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Q2 2011 EARNINGS CALL – Rocksource

Rocksource · Aug 17, 2011 · 45 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 2011 EARNINGS CALL – Rocksource – slide 1
    17 August 2011 Rocksource ASA Second Quarter 2011 www.rocksource.com
  2. Q2 2011 EARNINGS CALL – Rocksource – slide 2
    Agenda Q2 and recent events Financials Portfolio update Summary Appendix
  3. Q2 2011 EARNINGS CALL – Rocksource – slide 3
    Q2 and recent events Gas discovery announced on Norvarg prospect in the Barents Sea - Successful production test announced in August, preliminary resource estimate 63 - 315 mmboe (gas) - High quality fit to pre-drill EM model…
  4. Q2 2011 EARNINGS CALL – Rocksource – slide 4
    Q2 and recent events Financial base strengthened following Kora farm-down in June - USD 28 million received prior to spud - Cash balance end Q2 NOK 481 million US Onshore divestment completed in June - Net proceeds USD 3.5…
  5. Q2 2011 EARNINGS CALL – Rocksource – slide 5
    Agenda Q2 and recent events Financials Portfolio update Summary Appendix
  6. Q2 2011 EARNINGS CALL – Rocksource – slide 6
    AGC farm-down offsets increasing exploration costs Revenue highly impacted from the farm-down on NOK '000 the AGC license with NOK 153 million Q2 2011 Q1 2011 - Reimbursement for past expenditure and cover for Operating income…
  7. Q2 2011 EARNINGS CALL – Rocksource – slide 7
    Results and project items Result development MNOK 150 160 120 80 61 40 Net profit - EBITDA before exploration -40 -80 -120 -160 Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2011 2011 Exploration cost & capitalised items MNOK 160…
  8. Q2 2011 EARNINGS CALL – Rocksource – slide 8
    Strong cash position Cash balance of NOK 481 million at end of quarter - Low cash outflow in the quarter from the three completed wells as payments are deferred to Q3 - Cash balance in the quarter includes AGC farm-down payment and…
  9. Q2 2011 EARNINGS CALL – Rocksource – slide 9
    Agenda Q2 and recent events Financials Portfolio update Summary Appendix
  10. Q2 2011 EARNINGS CALL – Rocksource – slide 10
    2011 Well schedule 20 11 Licence/Lease Prospect Equity Rig Q3 Q4 Jul Aug Sep Oct Nov Dec AGC Profond West Africa Kora 25% Maersk Deliverer Dry hole PL 535 NCS Norvarg 20% West Phoenix Discovery PL 416 NCS Breiflabb 35% Borgland…
  11. Q2 2011 EARNINGS CALL – Rocksource – slide 11
    Well results: Norvarg gas discovery Multiple gas filled reservoirs 60-315 mmboe resources (15-63 mmboe net Rocksource) Successful well test of the Kobbe Formation Stable 180 sm3/day flow rate Pre-drill prediction by EM…
  12. Q2 2011 EARNINGS CALL – Rocksource – slide 12
    Well results: Breiflabb dry hole Sognefjord-Brent Formation targets tested as dry Preliminary dry hole cause source and migration Post well evaluation in progress False positive candidate for weak EM anomaly not penetrated…
  13. Q2 2011 EARNINGS CALL – Rocksource – slide 13
    Well results: Kora dry hole Cretaceous targets found dry False positive candidate for strong EM anomaly identified Post well evaluation in progress Future work programme to be defined 14
  14. Q2 2011 EARNINGS CALL – Rocksource – slide 14
    Summary of well results Norvarg True Positive 60% Gas in several zones False Positive Kora Interbedded 55% Limestone Breiflabb Shallow resistivity as predicted 44% Deep false positive not drilled 15
  15. Q2 2011 EARNINGS CALL – Rocksource – slide 15
    Well results: What have we learned Successful mapping of resistivity, particularly where moderate-strong anomalies exist Correct identification of hydrocarbons in Norvarg, at multiple reservoirs. Complex setting Risk…
  16. Q2 2011 EARNINGS CALL – Rocksource – slide 16
    Portfolio update Contingent resources (5 discoveries) 1C 2C 3C 123 167 229 Discovery Well sanctioned 76 (2) MMBOE (Number of prospects) Prospective resources Rig contract Drill ready 196 (2) DoD With EM 423…
