Slide 1: Presentation of fourth quarter 2019
Presentation of fourth quarter 2019 OKEA ASA 13 February 2019
Slide 2: General and disclaimer
General and disclaimer This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and p
Slide 3: Highlights of 2019
Highlights of 2019 Safe and responsible operations (Serious incidents) 0 Net production to OKEA (Barrels o.e. per day) 18 663 Cash flow from operating activities (NOK million) 2 111 3
Slide 4: Highlights 4th quarter 2019
Highlights 4th quarter 2019 Operations • No serious incidents • Production 17 020 boepd • Completed first operated drilling campaign Financial • Refinancing of USD 120 million bond • Revenues from oil and gas NOK 534 million • Profit from operating activities NOK 55 million • Cash flow from operatio
Slide 5: Operations
Operations Tor Bjerkestrand, SVP Operations
Slide 6: Production volumes Q4
Production volumes Q4 Lower production due to maintenance and well shut-in Daily average production (boepd) 25 000 •5% production decrease 20 000 19 498 20 045 from Q3 2019 to Q4 2019 18 125 17 020 •Lower Draugen production mainly due to 15 000 10 488 10 496 8 135 shut-in of well 7 842 •Gjøa product
Slide 7: Draugen operations
Draugen operations Safe operations with production impacted by well shut-in Net production (boepd) 12 000 Q4 operations 10 000 • 95% availability 8 000 • Shut-down of D2 well 6 000 • Skumnisse and Infill Ø plugged 4 000 8 637 9 241 9 648 8 835 and completed 2 000 0 1) Q1 19 Q2 19 Q3 19 Q4 19 Next st
Slide 8: OKEA’s first operator year – Draugen from harvest to development mode
OKEA’s first operator year – Draugen from harvest to development mode Field strategy, Improved Projects for OKEA & ABB digital organisation and operations and emission reduction collaboration development plans drilling excellence initiated 8
Slide 9: OKEA Digital Platform (ODP) screendump
OKEA Digital Platform (ODP) screendump 06 Feb @1200 9
Slide 10: Draugen Long Range Plan 2019 – Vision and strategic priorities
Draugen Long Range Plan 2019 – Vision and strategic priorities Vision: Draugen 2040+ Hasselmus – 1st tieback to Draugen Value drives Ambition Safe production • No harm no leaks Environment • Prudent operator Well and reservoir • Ultimate Recovery 70% potential • Near-field exploration • Develop Drau
Slide 11: Gjøa operations
Gjøa operations Lower production due to unplanned maintenance Net production (1 000 boepd) 12 000 Q4 Operations 10 000 • Lower production mainly due to unplanned turbine replacement 8 000 • Lower SEGAL capacity restraining 6 000 gas export 10 488 10 496 4 000 8 135 7 842 • Gas export restrictions en
Slide 12: Financials
Financials Kjersti Hovdal, SVP Accounting and Controlling
Slide 13: Oil and gas production, sales and revenues
Oil and gas production, sales and revenues Revenue decrease mainly due lower produced and sold volumes, offset by increased prices Oil and gas volume (boepd) Realised prices (USD/boe) Petroleum revenues (NOK million) Production Sales Liquids Natural gas -6% +9% -13% -17% 18 125 61,2 +12% 612 17 020
Slide 14: Income statement
Income statement Decrease in operating income due to lower volumes lifted 4th quarter 3rd quarter Full year Figures in NOK million 2019 2018 2019 2018 2019 2018 Total operating income 564 181 622 97 3 020 309 Production expenses -205 -90 -144 -2 -709 -97 Changes in over/underlift positions and inven
Slide 15: Strong cash generation in 2019
Strong cash generation in 2019 NOK million 3 000 172 2 500 1 062 1 108 847 2 000 283 232 1 500 2 283 1 000 1 663 500 395 - Cash 01.01.19 Operating Taxes Investment Net proceeds Net proceeds Repayment Interest paid Cash 31.12.19 activities paid/received activities share issue bond issue bond loan 15
Slide 16: Outlook & concluding remarks
Outlook & concluding remarks
Slide 17: Development projects
Development projects Yme (Repsol operated) P1/Gjøa (Neptune op.) Grevling/Storskrymten Grevling • Ongoing rig campaign, • Good progress on the project, • Maturing Grevling/Storskrymten commenced in October with appraisal well ongoing towards concept selection • Progressing towards hook-up • Two prod
Slide 18: Successfully awarded five licenses in APA 2019
Successfully awarded five licenses in APA 2019 Draugen/Mistral Area Grevling Area •Located in Draugen and Grevling areas PL1003 B •Two new licences, three area extensions •Potential support of Draugen lifetime •Adding Grevling area exploration upside OKEA License Block(s) Operator PL1060 share PL106
Slide 19: Outlook
Outlook •Further realise Draugen potential • Increase recovery and continuous optimisation • Valuable information from the latest wells •Guiding 2020 • Production: 15 500 – 16 500 boepd1) • Total capex: NOK 850-900 million •Financial flexibility • Strong cash flow • OKEA03 bond provides RBL flexibil
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