Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company ASA (Noreco) — Q1 2014 Earnings Presentation
43 slides from Bluenord Asa's earnings presentation, May 20, 2014
Slide 1: First quarter 2014
First quarter 2014 20 Mai 2014
Slide 2: Contents
Contents ao te ee ae Svein Arild Killingland, Chief Executive Officer @rjan Gjerde, Chief Financial Officer Headlines Operations — Production — Discoveries — Exploration Key financials — First quarter Concluding remarks Reference material YNOREcCO
Slide 3: First quarter headlines
First quarter headlines A strong first quarter — Revenues NOK 384 million, up 51 per cent from Q4 — EBITDA positive: NOK 166 million Production performance much improved — Nini producing well, higher flows than expected — Huntington near plateau through most of February and March Exciting exploratio
Slide 4: Producing fields
YNOREcCO Producing fields
Slide 5: Q1 production
Q1 production * Production performance show positive trend overall * Huntington and Nini on stream through most of February and March ¢ Lulita have produced well in the quarter * Oselvar closed for 12 days due to technical issues at Ula field * Cecilie and Enoch expected back on stream in Q2 and Q3
Slide 6: Huntington
Huntington YNOREcCO Plateau confirmed. Still challenges * Strong performance in February and March — Plateau level capacity proven above 7 000 boepd to Noreco — Average above 5 700 boepd ¢ New issues in April and May — Inert gas system. Closed for 14 days — CATS riser platform. Closed for 16 days —
Slide 7: Siri Fairway
Siri Fairway ZA NORECO Temp solution works well. Repairs underway * Temporary solution with production « May production somewhat direct to tanker works well reduced due to Siri repair work * Daily average above 2 000 boepd to and well workover at Nini Noreco through April, in spite of « Permanent re
Slide 8: Discoveries
YNOREcCO Discoveries
Slide 9: Gohta discovery
Gohta discovery Appraisal imminent * Rapidly maturing — Discovered in 2013. First appraisal well to be spudded in May — Gross contingent resources 111 - 232 mill boe * Ina highly promising and high- profile part of the Barents Sea — Further drilling planned in a similar structure in Lundin’s Alta li
Slide 10: Huntington Deep
Huntington Deep Maturing the Maxwell discovery YNOREcCO * The Maxwell discovery is a Fulmar ma formation reservoir that underlies the main Huntington Forties Field ¢ Discovered in May 2007 by well 22/14b-5, which tested 4,600 bbl/day. Further appraised with sidetracks in Q3/Q4 that year * Current es
Slide 11: Exploration
Exploration
Slide 12: Verdande: Approaching main target
Verdande ZA NORECO Approaching main target ¢ Well spudded on 8 April by semisub Bredford Dolphin * Hit shallow gas which was handled in accordance with standard procedures « Dry hole case 68 days Success case 81 days Plage Verdande erated by Noreco * A side-track will be considered based on the dril
Slide 13: Verdande: Strong potential in a producing trend
Verdande ZANORECO Strong potential in a producing trend ¢ Middle Jurassic target in well proven play * Chance of success: 29 per cent Primary risk element: Trap ¢ 53-236 mmboe gross (gas and oil), 39 mmboe P50 net to Noreco, with considerable additional prospectivity 13
Slide 14: Key focus areas
Key focus areas Current priorities * North Sea North — PL639 Kanel | Seismic interpretation work near completion. Drill-or-drop decision expected in Q3 2014 — PL519 Albert | Seismic reprocessing completed and interpretation work has started. Nearby drilling will give valuable input. Decision on way
Slide 15: Exploration and appraisal
