Rocksource ASA Fourth Quarter 2009 www.rocksource.com 17 February 2010
Q4 and recent events ? Financial position strengthened in preparations for drilling - NOK 500 million NCS exploration facility established - NOK 150 million Equity Line of Credit established ? First sanctioned well on NCS announced in…
Q4 and recent events ? Encouraging 3rd party drilling results where EM data is positive - Strong correlation between exploration success and presence of resistive anomalies - Significant sample size with 50+ wells reviewed ? Gulf of…
Sticking to strategy in turbulent times ? 2009 was a challenging year for the E&P industry - Dramatic drop in oil & gas prices and limited access to funds - Significant cut in overall industry E&P spending 200 250 300 MNOK ?…
Reduced production and low gas price NYMEX Henry-hub gas 5 yrs development Q4 Q4 Q4 $40 $50 $60 $70 $80 1 500 2 000 2 500 D/ boe epd Production and price Q4 All produced natural gas, condensate and crude oil are sold d l…
Financial flexibility improved following recent agreements ? NOK 500 million facility with SEB to support exploration on main NCS market - No constraints for the foreseeable future - Competitive funding with security in Norwegian…
Exploration portfolio overview 250 300 350 400 Prospects selected for drilling Prospects evaluated with CSEM data ?Rocksource portfolio highly selective - Substantial pre-screening prior to prospect 0 50 100 150 200 Leads…
Exploration portfolio update ? NCS ? PL 416 - Partnership decision to drill the Breiflabb 1600 RocksourceASAWell Schedule All volumes are net prospect - May 2011 spud with the Borgland Dolphin ? NCS ? Relinquishment of PL 480 -…
Net risked resource base increasing Net risked resources Mill boe 1400 ? Exploration resources of > 1 billion barrels oil equivalents ? Drill campaign further matured with portfolio additions - Further EM testing initiated on the…
Prospect risking approach example: Recently sanctioned PL 416, ?Breiflabb? Partnership: - E.ON Ruhrgas (Operator, 50%), Rocksource (35%), Aker Exploration (15%) Work Programme: - Acquire EM within 1 year (Feb 2008) - Decide to…
Prospect risking approach example: ?Breiflabb? step 1 ? Conventional risking Prospect Evaluation Structure: - Structural trap - Robust, small tilted fault block trap with three way closure - Larger closure requires fault seal -…
Breiflabb? ? Main risk source & migration Prospect Evaluation Seal: - Proven seal ? Draupne Formation top seal Draupne Fm - Same seal as Troll - Similar seismic expression to Troll seismic - Very low risk - Fault seal control on…
Prospect risking approach example: ?Breiflabb? ? Conclusions from conventional risking Risk Analysis: - Structure - Reservoir - Seal 0.5 0.6 0.7 0.8 0.9 1 bility (%) ProspectSize vs Probability - Source and migration -…
Prospect risking approach example: ?Breiflabb? step 2: EM evaluation EM evaluation: ? Pre acquisition model expectations: - EM feasible prospect - Clear response > 20% NAR (normalised amplitude resp ) y p onse) if hydrocarbons are…
Prospect risking approach example: ?Breiflabb? ? EM evaluations EM evaluation ? Interpretation - No response on equivalent section to east - Fit to structure a key indicator P t ti l f l iti d if d k ANOMALY NO ANOMALY - o en a a…
PL 559 on NCS: High potential license awarded in APA 2009 ? Rocksource top pick PL 559 awarded in APA 2009 licensing round - Rocksource awarded operatorship and 60% ownership based on positive EM test performed in 2009 - P hi i f…
India: Formal approvals in place ? Background: - Billion barrel world class prospect - Rocksource equity 10% ? Phase 1 work programme completed excepting 3rd well - Expectation for 3rd well to be drilled in 2010 ? Rocksource…
Gulf of Mexico: Maturing prospects towards 2010 drilling Gas cap OWC ? Background: -Rocksource farmed into GoM in 2009. Strategic rationale: Short lead times and opportunity to leverage on technology ? Status: - EM successfully…
Drilling expected to commence in 2010 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Rig Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec AGC Profond West Africa 25% CY DWN 2001/1 India 10% GOM 1…
Portfolio delivery ? 22 EM positive prospects in portfolio ? 12 prospects with potential to be drilled 2010-2011 ?Company-making? exploration campaign - Testing more than 600 mmboe - Average chance of success ~50% ? One sanctioned…
Production and reserve update 3 21 6 AC 903, 904 & 907, Trident EB 832 Bivouac Contingent resources overview Current reserves estimates: - P1: 0.9 mmboe, P2: 0.5 mmboe Contingent resources estimated to Status: 100 P 1067 Mulle…
Firming up a high potential drill campaign ? Improved financial position allows active portfolio management - NCS credit facility increased from NOK 250 million to NOK 500 million - Option to access equity at favourable terms through…
Profit and loss statement NOK \'000 Q4 2009 Q3 2009 Q2 2009 Q1 2009 2009 2008 Operating income oil and gas 17 070 15 717 22 199 28 600 83 586 283 986 Other operating income 2 807 18 381 377 483 22 048 3 189 Total operating income…
? Cash position strengthened from last quarter - Oil tax refund, partly offset by repayment of NCS credit facility - Changes in accounts and other payables - Investments relates to buildup of Gulf of Mexico portfolio and payment of our…
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