North Energy Asa · OSL:NORTH

North Energy Asa — Q3 2014 Earnings Presentation

29 slides from North Energy Asa's earnings presentation, Nov 13, 2014

  1. Slide 1: North Energy Q3 2014

    North Energy Q3 2014 13 November 2014 Discovery in Pingvin – results under evaluation

  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  Highlights Q3 and later events  Result of Pingvin well in PL 713  Well programme  Financials  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  4. Slide 4: Highlights Q3 and later events

    Highlights Q3 and later events  Discovery in PL 713 in the Barents Sea  HC phase and potential under evaluation  APA 2014 applications in all NCS regions  EMGS conversion of loan to shares secures financing of additional wells  All firm wells fully funded  Q3 net cash position of NOK 344 milli

  5. Slide 5: Agenda

    Agenda  Highlights Q3 and later events  Result of Pingvin well in PL 713  Well programme  Financials  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  6. Slide 6: North has used the complete toolbox on Pingvin

    North has used the complete toolbox on Pingvin  ‘Standard’ seismic amplitude analysis (AVO)  EM  Low Frequency analysis  RVD (Rex Virtual Drilling)  NELFA (Internal North)  ADF (Apex Houston)  All studies indicate HC, many of them liquids EM anomaly RVD and Nelfa anomaly ADF anomaly Well loca

  7. Slide 7: Pingvin pre well Summary

    Pingvin pre well Summary ADF anomaly  Well aimed at testing maximum potential  Well placed marginal to most DHI anomalies  Traces of HC were the most likely scenario  Oil in the chosen well location would mean high probability of Well location commercial discovery  Commercial HC updip possible

  8. Slide 8: Post well status: North's toolbox predicted the well outcome fairly accurately

    Post well status: North’s toolbox predicted the well outcome fairly accurately  The well discovered gas in a new ADF anomaly Play Model with excellent reservoir properties  Still significant uncertainty wrt HC phase and potential  Preliminary volume estimates from North Energy 19 million Sm3 oe r

  9. Slide 9: PL 713 Pingvin Results

    PL 713 Pingvin Results Is the ‘contact’ GWC og Lithology? Well Location Well Location North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  10. Slide 10: Appraisal of Pingvin to be evaluated

    Appraisal of Pingvin to be evaluated  Pingvin discovery: Is the sand in the well the top of a lower reservoir ?  Several observations could point towards liquids updip:  Multiple / tilted contacts  Geophysical Analysis indicates liquids  EM anomaly is higher updip. Relative low resistivity in w

  11. Slide 11: Agenda

    Agenda  Highlights Q3 and later events  Result of Pingvin well in PL 713  Well programme  Financials  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  12. Slide 12: Portfolio

    Portfolio  25 licences  8 in the Barents Sea  11 in the Norwegian Sea  6 in the North Sea DoD Q1 2015 North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  13. Slide 13: Drilling & decision point schedule

    Drilling & decision point schedule Firm & planned wells Timing Licence Prospect Interest Operator Location Rig Q4 2014 2015 PL 510 Tvilling Sør 20% Maersk Norwegian Sea Leiv Eiriksson Q1 PL 591 Zumba 15% Tullow Norwegian Sea TBA Q2-Q3 PL 616 Haribo 15% Edison North Sea TBA Q3 PL 708 Ørnen 10% Lundin

  14. Slide 14: Drilling & decision point schedule

    Drilling & decision point schedule Drill or Drop licences DoD Deadline Licence Prospect Interest Operator Location Q4 2014 2015 PL 503 Valberget 12,5% Lotos North Sea Q1 PL 503 C Valberget 12,5% Lotos North Sea Q1 PL 587 Rype 40% Edison Norwegian Sea Q1 PL 595 Jaktfalk 40% Edison Barents Sea Q1 PL 6

  15. Slide 15: Drilling & decision point schedule

    Drilling & decision point schedule Drill or Drop licences DoD Deadline Licence Prospect Interest Operator Location 2015 2016 PL 590 Sierra 30% North Energy Norwegian Sea Q1 PL 769 Grid 20% OMV Barents Sea Q1 PL 770 Saarikoski 20% Edison Barents Sea Q1 PL 693 Eagle 15% OMV Norwegian Sea Q1 Sandia/ PL

