Aker Bp Asa · OSL:AKRBP

Aker Bp Asa — Det norske oljeselskap — Q4 2009 Earnings Presentation

34 slides from Aker Bp Asa's earnings presentation, 2010

  1. Slide 1: Fourth Quarter and Preliminary Year-End Presentation

    Fourth Quarter and Preliminary Year-End Presentation TICKER - DETNOR -CEO Erik Haugane -CFO CFO Finn Øistein Nordam 1

  2. Slide 2: Agenda

    Agenda ƒ Operations ƒ Financials ƒ Development projects ƒ Exploration ƒ Outlook & Summary ƒ Appendix pp 2

  3. Slide 3: Highlights since third quarter

    Highlights since third quarter ƒ Merger between Det norske and Aker Exploration completed ƒ Farmed into Dalsnuten in PL 392 from Shell with a 10 percent interest ƒ Exploration ► Discovery on East Frigg Gamma Delta with large in place volumes ► Dry wells on Frusalen, Geitfjellet, Skardkollen and Pumb

  4. Slide 4: Production

    Production Boepd 2500 Producing fields 2000 Jotun Glitne 1500 Enoch Varg 1000 500 Key factors 0 ƒ New infill well A-10A doubled production from Varg Jul Jul Oct Oct Feb Apr JJun JJan Apr JJun JJan Mai Mai Nov Dec Nov Dec Mar Aug Sep Aug Sep M N D N D ƒ Good performance from all F A S A S fields duri

  5. Slide 5: Extended production from Glitne

    Extended production from Glitne ƒ New production well to be drilled ► Potential to extend life of field by two to three years ƒ Earliest shut down - February 2011 Glitne net production to Det norske 800 600 bpd 400 200 0 Jul Nov Feb Jun Apr Aug Dec Dec Mai Sep Jan Mar Oct Photo: Kjetil Alsvik - Stat

  6. Slide 6: Agenda

    Agenda ƒ Operations ƒ Financials ƒ Development projects ƒ Exploration ƒ Outlook & Summary ƒ Appendix pp 6

  7. Slide 7: Financial position as of year-end

    Financial position as of year-end year end NOK 19.4 in ”net cash” per share Elements ƒ Cash and tax receivables for refund in December 2010: 3 634 MNOK 1 090 ƒ Interest bearing debt: Short term 2 060 debt and convertible bond expiring 391 in December 2011: 1 481 MNOK 2 153 1 574 ƒ ”Net ”N t cash” h”

  8. Slide 8: Key issues in the Q4-09 accounts

    Key issues in the Q4-09 Q4 09 accounts ƒ Merger between Det norske and Aker Exploration ► For accounting purposes Det norske is the surviving company ► Aker Exploration’s accounts included in P&L from 22.12 to 31.12 ► Balance sheet as of 31.12.2009 reflects the combined company Write Downs in Q4 (no

  9. Slide 9: Profit & Loss Q4 2009

    Profit & Loss Q4 2009 MNOK Q4 2009 Q4 2008 Comment Operating revenues 73.7 363.9 E l ti expenses Exploration 393 0 393.0 238 6 238.6 S slide See lid 10 ffor d details t il Change in inventories -0.2 -1.3 Production cost 31.4 44.3 Payroll expenses -4.1 2.2 Depreciation 16.6 32.8 Write downs 213.3 400

  10. Slide 10: Exploration Expenses Q4 2009

    Exploration Expenses Q4 2009 MNOK Q4 2009 Q4 2008 Comment Seismic, well data, field studies, etc. 0.9 18.8 Exploration expenses from license 58.0 85.8 participation ti i ti Expensed capitalized exploration wells 5.1 124.9 previous years Expensed dry wells this quarter 304.8 0.2 Skardkollen, Geitfjel

  11. Slide 11: Balance Sheet 31.12.2009

    Balance Sheet 31.12.2009 Assets (MNOK) Q4 2009 Q4 2008 Comment Goodwill 697.9 864.3 Includes a 238.6 MNOK write down Capitalized exploration 893.5 251.5 expenditures Other intangible assets 1 320.5 1 264.6 Includes a 286.6 MNOK net write down Property, plant and equipment 413.9 298.1 Includes 50.2 M

