North Energy Asa · OSL:NORTH

North Energy Asa — Q4 2012 Earnings Presentation

34 slides from North Energy Asa's earnings presentation, Feb 20, 2013

  1. Slide 1: North Energy Q4 2012

    North Energy Q4 2012 20. February 2013

  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 Q4  Financial update  Exploration update  Introducing new technology in Norway  Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  4. Slide 4: Highlights Q4 and later events

    Highlights Q4 and later events  Dry well on PL 498 Skagen  Other prospects in the license under evaluation  Gas discovered in PL 385 Jette  Commercial potential undecided  PL 510 Scarecrow – new firm well in the Norwegian Sea  Wide 22nd Round application  Financial position strengthened  Exp

  5. Slide 5: Agenda

    Agenda  Highlights Q4  Financial update  Exploration update  Introducing new technology in Norway  Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  6. Slide 6: North Energy ASA – Profit & Loss

    North Energy ASA – Profit & Loss Q4 Q4 Year Year MNOK 2012 2011 2012 2011 Profit - - (46,9) - Payroll 11,5 16,5 56,8 70,9 Less no of staff Depreciation 2,6 2,1 10,2 7,2 Exploration expenses 257,1 198,2 540,1 340,2 See detailed overview Other operating expenses 11,9 10,6 41,1 40,0 Operating loss (283

  7. Slide 7: High activity level driving exploration costs

    High activity level driving exploration costs Exploration expenses Q4 MNOK Undecided well PL 385 Jette 95 Dry well PL 498 Skagen 92 Seismic data 22nd Concession Round 51 General exploration 19 Sum 257 North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 ·

  8. Slide 8: North Energy ASA - Balance sheet

    North Energy ASA - Balance sheet Year end Year end Year end MNOK 2012 2011 2010 Assets Fixed Assets 304,2 418,6 161,9 Capitalized drilling cost Short term receivables 540,6 608,4 385,5 Cash and cash equivalents 28,5 34,2 90,7 Total Assets 873,3 1 061,2 638,1 Equity and liabilities Total equity 409,9

  9. Slide 9: Company financed well into 2014

    Company financed well into 2014 “Net cash” position Q4 2012  Net cash position of NOK 259 million 600  Unused exploration 500 16 87 loan facility of NOK 753 million 400 187  Company financed 300 489 well into 2014 with 200 current 259 commitments 100 28  Several industrial 0 Cash 2013 tax 2013 t

  10. Slide 10: Agenda

    Agenda  Highlights Q4  Financial update  Exploration update  Introducing new technology in Norway  Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  11. Slide 11: Firm Drilling Programme

    Firm Drilling Programme 2013 2014 -> Dec. Aug. Sep. Nov. Mar. Feb. May Jan. Jun. Oct. Apr. Jul. License NE Share Operator Rig PL 535 Norvarg 2 20 % Total Leiv Eiriksson PL 299 Frode 20 % Talisman Maersk Giant PL 510 Scarecrow 20 % Maersk TBA Oil Gas Gas / Condensate North Energy ASA, Markedsgata 3,

  12. Slide 12: PL 535 Norvarg – significant gas discovery

    PL 535 Norvarg – significant gas discovery PL 535 in the Barents Sea Awarded 20th round (2009) Main prospect Norvarg Operator Total (40%) Hydrocarbons Gas Partners North Energy (20%) Det Norske (20%) Valiant (13%) Rocksource (7%) Gross P50 260 mmboe Work Completed. 3D acquired and processed program

  13. Slide 13: Well Norvarg-2 planned for spring 2013

    Well Norvarg-2 planned for spring 2013 Norvarg-2 position  Spud expected March-April 2013 with Leiv Eiriksson rig  Norvarg-2 will test geological model and provide further information on  Reservoir productivity, especially channel development Reservoir map - Kobbe Formation  Fluid contacts  Fie

  14. Slide 14: PL 299 Frode - oil in the North Sea

    PL 299 Frode - oil in the North Sea PL 299 Frode in the North Sea Acquired 2012 Main prospect Frode Operator Talisman (31.5%) Hydrocarbons Oil Partners Agora (28.5%) Expected drilling Q2 2013 Dong (20%) North Energy (20%) Prob. of success 19 % Gross mean 86 mmboe unrisked Net mean risked 3 mmboe Wor

  15. Slide 15: Frode in the «fairway» of discoveries

    Frode in the «fairway» of discoveries  The volume is decided by the sealing fault  Dry well to the NE indicates that the main fault is sealing  If fault does not seal, still sufficient oil to give commercial accumulation in the 2/1-12 independent structural closure  In the fairway of Frode a num

  16. Slide 16: PL 510 – Firm well in 2014-15

    PL 510 – Firm well in 2014 -15 PL 510 in the Norwegian Sea Awarded APA 2008 Main prospect Scarecrow Operator Maersk (50%) Hydrocarbons Gas Cond. Edison (30%) Expected drilling 2014 - 15 North Energy Prob. of success 40% (20%) Gross mean unrisked 104 mmboe Net mean risked 8 mmboe Work 3D seismic is r

  17. Slide 17: PL 510 New firm well for North

    PL 510 New firm well for North  New license group from 1.2.2013  Maersk oil 50% operator  Edison 30%  North Energy 20%  5 prospects – with potential cluster development: Breitind  Scarecrow  Toto  Dorothy  Henry  Breitind  Wet gas expected Discovery well 6406/5-1  Transport via ÅTS or ne

