Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Det norske oljeselskap — Q4 2010 Earnings Presentation
30 slides from Aker Bp Asa's earnings presentation, 2011
Slide 1: Fourth quarter 2010 presentation
Fourth quarter 2010 presentation - CEO Erik Haugane - CFO Teitur Poulsen
Slide 2: 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
Slide 3: Agenda
Agenda Highlights & operations Projects Exploration Financials Outlook
Slide 4: Highlights
Highligts Awarded 8 lisences in APA 2010 Three operatorships Dry exploration wells on Dalsnuten and Stirby Increased long term financial strength Issued unsecured 5 year bond of MNOK 600 Drilling on Dovregubben in PL 468 Q4 financials Revenues MNOK 99.5 Net loss MNOK 312.1 4
Slide 5: Production of 2040 bpd in Q4
Production of 2040 bpd in Q4 Production and realised oil price Factors Boepd $/boe Varg production in Q4 10 up 3000 90 24% relative to Q3 10 2500 85 Glitne production in Q4 10 reduced due to maintenance 2000 80 1500 75 Historically high oil sales revenues. Q4 10 up 12% 1000 70 relative to Q3 1
Slide 6: Solid platform for further growth
Solid platform for further growth Licenses Reserves & resources Production & revenues MMBOE MMBOE MBOE MNOK 100 200 1000 1000 1000 80 160 800 800 800 60 120 600 600 600 40 80 400 400 400 20 40 200 200 200 0 0 0 0 0 '05 '06 '07 '08 '09 '10 '05 '06 '07 '08 '09 '05 '06 '07 '08 '09 '10 Partner licenses
Slide 7: Agenda
Agenda Highlights & operations Projects & discoveries Exploration Financials Outlook
Slide 8: Developments in the pipeline
Developments in the pipeline Discoveries Possible production profile Fulla 50000 Storklakken East Frigg Frøy 25000 David Jetta Draupne 0 Dagny 2012 2013 2014 2015 2016 2017 Grevling Existing fields Jetta Frøy Draupne Net boe/day Decision Det Norske’s Mill boe Earliest first Discovery to Possible con
Slide 9: Draupne 112 – 192 MBOE
Draupne Draupne 112 —192 MBOE West Cable
Slide 10: Jetta & Frøy
Jetta & Frøy Frøy Jetta – tie back to Jotun Pending results from WAG/SWAG Pending commercial negotiations subsurface analysis with Jotun Unit Det norske holds 50% interest Det norske holds 60% interest Gross reserves of 60 mmboe Gross reserves of 10 mmboe Possible PDO in 2011 Possibl
Slide 11: Agenda
Agenda Highlights & operations Projects & discoveries Exploration Financials Outlook
Slide 12: Offered eight licenses in APA 2010
Offered eight lisences in APA 2010 North Sea Three as operator Six licenses in the North Sea Additional acreage to two existing licenses Two licenses in the Norwegian Sea Both are additional acreage to existing licenses Norwegian Sea 12
Slide 13: 2011 Exploration roadmap
Norvarg 2011 Exploration roadmap Salina PL Prospect & (operator) Net Drilling Gross % start resources Mboe 468 Dovregubben (DN) 95** Ongoing 100-220 522 Gullris (BG) 20 Q1 700-1700 Gullris 035 Krafla (Statoil) 25 Q1 10-50 535 Norvarg (Total) 20 Q2 80-160 416 Breiflabb (E.ON) 15 Q2 15-180 Dovregubben
Slide 14: PL522 - Gullris
PL522 - Gullris Located in the Norwegian Sea Vøring Basin Prospect Gross unrisked resources 700-1700 MBOE Gullris Upper Cretaceous play Main risk: Trap integrity To be drilled by Aker Barents in early March Water depth 1 260 to 1 300 metres Target TD at 4000 metres Operator BG De
Slide 15: PL 272 – Krafla
PL 272 – Krafla Located in the North Sea Prospect Krafla Gross unrisked resources 10-50 MBOE Jurassic play Main risk is seal Water depth 110 meters Operator Statoil Det norske holds 25 percent Spud in March 15
Slide 16: PL 416 – Breiflabb
PL 416 – Breiflabb Located in the North Sea south of Troll, east of Oseberg Prospect Gross unrisked resources 15-180 MBOE Breiflabb Multizone play Main risk is source/migration Water depth 300 metres Operator EON Ruhrgas Breiflabb East Det norske holds 15 percent Breiflabb 16 Top Sog
Slide 17: PL 535 - Norvarg
