Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Det norske oljeselskap — Q2 2010 Earnings Presentation
34 slides from Aker Bp Asa's earnings presentation, 2010
Slide 1: Second quarter 2010 presentation
Second quarter 2010 presentation TICKER – - DETNOR - CEO Erik Haugane - CFO Knut Evensen - Sr. Drilling Advisor Inge Myhre
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: Highlights
Highlights Positive result from Grevling appraisal well (PL 038D) Commerciality of Draupne confirmed (PL 001B) Storklakken discovery appraised (PL 460) • Proved good quality oil Dry wildcats on Storkinn, Optimus and Storkollen Farm down agreements with Repsol and Faroe • From 100% to 60% i
Slide 4: Production
Production Production & realised oil prices Issues Boepd USD/bbl 2500 100 Production in the second quarter averaged 2,059 2000 80 bpd 1500 60 Realised oil price USD 79.9/bbl 1000 40 Production from Glitne and 500 20 Enoch was affected by maintenance 0 0 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Maintena
Slide 5: Agenda
Agenda Operations Financials Exploration Development projects Outlook & Summary Appendix 5
Slide 6: Financial position as of second quarter
Financial position as of second quarter ”net cash” position as of Q2 Elements Total cash and tax receivables for refund in 2010/11: 3 917 MNOK 1 409 1 820 Interest bearing debt: Short term debt and convertible bond expiring in December 2011: 2 226 MNOK 406 1 691 ”Net cash” position: 1 691, dow
Slide 7: Profit & Loss Q2 2010
Profit & Loss Q2 2010 MNOK Q2 2010 Q2 2009* Comment Operating revenues 88.7 66.8 Realised oil price USD 79.9 per barrel Exploration expenses 367.2 410.4 See next slide Change in inventories -1.6 0.7 Production cost 39.6 37.4 Payroll expenses 1.4 6.2 Increased depr. of abandonment ”asset” and Depreci
Slide 8: Exploration Expenses Q2 2010
Exploration Expenses Q2 2010 MNOK Q1 2010 Q1 2009 Comment Seismic, well data, field studies, etc. 1.7 25.3 Exploration expenses from license 87.2 124.3 G&G studies in partner licenses participation Expensed capitalized exploration wells 9.8 11.4 previous years Expensed dry wells this quarter 293.6 2
Slide 9: Balance Sheet 30.06.2010
Balance Sheet 30.06.2010 Assets (MNOK) *Q2 2010 31.12.09 Q2 2009 Comment Goodwill 669.7 697.9 864.3 Capitalized exploration exp. 1 697.4 893.5 493.3 Grevling, Storklakken and Draupne Other intangible assets 1 238.1 1 320.5 1 319.5 Property, plant and equipment 421.1 447.6 302.4 Depreciation producin
Slide 10: Balance Sheet 30.06.2010 (cont.)
Balance Sheet 30.06.2010 (cont.) Equity and Liabilities (MNOK) Q2 2010 31.12.09 Q2 2009* Comment Equity 3 571.4 3 850.5 3 621.4 Pension obligations 19.5 19.9 15.9 Deferred taxes 1 778.6 1 173.5 1 130.8 Abandonment provision 230.5 224.5 139.9 Deferred revenues 5.6 5.6 52.4 Total Provisions Derivative
Slide 11: Agenda
Agenda Operations Financials Exploration Development projects Outlook & Summary Appendix 11
Slide 12: Promising results from Grevling appraisal
Promising results from Grevling appraisal Appraisal program completed by the drilling of 15/12-23 and -23A • Oil filling levels and reservoir properties established • New data acquired for potential production stimulation Recoverable oil 38 – 94 MBO Well results and potential development solut
Slide 13: Grevling
Grevling 15/12-21 15/12-21A 45/12-23 15/12-23A Ap k —_ ——y A fl 1 ST2 1 I > ODT 3097m shales i= ODT 3125m "~~ 5 andst 1 ; g _... ODT320Tm__ 1b H Triassic 163 shales 328%
Slide 14: Exploration roadmap
Exploration roadmap Dalsnuten PL Prospect net Drilling Mboe Gross % resources 392 Dalsnuten 10 Q3-10 600 Dovregubben 341 Stirby 30 Q3-10 150-340 102 David 10 Q3-10 16-52 414 Kalvklumpen 40 Q1-11 75-180 Krafla 468 Dovregubben 100* Q1-11 120-200 Kalvklumpen 450 Storebjørn 75* Q2-11 40-90 David Stirby
Slide 15: PL 341 Stirby – spudded this week
PL 341 Stirby – spudded this week Large HTHP prospect • East Brae, Miller, Gudrun analogue Stirby Recoverable gas/condensate Stirby Upper 150 MBOE High case Upper 800 MBOE East Brae Stirby Deep 190 MBOE Main risk Reservoir quality Stratigraphic seal Water depth 120 meters Det nor
Slide 16: PL 392 Dalsnuten – east of Gro discovery
PL 392 Dalsnuten – east of Gro discovery Gas prospect to be drilled by Aker Barents Luva Asterix Gross unrisked resources 600 mmboe Norske Shell is operator PL392 Dalsnuten Gro-discovery Det norske holds 10 percent Gro Drilling to commence after Gro well Water depth 1 350 to 1 500 meters
