North Energy Asa · OSL:NORTH

North Energy Asa — Q4 2010 Earnings Presentation

32 slides from North Energy Asa's earnings presentation, Feb 22, 2011

  1. Slide 1: North Energy Q4 2010

    North Energy Q4 2010 22 February 2011

  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  APA 2010 awards  Exploration update  North Energy – a stronger player in the north  Financials  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

    Highlights Q4  Full score in the APA 2010 licensing round  Five licenses awarded, including one operated  Evaluating options to accelerate the Fogelberg project  Industry initiatives to increase gas export capacity from the area  Executing and firming up the eight well exploration program  Ind

  5. Slide 5: Agenda

    Agenda  Highlights Q4  APA 2010 awards  Exploration update  North Energy – a stronger player in the north  Financials  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: Full score in the APA 2010 licensing round

    Full score in the APA 2010 licensing round  Full score with five licenses  High quality application demonstrating excellent understanding of the prime target areas – the Barents Sea and the Norwegian Sea  One operated license, PL 590, in the Norwegian Sea  Recognition of North Energy's capabilit

  7. Slide 7: Attractive portfolio

    Attractive portfolio  In total, 19 licenses post APA 2010  8 licenses in the Barents Sea  A major player in the area  7 in the Norwegian Sea  Of which, two operated  4 licenses in the North Sea  Possible drilling in 2013 as operator North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47)

  8. Slide 8: Two new licenses in the Barents Sea

    Two new licenses in the Barents Sea PL 594 – Block 7123/5 Statoil (O) 40% North Energy 20% OMV 20% Wintershall 20% PL 595 – Block 7124/1,2 Edison International (O) 60% North Energy 40%  Two new licenses in the Hammerfest Awarded license Basin with high possibility of finding oil North Energy ASA, M

  9. Slide 9: One new operated position in the Norwegian Sea

    One new operated position in the Norwegian Sea PL 590 – Block 6507/10 North Energy (O) 40% Wintershall 30% Faroe Petroleum 30% PL 587 – Block 6407/8 Edison International (O) 60% North Energy 40% Awarded license  Operator for an interesting oil prospect close to infrastructure  Partner in sizeable

  10. Slide 10: North Sea – additional acreage

    North Sea – additional acreage PL 503B – Block 17/5,6,9 Lotos E&P (O) 25% North Energy 25% Edison International 25% Skagen 44 25% Awarded license  Securing acreage for possible future drilling of a large prospect North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 7

  11. Slide 11: Agenda

    Agenda  Highlights Q4  APA 2010 awards  Exploration update  North Energy – a stronger player in the north  Financials  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

  12. Slide 12: PL 433 Fogelberg – maturing a promising discovery

    PL 433 Fogelberg – maturing a promising discovery  Gas/condensate discovery close to infrastructure  Discovered in the spring of 2010  Several export options  LLN via Heidrun moving up (2017) as result of recent wells on Ormen Lange  Volume estimates indicate commercial discovery  Mean recover

  13. Slide 13: PL 341 Stirby – evaluating well results and remaining resource potential

    PL 341 Stirby – evaluating well results and remaining resource potential  Stirby Upper  Penetration outside main reservoir extent  Prospects under evaluation in the license group  Stirby Deep  100 meter gas column  Porosity between 8 – 10%  Low permeability  Declared sub-commercial by the li

  14. Slide 14: High-impact exploration program

    Drilling program set to test more than 300 mmboe net to North Energy over the next 18 months mmboe  High-impact exploration program Accumulated net risked resource estimate 110 100 coming up Net unrisked pre-drill resource estimate 90  Five firm wells in place 80  Two drill-or-drop decisions to b

  15. Slide 15: Drilling program

    Drilling program Net mean Rig Timing Prospect Licence Interest Operator Location risked secured 2011 2012 Norvarg PL 535 20% Total Barents Sea 13 mmboe West Phoenix Q2 Heilo PL 530 20% GdF Suez Barents Sea 24 mmboe Aker Barents Q3 Heilo sidestep* PL 530 20% GdF Suez Barents Sea N/A Aker Barents Q3 Z

  16. Slide 16: PL 535 Norvarg – first high impact well in 2011

    PL 535 Norvarg – first high impact well in 2011 PL 535 in the Barents Sea Awarded 20th round (2009) Main prospect Norvarg Operator Total (40%) Hydrocarbons Gas Partners North Energy (20%) Expected drilling Q2 2011 Det norske (20%) Prob. of success 29% Rocksource (20%) Gross mean unrisked 226 mmboe N

  17. Slide 17: PL 530 Heilo – second high impact well in 2011

    PL 530 Heilo – second high impact well in 2011 A B PL 530 in the Barents Sea 0.500 Seabed Awarded 20th round (2009) Main prospect Heilo Heilo ,1270m Operator GDF Suez (40%) Hydrocarbons Oil w/gas cap 1.000 S (TWT) Partners North Energy (20%) Expected drilling Q3 2011 Front Exploration (20%) Prob. of

