Orron Energy AB · OMXSTO:ORRON
Orron Energy AB — Lundin Petroleum — Investor Presentation (August 2013)
43 slides from Orron Energy AB's investor presentation, August 2013
Slide 1: Lundin Petroleum Presentation
Lundin Petroleum Presentation WF11753 16.08.13 August 2013
Slide 2: Company Overview and History
2 Company Overview and History Lundin Petroleum AB Introduction Ticker - Stockholm Stock Exchange LUPE An organic growth success story Ticker - Toronto Stock Exchange LUP Shares in Issue, million 317.9 Raised cash equity ~USD 50 million in 2001 of which held in Treasury, million(1) 8.3 No cash equit
Slide 3: Lundin Petroleum - Asset Overview
3 Lundin Petroleum - Asset Overview EXPLORATION Core Areas: Europe, SE Asia DEVELOPMENT Norway PRODUCTION Russia Netherlands France Malaysia Indonesia TOTAL WF11304 p8 04.13 2P reserves: 201.5 MMboe (1) Contingent resources: 923 MMboe (2) (1) End 2012 Reserves (2) Statoil estimate (120 MMboe net Lun
Slide 4: Financial Performance
4 Financial Performance 1200 1000 Net Profit Operating Cash Flow EBITDA Total Capex 800 600 MUSD 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -200 Impairment of Russia -400 -600 Full Year Half Year 2012 2013 EBITDA (MUSD) 1,144.1 520.2 Operating cash flow (MUSD) 831.4 502.9 Net r
Slide 5: Net Debt Position
5 Liquidity [MUSD] at 30 June 2013 Debt Outstanding 685 Cash Balances 86 Net Debt Position 599 New Reserve Based Lending Credit Facility 2,500(1) 7 year facility 25 banks in the syndicate 5th RBL facility since inception WF11543 p2 08.13 (1) Johan Sverdrup not included
Slide 6: January 2013 2P Reserves
6 1 January 2013 2P Reserves Total 201.5 MMboe Malaysia, 12.7 France, 23.8 Russia, 6.9 Indonesia, 2.7 Netherlands, 3.7 PSC, 8% Bo yla ,3 .3 Brynhild, 20.8 Gaupe Alvheim, 23.1 Tax/Royalty, 92% Volund, 10.7 Gas, 9% Oil, 91% Edvard Grieg, 92.9 WF11612 p1 01.13 Norway, 151.7(1) (1) Brynhild (WI: 90%) Oi
Slide 7: 2P Reserves Growth
7 2P Reserves Growth 250 200 R 15% Malaysia CAG Russia 150 Norway MMBoe Tunisia Netherlands 100 Indonesia France 50 WF11612 p2 11.12 0 03 04 05 06 07 08 09 10 11 12 13 20 20 20 20 20 20 20 20 20 20 20 1 .1. 1 .1. 1 .1. 1 .1. 1 .1. 1 .1. 1 .1. 1 .1. 1 .1. 1 .1. 1 .1. Excludes divested assets
Slide 8: Contingent Resource Growth
8 Contingent Resource Growth 1000 900 800 700 Others % 32 600 G R C A MMBoe Malaysia 500 400 Russia 300 200 Norway 100 0 (1) WF11612 p7 01.13 6 7 8 9 0 1 2 3 . 2 00 . 2 00 . 2 00 . 2 00 . 2 01 . 2 01 . 2 01 . 2 01 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 (1) PL501 mid range of previously guided 800-1800 MMbo
Slide 9: First Six Months 2013 Production
9 First Six Months 2013 Production ACTUAL 1H 2013 Russia, 7% First six months 2013 production: 35,200 boepd Indonesia, 4% Netherlands, 6% Strong production from Volund France, 8% Alvheim below expectation due to 3 wells shut-in Retain production guidance for 2013 of 33-38,000 boepd Exit 2013 at abov
Slide 10: Production to Quadruple from Ongoing Developments
10 Production to Quadruple from Ongoing Developments 10-15 exploration wells per year Johan Other existing contingent and Sverdrup prospective resources not included in production forecast. Bertam not included in production forecast +100% increase in production Edvard Grieg Bøyla +100% Brynhild incr
Slide 11: Production Growth vs Peers
WF11545 p12 07.13 Production CAGR 2012-2024 (%) -10% -5% 0% 5% 10% 15% Lun din Oil Se arc h Ko sm os Ori gin Ene Production Growth vs Peers rgy Production Growth 2012-2024 Tul low Oil No Source: Wood Mackenzie CBT Mid-Cap International Q2 2013 ble Ene rgy Sa nto s Pre mi er OM V Pa cifi cR ubi ale s
Slide 12: Greater Alvheim Area
12 Greater Alvheim Area Gross Alvheim Estimated Ultimate Recovery Alvheim Field 350 2C Contingent Resources Cumulative Production 24* Lundin Petroleum 15% 300 End of Year 2P Reserves 137 108 80 Marathon 65% (operator), ConocoPhillips 20% 250 15 223 49 215 First six months 2013 net production: 11,300
Slide 13: Development Activity 2013
