Slide 1: Presentation of third quarter 2019
Presentation of third quarter 2019 OKEA ASA 1 November 2019
Slide 2: General and disclaimer
General and disclaimer This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and p
Slide 3: Highlights 3rd quarter 2019
Highlights 3rd quarter 2019 Operations • No serious incidents • Production of 18,125 boepd • High production regularity on Draugen of 97%, up from 86% previous quarter • Gjøa impacted by modification and export constraints • Consent for drilling two appraisal wells on Draugen in Q4 2019 Financial •
Slide 4: Production
Production Solid operations on Draugen and tie-in of Nova & maintenance on Gjøa Daily average production (boepd) 25 000 20 000 11 108 15 000 10 496 10 488 8 135 10 000 10 898 5 000 8 637 9 241 9 648 0 Q3 18 Q4 18 1) Q1 19 Q2 19 Q319 Ivar Aasen Draugen Gjøa • 9% production decrease from Q2 to Q3 2019
Slide 5: Draugen
Draugen Strong operations Net production (boepd) • Q3 operations 12 000 • 4 % production increase vs. Q2 2019 10 000 • Increase mainly due to planned 8 000 maintenance stop in Q2 6 000 • Finalized preparations for Q4 drilling 10 898 9 241 9 648 campaign initiated in October 4 000 8 637 • Infill Ø dr
Slide 6: Draugen drilling campaign ongoing
Draugen drilling campaign ongoing Successful drilling operation and livestreaming on Infill Ø Near field exploration drilling Infill Ø • Part of new development strategy in the license Skumnisse • Drilling commenced 15 October • Efficient slim well designs • Successful drilling operation on Infill Ø
Slide 7: Drilling the Ø area - result
Drilling the Ø area - result Explaining the data that was streamed during drilling The logs as published in real time Interpretation 2.5 meters of oil left in the attic in the Ø area. Residual oil indicated by higher resistivity between the original oil-water contact and the local present one. Oil p
Slide 8: OKEA’s revitalization of Draugen in 2019
OKEA’s revitalization of Draugen in 2019 “The OKEA way” What we have done How we have done it – “The OKEA way” • Identified potential for a • Focus on safe and efficient execution development strategy – no serious incidents or spills • Drilling campaign ongoing • Positioned for new APA licences • Sh
Slide 9: Next level operational optimization using real time data
Next level operational optimization using real time data Performed in close collaboration with ABB Making OKEA Real time Condition-based Simplifies supplier digital operational data maintenance collaboration An important step to drive Utilizing live, high quality Supports production More tasks execu
Slide 10: Gjøa
Gjøa Lower production mainly due to tie-in of Nova, maintenance and export constraints Net production (1 000 boepd) • Q3 Operations 12 000 • Modifications related to tie-in of Nova 10 000 project 8 000 • Corrective maintenance related to heat exchanger discovered and solved during 6 000 11 108 10 48
Slide 11: Financial review
OK¢ Financial review =A
Slide 12: Oil and gas production, sales and revenues
Oil and gas production, sales and revenues Revenue decrease mainly due lower volumes sold and lower realized prices Oil and gas volume (boepd) Realized prices (USD/boe) Petroleum revenues (NOK million) Production Sales Liquids Natural gas 25 274 60,7 1 042 56,4 20 045 18 125 16 696 612 26,10 19,3 Q2
Slide 13: Income statement
Income statement Decrease in operating income due to lower volumes and one lifting 3rd quarter 2nd quarter • Decreased income in Q3 Figures in NOK million 2019 2018 2019 2018 • Mainly due to one lifting on Draugen vs two in Q2 Total operating income 621 969 97 493 1 039 479 27 825 • Q3 volumes sold
Slide 14: Cash flow development during Q3
Cash flow development during Q3 Strong cash generation NOK million 2 500 2 000 216 37 723 1 500 1 000 1 799 1 329 500 - Cash 30.06.19 Operating activities Investment activities Financial activities Cash 30.09.19 14
Slide 15: Outlook and concluding remarks
Outlook and concluding remarks
Slide 16: The OKEA journey continues
The OKEA journey continues OKEA is Acquiring Grevling to assess Closing of the Yme Acquire Draugen and Listing at Oslo Børs Roadmap to future founded development acquisition Gjøa from Shell value creation 2015 2016 2017 2018 2019 OKEA’s size measured in reserves1 0 mmboe 1 mmboe 11 mmboe 52 mmboe 55
Slide 17: Ongoing development projects
Ongoing development projects Yme Grevling/Storskrymten Grevling • Wellhead module installed offshore in September • Grevling/Storskrymten being further matured for • Rig campaign commenced in October DG2 in Q1 2020 • Planned 1st oil in Q2 2020 • Energy supply from Sleipner a key factor for developme
Slide 18: High level of activity the next two years
High level of activity the next two years1 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Target further debottlenecking and cost reductions Skumnisse Sanctioning all wells BOK/BOV2 Hasselmus Hasselmus FID Hasselmus 1st gas Draugen Infill Ø Appraisal well Ivar Aasen IOR drilling Gjøa Hamlet p
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