Slide 1: Half-Year 2017 Interim Results
Presentation Half-Year 2017 Interim Results
Slide 2: Corporate overview and operational highlights
Corporate overview and operational highlights Page 2 24 August 2017
Slide 3: Corporate overview
Corporate overview • DNO steps up its engagement in Kurdistan on back of strong H1 2017 results • Drilling 15 new wells in Kurdistan in 2017, more than all international operators combined • Operated production averaging 114,000 barrels of oil equivalent per day (boepd), up 4 percent from H1 2016 •
Slide 4: H1 2017 operational highlights
H1 2017 operational highlights • Of H1 2017 operated production of 114,000 boepd, Kurdistan represented 109,700 barrels of oil per day (bopd) and Oman 4,300 boepd • Company Working Interest (CWI) production averaged 70,200 boepd during H1 2017 • In Oman offshore Block 8, West Bukha-5B well drilled t
Slide 5: H1 2017 financial highlights
H1 2017 financial highlights • Received Kurdistan export payments totaling USD 181 million net to DNO in H1 2017, of which USD 32 million toward past receivables • H1 2017 revenues of USD 158 million, up 43 percent from H1 2016 • Lowered Tawke booked receivables to USD 58 million at end-H1 2017 • Re
Slide 6: Stepped up Tawke drilling
Stepped up Tawke drilling • Reached milestone of 200 million barrels cumulative production at Tawke field in May • Three drilling rigs currently operating in Kurdistan, of which two at Tawke and one at Peshkabir • 2017 Tawke drilling program includes 10 production wells, of which six are deep Cretac
Slide 7: Peshkabir update
Peshkabir update • Peshkabir-2 well producing from Cretaceous reservoir at steady rate of 4,700 bopd of 28◦ API crude oil since June • Well producing with zero water cut, gas-oil ratio is stable (550 scf/bbl) and flowing wellhead pressure has decreased only 6 psi since startup • Indications well con
Slide 8: North Sea update
North Sea update • Holds stakes in 11 exploration and appraisal licenses, of which seven on Norwegian Continental Shelf (NCS) and four on UK Continental Shelf (UKCS) • Actively pursuing additional stakes on NCS, including acquisition of producing assets • Will participate in Norway’s two upcoming li
Slide 9: 2017 Kurdistan drilling schedule
2017 Kurdistan drilling schedule Well 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Peshkabir-2 (exploration/appraisal) Tawke-35 (Cretaceous producer) Tawke-42 (Cretaceous producer) Peshkabir-3 (appraisal/producer) Hawler-1A (appraisal/producer) Tawke-41 (Cretaceous producer) Tawke-43 (Cretac
Slide 10: Financial review
Financial review Page 10 24 August 2017
Slide 11: DNO financial results – key figures
DNO financial results – key figures Revenue Netback Operating profit USD million USD million USD million 90 70 40 82 80 77 28 60 30 55 55 70 20 16 61 50 60 9 10 52 40 50 42 0 40 30 -1 26 26 -10 30 20 13 -20 20 10 -30 10 -28 0 0 -40 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2017 201
Slide 12: Kurdistan YTD 2017 payments
Kurdistan YTD 2017 payments YTD 2017 Kurdistan payments net to DNO by month received USD million 40 35 4.4 30 8.6 5.1 4.9 4.6 4.6 4.5 25 4.4 4.0 20 15 25.8 27.0 25.1 24.8 25.1 24.2 24.1 10 21.0 5 0 Jan Feb Mar Apr May Jun Jul Aug Toward entitlement Toward booked receivables • During H1 2017, export
Slide 13: Financial summary
Financial summary USD million Q2 2017 Q1 2017 Q2 2016 H1 2017 H1 2016 Revenue 81.7 76.7 61.2 158.4 110.8 Cost of goods sold -35.7 -30.0 -32.0 -65.7 -62.7 Gross profit 45.9 46.7 29.2 92.6 48.1 Expensed exploration -1.5 -1.6 -16.1 -3.0 -19.6 Administrative expenses -6.9 -5.0 -7.9 -11.9 -14.7 Other ope
Slide 14: Investment program
Investment program Annual operational spend USD million Capex Expex Lifting 215 200 161 150 125 100 50 0 2015 2016 2017 (projected) • Projected operational spend in 2017 to increase more than 70 percent compared with 2016 levels • Planned capex for 2017 increased to USD 130 million, up from earlier
Slide 15: H1 2017 cash flow
H1 2017 cash flow USD million 500 -70.3 400 -40.5 230.1 300 200 380.5 261.1 100 0 Cash at end-2016 Cash from operations Exploration & Tax & finance Cash at end-H1 2017 development investments • Strong H1 2017 operational cash flow of USD 230 million (USD 41 million in H1 2016) • Cash balance increas
Slide 16: Capital structure
Capital structure Cash deposits Financial assets Equity ratio USD million USD million Percent 450 50 60 400 381 45 43 363 40 50 350 44 43 35 41 40 300 40 266 261 35 249 30 250 25 25 22 22 30 200 20 20 150 20 15 100 10 10 50 5 0 0 0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2017 201
Slide 17: Important notice
Important notice This presentation (the “Presentation”) has been prepared and delivered by DNO ASA (“DNO” or the “Company”). Copyright of all published material including photographs, drawings and images in this document remains vested in DNO and third party contributors as appropriate. Accordingly,
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