  18. Slide 18: PL 518 Zapffe - well late in 2011

    PL 518 Zapffe - well late in 2011 PL 518 and PL 518B in the Barents Sea Awarded APA 2008 Main prospect Zapffe Operator DONG (40%) Hydrocarbons Oil Partners North Energy (30%) Expected drilling Q4 2011 Front Exploration (20%) Prob. of success 25 % Sagex (10%) Gross mean unrisked 280 mmboe Net mean ri

  19. Slide 19: PL 385 Jette – firm well late in 2011/early 2012

    PL 385 Jette – firm well late in 2011/early 2012 PL 385 in the Norwegian Sea Acquired 2009 Main prospect Jette Operator Statoil (45%) Hydrocarbons Gas Cond. Partners North Energy (15%) Expected drilling Q4 2011 Wintershall (20%) Prob. of success 37% Noreco (20%) Gross mean unrisked 95 mmboe Net mean

  20. Slide 20: PL 498 Skagen – drill decision taken

    PL 498 Skagen – drill decision taken PL 498 in the North Sea Acquired 2009 Main prospect Skagen Operator Lotos (25%) Hydrocarbons Oil Partners North Energy (25%) Expected drilling 2012 Edison Int. (25%) Prob. of success 36% Skagen 44 (25%) Gross mean unrisked 75 mmboe Net mean risked 7 mmboe Work Dr

  21. Slide 21: Agenda

    Agenda  Highlights Q4  APA 2010 awards  Exploration update  North Energy – a stronger player in the north  Financials  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

  22. Slide 22: North Energy's strategic platform

    North Energy's strategic platform  Fully financed exploration portfolio into 2012:  High probability of success (PoS) prospects  Close to infrastructure  Low financial exposure  Optimize through active business development  Strategic positioning in relation to  Core areas in the north  Openi

  23. Slide 23: Positioning to participate as a strong, local player outside Lofoten/Vesterålen

    Positioning to participate as a strong, local player in the promising area outside Lofoten/Vesterålen  Fisheries have been main Known prospects obstacle in the past  Fishery organizations recently opened door to impact study and chose North Energy as negotiating partner due to:  Location Map: BBC

  24. Slide 24: The previously disputed area to the East could be opened in the next big licensing round

    The previously disputed area to the East could be opened in the next big (22nd) licensing round  North Energy’s location ideal for targeting the border plays  Active player in the political debate, centrally and locally  Russian employees with New experience from Russia area Map: BBC  Presently

  25. Slide 25: Agenda

    Agenda  Highlights Q4  APA 2010 awards  Exploration update  North Energy – a stronger player in the north  Financials  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

  26. Slide 26: North Energy ASA – Profit & Loss

    North Energy ASA – Profit & Loss 4Q 4Q Year Year MNOK 2010 2009 2010 2009 Payroll 16,1 17,6 62,1 62,4 Depreciation 1,5 1,9 4,6 3,4 Exploration expenses 118,6 24,1 179,0 113,1 PL 341 Stirby expensed Q4 2010 Other operating expenses 10,4 7,9 43,5 28,8 Incl. 4sea, increased activity Operating loss 146,

  27. Slide 27: North Energy ASA - Balance sheet

    North Energy ASA - Balance sheet Year end Year end MNOK 2010 2009 Assets Fixed Assets 161.9 32.6 Capitalised drilling PL433 of 110 MNOK Receivables 385.5 164.0 Acc tax receivables of 348 MNOK Cash and cash equivalents 90.7 45.7 Total Assets 638.1 242.3 Equity and liabilities Total equity 480.2 152.9

  28. Slide 28: Solid financial situation

    Solid financial situation  Cash balance of NOK 91 million  Expected tax reimbursement of NOK 348 million Liquidity as of  No interest bearing debt Q4 2010  Net cash position of NOK 397 million  Exploration loan facility of MNOK 760 to cover drilling program 2011 – 2012 negotiated with DnBNOR an

  29. Slide 29: Net cash according to plan

    Net cash according to plan “Net cash” position Q4 2010  Net cash position of NOK 397 million 41 397  No interest bearing debt  Unused exploration loan 348 facility of NOK 760 million  Developing in line with funding plans at the IPO 91 Cash 2011 Tax refund Net working capital Net cash North Ener

  30. Slide 30: Agenda

    Agenda  Highlights Q4  APA 2010 awards  Exploration update  North Energy – a stronger player in the north  Financials  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

  31. Slide 31: Outlook

    Outlook  6 months outlook  Results from 21st ordinary licensing rounds  Norvarg exploration well in the Barents Sea  Heilo exploration well in the Barents Sea + possible sidestep  Further work towards PDO on Fogelberg  Drilling decision on PL 510 Scarecrow  12 months outlook  In total, drill

  32. Slide 32: 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

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