North Energy Asa · OSL:NORTH
North Energy Asa — Q1 2013 Earnings Presentation
31 slides from North Energy Asa's earnings presentation, May 7, 2013
Slide 1: North Energy Q1 2013
North Energy Q1 2013 7 May 2013
Slide 2: Important information
Important information This presentation and its appendices (together the “Presentation”) have been prepared and delivered by North Energy ASA (“North Energy” or the “Company”). The Presentation is prepared for information purposes only, and is not to be used for any other purpose. The Presentation d
Slide 3: Agenda
Agenda Highlights Q1 Financial update Exploration update Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 4: Highlights Q1 and later events
Highlights Q1 and later events Two wells 3,500 km apart drilling at the same time Cooperation and credit agreements with Rex and TGS of NOK 300 million Licence transaction of NOK 28,2 million with Lime firmed up Licence transactions in PL 299 and PL 590 to balance portfolio risk New partne
Slide 5: Agenda
Agenda Highlights Q1 Financial update Exploration update Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 6: Further strengthening of financial position
Further strengthening of financial position 4 year credit facilities of NOK 300 million with Rex and TGS Enables a significant number of prospect evaluations Enables acquisition of seismic data prior to next APA and numbered rounds Enables free cash of NOK 200 million (excl. interest cost) p
Slide 7: Credit facility with Rex
Credit facility with Rex Covering seismic interpretation over the next 4 years using Virtual Drilling technology Credit facility of MNOK 100 No commitments or obligations 8% interest payable No installments, but with full repayment option 12 months net debt convertible at 3 specific date
Slide 8: Credit facility with TGS
Credit facility with TGS Covering purchase of seismic data and services over 4 years Cash payment of 35% Credit facility of MNOK 200 No commitments or obligations 8% interest payable No installments, but with full repayment option 12 months net debt convertible at 3 specific dates duri
Slide 9: Profit & Loss statement
Profit & Loss statement Q1 Q1 Year MNOK 2013 2012 2012 Profit - - (46,9) Payroll 16,2 18,0 56,8 Less staff Depreciation 2,5 2,5 10,2 Exploration expenses 27,7 24,1 540,1 PL 498 Skagen and PL 385 Jette Other operating expenses 8,7 9,7 41,1 Operating loss (55,2) (54,3) (601,2) Net financial items (4,7
Slide 10: Balance sheet
Balance sheet Q1 Year end Year end MNOK 2013 2012 2011 Assets Fixed Assets 308,4 304,2 418,6 Capitalized drilling cost Long term receivables 43,2 0,0 0,0 Tax receivable refund - Dec 2014 Short term receivables 557,9 540,6 608,4 Cash and cash equivalents 15,9 28,5 34,2 Total Assets 925,3 873,3 1 061,
Slide 11: Financed well into 2014 before Rex and TGS convertible loan agreements
Financed well into 2014 before Rex and TGS convertible loan agreements Net cash position Q1 2013 600 17 Net cash position of 500 43 NOK 237 million Unused exploration 400 329 loan facility of NOK 300 621 million 490 200 237 100 0 16 Cash 2013 tax 2014 tax Net working Interest Net cash refund ref
Slide 12: New convertible loans adding liquidity support
New convertible loans adding liquidity support Rex and TGS purchases eligible for 78% exploration tax refund Net cash position MNOK Balance sheet Off balance sheet 500 of NOK 237 million 437 450 Rex convertible 400 125 loan provides a free 350 200 cash potential of 300 NOK 75 million 75 250 TG
Slide 13: Agenda
Agenda Highlights Q1 Financial update Exploration update Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 14: PL 535 Norvarg – appraisal spudded April 29
PL 535 Norvarg – appraisal spudded April 29 PL 535 in the Barents Sea- pre drill Awarded 20th round (2009) Main prospect Norvarg Operator Total (40%) Hydrocarbons Gas Partners North Energy (20%) Det norske (20%) Valiant (13%) Rocksource (7%) Gross p50n 260 mmboe Work A 3 D has been acquired and proc
Slide 15: PL 535 Norvarg 2 - huge potential and positive expectations
PL 535 Norvarg 2 - huge potential and positive expectations Norvarg-2 position Norvarg 2 testing the geological model Reservoir productivity, especially channel development Fluid contacts Field extension and volumes A third well is likely prior to development Reservoir map - Kobbe Formatio
Slide 16: PL 299 Frode – imminent spud