  12. Slide 12: Balance Sheet 31.12.2009 (cont.)

    Balance Sheet 31.12.2009 (cont.) Equity and Liabilities (MNOK) Q4 2009 Q4 2008 Comment Equity 3 850.5 3 691.2 Pension obligations 19.9 16.2 Deferred taxes 1 173.5 907.3 Includes a 261.7 MNOK write down Abandonment provision 190.8 134.6 Deferred revenues 56 5.6 45 1 45.1 Total Provisions 1 389.8 1 10

  13. Slide 13: Agenda

    Agenda ƒ Operations ƒ Financials ƒ Development projects ƒ Exploration ƒ Outlook & Summary ƒ Appendix pp 13

  14. Slide 14: Development projects in the pipeline

    Development p p projects j in the p pipeline p Projects Fulla East Frigg Frøy Draupne/ Hanz H Grevling Project Mill boe Net boepd to Possible First Det norske’s work programme (Gross) Det norske concept Oil/Gas Frøy 56 15,000 FPSO/jacket 2013 Concept screening and pre-FEED ongoing. or jack-up jack u

  15. Slide 15: Frøy: Jack-up or Geo stationary FPSO

    Frøy: Jack Jack-up up or Geo stationary FPSO Milestones 2010 2011 2012 2013 ƒ Exploration drilling Tendering process Pre feed studies ► Storklakken, Storklakken ongoing Contractor selection ► David in PL 102 scheduled summer 2010 PDO approval First oil ► Kalvklumpen in PL 414 Frøy – a 50/50 partners

  16. Slide 16: Draupne/Hanz

    Draupne/Hanz 16/1-7 Appraisal ƒ Appraisal well 16/1-11 ► Songa S D lt att llocation Delta ti nextt week k Di Discovery 16/1-9 ► Determine reservoir thickness/oil water contact ► Test production characteristics • Productivity • Flow barriers Volume estimates (Mboe) pre appraisal well 150 100 50 0 Dra

  17. Slide 17: Øst Frigg Delta – Large in-place resources

    Øst Frigg Delta – Large in-place resources ƒ 60 to 190 MBOE in estimated recoverable reserves ► Similar size as the Luno discovery, but better reservoirs ► About 2/3 oil and 1/3 gas ► Relatively high viscosity oil ► High IOR potential ƒ Frøy (15 km) to the South, Heimdal (36 km) East Frigg License o

  18. Slide 18: Agenda

    Agenda ƒ Operations ƒ Financials ƒ Development projects ƒ Exploration ƒ Outlook & Summary ƒ Appendix pp 18

  19. Slide 19: Det norske drilled 13 wildcats in 2009

    Det norske drilled 13 wildcats in 2009 Large unexplored areas Operators of the 45 wildcats in 2009 19

  20. Slide 20: Exploration in 2009 – 6 discoveries in 13 wells

    Exploration p in 2009 – 6 discoveries in 13 wells Fulla ƒ Det norske has in 2009 used app. 440 MOK after tax to find more barrels than its share in Gamma Delta Goliat ƒ Significant value creation despite a relatively disappointing exploration year Eitri Indication of exploration margin Jetta 7,0 App

  21. Slide 21: The Dual Exploration Strategy

    The Dual Exploration Strategy ƒ A dual exploration strategy ► Det norske aims at discovering up to 50 million PL522 - Andromeda barrels in mature areas annually ► In addition to this – Det norske will participate in larger and more risky plays PL392 - Dalsnuten PL483s - Trolla ƒ A majority of Det no

  22. Slide 22: Storklakken – Potential tie-in to Frøy

    Storklakken – Potential tie-in tie in to Frøy Top Frigg reservoi r, depth 25/1-11 ƒ To be drilled by Aker Barents in Q1-10 ƒ Potential volumes P90/P10 ► 9-27 mboe ƒ Key risk ► Reservoir properties License ownership (PL 460) ƒ Area information Det norske 100.0 percent ► Water depth 115 meter ► Frøy 2

