Orron Energy AB · OMXSTO:ORRON
Orron Energy AB — Lundin Petroleum — Investor Presentation (August 2016)
35 slides from Orron Energy AB's investor presentation, August 2016
Slide 1: Lundin Petroleum Corporate Presentation
Lundin Petroleum Corporate Presentation August 2016 08 Aug 16 5.16 Lundin Petroleum 1
Slide 2: Europe's Largest Independent E&P Company
Lundin Petroleum Europe’s Largest Independent E&P Company Reserves Contingent Resources 2016 Production Guidance 716 MMboe(1) 386 MMboe 65,000–75,000 boepd(1) Strong balance sheet and liquidity position Strong production growth with low operating costs Share price >40 X increase in value since 2001
Slide 3: Successful Organic Growth Strategy
Lundin Petroleum Successful Organic Growth Strategy Low cost - High value Norway Undeveloped barrel value Norway Finding cost/boe >5 (1, 2) USD/boe 0.7 USD/boe (1) OMV acquired 20% of PL338 (Edvard Grieg) for a post-tax consideration of 8.7 USD/boe with an effective date of 01 January 2012. (2) Aver
Slide 4: Geographical Focus
Lundin Petroleum Geographical Focus Barents Sea estimated yet to find resource potential Southern 8.8 billion barrels Norway assets represent (1) Barents Sea 96% reserves 83% 2016 production Access North Sea estimated yet to find resource potential + 4.7 billion barrels Scale of Resource + Favourabl
Slide 5: Proven Track Record
Lundin Petroleum Alta / Gohta Proven Track Record 2013 – 2014 Johan Sverdrup 830 MMboe 2010 of net commercial resources discovered Edvard Grieg 351 MMboe by Lundin in Norway 2007 Alvheim / Volund 2004 – 2005 2,270 MMboe 207 MMboe 407 MMboe WF12176 p5 05.16 Note: all resource numbers are gross Lundin
Slide 6: Norway Quality Assets - Alvheim Hub
Norway Quality Assets - Alvheim Hub OPEX < 6 USD/boe Gross Alvheim Estimated Ultimate Recovery (MMboe) Alvheim FPSO 2C Contingent Resources 33 Vilje Cumulative Production 204 End of Year 2P Reserves 137 108 Alvheim +76% 198 184 174 154 119 Kneler B Volund PDO 2015 Viper/Kobra (under development) 2P
Slide 7: Norway Quality Assets – Edvard Grieg Area
Norway Quality Assets – Edvard Grieg Area Edvard Grieg Platform Gross Edvard Grieg Estimated Ultimate Recovery (MMboe) Oil Export to Grane 2C gross Contingent Resources Gas Export to SAGE Apollo, Rolvsnes, Luno II & Luno II North 90 2P Reserves Ivar Aasen (WI 1.385%) onstream Q4 2016 207 186 +60% Ap
Slide 8: Norway Edvard Grieg
Norway Edvard Grieg Project delivered, safely on schedule and on budget Strong intial facilities and reservoir performance Gross plateau production of 100,000 boepd expected late 2016 when 4th producer is onstream Water injection commenced in July 2016 WF12176 p17 02.16 Lundin Petroleum 8
Slide 9: Edvard Grieg Transaction
Edvard Grieg Transaction Deal Completed 30 June 2016 Acquisition Consideration 15% Edvard Grieg + Pipelines 27.581 million shares for Edvard Grieg + Cash Million SEK Adds 31 MMboe 2P Reserves 1.735 million shares 252.8 Adds 10,000 boepd Production 2.000 million treasury shares 291.3 544.1 (64.1 MUSD
Slide 10: Norway Quality Assets – Johan Sverdrup
Norway Quality Assets – Johan Sverdrup Largest Phase 1 development on the NCS Working Interest – Johan Sverdrup Unit Major importance to all stakeholders Up to 40% of NCS oil production at plateau Statoil 40.0267% Lundin Petroleum 22.6000% Construction of all four platforms has commenced Petoro 17.3
Slide 11: Norway Quality Assets – Johan Sverdrup
Norway Quality Assets – Johan Sverdrup PDO Submitted – Phase I First Oil PDO Approval – Phase I PDO Submission – Phase II First Oil – Phase I Phase II Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 2020 2021 2022 PRODUCTION CAPEX FX SPLIT Phase 1 Phase I Full Fi
Slide 12: Factor Change in Total Oil Reserves since PDO
