Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Det norske oljeselskap — Q1 2011 Earnings Presentation
30 slides from Aker Bp Asa's earnings presentation, 2011
Slide 1: First quarter 2011 presentation
First quarter 2011 presentation - CEO Erik Haugane - CFO Teitur Poulsen
Slide 2: Disclaimer
Disclaimer All presentations and their appendices (hereinafter referred to as “Investor Presentations”) published on www.detnor.no have been prepared by Det norske oljeselskap ASA (“Det norske oljeselskap ” or the “Company”) exclusively for information purposes. The presentations have not been revie
Slide 3: Agenda
Agenda g Highlights & operations Projects Exploration E l ti Financials Outlook
Slide 4: Highlights
Highligts g g Dry wells on Dovregubben (PL 468) and Gullris (PL 522) Sold 10 percent in the Gullris prospect against carry Bought 10 percent in the Skalle prospect (PL 438) Decided to postpone the Frøy field development Jetta and Atla have passed concept selection Issued MNOK 600 unsecur
Slide 5: Production of 1811 bpd in Q1
Production of 1811 bpd in Q1 Production and realised oil price Factors Boepd $/boe 3000 110 New production well on Glitne 105 has been pushed back towards 2500 year-end d 100 95 2000 90 Realised oil sales price in Q1 of 1500 85 USD 106,1 vs. average dated brent of USD 105.0 105 0 for the 80 1000
Slide 6: Considering gas export from Varg
Considering gggas export from Varg g 2 most recent infill wells were dry Indications of water breakthrough in one producer Evaluating additional targets in the area Gas export under evaluation 6
Slide 7: Agenda
Agenda g Highlights & operations Projects & discoveries Exploration E l ti Financials Outlook
Slide 8: Developments in the pipeline
Developments in the pipeline Discoveries Possible production profile Fulla 40000 East Frigg 30000 Storklakken 20000 Frøy Atla/David 10000 Jetta 0 Draupne 2012 2013 2014 2015 2016 2017 Dagny Existing fields Atla Jetta Draupne Frøy Grevling Net boe/day Decision Det Norske’s Mill boe Earliest first Dis
Slide 9: Two alternatives for Draupne
Two alternatives for Draupne Platform drilling & quarters (PdQ) Well head platform with FPSO E Earliest li fifirst oilil iin 2016 E Earliest li fifirst oilil iin 2015 Oil export to Grane or shutling Oil export by shutling Gas export to Sage or Sleipner Gas export to Sage or Sleipner PdQ
Slide 10: Jetta & Frøy
Jetta & Frøy y Jetta – tie back to Jotun Frøy Jetta is a time-critical resource Frøy is not a time-critical resource Plan for PDO summer 2011 PDO has been postponed First oil in 2013 Det norske holds 50% interest Det norske holds 60% interest Gross reserves of 60 mmboe Gross reserv
Slide 11: Atla (David)
Atla (David) ( ) David has been renamed Atla Gas/condensate discovery 11 MBOE in estimated total recoverable volumes Atla Subsea tie-back via Skirne to Heimdal The exploration well will be reused as a production well. p Water depth 119 meters Operator Total • Det norske holds 10 percen
Slide 12: Agenda
Agenda g Highlights & operations Projects & discoveries Exploration E l ti Financials Outlook
Slide 13: 2011 Exploration roadmap
Norvarg 2011 Exploration roadmap Skalle PL Prospect & (operator) Net Drilling Gross % start resources Mboe 035 Krafla (Statoil) 25 ongoing 10-50 535 Norvarg (Total) 20 ongoing 80-160 265 Aldous Major (Statoil) 20 Q2 140-500 265 Aldous North (Statoil) 20 Q3 Skaugumsåsen 416 Breiflabb (E.ON) 15 Q2 15-
Slide 14: PL 265 - Aldous Major & Aldous North
PL 265 - Aldous Major j & Aldous North The Aldous prospects are direct Four appraisal wells are lined up for extensions of the Avaldsnes Aldous and Avaldsnes in 2011, two discovery on Aldous and two on Avaldsnes Combined gross 140 – 500 MBOE Statoil is operator • Det norske holds 20 percent
Slide 15: PL 416 – Breiflabb