  23. Slide 23: Targeting the most prolific acreage

    Targeting the most prolific acreage ƒ Discovered volumes indicates ► Vintage acreage is more prolific than TFO acreage ► Frontier acreage better than TFO acreage, acreage but higher risk ƒ Det norske actively pursues farm-in opportunites in vintage acreage and 21st round Awarded exploration acreage

  24. Slide 24: 21st licensing round

    21sth licensing round - We will actively pursue Norwegian Sea and Barents Sea opportunities 24

  25. Slide 25: Drilling schedule

    Drilling schedule Det norske operated Partner operated 2010* 2011 Drilling operation Q1 Q2 Q3 Q4 Q1 DETNOR Rig PL 460 Storklakken 100% Aker Barents PL 001B Draupne (appraisal) 35% Songa Delta PL 337 Storkollen 45% Bredford Dolphin PL 028 Balder Trias (ExxonMobil) 40% Aker Barents PL 038D Grevling ap

  26. Slide 26: Balder Triassic

    New well and Balder Triassic possible side t k track ƒ Balder Triassic ► Keyy risk: Reservoir trap p ► To be drilled by Aker Barents ► Spud scheduled in April 2010 ► Oil is proven in two previous p exploration wells related to the prospect Well 25/10-10 License ownership (PL 028) ExxonMobil (O) 60 p

  27. Slide 27: Det norske farms into Dalsnuten (PL 392)

    Det norske farms into Dalsnuten (PL 392) ƒ 10% to Det norske by carrying parts of Luva Shell’s Shell s exploration costs ƒ PL 392 – Many prospects with DHI ► Main prospect Dalsnuten ► Unrisked resources estimated at 600 Mboe Norne Gro ► Main risk is presense of reservoir ► 3D seismic completed ► To

  28. Slide 28: Agenda

    Agenda ƒ Operations ƒ Financials ƒ Development projects ƒ Exploration ƒ Outlook & Summary ƒ Appendix pp 28

  29. Slide 29: Outlook & Summary

    Outlook & Summary ƒ Dual exploration strategy ► 2010 will be dominated by North Sea exploration and appraisal wells ► Evaluate 2009 Norwegian Sea campaign -> More focus on deepwater prospects ƒ Field developments ► Projects running in parallel; Frøy, Draupne/Hanz ► Development scenarios being consid

  30. Slide 30: Slide 30

  31. Slide 31: Disclaimer

    Disclaimer All presentations and their appendices (hereinafter referred to as “Investor Presentations”) published on www.detnor.no have been prepared by Det norske oljeselskap ASA (“Det norske oljeselskap ” or the “Company”) exclusively for information purposes. The presentations have not been revie

  32. Slide 32: Agenda

    Agenda ƒ Operations ƒ Financials ƒ Development projects ƒ Exploration ƒ Outlook & Summary ƒ Appendix pp 32

  33. Slide 33: 2010 Prospect overview

    2010 Prospect overview Gross unrisked potential 2010 Interest % MBOE (P50) Operator PL 460 Storklakken 100% 25 Det norske PL 028 Balder_trias 40% 65 ExxonMobil PL 337 Storkollen 45% 65 Det norske PL 102 David 10% 25 Total PL 341 Stirby Upper Base Case 30% 150 Det norske PL 332 Optimus 40% 25 Talisma

  34. Slide 34: Largest shareholders

    Largest shareholders Rank Name Shareholding Percentage 1 AKER CAPITAL AS 44,944,180 40.4 2 DNO INTERNATIONAL AS 12 95 4478 12,95,4478 11 7 11.7 3 ODIN NORGE 2,793,112 2.5 4 DNB NOR SMB VPF 1,830,000 1.6 5 ODIN NORDEN 1,669,727 1.5 6 HOLBERG NORGE 1,566,857 1.4 7 SPAREBANKEN MIDT-NORGE 1,360,762 1.2

Det norske oljeselskap — Q4 2009 Earnings Presentation on 6ix