PL 299 Frode – imminent spud PL 299 Frode in the North Sea Acquired 2012 Main prospect Frode Operator Talisman (31.5%) Hydrocarbons Oil Partners Agora (28.5%) Expected drilling Q2 2013 Dong (20%) North Energy (20%)* Prob. of success 19 % Gross mean 86 mmboe unrisked Net mean risked 3 mmboe Work Fulf
Slide 17: PL 299 Frode - in fairway with multiple discoveries
PL 299 Frode - in fairway with multiple discoveries Volume decided by sealing fault Dry well to the north east indicates that the main fault is sealing Sufficient oil to give commercial accumulation 2/1-12 in the independent structural closure In the fairway of Frode a Frode Structural closu
Slide 18: PL 510 - new firm well in 2014
PL 510 - new firm well in 2014 New license group Maersk Oil 50% operator Edison 30% North Energy 20% 5 prospects – with potential Breitind cluster development Scarecrow Toto Dorothy Henry Breitind Discovery well 6406/5-1 Wet gas expected Transport via ÅTS or new pipeline Nort
Slide 19: Firm Drilling Programme with potentially new wells from ongoing work
Firm Drilling Programme with potentially new wells from ongoing work 2013 2014 -> Dec. Aug. Sep. Nov. Feb. Mar. May Jan. Jun. Oct. Apr. Jul. License NE Share Operator Rig PL 535 Norvarg 2 20 % Total Leiv Eiriksson PL 299 Frode 20 %* Talisman Maersk Giant PL 510 Scarecrow 20 % Maersk TBA VD well no.
Slide 20: Examples of ongoing VD work
Examples of ongoing VD Well x work North Energy use all geophysical parameters and tools involving seismic time, amplitude, frequency, Lithology prediction from seismic amplitude EM and resonance (VD from Rex) Well x before approving a well Well x Spectral decomposition (seismic frequency) Well x
Slide 21: A process to give oil wells and licences in 2013
A process to give oil wells and licences in 2013. More evalutions, filtering and rejections VD no Business Licensing VD no Development Rounds VD VDD VD no VD no VD no VD VDD Lime and North Energy in AMI’s. Applying for VD equity in future licenses. North Energy VD operator. VD VD Yes VD VD VDD VD VD
Slide 22: Drill or Drop licences also go through the extended work flow
Drill or Drop licences also go through the extended work flow Drill or drop decisions to be made Decissions in drill or during the next six months: drop licences Licenses to be Relinquished PL 526 – 15th of May 2013 – extension granted PL 564 – Aug 2013 – extension granted PL 503 - Oct 2013
Slide 23: Lange discovery – Rodriguez
Lange discovery – Rodriguez Well found 3 sands over a zone of 52 m Operator estimated the recoverable volumes to 20 - 125 Rodriguez discovery Mmboe The discovery may be a part of a Lange PL 590 prospect mapped in PL 590 The Lange interval in N PL 590 is under re- evaluation S N S North Energ
Slide 24: Rodriguez an interesting discovery - May extend into PL 590 acreage
Rodriguez an interesting discovery - May extend into PL 590 acreage Lange anomaly N PL 590 S S N Rodriguez North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 25: Seismic line through Rodriguez and PL 590
Seismic line through Rodriguez and PL 590 PL 590 Rodriguez PL 590 Rodriguez North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 26: PL 590 - Promising surprise in operated license
PL 590 - Promising surprise in operated license PL 590 in the Norwegian Sea Awarded APA2010 Main prospect Lange Operator North Energy (40%)* Hydrocarbons Oil Partners Faroe Petroleum Norge AS Expected drilling 2014? (30%) Wintershall Norge ASA Prob. of success (30%) Lange Gross mean unrisked Net mea
Slide 27: Active in optimizing the portfolio
Active in optimizing the portfolio Completion of the new partnership in PL 510 Maersk (50%) and operator, Edison (30%) and North Energy (20%) Firm well expected to be drilled in 2014 Revised agreement with Lime Petroleum Licence transaction of NOK 28,2 mill replacing previous agreement A
Slide 28: Agenda
Agenda Highlights Q1 Financial update Exploration update Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 29: Outlook
Outlook 3 months 22nd round application award Results from appraisal well on Norvarg in the Barents Sea Results from Frode exploration well in the North Sea Drill or drop decisions: PL 526 Norwegian Sea PL 562 Norwegian Sea PL 564 Barents Sea 12 months Application and award APA 2013
Slide 30: Q&A
Q&A North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 31: Thank you for your attention!
Thank you for your attention! North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no