Noreco Einar Gjelsvik, CEO Pareto Oil & Offshore Conference, 31 August 2011
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,…
Noreco at a glance Exploration-driven E&P company Production from five fields 2011-H2 est: 3,900 boe/day Two development projects ongoing Adding 8-9,000 boe/day in 2012 Significant portfolio of discoveries Extensive exploration…
Noreco repositioned Financial position substantially improved Operational issues addressed Strategy focused Organisational changes and cost reduction underway 4
Asset sales for 300 million May 2011 May 2011 July 2011 August 2011 August 2011 Sale of Sale of Sale of Sale of Sale of Brage Hyme Siri South Arne Flyndre to to to to to Core Energy Core Energy DONG Energy HESS Maersk Oil for a…
Oil & gas production boe/day net 15 000 Discontinued 12 500 Lulita Cecilie 10 000 Nini East 7 500 Nini 5 000 Siri South Arne 2 500 Enoch 0 Brage Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Volume 11 375 13 125 10 225 10 365 7 538 7…
Huntington Forties Noreco 20% Drilling on plan Subsea operations on plan FPSO delayed Schedule risk Huntington project schedule First oil in Q2-2012 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 still possible FDP Approval…
Oselvar Noreco 15% On schedule 56% completed per end-June Integration of Oselvar module on Ula host platform ongoing Oselvar project schedule Drilling on plan Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13…
Exploration program Licensed acreage awarded on NCS last 10 years Active and focused exploration program from large portfolio Focus on wells with high value potential Clear entry and exit strategy for each license Active risk…
2011 exploration wells Albert Arran Kalvklumpen Lupin Clapton Luna 10
Way forward Active and focused exploration program Renew and strengthen production base Active portfolio management 11
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Exploration success the key to long-term growth Discovered volumes have been in Norecos exploration activity line with risked pre-drill estimates mmboe 85 mmboe discovered through 100 the years 2007-2010 90 80 2011 program 70…
Exploration performance and outlook Million barrels of oil equivalents 14
PL471 Chamonix Noreco 30% OMV operated Amplitude supported stratigraphic trap, in emerging hydrocarbon province: Cretaceous Lysing sandstone. West of Mikkel Additional prospectivity also targeted in deeper horizons (Jurassic) 19%…
DK 1/11 Luna Noreco 47% Noreco operated Frontier play prospect, targeting Rotliegendes sands, requiring long range migration from Central Graben: Play opener and will de-risk larger Rocky prospect 14% CoS Primary risk element: Trap…
PL414 Kalvklumpen Noreco 20% Det Norske operated Simple anticline trap in mature Central Graben play (Palaeocene) east of Fry discovery 35% CoS Primary risk element: Charge 36 110 mmboe (gross) Expected spud Q4 2011 with Songa…
PL519 Albert Noreco 20% Lundin operated The well will target a major fault bound high north of Tampen Spur hydrocarbon province (Statfjord, Snorre etc) Jurassic/Triassic target in emerging play, trap in close vicinity to discovery…
PL435 Zidane 2 Noreco 20% RWE Dea operated Analogue prospect to the 2010 Zidane 1 discovery Low risk prospect in mature play that will considerably enhance the commerciality of the Zidane 1 discovery and may facilitate improved gas…
South Arne divested To be sold for USD 200 million H1-2011 production 1,580 boe/day 8.8 mmboe net reserves per 31.12.2010 Valuation date 1 January 2011 Completion expected in Q3 or Q4 Estimated accounting impact: USD 50 mill…
Siri situation resolved Agreement to sell 50% of Siri to DONG Energy for USD 13 million, effective 1 July 2011 Ownership in Nini, Nini East and Cecilie remains unchanged and unaffected Noreco will not carry any historical or future…
Brage and Hyme divested Brage Q1-2011 production 2,800 boe/day 6.0 mmboe net reserves per 31.12.2010 Sold for USD 75 million Hyme Discovered 2009, PDO 2011, first oil 2013 4.2 mmboe net reserves NOK 800 million net capex Sold…
Brynhild (Nemo) Noreco 20% PDO submitted early August Subsea tie-back of 3 wells to Shell- operated Pierce FPSO in UK PDO approval and contract awards expected in September First oil late 2013 Noreco has option to sell its share…
Income statement Second quarter 2011 NOK million Q2-11 Q1-11 Q2-10 Total revenues 396 403 361 Production expenses 1) 87 120 101 Exploration and evaluation expenses 86 202 98 Payroll and other operating expenses 74 92 59 EBITDA 149 (11)…
Balance sheet 30 June 2011 NOK million 30.06.11 31.03.11 31.12.10 Assets Fixed assets 1) 9 480 10 400 9 611 Receivables 2) 1 917 1 581 2 109 Cash 819 490 892 Total assets 12 216 12 471 12 613 Equity and liabilities Total equity 3 165 3…
Financial position NOK million Debt/equity Net interest-bearing debt = Gross interest-bearing debt less cash and cash equivalents less tax receivables. 27 Debt/equity ratio = Net interest-bearing debt divided by Total equity.
Interest-bearing debt overview Bond loan fixed Bond loan floating Senior unsecured Bond loan floating Bond loan fixed Reserve-based bank Exploration loan (NOR04) (NOR03) convertible bond (NOR05) (NOR06) and facility floating (NOR07)…
Dynamic hedging programme Put options Noreco is using put 1,000 barrels options to protect 300 cash flow from oil 250 price downside 200 24 months rolling 150 forward programme 100 50 Asian type puts based on monthly…
Exploration and investment activity NOK million Q2-2011 Q1-2011 Q4-2010 Q3-2010 Q2-2010 Exploration expenses 86 202 301 88 98 Exploration capitalized 14 22 -63 117 38 Investments in fields 249 240 113 173 138 Total 349 464 351…
Reserves development Development in 2P reserves 2P reserves estimate end 2010: mmboe 50 45.8 mmboe 40 million boe 30 Reserve replacement ratio: 20 2010: 300% 10 2009: 222% 0 2007 2008 2009 2010 2008: 145% Reserves…
Reserves As of 31.12.2010 Total reserves 1P 2P Liquids Gas Gross Interest Net Liquids Gas Gross Interest Net (mill bbl) (bscf) mill boe % mill boe (mill bbl) (bscf) mill boe % mill boe Siri 6.1 - 6.1 50 3.0 11.5 - 11.5 50 5.8 Nini 3.8…
Shareholders Top 20 shareholders as of 29 August 2011 Shareholder Shares % of total LYSE ENERGI AS 23 647 460 9,7 % IKM INDUSTRI-INVEST AS 18 746 323 7,7 % CREDIT SUISSE SECURITIES (USA) LLC 10 090 957 4,1 % FOLKETRYGDFONDET 9 048 654 3,7…
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