Exploration and appraisal Drilling programme Well PL484 Verdande PL492 Gohta (appr) DK 9/95 Xana (Gita S) PL616 Haribo P1889 Niobe PL492 Gohta (appr) PL519 Albert P639 Kanel Noreco share 30 % 20 % 20.1 % 20 % 22.5 % 20 % 20 % 15 % Committed well Potential well Opera- Q4 tor er Pay 2014 Noreco | 53-2
Slide 16: Building portfolio
Building portfolio 2014 licence rounds * Norway APA 2014 — Focusing on mature areas in the North Sea and Mid Norway — Deadline 2 September ¢ UK 28th Round — Submitted applications in late April focusing on prospectivity in producing areas * Denmark 7th Round — Focusing on known North Sea geologic pl
Slide 17: Key financials
Key financials YNOREcCO 17
Slide 18: Income statement
Income statement NOK million Qi14 413 9313 2013 | Total revenues 384 255 177 894 Production expenses (138) (139) (108) (430) Exploration expenses (25) (9) (295) (666) Payroll (31) (23) (29) (127) Other op. expenses (24) (20) (25) (95) Other gain/(loss) 1 (7) (3) (15) EBITDA 166 56 (284) (440) Deprec
Slide 19: Revenue & EBITDA
Revenue & EBITDA ZA NORECO (NOK mill) Revenues EBITDA ABO -------- one 200 400 100 350 300 0 250 -100 200 -200 150 -300 100 50 -400 0 -500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ql Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ql a Y ‘ ~~ . ~ 4 44 2012 2013 “4 2012 2013 + Revenue in an increasing trend + Strong EBITDA development; high
Slide 20: Write-downs and reversals
Write-downs and reversals ZANORECO Q1 2014 Write-downs and reversals Q1 Items (NOK mill) Before tax After tax Goodwill UK (28) (28) Oselvar (34) (9) Enoch (10) (2) Siri Fairway (Nini and Cecilie) 40 30 Total (32) (9) * Huntington asset is the only one supporting the book value of goodwill in the UK.
Slide 21: Balance sheet
Balance sheet NOK million 31.03.14 31.12.13 30.09.13 Assets Non-current assets * 4 669 4797 4653 Current assets * 1 084 1 005 1 867 Cash (non-restricted) 497 403 358 Total assets 6 250 6 205 6 879 Equity and liabilities Total equity 1747 1 750 929 Long-term liabilities 3 242 3 224 1 360 Current liab
Slide 22: Balance sheet specifications
Balance sheet specifications Siri insurance claim | Status NOK mill NOK mill gross after tax Gohta Verdande Huntington Fulmar Huntington Forties Oselvar Nini & Cecilie Goodwill of which UK Denmark Siri insurance claim 20 567 2 250 324 288 143 101 42 353 YNOREcCO o Writ filed for Danish court on 14 F
Slide 23: Recap from Q4 2013 presentation
YANORECO ion Recap from Q4 2013 presentatio ec utput from temporary iti Fai for Permanent solution ing3 vi . Exploration, a ling °PPortunitias inkey focus areas . Operational ©xcellence — Cost fficient ope, Tation. Producing assets 7] ~ ama ously — Maintain Strong ang
Slide 24: Main priorities going forward
Main priorities going forward * Work with operators to maximise production — Stabilise Huntington at plateau. Move Maxwell forward — Maximise output from temporary Siri Fairway solution, while preparing for permanent solution in Q3 ¢ Exploration, appraisal and business development — Safe and efficie
Slide 25: Presentation | First quarter 2014
Presentation | First quarter 2014
Slide 26: Additional information
Additional information Table of contents Noreco at a glance 27 Strategy and objectives 28 Production per field 29 Reserves and resources 30-31 Committed and potential wells 32 Focus areas 33-35 Other licences 36-38 Bond structure 39 Bond restructuring effects 40 Largest shareholders 41 26
Slide 27: Noreco at a glance
YA NORECO Noreco at a glance An exploration driven E&P company in the North Sea Exploration Production (number of licences) (in boepd) 7000 6000 - 5000 4000 m=Norway sDenmark #UK asad 2000 Nest [ea 2012 “aa A] 1000 Wells Qt Q2 03 a4 Q1 Q2.Q3 Q4 QI Exploration wells only 12 12 12 12 13 13 13 13 14 o
Slide 28: Strategy and objectives