13 Development Activity 2013 NORWAY – USD 1,080 million Edvard Grieg USD 550 million - Jacket - Topside - Export pipelines NETHERLANDS Brynhild USD 470 million Infill drilling - Drilling production and injection wells - Topside modification on FPSO Facilities - Subsea Facilities Bøyla USD 40 million
Slide 14: Utsira High Area - Edvard Grieg Development
14 Utsira High Area - Edvard Grieg Development Ivar Aasen Platform Edvard Grieg Platform Lundin Petroleum interest: 50% (operator) Gas Export to SAGE OMV 20%, Wintershall 15%, Statoil 15% Oil Export to Grane 2P reserves: 186 MMboe gross Ivar Aasen Plateau production: 100,000 boepd gross Production s
Slide 15: Norway Developments
15 Norway Developments Brynhild Development (Lundin 90% operator) North Sea PDO approved 6205 6204 6203 216 217 218 219 6201 6202 6203 6204 Lundin Petroleum Licences 220 Operated Tie-back to Haewene Brim FPSO located 6108 6103 6107 6106 Non-operated 6105 6104 0033 Hydrocarbon fields/discoveries at S
Slide 16: France & Netherlands – Overview
16 France & Netherlands – Overview France Netherlands Offshore Hydrocarbon Type Oil Gas Netherlands Onshore 2012 Production Net, boepd 2,800 1,900 2P Reserves Net, MMboe 23.8 3.7 Best Estimates Contingent 12.8 – Resources Net, MMboe Paris Basin 2012 Operating Cash Flow 63 51 Netback, USD/Boe France
Slide 17: Appraisal Activity 2013
17 Appraisal Activity 2013 NORWAY – USD 140 million Johan Sverdrup - 4 appraisal wells on PL501 - 2 appraisal wells on PL265 PL338 - 1 appraisal well on Edvard Grieg 1 appraisal well on Luno II MALAYSIA – USD 10 million PM307 Peninsular Malaysia - Bertam Field Development studies Budget 2013 Drillin
Slide 18: Norway - Utsira High - Johan Sverdrup
18 Norway - Utsira High - Johan Sverdrup Located in the southern Utsira High Snorre In the heart of the North Sea Norway Statfjord Close to existing infrastructure Gullfaks Sweden Mapped area Water depth: 115m Troll Reservoir depth: ~1900m Oseberg Bergen " Excellent reservoir quality High porosity a
Slide 19: Norway – Johan Sverdrup Appraisal Progress
19 Norway – Johan Sverdrup Appraisal Progress 2010 2011 2012 Year to date 2013 PL501 PL501 PL501 PL501 16/2-9S 16/2-12 16/2-10 16/2-16S & 16A & 16 T2 16/2-14 16/2-13S & 13A 16/2-6 & 6 T2 $ $ $ $ 16/3-6 16/2-8 16/3-4 & 4A 16/2-11 & 11A 16/2-17S 16/2-7 & 7A 16/2-15 16/2-21 16/3-5 PL265 PL265 PL265 PL2
Slide 20: Norway - Johan Sverdrup 2013 Appraisal Programme
20 Norway - Johan Sverdrup 2013 Appraisal Programme Edvard Grieg Working Interest PL501 PL265 Lundin Petroleum 40% (OP) 10% Torvastad Statoil 40% 40% (OP) Maersk 20% – PL338 16/2-9S Det norske – 20% PL265 16/2-18S 16/2-12 Petoro – 30% 16/2-14 17B 16/2-10 16/2-17S & 17B 17S 16/2-8 16AT2 16/2-16 & 16A
Slide 21: Johan Sverdrup - Possible Topside Layout Schematic
21 Johan Sverdrup - Possible Topside Layout Schematic ion sion elect is ce pt S S ubm t Oil Con PDO Firs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 2018 Example of Johan Sverdrup Topside Centre of Field Layout WF11676 p6 02.13
Slide 22: Exploration Activity 2013
22 Exploration Activity 2013 NORWAY – USD 330 million 10 exploration wells - 5 wells Utsira High - 2 well in Barents Sea - 1 well in Norwegian Sea NETHERLANDS - 2 wells in Southern North Sea 2 exploration wells 3D seismic SE ASIA – USD 115 million Offshore Malaysia - 3D seismic Offshore Indonesia -
Slide 23: Operated Rig Capacity for Exploration & Appraisal Activity
23 Operated Rig Capacity for Exploration & Appraisal Activity 2013 2014 2015 2016 2017 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Bredford Dolphin 5 1 1 1 1 4 2 1 Transocean Artic 1 1 1 NORWAY Island 3 6 2 4 6 3 Innovator Expected to commence drilling in September Rowan 2 Drilling Rig Malaysia Rig Te
Slide 24: Norway - Successful Organic Growth
24 Norway - Successful Organic Growth Lundin Petroleum Discovered Resources vs Peers(2) Lundin Petroleum ‘s Success in Norway 3.0 Source: Wood Mackenzie LICENCES PRODUCTION RESERVES CONTINGENT boepd MMboe RESOURCES MMboe 2.5 715(1) Net discovered resources (billion boe) 2.0 151.7 1.5 27,200 60 1.0 0
Slide 25: Why Invest in Norway?
