North Energy Asa · OSL:NORTH

North Energy Asa — Q1 2012 Earnings Presentation

29 slides from North Energy Asa's earnings presentation, May 3, 2012

  1. Slide 1: North Energy Q1 2012

    North Energy Q1 2012 3 May 2012

  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 Q1  Exploration update  Financial update  Outlook & Summary North Energy ASA, Markedsgata 3, Alta, Norway. 3 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  4. Slide 4: Highlights Q1 and later events

    Highlights Q1 and later events  Dry well on Storebjørn in the North Sea  Additional firm 2012-well – oil prospect in the North Sea  Fogelberg discovery sold for NOK 70 million  Successful share issue of NOK 156 million  Farm-down in four licences with cash settlement  Two new licences from sel

  5. Slide 5: Agenda

    Agenda  Highlights Q1  Exploration update  Financial update  Outlook & Summary North Energy ASA, Markedsgata 3, Alta, Norway. 5 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  6. Slide 6: Dry well on PL 450 Storebjørn

    Dry well on PL 450 Storebjørn  Primary target was encountered after high pressure and high temperature Ula delayed drilling progress Tambar Storebjørn  Samples indicate water bearing reservoir  Well reached a depth at 4500 m  Evaluation of remaining potential is ongoing  Up-dip potential in the

  7. Slide 7: Asset transaction with Lime Petroleum

    Asset transaction with Lime Petroleum  Farm-down of 50% of Norths interest in: Licence Status Location Original North interest  PL 503 Valberget DoD North Sea 25%  PL 518 Zapffe Dry well Barents Sea 30%  PL 526 Vågar DoD Norwegian Sea 40%  PL 530 Heilo Dry well Barents Sea 20%  North Energy wi

  8. Slide 8: Swapping gas in the Norwegian Sea with oil in the North Sea

    Swapping gas in the Norwegian Sea with oil in the North Sea  Swap deal with DONG  North Energy swaps 20% in PL 385 with 20% in PL 299  Reduced share from 35% to 15% in PL 385  Increases number of wells from four to five in 2012 North Energy ASA, Markedsgata 3, Alta, Norway. 8 Phone: (+47) 78 60

  9. Slide 9: Soaring interest for the Barents Sea ahead of 22nd round

    Soaring interest for the Barents Sea ahead of 22nd round  With the understanding of the Barents Sea wildcats geology and increased POS, recent 8 100% discoveries and expectations of a 7 new trunk line, the interest for 80% Average success rate No. of wildcat wells 6 exploration in the Barents Sea i

  10. Slide 10: Strong position in time for the 22nd round

    Strong position in time for the 22nd round  In competition with 25 'old' and # Company BARENTS SEA PLAYERS Licenses km2 'new' players in the Barents Sea, 1 Statoil 23 4 746 2 Petoro 20 2 553 North Energy has built up a 3 RWE Dea 11 983 4 GDF Suez 10 1 588 portfolio of 8 licenses 5 ENI 9 1 277 6 OMV

  11. Slide 11: Norvarg shows the way to successful 22nd round application

    Norvarg shows the way to successful 22nd round application  Agreed resource potential in the Norvarg structure  The license is aligned regarding the appraisal program mmboe 600 500 400 300 Commercial threshold LNG 200 100 Commercial threshold pipe 0 p90 low p50 base p10 high North Energy ASA, Mark

  12. Slide 12: License map

    License map  Partner in 25* licenses on the Norwegian Shelf  Operator in two licenses (Norwegian Sea)  8 in the Barents Sea  9 in the Norwegian Sea  8* in the North Sea * Purchase of PL 299 in the North Sea signed 30.4.2012 - awaiting authority approval North Energy ASA, Markedsgata 3, Alta, No

  13. Slide 13: PL 370 / 370 B Kakelborg – spud May 2012

    PL 370 / 370 B Kakelborg – spud May 2012 PL 370 / PL 370 B in the North Sea Acquired 2011 Main prospect Kakelborg Operator Wintershall (40%) Hydrocarbons Oil Partners North Energy (10%) Expected drilling Q2 2012 Agora (30%) PoS 30% Concedo (20%) Gross mean unrisked 108-256 mmboe Net mean risked 3-8

  14. Slide 14: PL 370 / 370 B Kakelborg – two proven reservoir models

    PL 370 / 370 B Kakelborg – two proven reservoir models 33/6-4 33/5-2  HC shows in well 33/5-2  Valid traps on both levels  Seismic anomalies indication of hydrocarbon presence  Rock physics modeling indicate loose sands filled with oil Kakelborg anomaly PL 370 PL 370B N North Energy ASA, Markeds

  15. Slide 15: PL 370 / 370 B Kakelborg – drilling and development

    PL 370 / 370 B Kakelborg – drilling and development  Exploration well spud April 2012  Rigg: Borgland Dolphin  Optional production test (DST)  Development ~35 km  Stand-alone FPSO if large  Offshore loading of oil  Fast track development to spare capacity on Snorre if small North Energy ASA,

