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Q4 2010 EARNINGS CALL – Noreco

Noreco · Feb 17, 2011 · 37 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. Q4 2010 EARNINGS CALL – Noreco – slide 1
    Noreco Q4 2010 17 February 2011
  2. Q4 2010 EARNINGS CALL – Noreco – slide 2
    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…
  3. Q4 2010 EARNINGS CALL – Noreco – slide 3
    Q4 2010 a mixed quarter Production in line with Q3 SCB-1 still offline Significant progress in field developments Huntington and South Arne Phase III approved Disappointing exploration results Dalsnuten and Barchan dry Reserve…
  4. Q4 2010 EARNINGS CALL – Noreco – slide 4
    Q4 2010 income statement NOK million Q4-10 Q3-10 Q4-09 2010 2009 Total revenues 474 631 322 2 146 1 547 Production expenses 143 145 101 540 452 Exploration and evaluation expenses 1) 303 90 35 616 525 Payroll and other operating…
  5. Q4 2010 EARNINGS CALL – Noreco – slide 5
    Balance sheet NOK million 31.12.10 30.09.10 31.12.09 Assets Fixed assets 9 665 10 589 9 919 Receivables 1) 2 109 1 359 1 269 Cash 892 673 660 Total assets 12 667 12 621 11 848 Equity and liabilities Total equity 3 713 3 864 3 722 Total…
  6. Q4 2010 EARNINGS CALL – Noreco – slide 6
    Financial position NOK million Debt/equity 5 000 2.5 4 000 2.0 3 000 1.5 2 000 1.0 1 000 0.5 0 0.0 Q1-2010 Q2-2010 Q4-2010 Q3-2010 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2008 Q2-2008 Q3-2008 Q4-2008…
  7. Q4 2010 EARNINGS CALL – Noreco – slide 7
    Strong growth in reserves 2P reserves estimate end 2010: Reserves development 45.8 mmboe* 50 Reserve replacement ratio: 40 2010: 300% million boe 30 2009: 222% 2008: 145% 20 Main additions 2010: 10 Huntington 0 South Arne…
  8. Q4 2010 EARNINGS CALL – Noreco – slide 8
    Production per quarter boe/day net 15 000 Lulita 12 500 Cecilie 10 000 Nini East Nini 7 500 Siri 5 000 South Arne 2 500 Enoch Brage 0 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Volume 5 775 11 375 13 125 10 225 10 365 Price 68.5 74.0…
  9. Q4 2010 EARNINGS CALL – Noreco – slide 9
    Siri Area Siri 50%, Nini East 30%, Nini 30%, Cecilie 61% Gas compressor upgrade Gross production Siri area completed in January boe/day Improved capacity and 25 000 regularity, reduced flaring 20 000 SCB-1 still shut in Work-over…
  10. Q4 2010 EARNINGS CALL – Noreco – slide 10
    Brage Noreco 12.26-13.2% Gross production Brage New well A-19A came on stream boe/day in Q4 with good production 40 0 0 0 rates 30 0 0 0 20 0 0 0 2011 drilling program 10 0 0 0 Currently drilling Arran 0 (A-14A) combined…
  11. Q4 2010 EARNINGS CALL – Noreco – slide 11
    South Arne Noreco 6.56% Gross production South Arne Good contribution from the two boe/day 40 0 0 0 new production wells 30 0 0 0 20 0 0 0 South Arne Phase III sanctioned 10 0 0 0 2 new wellhead platforms 0 Oct - 10 Ja n - 11…
  12. Q4 2010 EARNINGS CALL – Noreco – slide 12
    2011 production Norecos forecast for 2011 production: P90: 8,500 boe/day P50: 9,550 boe/day P10: 10,700 boe/day Probabilistic approach Upside and downside risks included in forecast 12
  13. Q4 2010 EARNINGS CALL – Noreco – slide 13
    Gygrid Developments Two approved developments Huntington South Arne phase III Developments coming up Gygrid Nemo Flyndre Nemo Capex plan 2011: NOK 0.8 billion Huntington Developments NOK 0.5 bn Existing fields NOK 0.3 bn…
  14. Q4 2010 EARNINGS CALL – Noreco – slide 14
    Huntington Forties Development on track Noreco share 20%, E.On Ruhrgas operator Development plan approved Sevan Voyageur FPSO currently located at Nymo Arendal for topsides modifications Ensco 100 rig contracted, drilling to…
  15. Q4 2010 EARNINGS CALL – Noreco – slide 15
    Gygrid Fast track project moving towards PDO Noreco equity 17.5%, Statoil operated Subsea development, tie-back to the Njord platform PDO expected Q2 2011 Prosperous area mapping of resources ongoing Up to three exploration…
  16. Q4 2010 EARNINGS CALL – Noreco – slide 16
    2011 exploration wells Total exploration budget NOK 1.0-1.1 billion Albert Arran Kalvklumpen Lupin Clapton Luna 16
  17. Q4 2010 EARNINGS CALL – Noreco – slide 17
    0 50 100 150 200 250 300 7/06 Rau P1114 Huntington Palaeo P1114 Huntington Jurassic PL271 Yoda Pre Drill P10 Pre Drill P90 Pre Drill P50 Pre Drill Cum Post Drill Cum PL348 Galtvort N 7/89 Syd Tor Pod PL055…