25 Why Invest in Norway? UNDISCOVERED RESOURCES ON THE NCS 0 KM 60 Wells drilled 18.7 Bn bbls Source: NPD Excellent exploration potential remains Jan Mayen 0.6 Bn bbls Norwegian Sea Barents Sea No independents until recently 4.9 Bn bbls 6.0 Bn bbls Lower drilling density than UK Close to existing in
Slide 26: Norway – Low Finding Cost
26 Norway – Low Finding Cost Finding Cost(1) (Post Tax) Lundin Petroleum Finding Cost (Post Tax) 0.34 USD/boe 2P Reserves & Johan Sverdrup resources PL338 transaction value (Post Tax)(2) OMV Acquisition of PL338 (20%) PL338 (Edvard Grieg) Transaction value USD/bbl 8.7 USD/boe WF11320 p5 01.13 (1) Co
Slide 27: Norway - 2013 Exploration Drilling
27 Norway - 2013 Exploration Drilling 2 exploration wells 4 exploration wells drilled year to date Ogna - Dry Barents Sea Area Jorvik - Oil shows, uncommercial Luno II - Discovery, commercial Norway Utgard High Area Carlsberg - Dry 1 exploration well 6 exploration wells to be drilled in 2013 3 wells
Slide 28: Norway - Utsira High Area Evolution
28 Norway - Utsira High Area Evolution Lundin Petroleum Fields/Discoveries Operator Oil Prospect Partner Gas Lead 2004 - 2007 2008 - 2010 2011 - 2013 PL625(2012) 024 025 024 025 024 025 PL546 (2010) PL546 PL673 (2013) PL625 ALDOUS MAJOR NORTH PL546 IVAR AASEN DISCOVERY 2008 PL501 DISCOVERY 2011 PL50
Slide 29: Norway - Utsira High Exploration Drilling 2013
29 Norway - Utsira High Exploration Drilling 2013 024 025 Kopervik Exploration PL625 PL546 2 exploration wells drilled so far in 2013 PL501 Torvastad Exploration 16/1-16 (Asha) PL338 Jorvik (50%) PL673 ALDOUS MAJOR NORTH DISCOVERY Oil shows IVAR AASEN RAGNARROCK GEITUNGEN DISCOVERY PL359 Luno II (40
Slide 30: Luno II Discovery
30 Luno II Discovery 0 4 KM 16 PL359, Lundin Petroleum 40% (operator ) 0024 Lundin Petroleum Operator 0025 Lundin Petroleum Partner PL410, Lundin Petroleum 70% (operator ) PL673 Apollo discovery Aldous Major North discovery Geitengun discovery Tested over 2,000 boepd Johan Sverdrup discovery Good qu
Slide 31: Barents Sea – Overview
31 Barents Sea – Overview Longyearbyen 0 KM 400 Faroe Is. 0°0'0" 10°0'0"E 20°0'0"E 30°0'0"E 40°0'0"E 50°0'0"E 60°0'0"E 10°0'0"W 0°0'0" 10°0'0"E 0 KM 400 Svalbard 60°0'0"N 60°0'0"N Russia Norway Barents Sea North Sea Hammerfest Basin Denmark 70°0'0"N 70°0'0"N Hammerfest Vadso Norway Tromso United Kin
Slide 32: Acreage Position in the Barents Sea
32 Acreage Position in the Barents Sea 0 KM 40 PL609 One of the largest independant acreage position Johan Castberg in the Barents Sea 7215 7216 7217 (formerly 7218 Skrugard/Havis) 7223 7219 7220 7221 7222 400-600 MMboe PL659 PL533 2 exploration wells to be drilled in 2013 Salina discovery PL609B PL
Slide 33: Norway - Norwegian Sea Exploration - Utgard High
33 Norway - Norwegian Sea Exploration - Utgard High 0 5 10 20 KM Leads/Prospects New area with large potential Sverdrup prospect Aasta Hansten PL330 PL330 (Lundin 30% ) Sverdrup prospect PL654 Partners: RWE Dea 40% (OP), Marathon 30% PL653 Drilling ongoing Gross prospective resource 200-600 MMboe(1)