  16. Slide 16: PL 385 Jette – 20% equity swapped with 20% of oil prospect

    PL 385 Jette – 20% equity swapped with 20% of oil prospect in North Sea PL 385 in the Norwegian Sea Acquired 2009 Main prospect Jette Operator Statoil (45%) Hydrocarbons Gas cond. Partners North Energy (15%) Expected drilling Q2/Q3 2012 Noreco (20%) PoS 37% Dong (20%) Gross mean unrisked 95 mmboe Ne

  17. Slide 17: PL 299 Frode – most recent acquisition

    PL 299 Frode – most recent acquisition PL 299 Frode in the North Sea Acquired 2012 Main prospect Frode Operator Talisman (31.5%) Hydrocarbons Oil Partners Dong (20%) Expected drilling Q3 2012 Agora (28.5%) Prob. of success 29 % North Energy (20%) Gross mean unrisked 18 mmboe Net mean risked 1 Mmboe

  18. Slide 18: PL 498 Skagen – drilling Q3 2012

    PL 498 Skagen – drilling Q3 2012 PL 498 in the North Sea Acquired 2009 Main prospect Skagen Operator Lotos (25%) Hydrocarbons Oil Partners North Energy (25%) Expected drilling Q3 2012 Edison Int. (25%) PoS 36% Skagen 44 (25%) Gross mean unrisked 75 mmboe Net mean risked 7 mmboe Work plan Drill one w

  19. Slide 19: Aggressive drilling program

    Aggressive drilling program 2012 2013 August August Sept. Sept. Mars June June Nov. Nov. Dec. Dec. Feb. April May May Jan. Oct. Oct. July July PL 370 Kakelborg Borgland Dolphin PL 385 Jette West Alpha PL 299 Frode Maersk Guardian PL 498 Skagen Maersk Guardian Spud first half 2013 PL 535 Norvarg NN P

  20. Slide 20: 2012 drilling activity and Drill or Drop decisions

    2012 drilling activity and Drill or Drop decisions  Four more wells to be drilled in 2012  Q2 Kakelborg  Q3 Jette  Q3 Skagen  Q4 Frode  Four drill or drop decisions in 2012  PL 536 Elbrus  PL 526 Vågar  PL 590 Mikkeli  PL 503 Valberget Drill or Drop decision 2012 Well to be drilled 2012 No

  21. Slide 21: Agenda

    Agenda  Highlights Q1  Exploration update  Financial update  Outlook & Summary North Energy ASA, Markedsgata 3, Alta, Norway. 21 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  22. Slide 22: Improved financial capacity and risk profile

    Improved financial capacity and risk profile  Successful share issue of NOK 156 million  Incl. NOK 6 million from repair issue  Sale of Fogelberg adds NOK 70 million of cash to the balance sheet  Governmental approval expected Q2 2012  Cash settlement of NOK 31,8 million from farm-down in four

  23. Slide 23: Cash settlement in farm-down agreement with Lime

    Cash settlement in farm-down agreement with Lime  Immediate payment of NOK 27,5 million  Structured as an unsecured loan until completion of license-transaction  The loan ranks behind North Energy’s exploration facility  Compensation of NOK 31,8 million from Lime at completion of license- transa

  24. Slide 24: North Energy ASA – Profit & Loss

    North Energy ASA – Profit & Loss Q1 Q1 Year 4Q MNOK 2012 2011 2011 2011 Payroll 18.0 18.8 70.9 16.5 Depreciation 2.5 1.5 7.2 2.1 Exploration expenses 24.1 7.4 340.2 198.2 Increased activity on licences Other operating expenses 9.7 10.4 40.0 10.6 Operating loss -54.3 -38.1 -458.3 -227.4 Finance incom

  25. Slide 25: North Energy ASA - Balance sheet

    North Energy ASA - Balance sheet Q1 Year end Year end Year end MNOK 2012 2011 2010 2009 Assets Fixed Assets 548.6 418.6 161.9 32.6 Capitalized drilling cost Long term receivables 137.5 0.0 0.0 0.0 Tax receivable refund - Dec 2013 Short term receivables 674.7 608.4 385.5 164.0 Tax receivable refund -

  26. Slide 26: Net cash according to plan

    Net cash according to plan “Net cash” position Q1 2012  Net cash position 800 of NOK 269 million 700 138 56  Unused exploration 600 loan facility of 500 NOK 534 million 416 400  Exploration facility 554 300 increased to NOK 200 950 million Q1 2012 269 100  Sale of Fogelberg 49 0 of NOK 70 millio

  27. Slide 27: Agenda

    Agenda  Highlights Q1  Exploration update  Financial update  Outlook & Summary North Energy ASA, Markedsgata 3, Alta, Norway. 27 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  28. Slide 28: Outlook

    Outlook  6 months outlook  Kakelborg exploration well in the North Sea  Jette exploration well in the Norwegian Sea  Skagen exploration well in the North Sea  Frode exploration well in the North Sea  Decision on appraisal program for Norvarg  Drill or drop decision on operated licenses 526 an

  29. Slide 29: Thank you for your attention!

    Thank you for your attention! North Energy ASA, Markedsgata 3, Alta, Norway. 29 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

North Energy — Q1 2012 Earnings Presentation on 6ix