  18. Q4 2010 EARNINGS CALL – Noreco – slide 18
    PL434 Ronaldo Noreco 20% Nexen operated Well defined trap in mature Haltenbanken play (Middle Jurassic) in close vicinity to Heidrun facilities 40% CoS Primary risk element: Charge 75 100 mmboe (gross) Expected spud Feb 2011 with…
  19. Q4 2010 EARNINGS CALL – Noreco – slide 19
    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 May 2011 with Songa…
  20. Q4 2010 EARNINGS CALL – Noreco – slide 20
    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%…
  21. Q4 2010 EARNINGS CALL – Noreco – slide 21
    DK 01/11 Luna Noreco 47% Noreco operated Frontier play prospect, targeting Rotliegendes sands, requiring long range migration from Cemtral Graben: Play opener and will de-risk larger Rocky prospect 14% CoS Primary risk element: Trap…
  22. Q4 2010 EARNINGS CALL – Noreco – slide 22
    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…
  23. Q4 2010 EARNINGS CALL – Noreco – slide 23
    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…
  24. Q4 2010 EARNINGS CALL – Noreco – slide 24
    PL360 Lupin Noreco 15% Statoil operated Large fault bound structure in Ling Graben, gas prospect, target reservoir is the Rotliegendes sands, few wells in North Sea have targeted this frontier play 10% CoS - Primary risk element:…
  25. Q4 2010 EARNINGS CALL – Noreco – slide 25
    PL440S Clapton Noreco 12% Faroe Petroleum operated Chalk reservoir around the flanks of major salt diapir Located in Central Graben in mature play 25% CoS Primary risk element: Trap 76 194 mmboe Clapton Luna Expected spud late…
  26. Q4 2010 EARNINGS CALL – Noreco – slide 26
    PL385 Jette/Sprott Noreco 20% Statoil operated Dual target well, testing two separate prospects in both Jurassic and Cretaceous intervals Jurassic target (Jette), trap in mature play, considerable follow-on potential if success 50% CoS…
  27. Q4 2010 EARNINGS CALL – Noreco – slide 27
    Upcoming exploration wells 1) Prospect License Noreco Chance of Volume Drilling start share success potential (est.) Ronaldo PL434 20% 40% 75-100 Q1-11 Kalvklumpen PL414 20% 35% 36-110 Q2-11 Chamonix PL471 30% 19% 65-170 Q2-11 Luna DK…
  28. Q4 2010 EARNINGS CALL – Noreco – slide 28
    Way forward Exploration in focus targeting 10 wells Significant development programme underway Optimize production new wells and improved regularity 28
  29. Q4 2010 EARNINGS CALL – Noreco – slide 29
    29
  30. Q4 2010 EARNINGS CALL – Noreco – slide 30
    Additional information Ref.: 60521-v2
  31. Q4 2010 EARNINGS CALL – Noreco – slide 31
    Noreco production per field boe/day Field Noreco ownership Q4 2010 Q4 2009 2010 2009 Brage 12.26/13.2% 3 150 3 950 3 750 4 100 Siri 50% 1 875 0 2 475 2 750 Nini East 30% 1 875 0 1 800 South Arne 6.56% 1 725 1 525 1 450 1 575 Nini…
  32. Q4 2010 EARNINGS CALL – Noreco – slide 32
    P&L analysis Q4 2010 Q3 2010 Q2 2010 Q1 2010 Q4 2009 Production (boe/day) 10,365 10,225 13,125 11,375 5,775 Realised price (/boe) 83.9 74.4 75.4 74.0 68.5 Realised price (NOK/boe) 497 459 469 434 389 Production cost (/boe) 25.1…
  33. Q4 2010 EARNINGS CALL – Noreco – slide 33
    Exploration and investment activity NOK million Q4 2010 Q3 2010 Q2 2010 Q1 2010 Q4 2009 Exploration expenses 303 90 100 123 35 Exploration capitalized -50 124 41 15 1 Investments in fields 113 173 138 198 94 Total 366 452 279 336…
  34. Q4 2010 EARNINGS CALL – Noreco – slide 34
    Interest bearing debt & equity NOK million Q4 2010 Q3 2010 Q2 2010 Q1 2010 Q4 2009 Bonds 2,812 2,270 2,267 2,314 2,311 Reserve Based Loan 1,226 1,331 1,500 1,379 1,359 ( 216) ( 235) ( 235) ( 235) ( 240) Convertible bonds 206 204 201…
  35. Q4 2010 EARNINGS CALL – Noreco – slide 35
    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…
  36. Q4 2010 EARNINGS CALL – Noreco – slide 36
    Oil price hedging with put options 1,000 barrels Noreco uses put 350 options to protect cash 300 flow against downside risk in oil price 250 200 24 months rolling 150 forward programme 100 50 Asian type puts based on monthly…
  37. Q4 2010 EARNINGS CALL – Noreco – slide 37
    Shareholders Top 20 shareholders as of 14 February 2011 % of top Shareholders Shares 20 % of total BANK OF NEW YORK MELLON SA/NV 29 072 941 19.9 % 11.9 % LYSE ENERGI AS 23 647 460 16.2 % 9.7 % IKM INDUSTRI-INVEST AS 14 586 584 10.0…

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