  17. Q2 2011 EARNINGS CALL – Rocksource – slide 17
    Portfolio update Remaining exploration portfolio Contingent or Net Risked Resources Storbarden Ivory Auchentoshan Typhoon Red Drum Dvergen (mmboe) Glenlivet Heilo Phoenix Norvarg Trident Firm wells with…
  18. Q2 2011 EARNINGS CALL – Rocksource – slide 18
    Portfolio update License Country Prospect RGT % Net Status Drilling unrisked PL 530 Norway Heilo 20 40 Firm Q3 PL 530 Norway Heilo sidetrack 20 Contingent Q3 PL 559 Norway Phoenix 60 100 Firm Q3 PL 528 Norway Ivory 30 90 DoD Q3…
  19. Q2 2011 EARNINGS CALL – Rocksource – slide 19
    2011 sanctioned well: Heilo Where: Norway, Barents Sea Operator: GDF Suez E&P Norge AS Rocksource equity: 20 % Key prospect: Heilo Mean recoverable: 200 mmboe CoS: 50 % Rig: Aker Barents Type: Semi sub Spud date: Q3 2011 Comments:…
  20. Q2 2011 EARNINGS CALL – Rocksource – slide 20
    PL 530 - Heilo Partnership Caurus GDF Suez E&P Norge (Operator): 40% Front Exploration: 20% North Energy: 20% Rocksource: 20% Work programme Awarded May 15th. 2009 (20.Licensing Round) Drill 1 firm exploration well 200m into…
  21. Q2 2011 EARNINGS CALL – Rocksource – slide 21
    Heilo prospect evaluation 0 Trap 55 596000 598000 600000 602000 604000 606000 608000 610000 612000 614000 616000 618000 620000 -1450 -1 0 Depth -1450 (m MSL) 400 50 -1200 -1 -1 7954000 7954000 -1300 - The…
  22. Q2 2011 EARNINGS CALL – Rocksource – slide 22
    Heilo prospect evaluation (continued) Source and Migration - Main source: Upper Jurassic Hekkingen and Lower Kobbe Formation shales (both oil mature) - Source rocks are proven by nearby discoveries Bamse - Nearby discoveries…
  23. Q2 2011 EARNINGS CALL – Rocksource – slide 23
    Heilo prospect evaluation (continued) Risk analysis (pre DHI) Volumetric analysis (pre DHI) Risk element Risk Volume estimation for Heilo South and North, pre DHI, to be tested by exploration well 7214/4-1 S & Geological risk…
  24. Q2 2011 EARNINGS CALL – Rocksource – slide 24
    Heilo prospect evaluation (continued) Seismic DHI evaluation A Data - High quality 3D seismic data (411 km2) acquired in 2007 by Western Geco - Rock physics modelling carried out on nearby wells - Seismic inversion applied to the 3D…
  25. Q2 2011 EARNINGS CALL – Rocksource – slide 25
    Heilo prospect evaluation (continued) EM surveys - Rocksource proprietary NW-SE & W-E trending 2D lines acquried by EMGS 2007 - Non-proprietary 3D EM survey acquired by EMGS (2008), purchased and interpreted by Rocksource - High…
  26. Q2 2011 EARNINGS CALL – Rocksource – slide 26
    Heilo prospect evaluation (continued) W E EM evaluation Results Heilo South - Both the Heilo South and Heilo North segments are associated with EM anomalies - Good correlation between the Rocksource proprietary 2D lines and the 3D…
  27. Q2 2011 EARNINGS CALL – Rocksource – slide 27
    Heilo prospect summary The Heilo prospect is a well defined structural trap with multiple target levels - Seismic DHIs revealed in primary targets Migration modeling suggests several potential migration routes, including oil spill…
  28. Q2 2011 EARNINGS CALL – Rocksource – slide 28
    2011 sanctioned well: Phoenix Where: Norway, Norwegian Sea Operator: Rocksource ASA Rocksource equity: 60 % Key prospect: Phoenix Mean recoverable: 163 mmboe CoS: 50 % Rig: Borgland Dolphin Type: Semi sub Spud date: Q3 2011 Comments:…
  29. Q2 2011 EARNINGS CALL – Rocksource – slide 29
    PL 559 Phoenix Prospect Evaluation Structure: - Low risk, however uncertainty around size due to role of various segmenting faults Reservoir: - Very low risk, excellent well control to predict reservoir distribution Seal: - Key…
  30. Q2 2011 EARNINGS CALL – Rocksource – slide 30
    PL 559 Phoenix DHI evaluation EM: - Data fits within model expectations - Anomaly fits to Phoenix structure - Significant anomaly present on both raw and inverted data - Significant response (30% NAR) / Seismic: -Seismic coherency…