PL 535 - Norvarg Located in the Barents Sea, Bjarmeland Platform Norvarg Prospect Gross unrisked reserves 80-160 MBOE Multitarget play Main risk is trap integrity (retention) Norvarg Snøhvit Goliat Water depth 320 metres Operator is Total Det norske holds 20 percent 17
Slide 18: PL 265 - Aldous Major & Aldous North
PL 265 - Aldous Major & Aldous North Aldous Major and Aldous North are located next to the North Sea Avaldsnes discovery Draupne Plans for exploration well on both Aldous Major and Aldous North in 2011 Avaldsnes (Lundin) Prospects Combined gross 140 – 500 MBOE Aldous Major/Aldous North Wat
Slide 19: Agenda
Agenda Highlights & operations Projects & discoveries Exploration Financials Outlook
Slide 20: Financial Highlights
Financial Highlights Q4 10 Q4 09 2010 2009 Production boe/day 2040 1951 2092 1845 Achieved Oil Price ($/bbl) 87,1 73,4 80,2 59,7 Cashflow from Production, MNOK 58,6 42,2 207,2 110,7 Net Profit, MNOK -312,1 -379,3 -671,4 -520,7 Exploration Spend, MNOK 513,2 592,8 2 665,7 1 804,3 20
Slide 21: Successful unsecured bond issue
Successful unsecured bond issue Volume of MNOK 600 Tenor: 5 years – maturity 28th January 2016 Coupon: 3m NIBOR + 675 basis points Unsecured Standard covenants Bought back MNOK 137 of the convertible bond ”AKX01” at par value – remaining outstanding MNOK ~320 21
Slide 22: High net back from production
High net back from production Historical Oil Production Producing assets boe/day Net Production Four producing fields: 3000 • Varg 5% 2500 • Jotun Unit 7% 2000 • Glitne 10% 1500 Jotun • Enoch 2% Enoch 1000 Glitne 500 Varg 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2009 2009 2010 2010 2010 2010 Net back M
Slide 23: Liquidity position as of end Q4 2010
Liquidity position as of end Q4 2010 Liquidity position as of end 2010 (MNOK) Elements 3500 3000 Liquidity position: 1 283 MNOK, down from 1 380 2500 1111 MNOK at the end of Q3 2010 (incl. net working 2000 2278 capital) 422 1500 252 Additional MNOK 600 million raised from 1000 unsecured bond iss
Slide 24: Profit & Loss
Profit & Loss MNOK Q4 2010 Q3 2010 Comment Operating revenues 99.5 80.6 Higher production and sales prices Production cost 40.1 36.5 Higher Production Payroll expenses 4.7 7.5 EBITDAX 54.7 36.6 Exploration expenses 570.6 209.1 2 exploration wells expensed Depreciation 22.4 41.7 Depreciation redused
Slide 25: Exploration expenses
Exploration expenses MNOK Q4 2010 Q3 2010 Comment Seismic, license G&G etc 104.7 198.4 Expensed capitalized exploration wells 10.5 0.0 previous years Expensed dry wells this quarter 474.7 10.5 Dalsnuten (incl. carry), Stirby (30%). Incl. Q3 capitalised costs of MNOK 151 Share of salaries and other o
Slide 26: Balance Sheet
Balance Sheet Assets (MNOK) 31.12.10 31.12.09 Comment Fixed Assets, Goodwill, Other 4 017.7 3 377.4 Increase in capitalised exploration costs Pre payments 106.3 240.4 Related to Aker Barents rig contract Total Fixed Assets 4 124.0 3 617.8 Inventories, Receivables 541.8 460.7 Derivatives 6.0 Fx USD:N
Slide 27: Financial outlook 2011
Financial outlook 2011 Production of ~2,000 boe/day net in 2011 Expected 2011 capital investment budget NOK 300 million 3 infill wells on producing assets - NOK 80 million Development assets – NOK 220 million Expected post-tax exploration spending in 2011 amounts to NOK ~400 million Pre-
Slide 28: Agenda
Agenda Highlights & operations Projects & discoveries Exploration Financials Outlook
Slide 29: Outlook and Summary
Outlook and Summary Exploration • No major HSE events • High activity but disappointing exploration results in 2010 • A significant exploration portfolio to be drilled in 2011, several high impact prospects Projects • Draupne progressing well towards PDO • Frøy: delayed schedule • Jetta approach
Slide 30: DETNORSKE
DETNORSKE IEST STORST PA NORSK SOKK‘
Det norske oljeselskap — Q4 2010 Earnings Presentation on 6ix