North Energy Asa · OSL:NORTH

North Energy Asa — Q1 2015 Earnings Presentation

23 slides from North Energy Asa's earnings presentation, May 13, 2015

  1. Slide 1: North Energy Q1 2015

    North Energy Q1 2015 13 May 2015 Streamlining ahead of an active drilling campaign

  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  Q1 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  4. Slide 4: Our number one goal: Demonstrate near term value creation

    Our number one goal: Demonstrate near term value creation  Main route: Take part in commercial discoveries  3-4 wells coming up next 6-9 months  Potential alternative route: M&A path  Strategic review continues  Prerequisites regardless of route:  A cost efficient set up  Strong G&G team  A

  5. Slide 5: Q1 highlights and subsequent events

    Q1 highlights and subsequent events  Significant cost cutting programme well underway  On track to reduce annual operating costs to a level of NOK 100 million  Goal to make North Energy a more effective and attractive company  CEO Erik Karlstrøm relieved of his duties with immediate effect  Knu

  6. Slide 6: Agenda

    Agenda  Q1 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  7. Slide 7: Profit & Loss Q1 2015

    Profit & Loss Q1 2015 NOK Million Q1 2015 Q4 2014 2014 Gain/loss from licence sale 0,0 0,0 3,5 Exploration expenses (117,1) (91,9) (332,1) PL510 - first well interrupted Payroll (16,3) (16,3) (52,9) Other operating expenses (9,9) (9,9) (36,2) EBITDA (143,3) (118,0) (417,7) Depreciation (1,3) (1,6) (

  8. Slide 8: Balance Sheet 31 March 2015

    Balance Sheet 31 March 2015 NOK Million 31.03.2015 31.12.2014 31.12.2013 Assets Fixed assets 8,6 9,9 9,2 Capitalized drilling cost 17,0 44,6 17,5 Deferred tax asset 131,2 106,0 101,6 Long term receivables 119,3 4,4 11,0 Tax receivable refund (Dec. 2016) Short term receivables 477,8 414,0 368,5 Tax r

  9. Slide 9: Fully funded drilling campaign

    Fully funded drilling campaign Net cash* position Q1 2015  Q1 2015 net cash position of NOK 294 million 20 20  Unused exploration loan facility NOK 756 million  Extended until 2017  Accordion option up to MNOK 1,150 * Excluding convertible long term loan balance of NOK 40,4 millions towards TGS

  10. Slide 10: Agenda

    Agenda  Q1 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  11. Slide 11: North Energy licence overview

    North Energy licence overview  23 NCS licences  Two new awards from APA 2014  Two licences recently relinquished  Four wells sanctioned for 2015  Five more potential drilling candidates identified  Drill or drop decision in 11 licences by Q2 2016 North Energy ASA · post@northenergy.no · (+47)

  12. Slide 12: Update on the Pingvin discovery

    Update on the Pingvin discovery Pingvin discovery  Status report from operator recently received  Report indicates that the discovery contains wet gas with heavy HC- components  Among the five biggest discoveries in 2014  The reservoir excellent in best zones  Partnership currently evaluating l

  13. Slide 13: Embarking on high potential drilling campaign in 2H

    Embarking on high potential drilling campaign in 2H Timing Licence Prospect Interest Operator Location Rig 2015 PL 616 Haribo 15% Edison North Sea T.O. Searcher Q2/Q3 PL 591 Zumba 15% Tullow Norwegian Sea Leiv Eriksson Q2 /Q3 PL 510 Tvillingen Sør 20% Maersk Norwegian Sea Leiv Eriksson Q3/Q4 PL 708

  14. Slide 14: Four different plays to be tested in 2015

    Four different plays to be tested in 2015 PL 510 Tvillingen South in the Norwegian Sea PL 591 Zumba in the Norwegian Sea PL 616 Haribo in the North Sea PL 708 Ørnen in the Barents Sea North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  15. Slide 15: PL 616 Haribo – well close to Hod field, south in North Sea

    PL 616 Haribo – well close to Hod field, south in North Sea PL 616 in the North Sea Awarded APA 2011 Main prospect Haribo Operator Edison (25%) Hydrocarbons Oil Partners Concedo (20%) Expected drilling Q3 2015 Noreco (20%) Reservoir Narve Skagen44 (15%) Prob. of success Medium North Energy (15%) Gro

  16. Slide 16: PL 591 Zumba – significant prospect next to Heidrun

    PL 591 Zumba – significant prospect next to Heidrun PL 591 in the Norwegian Sea Awarded APA 2011 Main prospect Zumba Operator Tullow (80%) Hydrocarbons Gas and Oil Partners North Energy (15%) Expected drilling Q3 2015 Lime Petroleum (5%) Reservoir Rogn Prob. of success Medium Gross mean unrisked 184

  17. Slide 17: PL 510 Tvillingen South

    PL 510 Tvillingen South PL 510 in the Norwegian Sea Awarded APA 2008 Main prospect Tvillingen South Operator Maersk (50%) Hydrocarbons Gas Condensate Partners North Energy (20%) Expected drilling Q3 2015 Edison (30%) Reservoir Lower to Middle Jurassic Prob. of success Medium Gross mean 109 mmboe unr

  18. Slide 18: PL 708 Ørnen – exciting Permian well

    PL 708 Ørnen – exciting Permian well PL 708 in the Barents Sea Awarded 22. round Main prospect Ørnen (Seiland east) Operator Lundin (40%) Hydrocarbons Oil Partners North Energy (10%) Expected drilling Q4 2015 Edison (20%) Reservoir Upper Permian Lukoil (20%) Prob. of success Medium Lime (10%) Gross

  19. Slide 19: North Energy potential wells 2016/2017

    North Energy potential wells 2016/2017  Five possible well candidates for 2016/17 currently identified:  PL 590, Norwegian Sea  PL 762, Norwegian Sea  PL 656, Norwegian Sea  PL 707, Barents Sea  PL 722, Barents Sea North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  20. Slide 20: Clear ambitions in the APA and 23rd Round

    Clear ambitions in the APA and 23rd Round  Ambitions to repeat historical success in future licensing rounds  Focus on oil prospects with significant resource potential  Focus on commerciality and technical solutions  Currently preparing applications for the 23rd and APA 2015 Rounds Announced ar

  21. Slide 21: Agenda

    Agenda  Q1 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  22. Slide 22: Summary and outlook

    Summary and outlook  Cost cutting programme on track  Annual operating costs to be reduced to a level of NOK 100 million  North Energy to become a more effective and attractive company  Closing in on high potential drilling campaign in 2H 2015  Testing a total of approx. 700 mmboe (100 mmboe ne

  23. Slide 23: Q&A

    Q&A North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

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