North Energy Asa · OSL:NORTH

North Energy Asa — Q3 2012 Earnings Presentation

27 slides from North Energy Asa's earnings presentation, Oct 31, 2012

  1. Slide 1: North Energy Q3 2012

    North Energy Q3 2012 31 October 2012

  2. 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

  3. Slide 3: Agenda

    Agenda  Highlights Q3  Financial update  Exploration update  Outlook North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  4. Slide 4: Highlights Q3 and later events

    Highlights Q3 and later events  Spud on PL 385 Jette 21st October  Spud on PL 498 Skagen coming week  Appraisal well on Norvarg firmed up  License transactions completed  Cash contribution of NOK 73 million from sale of Fogelberg  Swap-agreement with the Frode oil prospect in North Sea  Incre

  5. Slide 5: Agenda

    Agenda  Highlights Q3  Financial update  Exploration update  Outlook North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  6. Slide 6: North Energy ASA – Profit & Loss

    North Energy ASA – Profit & Loss Q3 Q3 Year Q2 MNOK 2012 2011 2011 2012 Profit (46,9) - - - Profit from sale of Fogelberg Payroll 16,6 19,8 70,9 10,7 Depreciation 2,6 1,8 7,2 2,5 Exploration expenses 92,7 114,5 340,2 166,2 Dry PL370 and acq. of seismic Other operating expenses 8,6 9,4 40,0 10,9 Oper

  7. Slide 7: North Energy ASA - Balance sheet

    North Energy ASA - Balance sheet Q3 Year end Year end MNOK 2012 2011 2010 Assets Fixed Assets 292,5 418,6 161,9 Capitalized drilling cost Long term receivables 298,2 0,0 0,0 Tax receivable refund - Dec 2013 Short term receivables 615,1 608,4 385,5 Tax receivable refund - Dec 2012 Cash and cash equiv

  8. Slide 8: Strong net cash position

    Strong net cash position “Net cash” position Q3 2012  Net cash position of NOK 308 million 800 8  Unused exploration 700 275 loan facility of NOK 600 538 410 million 500 400 300 553 200 308 100 26 0 Cash 2012 tax 2013 tax Net working Interest Net cash refund refund capital bearing debt Loan from L

  9. Slide 9: Agenda

    Agenda  Highlights Q3  Financial update  Exploration update  Outlook North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  10. Slide 10: Drilling Programme

    Drilling Programme 2012 2013 Sept. Mars June Nov. Dec. Feb. April May Jan. Oct. PL 385 Jette West Alpha Spud 21.10.2012 PL 498 Skagen Maersk Guardian PL 535 Norvarg, appr. Leiv Eiriksson PL 299 Frode Maersk Giant Oil Gas-Condensate Gas w/possible oil leg North Energy ASA, Markveien 38b, Postboks 124

  11. Slide 11: First time for North Energy: Two drilling operations in parallel

    First time for North Energy: Two drilling operations in parallel  Drilling of two prospects with high probability of success in parallel in November  37% POS on Jette close to Norne  36% POS on Skagen close to Ula Semi sub West Alpha on Jette in Norwegian Sea  Results by X-mas 40,30% 46,40% 2 dr

  12. Slide 12: PL 385 Jette – currently drilling

    PL 385 Jette – currently drilling 20% equity swapped with 20% of Frode oil prospect in the North Sea PL 385 in the Norwegian Sea Acquired 2009 Main prospect Jette Operator Statoil (45%) Hydrocarbons Gas cond. Partners North Energy (15%) Expected drilling Q3 2012 Noreco (20%) PoS 37% Dong (20%) Gross

  13. Slide 13: PL 385 Jette – located in prolific area

    PL 385 Jette – located in prolific area  Jette prospect similar to the recently discovered Alve North accumulation 8 kms to the South  The Jette South prospect in Jette between and possible next target  Both oil and gas encountered in two reservoir intervals  Historically, high success rate in M

  14. Slide 14: Jette structure – upside potential in the licence

    Proven oil and gas resources in the vicinity of the Jette structure – upside potential in the licence Alve Alve North Jette Jette South Jette West Hydrocarbon “kitchen” area North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail:

  15. Slide 15: Development scenario for a Jette discovery

    Development scenario for a Jette discovery Tie-in to the Norne facilities Figures from Statoil North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  16. Slide 16: PL 498 Skagen – spud next week

    PL 498 Skagen – spud next week PL 498 in the North Sea Acquired 2009 Main prospect Skagen Operator Lotos (25%) Hydrocarbons Oil Partners North Energy (25%) Expected drilling Q4 2012 Edison Int. (25%) PoS 36% Skagen 44 (25%) Gross mean 75 mmboe unrisked Net mean risked 7 mmboe Work plan Drill one wel

  17. Slide 17: PL 498 Skagen prospect

    PL 498 Skagen prospect  Chalk reservoir built by Coccolites  Similarly looking seismic data over oil discoveries nearby:  Ekofisk  Tor  Albuskjell  Edda  Eldfisk On the coast of France Coccolites magnified 8000 times 3D seismic over Skagen North Energy ASA, Markveien 38b, Postboks 1243,9504 A

  18. Slide 18: PL 299 Frode - oil in the North Sea

    PL 299 Frode - oil in the North Sea PL 299 Frode in the North Sea Acquired 2012 Main prospect Frode Operator Talisman (31.5%) Hydrocarbons Oil Partners Dong (20%) Expected drilling Q22013 Agora (28.5%) North Energy (20%) Prob. of success 19 % Gross mean 86 mmboe unrisked Net mean risked 3 Mmboe Work

  19. Slide 19: PL 299- Upper Jurassic discoveries & prospects

    PL 299- Upper Jurassic discoveries & prospects 2/1-12- no shows Sealed off by fault? North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  20. Slide 20: Norvarg appraisal well

    Norvarg appraisal well  Rig firmed up  Leiv Eiriksson semi-sub, Marsh 2013  Several studies finalized  Reservoir quality  Field extent  Development options and export solutions 10 Km  Key objectives of the appraisal well Kobbe reservoir level on Norvarg  Understanding reservoir qualities Inc

  21. Slide 21: Infrastructure in the Barents Sea in 2030 as seen ahead of the 22nd Licensing Round

    Infrastructure in the Barents Sea in 2030 as seen ahead of the 22nd Licensing Round North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  22. Slide 22: When is pipe an option in the Barents Sea?

    When is pipe an option in the Barents Sea?  At present success rate a critical commercial volume for pipe should be commercial in 2016  Norvarg and 22nd Round critical  Construction 2017-21  Capacity available at Nyhavna in 2021  Pipe capacity fully utilized in 2025 Saipem's PL3 subsea plough N

  23. Slide 23: Drill or Drop (DoD) licences

    Drill or Drop (DoD) licences  Drill or drop decisions to be made Decissions in drill or the next six months drop licences  PL 526 - applied for 6 months Licences to be Relinquished extension to 15th May 2013  PL 590 - extension to 4th of Feb 2013  PL 564 - by 19th of Feb 2013  PL 594 - by 4th o

  24. Slide 24: Agenda

    Agenda  Highlights Q3  Financial update  Exploration update  Outlook North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  25. Slide 25: Outlook

    Outlook  6 months outlook  Results from Jette exploration well in the Norwegian Sea  Results from Skagen exploration well in the North Sea  Drill or drop decision on PL 590  Drill or drop decision on PL 526  Drill or drop decision on PL 503  12 months outlook  Drill or drop decision on PL 59

  26. Slide 26: Q&A

    Q&A North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  27. Slide 27: Thank you for your attention!

    Thank you for your attention! North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

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