Panoro Energy ASA · OSL:PEN
Panoro Energy ASA — Q3 2011 Earnings Presentation
36 slides from Panoro Energy ASA's earnings presentation, Nov 4, 2011
Slide 1: Third Quarter 2011 Financials
Third Quarter 2011 Financials November 4,, 2011
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA (“Company”). This presentation contains certain statements that are, or may be deemed to be, “forward‐looking statements”, which include all statements other than state
Slide 3: Operational Review
Operational Review Kj il SSolbrække, Kjetil lb kk CEO
Slide 4: Highlights
Highlights Third Quarter 2011 and subsequent events • EBITDA of USD 2.3 2 3 million • Manati production temporarily reduced from ongoing inspections and repairs • Completed one well in MKB, MKB drilling of a second well is ongoing • Rig contract signed for drilling in the Santos basin offshore Brazi
Slide 5: Attractive and balanced asset portfolio
Attractive and balanced asset portfolio E&P independent with South Atlantic focus Manati Aje BS‐3 (Santos) Dussafu ff Offices: London,, Rio,, Oslo Congo MKB Santos Exploration Panoro license area 5
Slide 6: Manati (10%)
Manati (10%) Riser maintenance and repairs continue Gross production MMm3/day BCAM‐40 8,0 Manati (Brazil) 6,63 , 6,68 Operator Petrobras (35%) 5 86 5,86 5,58 6,0 Working Interest 10% 4,12 4,17 3,91 4,0 3,48 Other Partners Queiroz Galvão (45%), Brasoil (10%) 1st Prod 2007 2,0 Current stage Production
Slide 7: Mengo-Kundji-Bindi (20%)
Mengo‐Kundji‐Bindi (20%) Ongoing drilling program MKB ((Congo) g ) MKB • Commenced drillingg program p g of up p to Operator SNPC ‐ Congo National Oil Company (60%) Working Interest 20% six wells from KUN‐200 platform Other Partners PetroCI (20%) 1st Prod 2010 test production • KUN‐201 demonstrated
Slide 8: MKB ongoing drilling program
MKB ongoing drilling program Kundji pilot program 0 7 10 • KUN‐201 well spudded early 37 17 0 0 September Septe be 179 150 7 12 8 33 Platform 100 – Confirms oil in place in 204 150 34 KUN 4bis previously undrilled area 5 2 20 KUN 5 229 100 2 – Directionally drilled to 2,214 8811 10 LL- 9--0 A9 measu
Slide 9: BS-3 area – Progress on the development plans
BS‐3 area – Progress on the development plans S t B Santos Basin i ddevelopments l t ‐ Cavalo C l Marinho M i h (50%) (50%), EEstrela t l d do M Mar (65%) BS‐3 area (Brazil) • Studies continue regarding g g integration g of Operator Petrobras (35‐100%) Working Interest 35‐65% BS‐3 fields and other f
Slide 10: Round 9 exploration blocks
Round 9 exploration blocks Drilling to commence in 2012 Round 9 (Brazil) BM‐S‐63, BM‐S‐71, BM‐S‐72 • Drilling to commence in H1‐2012 Operator Vanco (70%)* Working Interest 15%* • Signed rig contract with Transocean for Other Partners Brasoil 15%* Net resources (MMboe) 130‐165 (unrisked prospects) GS
Slide 11: Exploration asset – Dussafu (33.33%)
Exploration asset – Dussafu (33.33%) Oil discovery at Ruche Ruche‐Marine‐1 Marine 1 Dussafu (Gabon) Exploration portfolio • Ruche‐Marine‐1 discovery confirms our Operator Harvest Natural Resources (66.67%) belief in the high potential of the license Working Interest 33.33% Other Partners No others N
Slide 12: Portfolio outlook
Portfolio outlook Indicative timelines 2011 2012 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Resume full Compressor Manati, Brazil production capacity decision Production build‐up & MKB, Congo Pilot project testing & appraisal drilling appraisal Filing Cavalo Marinho, Brazil Concept selection FEED FID POD Estr
Slide 13: Outlook
Outlook • Operator p expects p full p production capacity on Manati to resume in Q4 • Continuing with 4‐6 well drilling program in i MKB, MKB frac f and d completion l ti of KUN‐201 and KUN‐202 expected in Q4 • Final investment decision on BS‐3 expected late in H1‐2012 • Drilling of high impact well
Slide 14: Financial Review
Financial Review A d K Anders Kapstad, d CFO
Slide 15: Financial highlights
Financial highlights Q3‐2011 and subsequent events • EBITDA of USD 2.3 2 3 million • Strong financial position – Cash position of USD 119 million, not including USD 15 million in escrow related to the Round 9 farm‐out – Outstanding payables of USD 20‐25 million to affect cash position in Q4‐2011 or
Slide 16: Profit & Loss Statement (USD '000)
Profit & Loss Statement ((USD ’000)) Condensed consolidated statement of comprehensive income Q2‐2011 Q3‐2011 Oil and Gas revenue 7 820 7,820 9 182 9,182 Other income ‐ ‐ Total revenues and other income 7,820 9,182 Production costs (1,393) (2,568) Exploration and dry‐hole costs 91 (62) General and a
Slide 17: P&L items Q3-2011
P&L items Q3‐2011 Affected by non‐cash items USDm 4,0 (1.5) 2.3 ‐1,0 ((4.2)) (11.5) ‐6,0 ‐11,0 (12.2) 4.9 ‐16,0 ‐21,0 EBITDA Depreciation Impairment Share‐based Net interest Net other Net foreign Income tax Net income payments cost financial cost exchange 17