  31. Q2 2011 EARNINGS CALL – Rocksource – slide 31
    PL 559 Phoenix prospect summary Risk: EM data improves Pg from 38% to COS of 50% re Formation volumetrics: Mean resource estimated at 163 mmboe Post DHI volumes: - EM anomaly fits to Phoenix structure but varies in strength from…
  32. Q2 2011 EARNINGS CALL – Rocksource – slide 32
    Portfolio update License Country Prospect RGT % Net Status Drilling unrisked PL 530 Norway Heilo 20 40 Firm Q3 PL 530 Norway Heilo sidetrack 20 Contingent Q3 PL 559 Norway Phoenix 60 100 Firm Q3 PL 528 Norway Ivory 30 90 DoD Q3…
  33. Q2 2011 EARNINGS CALL – Rocksource – slide 33
    2012-13 exploration wells PL 528 Rocksource equity: 30% Operator: Suncor Water depth: 1.200m Primary prospect potential: 120-800 mmboe - Structural trap with well control - Gas and oil potential primarily gas - Well developed…
  34. Q2 2011 EARNINGS CALL – Rocksource – slide 34
    2012-13 exploration wells EB 419 Houston Rocksource equity: 100% Operator: Rocksource Water depth 750m Primary prospect potential: 40-140 mmboe - Stratigraphic trap, with proven reservoir and seal lithologies - Gas with oil…
  35. Q2 2011 EARNINGS CALL – Rocksource – slide 35
    2012-13 exploration wells AC 855 Houston Rocksource equity: 65% Operator: Rocksource Water depth 2.800m Primary prospect potential: 90-480 mmboe - Structural/compaction trap with good well control - Significant oil potential…
  36. Q2 2011 EARNINGS CALL – Rocksource – slide 36
    Agenda Q2 and recent events Financials Portfolio update Summary Appendix
  37. Q2 2011 EARNINGS CALL – Rocksource – slide 37
    Summary Successful result on Norvarg, Kora and Breiflabb dry - Disappointing, but not unlikely outcome of drilling campaign so far - Norvarg appraisal expected Two quality prospects to spud shortly with unrisked potential of 140…
  38. Q2 2011 EARNINGS CALL – Rocksource – slide 38
    Agenda Q2 and recent events Financials Portfolio update Summary Appendix
  39. Q2 2011 EARNINGS CALL – Rocksource – slide 39
    Profit and loss statement NOK '000 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Q2 2010 2010 Operating income 159 215 1 246 4 066 10 320 2 678 18 218 Total operating income 159 215 1 246 4 066 10 320 2 678 18 218 Other general and…
  40. Q2 2011 EARNINGS CALL – Rocksource – slide 40
    Balance sheet NOK '000 30.6.2011 30.3.2011 31.12.2010 30.9.2010 30.6.2010 Deferred tax assets - 36 097 35 147 49 861 49 569 Patents and development costs 34 52 75 134 258 Goodwill 154 563 154 563 154 563 154 563 154 563…
  41. Q2 2011 EARNINGS CALL – Rocksource – slide 41
    Cash flow NOK '000 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Q2 2010 2010 Net cash flow from: Operating activities 203 166 (63 712) 55 384 (76 336) (63 648) (184 081) Investing activities (134 803) (39 420) (17 695) (6 004) (10 188) (36…
  42. Q2 2011 EARNINGS CALL – Rocksource – slide 42
    Shareholder list Investor of shares % of top 20 % of total Type Country OM HOLDING AS 9,063,644 8.70% 2.60% Comp. NOR BANK OF NEW YORK MELLON SA/NV 7,595,417 7.29% 2.18% Nom. GBR SIX SIS AG 6,937,168 6.66% 1.99% Nom. CHE GOLDMAN…
  43. Q2 2011 EARNINGS CALL – Rocksource – slide 43
    Analyst coverage Company Research analyst Telephone Website ABG SUNDAL COLLIER Anders Holte +47 22 01 61 60 www.abgsc.no ARGO SECURITIES Patrik Hofseth +47 24 14 74 48 www.argosec.no ARCTIC SECURITIES Christian Yggeseth +47 21 01…
  44. Q2 2011 EARNINGS CALL – Rocksource – slide 44
    Investor contacts Per Anders Muri, VP Corporate Communications - Tel: +47 91 11 61 21 - per.anders.murirocksource.com Trygve Pedersen, CEO - Tel: +47 90 09 77 41 - trygve.pedersenrocksource.com Tommy Sundt, CFO - Tel: +47…
  45. Q2 2011 EARNINGS CALL – Rocksource – slide 45
    www.rocksource.com

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