Slide 17: PL 102C David – potential addition to Frøy
PL 102C David – potential addition to Frøy Significant oil prospect near Frøy Potentially recoverable oil Brent 16-26 MBOE Statfjord 31-52 MBOE David Main risk Oil migration Water depth 119 m, TD 3100 m Spud September, Ocean Vanguard Operator Total • Det norske holds 10 percent Wel
Slide 18: PL 356 Ulvetanna farm-down to Repsol
PL 356 Ulvetanna farm-down to Repsol Planned drilled in Q1 2011 Gross unrisked resources ~ 140 mill boe 40 percent farm out to Repsol Portfolio and risk optimisation Cost recovery terms 18
Slide 19: PL 440S Clapton farm-down to Faroe Petroleum
PL 440S Clapton farm-down to Faroe Petroleum Farm-down to Faroe Petroleum from 30 percent to 10 percent interest Det norske has offered to resign as operator Faroe to carry Det norske’s 10 percent interest in the upcoming exploration well Planned drilled in Q2 2011 19
Slide 20: Agenda
Agenda Operations Financials Exploration Development projects Outlook & Summary Appendix 20
Slide 21: Frøy – Contractor negotiations ongoing
Frøy – Contractor negotiations ongoing Preferred development solution: A Sevan production unit Wellhead platform Production wells Gas export pipeline to UK No final agreements signed Current view on financing: Lease of production unit Contractor financing of wellhead platform in constr
Slide 22: Draupne – progressing according to plan
Draupne – progressing according to plan Recoverable reserves of 110 million to 150 Mboe • About 95 percent inside Det norske operated licenses Production test: Good productivity – App. 12 000 bpd per well Oil of good light quality Draupne is appraised with three wells and one sidetrack A
Slide 23: Agenda
Agenda Operations Financials Development projects Exploration Outlook & Summary Appendix 23
Slide 24: Outlook & Summary
Outlook & Summary Exploration Two high impacts well on the menu – Dalsnuten and Stirby Field developments Frøy – aiming for contractor financing in construction period Draupne is progressing well These two developments could bring Det norske’s production to 40 000 BOPD Business develop
Slide 25: DETNORSKE
DETNORSKE NEST STORST PA NORSK SOKKEL
Slide 26: The making of a discovery
The making of a discovery TICKER – - DETNOR - Sr. Drilling Advisor Inge Myhre
Slide 27: Risk Based Management
Risk Based Management Systematically identify risk (probability and consequences) Reduce risk to an acceptable level Control risk Use the identified risk for decicion-making Regular updates and reviews Two years 6 months to one year Application for Spud, follow Basis of discarges and Prepa
Slide 28: To drill or not to drill
To drill or not to drill Acquire relevant subsurface data Interpretation of well logs and seismic data Match geological knowledge and geophysical understanding Tematically identify risk Probability and consequences Set reservoir parameters Volumes and risking Set by the quality assur
Slide 29: Det norske – well planning
Det norske – well planning Weeks prior to spud 26 w 19 w 15 w 9w 4w 2w 0w RTD (Rec. To Discharge AFE & detailed Application to Preparing for Basis of Design Drilling concent Drilling Drill) application proceedures drill spud • Long lead items • Miljørisiko analyse • Boreprogram • Detaljprosedyrer fo
Slide 30: Pre well planning
Pre well planning Safety issues – acquisition of site survey • Shallow gas pockets • Corals • Ice plough marks • Other obstacles to the well – boulders, shallow faults, etc. Mapping of seabed and sub-seabed condition • Identify corals with side scan sonar • Verification with camera
Slide 31: How to drill a well
How to drill a well Rotary table [__0m TVD RKB] MSL Oe }8-%4" Wellhead datum Seabed 30" conductor shoe 20" casing shoe 1279 m MD RKB TOC 2796 m MD RKB 13-5/8" casing shoe 2996 m MD RKB] TOC 3836 m MD RKB] | eh err So | \ 2829 m TVD RKB| 23m TVD RKB 144 m TVD RKB| 2s m TWD RKB] 1279 m TVD RKB) [Top K
Slide 32: Key objective - Pressure control
Key objective - Pressure control Standard well HTHP well
Slide 33: Example of Primary and secondary safety barriers
Example of Primary and secondary safety barriers
Slide 34: The discovery – Draupne test flare
The discovery – Draupne test flare
Det norske oljeselskap — Q2 2010 Earnings Presentation on 6ix