WF12176 p10 02.16 Norway Factor Change in Total Oil Reserves since PDO 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Troll II 4.0 Valhall Ula Tordis Gullfaks Sør Ekofisk Balder Oseberg Vigdis Glitne Draugen Big Fields Tend to Get Bigger Snorre Fram Statfjord øst Eldfisk Alvheim Brage Heidrun Gullfaks Veslefrikk Sta
Slide 13: Low Cost - High Value
Lundin Petroleum Low Cost - High Value 11.56 OPEX Production Guidance (USD/boe) (Mboepd) 150 ~9.00 (1, 2) >120 65 to 75(1) 32 32 ~5 2015 2016 J. Sverdrup J. Sverdrup 2015 2016 J. Sverdrup Guidance Phase 1 Plateau Guidance Plateau (2) Excluding Inventory movement and MTM assets recognised in relation
Slide 14: 2016 Funding: Liquidity and Net Debt
2016 Funding Liquidity and Net Debt New 7 year RBL of up to USD 5.0 billion secured in February 2016 Commitments increased to USD 5.0 billion (up from USD 4.5 billion) Attractive margin: 315 bps 5 year grace period (no amortisation until end 2020) MUSD 300 revolving credit facility cancelled Bertam
Slide 15: Exploration Strategy
Exploration Southern Strategy Barents Sea Geographical focus Norway Shallow water and reservoirs Less than 500 metres water depth Norway Leverage on technology extensive 3D seismic usage Targeting conventional oil play types Key exploration areas Utsira High / Greater Alvheim WF12176 p13 02.16 Lundi
Slide 16: Norway - Southern Barents Sea Overview
Norway - Southern Barents Sea Overview Lundin Petroleum licences (WI 15%) PL859 Operator 23rd round Oil Partner 23rd round Gas Lundin Petroleum has the second largest acreage position in southern Barents Sea Discoveries Barents Sea (WI 60%) PL853 Wisting discovery ~ 1 billion boe discovered recently
Slide 17: Norway – Southern Barents Sea Loppa High Exploration and Appraisal
Loppa High Area Norway – Southern Barents Sea Lundin Petroleum licences 23rd Operator Loppa High Exploration and Appraisal Norway Partner Oil 609 Gas Børselv Prospect Kramsnø Gohta/Alta discoveries opens up the area Neiden Prospect (WI 40%) 204 MMboe gross for significant new discoveries Johan Castb
Slide 18: Norway - Southeastern Barents Sea High Impact Exploration
695 764 Hammerfest Southeastern Vadso Barents Sea Norway - Southeastern Barents Sea High Impact Exploration Vadso Norway Prospects mapped on new 3D seismic – drill-ready Multi-billion barrel resource potential Structure aerial closures 3–4 times the size of Johan Sverdrup Signalhornet Dome Aerial cl
Slide 19: Key Messages
Lundin Petroleum Key Messages 11.56 OPEX Production Guidance (USD/boe) (Mboepd) 150 ~9.00 (1, 2) >120 65 to 75(1) 32 32 ~5 2015 2016 J. Sverdrup J. Sverdrup 2015 2016 J. Sverdrup Guidance Phase 1 Plateau Guidance Plateau (1) Additional Edvard Grieg equity from July 2016 (2) Excluding Inventory movem
Slide 20: Appendix
Lundin Petroleum Appendix Lundin Petroleum 20
Slide 21: Core Areas: Europe & SE Asia
Lundin Petroleum Core Areas: Europe & SE Asia Norway Netherlands France Russia Exploration Development Production Malaysia TOTAL 2P reserves: 716.2 MMboe (1) Contingent resources: 386 MMboe (2) WF12112 pt1 p03 05.16 (1) Additional Edvard Grieg equity from July 2016 (2) Net at end 2015 Lundin Petrole
Slide 22: Financial Performance
Financial Performance EBITDA Operating Cash Flow Total Capex 2,000 Full Year Full Year 1,800 2014 2015 1,600 EBITDA (MUSD) 671.3 384.7 1,400 1,200 Operating cash flow (MUSD) 1,138.5 699.6 1,000 Production (boepd) 24,900 32,300 800 Average Brent oil price (USD/boe) 99.00 52.39 MUSD 600 Cost of operat
Slide 23: 2P Reserves
Gas, 4% Lundin Petroleum 2P Reserves Oil & NGL, 96% Total 716.2 MMboe (2) MMboe South East Asia End 2014 187.5 10.7 21 Continental Europe - 2015 Production -11.8 NORWAY 96% 37.5 Norway – Other - Asset Sales -0.8 133.8 Edvard Grieg + Reserve Additions (excl. Sales/Acquisitions) +510.4 End 2015 685.3