  16. Slide 16: PL 510 – Gas prospect from the "old portfolio"

    PL 510 – Gas prospect from the “old portfolio” 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 Q1 2015 Edison (30%) Reservoir Lower to Middle Jurassic Prob. of success 40% Gros

  17. Slide 17: Discovery in Tvillingen Sør

    PL 510  Discovery in tvillingen Sør would improve POS for remaining prospects  Tvillingen Nord  Breitind  Kvasstind N  Botnkrona Recoverable resources, mmboe Ranking Prospect P90 Mean P10 1 Tvillingen S 37 109 197 2 Tvillingen N 33 96 179 3 Breitind 16 81 153 4 Kvasstind N 30 71 120 5 Kvasstind

  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 Q3 2015 Edison (20%) Reservoir Upper Permian Lukoil (20%) Prob. of success 46% Lime (10%) Gross mea

  19. Slide 19: PL 591 – Farm-in well next to Heidrun

    PL 591 – Farm-in well 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 27% (Operator) Gross mean unrisked 184 mmboe

  20. Slide 20: PL 616 Haribo – well close to Hod

    PL 616 Haribo – well close to Hod 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 25% (Operator) North Energy (15%) Gross mean 103 mmboe

  21. Slide 21: Exploration ambition: Find commercial oil early

    Exploration ambition: Find commercial oil early  Explore where competitive edge is sharpest  EM and Geophysical competence to play in tune with existing G&G capacity and datasets  Maintain unique Barents Sea position  Main exploration focus is the Barents based on unique G&G know how  Short ter

  22. Slide 22: Agenda

    Agenda  Highlights Q3 and later events  Result of Pingvin well in PL 713  Well programme  Financials  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  23. Slide 23: Profit & Loss Q3 2014

    Profit & Loss Q3 2014 NOK Million Q3 2014 Q2 2014 Q3 2013 2013 Profit 0,2 2,6 32,0 98,6 Farm out PL591 (5%) Exploration expenses (56,6) (84,8) (36,5) (696,6) Drilling and other expl. exp. Payroll (15,6) (11,2) (11,8) (51,0) Low charge out Other operating expenses (5,9) (10,3) (8,4) (33,4) EBITDA (77

  24. Slide 24: Balance Sheet 30th of September 2014

    Balance Sheet 30th of September 2014 NOK Million 30.09.2014 30.06.2014 31.12.2013 Assets Fixed Assets 167,5 155,3 145,7 Deferred tax asset and cap. drilling cost Long term receicables 299,1 179,4 - Tax receivable refund (Dec. 2015) Short term receivables 424,2 402,6 368,5 Tax receivable refund (Dec.

  25. Slide 25: All firm wells fully funded

    All firm wells fully funded Net cash* position Q3 2014  Q3 2014 net cash position of NOK 344 700,0 million 72 600,0  Unused convertible loan facility of NOK 500,0 299 245 277 million 400,0 56  Unused exploration 300,0 loan facility NOK 705 285 million 200,0 354 344,1 100,0 8 0,0 Cash 2014 tax 201

  26. Slide 26: EMGS conversion secures financing of additional wells

    EMGS conversion secures financing of additional wells  Converted NOK 28,4 million Well Timing Status of NOK 75 million loan into shares Well 1-4 2015 Firm wells Financed  Remaining part of the loan DoD/Farm of NOK 46,6 million settled Well 5-7 2015-16 ins Financed  EMGS became a larger DoD/Farm s

  27. Slide 27: Agenda

    Agenda  Highlights Q3 and later events  Result of Pingvin well in PL 713  Well programme  Financials  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  28. Slide 28: Outlook

    Outlook  3 months  Results from well analysis PL 713  Exploration well on PL 510  Awards APA 2014  12 months  Exploration well on PL 708 (Barents Sea)  Exploration well on PL 591/591B (Norwegian Sea)  Exploration well on PL 616 (North Sea)  6-8 DoD decisions  APA 2015 application  23rd Ro

  29. Slide 29: Q&A

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

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