Atlantic Petroleum P/f · OMXCOP:ATLA_DKK
Atlantic Petroleum P/f — Q2 2011 Earnings Presentation
22 slides from Atlantic Petroleum P/f's earnings presentation, Aug 17, 2011
Slide 1: Webcast Presentation 2011 2Q Result
WEBCAST PRESENTATION 2011 2Q RESULT 17th August 2011
Slide 2: Disclaimer
DISCLAIMER This presentation includes statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements No representation or warranty (expressed or implied) is made as
Slide 3: Atlantic Petroleum Licences August 2011
ATLANTIC PETROLEUM LICENCES AUGUST 2011 3
Slide 4: 2011 Highlights
2011 HIGHLIGHTS Total production in 1H 2011 429,000 boe – 2,370 boepd net to AP EBIT in 2Q 2011 of DKK 50.3MM (2Q 2010: DKK 35.8MM) EBIT 1H 2011 DKK 77.0MM (1H 2010: DKK 58.1MM) Net Cash from operating activities 1H DKK 168.2MM (1H 2010: DKK 132.8MM) Net Cash at end 1H 2011 was DKK 123.8MM
Slide 5: Income Statement 2Q 2011
INCOME STATEMENT 2Q 2011 3 months 3 months to 30th June to 30th June 2011 2010 DKK DKK Revenue 129.017.237 104.236.391 Cost of sales -66.366.280 -64.742.349 Gross profit 62.650.957 39.494.042 Exploration expense -6.324.950 -147 Pre-licence exploration costs -288.895 -212.368 General and administrati
Slide 6: Income Statement 1H 2011
INCOME STATEMENT 1H 2011 6 months 6 months to 30th June to 30th June 2011 2010 DKK DKK Revenue 241.043.078 181.090.994 Cost of sales -145.463.749 -115.552.289 Gross profit 95.579.328 65.538.705 Exploration expense -6.324.950 -7.534 Pre-licence exploration costs -504.606 -308.578 General and administ
Slide 7: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW 2nd Quarter 2011 DKK MM At end 1H At end Balance Sheet 2011 2010 Total assets 679.5 671.8 Equity 365.9 377.9 Bank debt 140.2 182.1 - Long term 97.5 97.5 - Short term 42.7 84.6 Cash Flow 1H 2011 1H 2010 Net cash from operating activities 168.1 132.8 Net cash from investing
Slide 8: 2011 Outlook
2011 OUTLOOK Production is expected to be towards the lower end of the guidance which was 2,100 - 2,600 boepd Operating profit (EBIT) for the year 2011 is expected to be in the range DKK 90MM - 150MM The Blackbird field development has commenced. First oil expected by late 2011 Submit a Fiel
Slide 9: Reserves
RESERVES Proven reserves Contingent resources Prospective resources (risked) MMBoe MMBoe MMBoe Start of 2010 3.4 5.3 0.4 Production -0.96 Net additions & revisions 0.5 0.5 15.8 End of 2010 2.9 5.8 16.2 9
Slide 10: Share Performance 1H 2010 – 1H 2011
SHARE PERFORMANCE 1H 2010 – 1H 2011 OMX C20 AP_Nasdaq OMX Denmark 200 180 160 140 120 100 80 1 Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec 1 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 10
Slide 11: Volantis Acquisition
VOLANTIS ACQUISITION The Volantis acquisition was completed in 2Q 2011 15 new licenses 6 Licences pending – 5 UK & 1 Holland Staff expansion With the addition of Volantis staff Atlantic Petroleum has built a very strong technical team to evaluate and create growth opportunities in the North
Slide 12: AP Licences & Wells Planned for 2011-2012
AP LICENCES & WELLS PLANNED FOR 2011-2012 Brugdan II – 2012 well Spaniards – 2012 well Orchid – October 2011 well Foxtrot – August 2011 well 12
Slide 13: UK P.1716, Blocks 49/29e & 49/30b, Foxtrot
UK P.1716, BLOCKS 49/29e & 49/30b, FOXTROT • Tullow farmed into the licence in February 2011 • Well spudded 5th August 2011 • The Foxtrot prospect is a 4 way dip closed Bunter sand • Estimated resources of over 100BCF at 50% POS (approximately 70% on block) • The Bunter sandstone is at approximately
Slide 14: UK P.1655, 15/21g, Spaniards
UK P.1655, 15/21g, SPANIARDS 2012 well 100% carried by EnCore Group Spaniards equities EnCore 28% (op), Nautical 21%, Serica 21%, DEO 12.62%, Faroe Petroleum 8.4%, Maersk 5.74%, AP 3.24% Spaniards well will be appraising the Gamma structure where a well flowed at 2,600 barrels per day in 198
Slide 15: Faroes L006, Brugdan II
FAROES L006, BRUGDAN II • Brugdan Deep well planned for spudding April 2012 • Water Depth 400 – 500m • Partners: Statoil 50%, ExxonMobil 49%, Atlantic Petroleum 1% • P50 prospective resources net to AP 9.2mmboe unrisked. Risked: 1.2mmboe 15
Slide 16: UK P.1556, 29/1c, Orchid Prospect
UK P.1556, 29/1c, ORCHID PROSPECT 25km Summit 45%, Reach 5%, Valiant 30%, Trap Oil 10%, AP 10% WI 15km 4 way dip closure at Andrew sand & Chalk Drill well end Q3 2011 5km Resources base of 57 - 91 MMboe 16
Slide 17: Timeline – Firm Exploration Wells
TIMELINE – FIRM EXPLORATION WELLS 17
Slide 18: Global Energy Outlook
GLOBAL ENERGY OUTLOOK “IEA foresee higher mid-decade demand of +1,2mb/d per year during 2010-2016” IEA Oil&Gas Markets 2011, page 3 18 Source: IEA Medium-Term Oil&Gas Markets 2011
Slide 19: Global Energy Outlook
GLOBAL ENERGY OUTLOOK “World Gas demand is anticipated to grow at rapid pace (2,4%/y) during 2010-2016” IEA Oil&Gas Markets 2011, page 170 19 Source: IEA Medium-Term Oil&Gas Markets 2011
Slide 20: Going Forward
GOING FORWARD Increase production from existing assets Bring Blackbird and Perth developments on stream New asset acquisition Farm in or acquire new development and appraisal fields Acquire new exploration acreage Create value through focused exploration and appraisal Derisk existing project
Slide 21: Investment Rationale
INVESTMENT RATIONALE Atlantic Petroleum is an attractive investment opportunity in an attractive industry Strategy for Growth in place with clear targets and deliverables Strong near term cash flow New oil production coming onstream in 2012 New developments under evaluation Company specific
Slide 22: The Future
THE FUTURE We are embarking on the next step which will secure further value for the shareholders and secure Atlantic Petroleum’s place as a leading independent European E&P company. 22
Atlantic Petroleum P/f — Q2 2011 Earnings Presentation on 6ix