PL 416 – Breiflabb Located in the North Sea south of Troll, east of Osebergg Prospect Gross unrisked resources 15-180 MBOE Multizone play Main risk is source/migration Water depth 300 metres Breiflabb Operator EON Ruhrgas Det norske holds 15 percent 15
Slide 16: Det norske's Barents Sea licenses
Det norske’s Barents Sea licenses PL613 35% PL535, Norvarg 20% Skrugard Skrugard Snøhvit PL533 20% Goliat PL438 10% PL492 30% PL563 30% 16
Slide 17: Ongoing exploration well
Ongoing g g exploration well Norvarg in PL 535 spudded Prospect Gross unrisked reserves 80-160 MBOE Multitarget play Main risk is trap integrity (retention) Water depth 380 metres Operator is Total Det norske holds 20 percent 17
Slide 18: 21st round award
21st round award 613 A Det norske awarded 35% in PL 613 DONG is Operator 226 B B 610 226 A B 18
Slide 19: Agenda
Agenda g Highlights & operations Projects & discoveries Exploration E l ti Financials Outlook
Slide 20: Financial Highlights
Financial Highlights g g Q1 2011 Q1 2010 Change Production boe/day 1811 2420 -25% Achieved Oil Price ($/bbl) 106.1 76.0 40% Cashflow from Production, MNOK 57.0 55.9 2% Expensed Exploration, MNOK 609.1 544.2 12% Net Profit, MNOK -251.7 -174.3 -44% Exploration Spend, MNOK 634.3 793.9 -20% 20
Slide 21: High net back from production
High g net back from p production Historical Oil Production Producing assets boe/day Net Production Four producing fields: 3000 Varg 5% 2500 Jotun Unit 7% 2000 Jotun Glitne 10 % 1500 Enoch Enoch 2% 1000 Gli Glitne 500 Varg Varg: Increased operating 0 costs in Q1 2011 due to well Q1 Q2 Q3
Slide 22: Liquidity position as of end Q1 2011
Liquidity y position as of end Q1 2011 Liquidity position as of end Q1 2011 (MNOK) Elements 4000 3500 478 Q1 2011 events 3000 1664 Issued a new bond of 2500 MNOK 600 2000 2355 307 Repaid MNOK 137 of 1500 the convertible bond 584 57 ”AKX01” 1000 1119 1063 Reduced workingg 500 842 capital from
Slide 23: Profit & Loss
Profit & Loss MNOK Q1 2011 Q1 2010 Comment High sales prices offset by lower production, Operating revenues 101.6 97.1 lower lifting and weaker USD costs 3rd party tariff Varg well maintenance costs. Production cost 44.0 40.3 income reclassified to income Payroll expenses 6.6 1.1 EBITDAX 51.0 55.7 E
Slide 24: Exploration expenses
Exploration expenses MNOK Q1 2011 Q1 2010 Comment Seismic, license G&G etc 92.3 155.8 High seismic activity in Q1 2010 Expensed E pensed capitali capitalized ed exploration e ploration wells ells 5.8 0.0 PL 522 Gulris relating to previous quarter Expensed dry wells this quarter 468.4 353.9 PL 468 Do
Slide 25: Balance Sheet
Balance Sheet Assets (MNOK) 31.03.11 31.12.10 Comment Write down of Dovregubben capitalised costs and Fixed Assets, Goodwill, Other 3 856.8 3 931.5 impairment carrying value Calculated tax receivable (expl 2011) 477.6 Q1 2011 exploration expenditure P Prepayments t 57 5 57.5 106 3 106.3 R l t d tto
Slide 26: Q1 2011 Financial summary
Q1 2011 Financial summary y Good cashflow from production - strong oil price but reduced production Cl Close tto MNOK 1 1,100 100 iin nett cash h Liquidity strengthen with issue of MNOK 600 unsecured 5 year bond In excess of MNOK 900 of spare liquidity in exploration facility High explorat
Slide 27: Agenda
Agenda g Highlights & operations Projects & discoveries Exploration E l ti Financials Outlook
Slide 28: Norway on its way to a new reality
Norway on it’s way to a new reality 2 mbopd in 1991 from 11 fields 2 mbopd in 2021 requires 50 fields Rystad Energy 28
Slide 29: Outlook and Summary
Outlook and Summary Exploration • No major HSE events • Dry wells on Dovregubben and Gullris • Several high impact prospects lined up – including Aldous North/Major Projects • Jetta and Atla through concept selection – PDO next • Draupne progressing towards PDO • Frøy: delayed schedule Organiz
Slide 30: CIE Neate S =
CIE Neate S =
Det norske oljeselskap — Q1 2011 Earnings Presentation on 6ix