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…
Highlights Q3 2010 Strong financial result Net result NOK 167 million Driven by gain on sale of Grosbeak Sale of Oselvar and Enoch Supports asset valuations Strengthens financial position Production below estimates due to…
Q3 2010 income statement NOK million Q3-10 Q2-10 Q1-10 2009 Total revenues 1) 631 560 481 1 547 Production cost 145 132 121 452 Exploration cost 90 100 123 525 Salary and other expenses 69 59 68 229 Loss on sale of licenses (56)…
Balance sheet NOK million 30.09.10 30.06.10 31.12.09 Assets Fixed assets 10 589 10 540 9 977 Receivables 1) 1 359 1 447 1 269 Cash 673 441 660 Total assets 12 621 12 429 11 906 Equity and liabilities Total equity 3 864 3 777 3 722 Total…
Financial position NOK million Debt/equity Net interest-bearing debt = Gross interest-bearing debt less cash and cash equivalents less tax receivables. 6 Debt/equity ratio = Net interest-bearing debt divided by Total equity.
Production per quarter boe/day net Volume 9 725 5 775 11 375 13 125 10 225 Price 65 68.5 74.0 75.4 74.4 7
Siri Area Siri 50%, Nini East 30%, Nini 30%, Cecilie 61% Gas compressor upgrade Gross production Siri area planned for January boe/day Will improve production and reduce need for flaring SCB-1 well still shut in due to…
Other producing fields Gross production Brage Brage (Noreco 12.26-13.2%) boe/day Bowmore well on decline Gas compressor repaired New well A-19 to come on stream in Q4 South Arne (Noreco 6.56%) New production wells Gross…
Huntington Moving towards project sanction Commercial negotiations with Sevan for FPSO finalised Working towards project sanction and approval from UK authorities during Q4 Contracts for FPSO, drilling etc. to be executed…
Gygrid Njord selected as host platform 2009 oil discovery in PL348, operated by Statoil, Noreco equity 17.5% Planning for PDO mid-2011 to be developed as subsea tie-back to Njord platform Upside potential in Ile formation…
Sale of Oselvar and Enoch Buyer: Marubeni Corporation Oselvar facts: Prequalified 2005 2007 Noreco farmed Active in several basins, total in with 15% production 50,000 boe/day 2007-08 successful appraisal and Ipswich discovery…
Sale of PL378 Grosbeak Monetizing exploration success Sold to Talisman in Q3 2010 Effective date 1/1-2010 Consideration USD 43 mill Gain on sale: USD 40 mill Contingent resources 6.8 mmboe 5% of Norecos total contingent…
Zidane 1 Our latest discovery License PL435 Norway, well 6507/7-14 S Noreco 20%, operated by RWE DEA Discovered gas in the Middle Jurassic Fangst Group Successful well test Operator resource estimate: 30-110 mmboe P50 est: 81…
Dalsnuten Currently drilling License PL392 in Norway Noreco 10%, operated by Shell Noreco 50% Middle Jurassic and Lower Cretaceous plays Noreco 20% Chance of success 25% - main Noreco 50% geologic risks are reservoir and…
Barchan Currently drilling License PL400 Norway Noreco 30% Operator: Lundin Rotliegendes play Chance of success 18% Main risk: reservoir quality West East Total gross recoverable volumes 50 325 mmboe 16
Svanegle Norecos next operated well starting in Q4 License PL545 in Norway Noreco 50% owner and operator Svanegle Expected spud November/ December with the rig West Alpha Middle Jurassic play in the sta Reservoir Graben Pinch…
Ronaldo Recent farm-in with drilling in Q1 2011 License PL434 in Norway Noreco 20%, operated by Nexen Target in the Middle Jurassic Fangst Group Zidane Chance of success is 40% Migration is main risk Pre-drill estimated…
Stepping up exploration Strong track record exciting program underway mmboe 2007 2008 2009 2010 2011 19 This is an indication of possible exploration wells in 2011. The actual drilling schedule is subject to licence approvals…
Strategic review Review of strategic alternatives initiated Purpose is to enhance shareholder value Will examine all possible alternatives 20
Way forward Maximize shareholder value High exploration activity Progress developments Sanction Huntington and South Arne phase III in Q4 Mature other discoveries towards development Strategic review 21
Additional information
Our Business Today Activities in Norway, Denmark and UK 100 employees Extensive forward exploration program History of exploration success 3 near term developments Production from 8 fields 2P reserves 37.2 mmboe Contingent…
Norecos strategic focus MONETIZE VALUES THROUGH CREATE VALUE WITH DEVELOPMENTS AND OPTIMIZE VALUE IN PRODUCTION EXPLORATION TRANSACTIONS Exploration success Grosbeak deal economics Production with a purpose 25 24
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Built a strong acreage e position Number of licences 27 26
Established a strong track record for exploration mmboe 2007 2008 2009 2010 28 27
Noreco production per field boe/day Field Noreco ownership Q3 2010 Q2 2010 Q1 2010 2009 Brage 12.26/13.2% 2 875 4 700 4 325 4 100 Siri 50% 2 075 2 725 3 200 2 750 Nini East 30% 2 250 2 350 675 South Arne 6.56% 1 200 1 475 1 425 1…
Reserves and resources Per January 2010 2P reserves: 37.2 million boe Contingent resources: 125 million boe 2P reserves for all producing fields have been subject to a third party independent assessment by Degolyer and…
Oil price hedging with put options 1,000 barrels Noreco uses put options to protect cash flow against downside risk in oil price 24 months rolling forward programme Asian type puts based on monthly average Brent oil price…
Shareholders Top 20 shareholders as of 25 October 2010 37 35
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