligation (-asset) value Oselvar 319 10 -138 447 Enoch 8 5 3 1 Lulita 33 11 5 18 Nini and Cecilie 335 220 14 101…
  44. Q2 2014 RESULTS – Noreco – slide 44
    Balance sheet specifications Intangible assets (NOK million) Gross Net book Deferred book Asset value tax (asset) value Goodwill UK 101 0 101 Goodwill Denmark 44 0 44 Total Goodwill 145 0 145 Gohta 204 159 45 Huntington Fulmar 582 339…
  45. Q2 2014 RESULTS – Noreco – slide 45
    Write-downs and reversals Q2 2014 Write-downs and Write-downs and reversals Q2 reversals YTD Items (NOK mill) Before tax After tax Before tax After tax Goodwill UK (2) (2) (30) (30) Oselvar - - (34) (9) Enoch - - (10) (2) Siri…
  46. Q2 2014 RESULTS – Noreco – slide 46
    Bond Restructuring Q4 2013 Effects on the Accounts 2013 and forward 2013 2014 2015 2016 2017 2018 2019 Profit & Loss Effects Financial Income 523 Financial Cost to be -8 -149 -134 -123 -111 -97 -18 amortised* Tax (non cash) -24 +24…
  47. Q2 2014 RESULTS – Noreco – slide 47
    Noreco bond structure 600 NOR11 NOK million 400 NOR12 NOR10 NOR10 NOR10 NOR11 200 NOR11 NOR06 NOR11 NOR06 NOR06 NOR06 0 2014 2015 2016 2017 2018 2019 Bond Outstanding Due **) Main Terms NOR06 NOK 587.7 mill 9 Dec 2017…
  48. Q2 2014 RESULTS – Noreco – slide 48
    Shareholders Top 20 shareholders as of 11 August 2014 Shareholder Shares % of total SA B A R O INV E STME NTS LTD 1 541 363 572 27,24 % IK M INDUSTR I-INV E ST A S 1 029 470 893 18,19 % MP P E NSJO N P K 204 516 300 3,61 % O M HO LDING A…
  49. Q2 2014 RESULTS – Noreco – slide 49
    Important information This company presentation (the Presentation) has been prepared by Norwegian Energy Company ASA (Noreco or the Company). The Presentation has not been reviewed or registered with, or approved by, any public authority,…
  50. Q2 2014 RESULTS – Noreco – slide 50

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