Okea Asa · OSL:OKEA
Okea Asa — Pareto E&P Independents Conference 2020
13 slides from Okea Asa's conference presentation, January 2020
Slide 1: The New generation NCS operator
The New generation NCS operator January 2020
Slide 2: OKEA – an independent E&P company on the NCS
OKEA – an independent E&P company on the NCS Production HQ Development (Trondheim) Draugen (44.56% WI, op.) 19,200 boepd Gjøa Operations NCS ONLY PRODUCTION1 (12% WI) (Kristiansund) Ivar Aasen (0.554% WI) USD 11.1/boe 88 mmboe Grevling / Storskrymten 2P+2C (35% / 60% WI, op.) OPEX1 Yme (15% WI) (1)
Slide 3: 5 licenses awarded in APA 2019 – strengthen OKEAs position in core areas
5 licenses awarded in APA 2019 – strengthen OKEAs position in core areas Draugen/Mistral area Grevling Area PL1003 B Licence Block(s) Operator OKEA share PL1060 6407/8,9 Equinor Energy AS 40% PL1034 15/12 Chrysaor Norge AS 40% PL093 F 6407/9 OKEA ASA 44.56% PL1060 PL1003 B 6406/3,6 OKEA ASA 60% PL97
Slide 4: OKEA is a responsible and value focused E&P company
OKEA is a responsible and value focused E&P company Safe and responsible Continuously improving Value driven M&A Financial flexibility and operations operations robustness $ A NCS focused E&P Improvement and Target value Prudent financial company digitalization enhancing growth strategy “The OKEA wa
Slide 5: Proven operational capabilities on Draugen
Safe and responsible operations Proven operational capabilities on Draugen • No incidents or leakages in 2019 • Strong production in 2019, 5% above target • Average 90.8% reliability last 3 years, 94% in 2019 • Unique knowledge of Draugen upside potential • Positive production outlook to 2040 • Seve
Slide 6: Improving Draugen operational efficiency
Improvement and digitalization Improving Draugen operational efficiency • Optimised decision processes have reduced lead time • Mapping of governing documents, removing redundancy • Software applications down by 33% • Using industry standards for development projects • Revised roles and responsibili
Slide 7: Draugen drilling 2019
Draugen drilling 2019 No major accidents Fast and effective operation (finish the well in less Drilling than 7 days) targets and • Infill Ø drilled in 5.38 dry hole days results • Skumnisse drilled in 7,17 days Rate of penetration (ROP): • 100 M/HR IN 12 ¼’’ SECTION: 200-300 M/HR • 200 M/HR IN 8 ½’’
Slide 8: OKEA is committed to operate safely and responsibly
OKEA is committed to operate safely and responsibly Safety Environment Safe and sustainable business with zero harm to people Energy efficient production with focus on reducing environmental footprint or assets • Serious incident frequency (SIF) for Draugen on “0” for 2019 (as for 2018 and 2017) Dra
Slide 9: Value driven M&A: Target the right deals
Value driven M&A Target the right deals • Target value enhancing M&A on NCS • Emphasising portfolio fit to enable synergies • The right deals more important than timing • Desire operatorships ‒ producing assets and developments up to 100 mmboe • Funding through operating cash flow and owner support
Slide 10: Strong financial performance
Financial flexibility and robustness Strong financial performance Production (kboepd) EBITDA1 (NOKm) Cash position2 (NOKm) Q3 2019 Q3 2019 Q3 2019 Previous Previous Previous 2 # of Draugen liftings 1 1 1 799 594 22,4 19,5 20,0 18,1 1 329 413 404 586 133 395 0.4 42 57 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Slide 11: High level of activity in coming years
Outlook High level of activity in coming years Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Target further debottlenecking and cost reductions Draugen Appraisal well BOK/BOV1 Hasselmus Hasselmus FID Progressing redevelopment of Gjøa P1 towards first oil late 2020 Gjøa P1 production start Gjøa Progress
Slide 12: OKEA investment highlights
OKEA investment highlights • NCS-focused E&P company with strong cash flow from ca. 20 000 boed in net production Safe and responsible • A responsible operator focusing on safety and lowest possible environmental footprint operations on NCS • Proven value creation in 2019 as operator of the Draugen
Slide 13: okea.no
okea.no Ståle Myhre VP IR 13