Panoro Energy ASA · OSL:PEN
Panoro Energy ASA — Q3 2010 Earnings Presentation
20 slides from Panoro Energy ASA's earnings presentation, Nov 26, 2010
Slide 1: Third Quarter 2010 Financials
Third Quarter 2010 Financials November 26, 2010
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA (“Company”). This presentation contains certain statements that are, or may be deemed to be, “forward-looking statements”, which include all statements other than state
Slide 3: Agenda Q3 2010
Agenda Q3 2010 • Operational review Kjetil Solbrække, CEO • Financial review Anders Kapstad, CFO • Q&A • Presentation of the MKB Mark Scarbrough, project in Congo-Brazzaville Drilling & Operations Manager MKB project 3
Slide 4: Operational Review
Operational Review Kjetil Solbrække, CEO
Slide 5: Highlights
Highlights Third Quarter 2010 and subsequent events • EBITDA of USD 7 million • Record production from Manati • Positive production test from the MKB project in Congo-Brazzaville • Confirmed timing for new BS-3 development plans in Brazil • Commenced farm-out of Round 9 licenses in Brazil • Successf
Slide 6: Attractive and balanced asset portfolio
Attractive and balanced asset portfolio E&P independent with South Atlantic focus Manati Ajapa Aje BS-3 (Santos) Dussafu Offices: London, Rio, Oslo Congo MKB Santos Exploration Panoro license area 6
Slide 7: Manati (10%)
Manati (10%) Record production in Q3-10 Gross production MMm3/day BCAM-40 8.0 6.63 7.12 Manati (Brazil) 5.83 5.86 5.58 5.48 Operator Petrobras (35%) 6.0 4.96 4.31 Working Interest 10% 4.0 Other Partners Queiroz Galvão (45%), Brasoil (10%) 1st Prod 2007 2.0 Current stage Production 0.0 Q1-09 Q2-09 Q3
Slide 8: Mengo-Kundji-Bindi (20%)
Mengo-Kundji-Bindi (20%) Positive production test MKB (Congo) MKB • Established combined production Operator SNPC - Congo National Oil Company (60%) Working Interest 20% capacity of approximately 900 bopd Other Partners PetroCI (20%) from KUN-4bis and KUN-5 1st Prod 2010 test production Current stag
Slide 9: BS-3 Integrated
BS-3 Integrated Moving towards new development plan BS-3 area (Brazil) • Operator to submit new Operator Petrobras (35-100%) Working Interest 35-65% development plan for the BS-3 Other Partners 1st Prod Queiroz Galvão (0-15%), Brasoil (0-15%) 2014 area by Jan 13, 2011 Current stage Field Development
Slide 10: Round 9 exploration blocks
Round 9 exploration blocks Farm out process commenced Round 9 (Brazil) SM-1035, SM-1036, SM-1100 • 3D seismic indicates the licenses Operator Panoro Energy (50%) Working Interest 50% could hold gross un-risked Other Partners Brasoil 50% resource potential of 880 (best Drill decision Q1 2011 Current
Slide 11: Portfolio overview
Portfolio overview Indicative timelines - no major changes from Q2 guidance 2010 2011 2012 Activity Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Additional gas contract/ Manati, Brazil compressor station decision Ajapa, Nigeria Sale closed MKB, Congo Pilot project testing & appraisal drilling Production build-up & ap
Slide 12: Outlook
Outlook • Restart production and commence 6 well drilling program in MKB • Amendment to Manati gas contract • BS-3 development plan • Progressing Round 9 farm-out • Preparations for drilling in Dussafu, Gabon Santos Basin 12
Slide 13: Financial Review
Financial Review Anders Kapstad, CFO
Slide 14: Financial highlights
Financial highlights Q3-2010 and subsequent events • EBITDA of USD 7.0 million – Strong production from Manati – G&A includes the fully merged entity • Strong balance sheet – Total assets of USD 422 million, equity ratio of 56% – Cash position of USD 31 million – Asset held for sale of USD 30 millio
Slide 15: Profit & Loss Statement (USD '000)
Profit & Loss Statement (USD ’000) Condensed consolidated statement of comprehensive income Q2-2010 Q3-2010 Oil and Gas revenue 9,695 11,734 Other income - - Total revenues and other income 9,695 11,734 Production costs (1,164) (1,220) Exploration and dry-hole costs (4,659) (96) General and administ
Slide 16: P&L items Q3-2010
P&L items Q3-2010 USDm 8.0 7.0 6.0 7.0 -2.3 5.0 4.0 -4.0 3.0 2.0 1.4 -2.9 1.0 0.0 -0.7 -1.0 -2.0 EBITDA Depreciation Net finance cost Warrant/Other Net FX gain Income tax Net income expense 16
Slide 17: Balance sheet
Balance sheet Per September 30, 2010 USDm Assets Equity and Liabilities 450 Cash & cash equivalents 400 Asset held for sale Short-term liabilities (Completed Q4-2010) 350 Other current assets 300 Long-term liabilities 250 200 Non-current assets Equity 150 100 50 0 Net interest-bearing debt was USD 9
Slide 18: Debt restructuring
Debt restucturing Approximately 80 USDm in increased financial strength over next two years New 8-year secured bond loan: New bond repayment schedule • USD 105 million @ 12.0% interest 70 • NOK 205 million @ 13.5% interest 60 • Total approx. USD 140 million 50 Interest Debt repayment USD million 40
Slide 19: 2011 financial flexibility
2011 financial flexibility • Limited committed CAPEX in 2011 • Further investments depend on: – Successful result of pilot wells on MKB and subsequent full scale development – Successful Dussafu exploration result – Drill or drop decisions for Round 9 licenses - farm-out process ongoing – BS-3 field
Slide 20: Third Quarter 2010 Financials
Third Quarter 2010 Financials Q&A