Slide 1: 2020 Interim Results Presentation
2020 Interim Results Presentation
Slide 2: 2020 operational and financial highlights
2020 0perational and financial highlights Page 2
Slide 3: 2020 operational highlights
2020 operational highlights • Net production of 95,100 barrels of oil equivalent per day (boepd) across portfolio in 2020 (93,000 boepd in Q4), notwithstanding reduced spending to preserve cash following the market turmoil triggered by the Covid-19 pandemic • Gross operated production from Tawke lic
Slide 4: 2020 financial highlights
2020 financial highlights • 2020 revenues of USD 615 million (USD 174 million in Q4) down about one-third from 2019 following oil and gas price crash early in the year • Lower revenues and non-cash impairments led to net loss of USD 286 million in 2020 (net loss of USD 60 million in Q4) • USD 236 mi
Slide 5: 2021 outlook
2021 outlook • DNO will remain a growth-oriented oil and gas exploration and production company • While continuing to conduct business in a socially and environmentally responsible manner • Among most active explorers in Norway, prioritizing lower risk prospects in mature areas with existing infrast
Slide 6: Historical production and revenue trends
Historical production and revenue trends Net production Revenue from oil and gas boepd USD million 120 000 1 200 100 000 1 000 80 000 800 60 000 600 40 000 400 20 000 200 0 0 Page 6
Slide 7: Reserves and resources overview
Reserves and resources overview 2P Reserves Replacement Ratio 2P Reserves 2C Contingent Resources 159% Norway 63 Kurdistan 27 Kurdistan 27 UK 1 Yemen 5 Yemen 5 Five year average 73% 64% 332 152 62% mmboe mmboe 18% Norway119 Norway 119 Kurdistan 268 UK 1 8% UK 1 2016 2017 2018 2019 2020 Net to DNO at
Slide 8: 2020 Kurdistan operations
2020 Kurdistan operations Turkey Iran Tawke field Syria Peshkabir field Tawke license Kurdistan region of Iraq Map legend DNO licenses Major oil pipelines Mosul Erbil Iraq Baeshiqa license PRODUCTION FIELDS EXPLORATION 77,700 bopd Tawke Baeshiqa net production Peshkabir license
Slide 9: Promising discovery in Baeshiqa license
Promising discovery in Baeshiqa license • Zartik-1 exploration well testing completed, confirming hydrocarbons to surface from from several Jurassic zones, with one zone flowing naturally at rates averaging over 2,000 bopd of medium gravity oil • Recent lab tests of Baeshiqa-2 well (drilled in 2019)
Slide 10: Tawke license delivers in difficult year
Tawke license delivers in difficult year • Achieved gross production of 110,300 bopd despite capex cuts and Covid constraints • By mid-December 2020 the Tawke license passed the milestone of 350 million barrels of oil produced, including 300 million from the Tawke field and 50 million from the Peshk
Slide 11: 2020 North Sea operations
DNO licenses DNO producing fields 2020 North Sea operations DNO projects for sanction review Marulk Alve Gjøk Iris/Hades Syrah/Orion East Foinaven Røver Nord Brage Vilje Brasse Norway Ringhorne East Enoch PRODUCTION LICENSES EXPLORATION Ula UK Blane Oda Tambar 17,400 boepd 95 existing 12 wells plann
Slide 12: New awards and high grading improve portfolio
New awards and high grading improve portfolio • DNO holds 86 licenses in Norway (23 operated) including 10 licenses from the January 2021 APA awards • DNO also holds 16 licenses in the UK, including four licenses awarded in the fall of 2020, all with prior discoveries • Continuing to high grade acre
Slide 13: 2021-2022 exploration drilling in core areas
2021-2022 exploration 11 drilling in core areas 2 NORWEGIAN SEA 12 3 Gross Name Type Volume Range 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Røver Nord Discovery 45-70 Discovery 2 Black Vulture Appraisal well 10-40 Firm well 3 Bergknapp Appraisal/DST 32-83 Planned well 4 Gomez Exploration 25-80 5 Mugnetind
Slide 14: Recent commercial discoveries
Recent commercial discoveries • Røver Nord is a recently announced near-field discovery west of Troll with estimated 45-70 million barrels of oil equivalent (mmboe) in gross recoverable resources 10 km Tie-back to Troll infrastructure • Operated by Equinor with DNO holding 20 percent • Tie-back, fas
Slide 15: 2021 high potential wells
2021 high potential wells UK NORWAY • Edinburgh one of the largest undrilled structures in the North Sea • Pre-drill estimate of 100-675 mmboe in prospective resources Jack-up drilling rig • Straddles Norway/UK border • DNO pushed cross-border alignment and equalized equity of partners across all fo
Slide 16: Multiple discoveries considered for project sanction in 2022
Multiple discoveries considered for project sanction in 2022 • Brasse (DNO 50 percent and operator) development moving to concept selection with either Brage or Oseberg as host platform: 17 mmboe net to DNO (2P) • Iris/Hades (DNO 20 percent) being matured as a tie-back to the Åsgard platform: 12 mmb
Slide 17: 2020 financial review
2020 financial review Page 17
Slide 18: DNO financial results – key figures
DNO financial results – key figures Revenue Netback Operating profit USD million USD million USD million 1200 700 600 521 606 500 1000 971 600 559 400 377 829 489 500 300 800 200 615 400 600 100 76 300 0 232 400 347 200 -100 -200 200 100 -300 -315 0 0 -400 2017 2018 2019 2020 2017 2018 2019 2020 201
Slide 19: Financial summary
Financial summary USD million Q4 2020 Q3 2020 Q4 2019 2020 2019 Revenues 174.2 163.0 274.6 614.9 971.4 Production costs -51.8 -48.9 -66.0 -217.3 -236.8 Movement in overlift/underlift -7.6 -27.1 3.2 -11.3 7.2 Depreciation, depletion and amortization -79.8 -82.0 -88.9 -361.4 -311.8 Cost of goods sold
Slide 20: Ramping up operational spend
Ramping up operational spend Total operational spend • Planned operational spend of USD 700 million in 2021, an increase USD million of USD 189 million from 2020, driven by ramp up of development Capex Expex Opex Abex drilling in Kurdistan and North Sea 900 786 800 • And abandonment expense (abex) i
Slide 21: 2020 cash flow
2020 cash flow • Solid cash flow from operations of USD 236 million • North Sea tax refunds contributed another USD 236 million to cash flow • Payment of USD 242 million towards debt retirement, interest payments and share buybacks Page 21
Slide 22: Capital structure
Capital structure Cash deposits Net interest-bearing debt Equity ratio USD million USD million Percent 800 600 100 729 513 700 500 473 90 80 600 400 70 486 477 62 61 500 300 430 60 400 200 50 300 40 36 100 31 30 200 0 2017 2018 2019 2020 20 100 -100 -30 10 -129 0 -200 0 2017 2018 2019 2020 2017 2018
Slide 23: Important notice
Important notice This presentation (the “Presentation”) has been prepared and delivered by DNO ASA (“DNO” or the “Company”). Copyright of all published material including photographs, drawings and images in this document remains vested in DNO and third party contributors as appropriate. Accordingly,
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