Slide 18: Currency effects
Currency effects Brazilian Reais weakened 18% against the US dollar in Q3‐2011 USD/BRL 1,90 • Limited impact on Manati revenue in 1.82 Q3‐2011, as average BRL/USD during the quarter was only ~2.5% below 1,80 Q2‐2011 Q 0 • Other impact on P&L 1,70 – Negative currency effect due to fair value booking
Slide 19: Balance sheet
Balance sheet Per September 30, 2011 USDm Assets Equity and Liabilities 500 450 Short‐term liabilities Cash & 400 cash equivalents 350 Long‐term liabilities Other current assets 300 250 200 Non‐current assets Equity 150 100 50 0 19
Slide 20: Exploration activities
Exploration activities Di Dimas C Coelho, lh EVP EExploration l i
Slide 21: Dimas Ferreira da Silva Coelho
Dimas Ferreira da Silva Coelho Executive Vice President Exploration • Bachelor’s B h l ’ d degree in i GGeology l ffrom FFederal d lU University i it off Rio Ri de d Janario J i • Master of science in seismic inversion from Federal University of Bahía • PhD Geology from Cornell University • MBA from
Slide 22: Location map of concessions in Santos Basin
Location map p of concessions in Santos Basin 22
Slide 23: Panoro's Round 9 Blocks
Panoro’s Round 9 Blocks Prospects Panoro’s Round 9 Blocks: Prospects • Panoro Energy do Brazil Ltda (15%) Vanco (70%) and Brasoil (15%), (15%) pending Brazilian Regulatory Agency approval Pre-salt Jandaia • Round 9 blocks were awarded in March 2008 • First Phase minimum work program Canario complete
Slide 24: Regional play settings for Panoro's prospects
Regional play settings for Panoro’s prospects Schematic regional geological section across central Santos Basin A B C Fonte: ANP ((2006)) apud p Ecology gy ((2010a). ) A = Play Setting for Canário Prospect B = Play Setting for Sabiá Prospect C = Play setting for Jandáia Prospect 24
Slide 25: Sabiá prospect
Sabiá prospect BM‐S‐72 Reservoir: Santonian siliciclastic sandstones Expected Hydrocarbons: Light oil Recoverable Volumes (MMboe): 142 Chance of Success: 15% Structural and seismic amplitude maps Sabiá 5 km 25
Slide 26: Canario prospect
Canario prospect BM‐S‐63 Reservoir: Santonian siliciclastic sandstones Expected Hydrocarbons: Light oil; high GOR Recoverable Volumes (MMboe): 231 Chance of Success: 20% Structural and seismic amplitude maps A” A 5 km 5 km A ” 26
Slide 27: Jandaía prospect
Jandaía prospect BM‐S‐71 Reservoir: Carbonate oolite sandstones Expected Hydrocarbons: Light oil; high GOR Recoverable Volumes (MMboe): 302 Chance of Success: 24% Structural and seismic amplitude maps 5 km 5 km 27
Slide 28: Growth opportunities in Brazil
Growth opportunities pp in Brazil • 11th license li round d expected t d in i Q2‐2012 Q2 2012 – Internal Geophysical and Geological studies under way to select prospective onshore and offshore blocks – Undertaking initial contacts with potential partners to develop Joint Ventures • Pursuing farm‐in
Slide 29: Round 11 - overview
Round 11 ‐ overview 164 blocks in 9 sedimentaryy basins expected p to be offered : Basins # of blocks Location Area in km2 Foz do Amazonas 32 Offshore 27,058 Pará‐Maranhão 8 Offshore 6,154 Barreinrinhas 25 Offshore 13,073 Ceará 11 Offshore 7,388 Potiguar 1 Offshore 7,326 Potiguar 20 Onshore 587 Parn
Slide 30: Basins included in Round 11
Basins included in Round 11 FOZ DO AMAZONAS PARÁ‐MARANHÃO BARREIRINHAS BASIN CEARÁ BASIN NEW FRONTIER BASIN NEW FRONTIER BASIN NEW FRONTIER BASIN NEW FRONTIER BASIN (Gas and light oil) (Light oil) (Light oil) (Light oil) PARANAÍBA BASIN RECONCAVO S BASIN ESPÍRITO SANTO BASIN SERGIPE‐ALAGOAS BASIN PO
Slide 31: Exploration activities – West Africa
Exploration activities W Af West Africa i
Slide 32: Dussafu (33.33%) block - Gabon
Dussafu ((33.33%) %) block ‐ Gabon New infill 3D seismic acquisition – Nov 2011 RUCHE 32
Slide 33: Dussafu play types
Dussafu p playy types yp RUCHE‐1 33
Slide 34: Ruche Results
Ruche Results Visualisation of Ruche Ruche Marine‐1 • DRM‐1 spud 28th April 2011 G b structure Gamba t t under d salt lt • Rig released 15th August 2011 • Well suspended • Total 114 days • Total DRM‐1 & ST1 & ST2 cost of USD 58.6 million ((100% basis)) • Excellent dataset collected from logging incl
Slide 35: Possible cluster area development
Possible cluster area development p • Panoro has mapped pp 19 p prospects p and additional 10 leads in the Dussafu block • Considering the geography and potential prospect volumes, a cluster development is the most likely scenario • Reviewing possible development solutions for the area 35
Slide 36: Third Quarter 2011 Financials – Q&A
Third Quarter 2011 Financials Q Q&A Pl Please visit i it www.panoroenergy.com for f more information i f ti