Slide 24: 2P Reserves History
2P Reserves History 900 800 700 Cumulative Production 600 Malaysia 500 Norway MMboe Tunisia 400 Netherlands 300 France 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 WF12164 p03 01.16 Year End Excluding discontinued operations Lundin Petroleum 24
Slide 25: 2016 Production
Lundin Petroleum 2016 Production 1H 2016 production of 63,100 boepd Q2 2016 production of 63,900 boepd Q2 production exceeding upper-end of guidance driven by Edvard Grieg outperformance Full year 2016 production guidance retained at 65,000–75,000 boepd 1H production exceeded upper-end of guidance 2
Slide 26: Edvard Grieg Production Performance
Edvard Grieg Production Performance 1H gross production 64,400 boepd Gas production commenced 3 wells on line – total capacity >90,000 boepd PDO basis 24,000 boepd per well Project delivered ontime – 28th November 2015 first oil Uptime since startup ~96% Uptime excluding reservoir pressure build ups
Slide 27: Norway – Utsira High Resources and Upside Potential
Norway – Utsira High Norway Resources and Upside Potential Lundin Petroleum major operated acreage position Utsira High ~2.7 billion boe of gross reserves under development – 3 PDO approved Edvard Grieg, Ivar Aasen and Johan Sverdrup 44 MMboe of net contingent resources – high margin PL501 barrels t
Slide 28: Norway - Brynhild (WI 90%)
Norway - Brynhild (WI 90%) 1H 2016 Net Production 2,500 boepd Brynhild field Haewene Brim FPSO performance improving Injector (A4) Water handling constraints resolved Integrity issues being resolved Water injection commenced Facilities uptime expectations reduced Reservoir performance indicates redu
Slide 29: Malaysia Exploration and Production
Malaysia Exploration and Production Malaysia Core exploration positions in Peninsular Malaysia and Sabah Sabah Total acreage is 28,000 km , second largest after Petronas 2 14.3 MMboe gross 2P reserves Peninsular Malaysia 96 MMboe gross contingent resources Bertam 2016 net production guidance 8,450 b
Slide 30: Malaysia – Bertam (WI 75%)
Malaysia – Bertam (WI 75%) 1H 2016 Net Production 8,600 boepd Bertam field Bertam-3 Good reservoir and facilities performance Field Extension A15 well completed with excellent results Commenced production in May 2016 A15 infill well 540m net pay – commenced production Reservoir quality better than p
Slide 31: France & Netherlands
France & Netherlands 1H 2016 Net Production 4,200 boepd " Mature Producing Assets Long life steady production and cash flow Low capital requirement Offshore Netherlands France Netherlands Onshore Hydrocarbon Type Oil Gas 2015 Production Net, boepd 2,730 1,746 " 2P Reserves Net , MMboe (1) 19.1 2.0 "
Slide 32: Drilling Schedule
Drilling Schedule 2016 Well LUPE 2016 Country Licence - Prospect type Operator WI % NUPR(1) CoGS(2) NRPR(3) Q1 Q2 Q3 Q4 1 Norway PL609 - Alta-3 test app Lundin 40.00 – – – Ongoing 2 Norway PL609 - Neiden re-entry exp Lundin 40.00 82 30% 25 3 Norway PL533 - Filicudi exp Lundin 35.00 91 25% 23 4 Norwa
Slide 33: Lundin Petroleum's Shareholders
Lundin Petroleum’s Shareholders Number of shares in issue: 340.4 million (1) Average traded volume per day for last 12 months: ~1.9 million shares Part of OMX30, NASDAQ Stockholm Shares in free-float approx. 51% Main shareholders (1) Lundin Family: 28.7% Statoil: 20.1% Institutional Shareholders: 37
Slide 34: Disclaimer
Disclaimer This information has been made public in accordance with the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980). Forward-Looking Statements Certain statements made and information contained herein constitute "forward-looking information" (with
Slide 35: www.lundin-petroleum.com
& Lundin Petroleum www.lundin-petroleum.com
Lundin Petroleum — Investor Presentation (August 2016) on 6ix