Strategy and objectives Exploration o 3-5 attractive wells per year o Monetise discoveries through disposals or develop capital efficient projects Contingent resources 43 mmboe, of which Gohta 33 mmboe All numbers as of 31.12.2013 Production and development o Monetise producing fields through effice
Slide 29: Production per field
Production per field boe/day YNOREcCO Noreco share Q2 13 Q4 13 Q1 14 Oselvar Enoch Lulita Nini, Nini East Cecilie Huntington Total 15 % 4.36 % 28.2 % 30 % 61% 20 % 0 0 196 330 0 1415 0 0 3 637 4 646 4682 6 965 29
Slide 30: Reserves and resources
YNOREcCO Reserves and resources Certified reserves Contingent resources + Annual Statement of Reserves as of * Only including discoveries currently 31 Dec 2013, audited by DeGolyer and being matured by their licence groups MacNaughton (see next page for details) Reserves Resources 2013 in mmboe in m
Slide 31: Oil and gas reserves
Oil and gas reserves Per 31.12.2013 Reserves per field 1P Li Is Gas ill bbl bscf) | Mill. boe 0.9 0.0 0.9 Interes' Ne % | mill. boe 0.3 as Interest bscf) | Mill. boe % Nini 30.0 2.1 0.0 2.1 30.0 0.6 Nini East 2.6 0.0 2.6 30.0 0.8 7.7 0.0 7.7 30.0 2.3 Cecilie 0.0 0.0 0.0 61.0 0.0 1.5 0.0 1.5 61.0 0.9
Slide 32: Committed and potential wells
PL492 Gohta PL492 Q2 14 Gohta PL484 Q2 14 Verdande PL639 Kanel PL519 Albert PL 1889 Q3 15 Niobe DK 9/95 Q4 14 PL616 Q2-3 15 Haribo Xana (Gita S)
Slide 33: Albert and Kanel
Albert Kanel Kanel PL519 PL639 P2009 Noreco 20 % 15 % 100 % Operator Lundin Tullow Noreco Tentative drilling 2Q15 4Q15
Slide 34: Lausingen, Spannholmane, Portugiserkloven
Lausingen Spann- Portugiser holmane -kloven Noreco 15 % Operator Statoil Tentative drilling 1Q15 na na
Slide 35: Haribo, Nanna area, Amma
Haribo Nanna area Amma PL616 PL616 PL616 Noreco 20% Operator Edison Tentative drilling Q2-Q3 15 na na
Slide 36: Xana (Gita S) prospect
• Upper Jurassic target in close vicinity (up-dip) to the Svane gas discovery and south of Gita discovery • CoS: 27% – Primary risk element: Trap • 47 – 475 mmboe gross (gas), 28 mmboe net P50 • Expected spud Q4 2014
Slide 37: UK P1889 — Niobe
UK P1889 — Niobe Noreco 22.5% — Suncor operated ®& v, « Jurassic stratigraphic pinch-out trap, up-dip of proven oil discovery ] * Located in Inner Moray Firth in proven play | east of Beatrice Field, de-risking additional prospects given success * Cos: 42% — Primary risk element: Trap L J tT.) | a =
Slide 38: APA 2013 licences and total portfolio
YNORECO APA 2013 licences and total portfolio APA 2013 PL744$S PL748 PL755 PL761 PL762 Licensee Licensee Licensee Operator Operator Equity 20 % 20 % 20 % 40 % 20 % Initial period 7 years 6 (8) years 7 years 6 years 8 years Acquire Acquire . Reprocess Gather new 3D data. 3D data. Gather G&G studies.
Slide 39: Bond structure
600 NOR11 NOK million 400 NOR12 NOR10 NOR10 NOR10 NOR11 200 NOR11 NOR06 NOR11 NOR06 NOR06 NOR06 0 2014 2015 2016 2017 2018 2019
Slide 40: Bond Restructuring
Bond Restructuring ZA NORECO Effects on the Accounts 2013 and forward pf zor | aor | zors | zor | 2ot7 | 2ore | 2019 | Profit & Loss Effects Financial Income 523 Financial cost tobe 8 145 9-134 -122 -110 -95 7 Tax (non cash) -24 +24 0 0 0 0 0 Value Bond debt -621 -476 -341 -217 -105 -9 Equity +507 -
Slide 41: Top 20 shareholders as of 12 May 2014
Top 20 shareholders as of 12 May 2014
Slide 42: Important information
Important information This company presentation (the “Presentation”) has been prepared by Norwegian Energy Company ASA (“Noreco” or the “Company”). The Presentation has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place. The Company m
Slide 43: YF NORECO
YF NORECO
Norwegian Energy Company ASA (Noreco) — Q1 2014 Earnings Presentation on 6ix