  18. Slide 18: PL 526 Vågar – Drill or drop in spring of 2013

    PL 526 Vågar – Drill or drop in spring of 2013 6609/7-1 A B Depth PL 526 in the Norwegian Sea (MSLm) 1000 Awarded 20th round (2009) Main prospect Vågar Nordland Group Vågar Prospect Operator North Energy Hydrocarbons Oil and /or Base Cretaceous Unc Hordaland Group (66,67%) gas Red Beds Rogaland Grou

  19. Slide 19: PL 526 Vågar, evaluated with new technology

    PL 526 Vågar, evaluated with new technology, is possibly the first drill decision in DoD licenses  Vågar prospect - a big prospect with possible oil and gas cap on the doorstep to Lofoten area  Well 6609/7-1 indicate presence of gas and carbonate reservoir  New technology indicate significant ups

  20. Slide 20: PL 590-Mikkeli – extension of drill or drop

    PL 590-Mikkeli – extension of drill or drop PL 590 in the Norwegian Sea Awarded APA2010 Main prospect Lange Operator North Energy (40%) Hydrocarbons Oil Partners Faroe Petroleum Norge AS Expected drilling 2014? (30%) Wintershall Norge ASA Prob. of success (30%) Lange Gross mean unrisked Net mean ris

  21. Slide 21: Lange discovery – Rodriguez

    Lange discovery – Rodriguez 6407/1-6S (Rodriguez)  The well encountered 3 thin sand intervals over a zone of 52 m  The operator Wintershall in PL 475 has estimated the recoverable Lange gas/cond discovery volumes to 20 - 125 Mmboe  The discovery may be a part of a Lange prospect mapped in PL 590

  22. Slide 22: Rodriguez an interesting discovery - May extend into PL 590 acreage

    Rodriguez an interesting discovery - May extend into PL 590 acreage A strong seismic anomaly of the Lange formation in PL 590 may represent an extension of the recent Rodriguez discovery Lange anomaly North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 ·

  23. Slide 23: Rodrigues discovery reservoirs may have significant improvement towards PL 590

    Rodrigues discovery reservoirs may have significant improvement towards PL 590 Rodriguez PL 590 North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  24. Slide 24: Drill or Drop (DoD) licenses

    Drill or Drop (DoD) licenses  Drill or drop decisions to be made the next six months Decissions in drill or drop licences  PL 526 – granted 6 months extension to Licenses to be Relinquished Licences to be May 2013 Relinquished  PL 590 – applied for 1 year extension to Feb 2014, due to nearby disc

  25. Slide 25: First possible addition to Drilling Programme from operated DoD license

    First possible addition to Drilling Programme from operated DoD license 2013 2014-> Dec. Aug. Sep. Nov. Feb. Mar. May Jan. Jun. Oct. Apr. Jul. License NE Share Operator Rig PL 535 Norvarg 2 20 % Total Leiv Eiriksson PL 299 Frode 20 % Talisman Maersk Giant PL 510 Scarecrow 20 % Maersk TBA North PL 52

  26. Slide 26: Agenda

    Agenda  Highlights Q4  Financial update  Exploration update  Introducing new technology to Norway  Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  27. Slide 27: A 3D image from Rex for interpretation

    A 3D image from Rex for interpretation Well 6609/7-1 North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  28. Slide 28: Rex. North Energys new partner is using Virtual Drilling, measuring «resonance»

    Rex. North Energys new partner is using Virtual Drilling, measuring «resonance»  The theory at the base of Virtual Drilling (VD) is known as resonance  Requires calculating the resonating frequency of a certain quality of oil in a certain reservoir  No acquisition cost. Found in lower end of seis

  29. Slide 29: North Energy has «blind tested» Rex based on unknown 2D seismic over unknown wells

    North Energy has «blind tested» Rex based on unknown 2D seismic over unknown wells  Of the 8 «blind prospects» Rex would have drilled only 3 (moved well 7) and made 3 discoveries  North Energy plans to provide Rex with 30 prospects for analysis in 2013 Dry well Traces of oil Column of oil Test 1 B

  30. Slide 30: A process for finding oil in 2013-2017

    A process for finding oil in 2013-2017 Seismic 1. Rex 2. 3. North partner Screening Rex Detail Energy 3D database. VD on 3D G&G VD on 20.000 before G&G evaluations prospects km2/year Strength Volume Shape POS QC, Coincidence between G&G and VD? New POS? Economics. Drilling decision and distribution

  31. Slide 31: Agenda

    Agenda  Highlights Q3  Financial update  Exploration update  Introducing new technology to Norway  Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  32. Slide 32: Outlook

    Outlook  6 months outlook  First appraisal well on Norvarg in the Barents Sea  Frode exploration well in the North Sea  Drill or drop decision on PL 526  Drill or drop decision on PL 562  22nd round application award  12 months outlook  Drill or drop decision on PL 590 following Rodriguez di

  33. Slide 33: Q&A

    Q&A North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  34. Slide 34: Thank you for your attention!

    Thank you for your attention! North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

North Energy — Q4 2012 Earnings Presentation on 6ix