Slide 34: South East Asia Overview
34 South East Asia Overview Thailand Laos Bangkok Manila TOTAL Cambodia Vietnam Exploration Licences: 11 Myanmar Phnom Penh Vietnam Production Licences: 1 Peninsular Malaysia Philippines SB303 0 KM 800 Cakalang Sabah Area PM319 Baronang Palau Malaysia 1 exploration well SB307/308 PM307 Kuala Lumpur
Slide 35: Peninsular Malaysia – Bertam Development
35 Peninsular Malaysia – Bertam Development PM307 - Lundin Petroleum 75% (operator), Petronas Carigali 25% PDO submitted in July 2013 2P gross reserves: 17.0 MMbo Estimated gross plateau production: 0 KM 20 approximately 15,000 bopd PM319 PM307 Sotong Field First oil: 2015 Tembakau Gas Discovery Dev
Slide 36: Peninsular Malaysia
36 Peninsular Malaysia PM307 (Lundin 75% operated) Kuala Terengganu Lundin Petroleum Licences Operated Bertam PDO submitted in July 2013 " Lundin (75%) Non-operated Hydrocarbon fields/discoveries PM307 (Lundin 75% operated) PM307 Oil Gas Prospect / lead Tembakau gas discovery PM319 3D seismic alread
Slide 37: Malaysia - Sabah Area
37 Malaysia - Sabah Area Lundin Petroleum Licences Operated Non-operated Tarap/Cempulut/Titik-Terang/ Hydrocarbon fields/discoveries Berangan discoveries Oil Gross contingent resources: ~350 Bcf Gas Prospect / lead SB303 Potential cluster development 3D seismic already acquired 75% WI Cempulut Disco
Slide 38: Indonesia Natuna Sea Exploration - 2013 Drilling
38 Indonesia Natuna Sea Exploration - 2013 Drilling Lundin Petroleum Licences 0 KM 40 Operated Non-operated Baronang (Lundin 90%(1)) Hydrocarbon fields/discoveries Oil Baronang Gas 1 exploration well plus sidetrack Prospect / lead Cakalang 3D seismic already acquired Balqis gross unrisked prospectiv
Slide 39: 2013 Exploration and Appraisal Drilling Schedule
39 2013 Exploration and Appraisal Drilling Schedule 2013 Country Licence - Prospect Operator LUPE% NUPR (1) CoS % NRPR (2) Q1 Q2 Q3 Q4 1 Norway PL501 - Johan Sverdrup 16/3-5 App. 6 Lundin 40.00 – – – Completed successfully 2 Norway PL359 - Luno II 16/4-6S Lundin 40.00 – – – Discovery 3 Norway PL501
Slide 40: Lundin Petroleum’s Shareholders
40 Lundin Petroleum’s Shareholders Number of shares in issue: 317.9 million Owned by Lundin Petroleum: approx. 8.3 million shares(1) Average traded volume per day: approx. 1.2 million Part of OMX30, NASDAQ OMX Stockholm Secondary listing on Toronto Stock Exchange Shareholder structure Geographically
Slide 41: Production to Quadruple from Ongoing Developments
41 Production to Quadruple from Ongoing Developments 10-15 exploration wells per year Johan Other existing contingent and Sverdrup prospective resources not included in production forecast. Bertam not included in production forecast +100% increase in production Edvard Grieg Bøyla +100% Brynhild incr
Slide 42: Disclaimer
42 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" (w
Slide 43: WWW.LUNDIN-PETROLEUM.COM
43 WWW.LUNDIN-PETROLEUM.COM
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