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Orron Energy Ab — Lundin Petroleum — Investor Presentation (September 2007)
32 slides from Orron Energy Ab's investor presentation, September 2007
Slide 1: Lundin Petroleum Presentation
Lundin Petroleum Presentation September 2007 WF9697
Slide 2: Disclaimer
Disclaimer DISCLAIMER Certain statements made in this presentation involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. Certain statements relating to Lundin Petroleum’s business and operations are based on management’s expectations,
Slide 3: Lundin Petroleum - A Diversified Portfolio
Lundin Petroleum - A Diversified Portfolio United Kingdom Norway Russia 1 production licence, 4 producing licences, 5 production licences, 2 development licences, 1 exploration licence 20 exploration licences 22 exploration licences Ireland 4 exploration licences Netherlands 18 production licences,
Slide 4: Operational Highlights - First Half 2007
Operational Highlights - First Half 2007 Production 37,900 boepd - in line with forecast Outperformance in Oudna, Tunisia and Broom, United Kingdom Underperformance in Heather, United Kingdom Development Alvheim, Norway - first production fourth quarter 2007 Volund, Norway - development plan approve
Slide 5: Production History
Production History First Half 2007 Actual 37,900 BOEPD 2005 Actual 2006 2004 33,100 BOEPD Actual Actual 29,400 BOEPD 28,900 BOEPD 2003 Actual 2002 16,100 BOEPD Actual 14,010 BOEPD 2001 NIL WF9613 08.07
Slide 6: Oudna - 2007 Production
Oudna - 2007 Production Oudna field, Tunisia Lundin Petroleum 40% (operator) Atlantis 40% ETAP 20% back-in right exercised March 2007 Production first half 2007 20,100 bopd (gross) Water breakthrough in late second quarter. Production decline as forecast WF9193 08.07
Slide 7: Oudna field - 2007 Production
Oudna field - 2007 Production Oudna field, Tunisia Average production for 2007 forecast at >14,000 bopd (gross) Gross Barrels Oil Rate Oil Rate Budget 30,000 25,000 20,000 15,000 10,000 5,000 0 Nov.2006 Dec.2006 Jan.2007 Feb.2007 Mar.2007 Apr.2007 May.2007 Jun.2007 Jul.2007 Aug.2007 Sep.2007 Oct.200
Slide 8: Broom Field - 2007 Production
Broom Field - 2007 Production Broom field, United Kingdom Remaining reserves 34 MMbbls (as at 01.01.07) Average Production for first half 15,900 (gross) Heather Alpha Additional infill production well in second half 2007 „ 6 Gas Import BROOM FIELD* SSIV Manifold Water Injector West 16 ndle Heather 7
Slide 9: Broom Field - 2007 Production
Broom Field - 2007 Production Broom field, United Kingdom Production recovery from Q2 2006 Gross Oil Oil production ahead of forecast Budget Forecast 35,000 30,000 25,000 Gross oil, bpd 20,000 15,000 10,000 5,000 0 1/Jan/06 11/Apr/06 20/Jul/06 28/Oct/06 5/Feb/07 16/May/07 24/Aug/07 2/Dec/07 WF9228 0
Slide 10: 2007 Development Programme
2007 Development Programme Development Norway - Alvheim field, onstream 2007 - Volund field, onstream 2009 UK - Broom field, infill drilling - Thistle field, redevelopment Russia - Ashirovskoye field, Orenburg Ongoing development drilling - Sotchemyu-Talyu field, Komi Republic France - Villeperdue f
Slide 11: Alvheim Status
Alvheim Status First production fourth quarter 2007 Divers and ROV work on buoy installation Development drilling - good results Topsides installation - delays Subsea installation completed Buoy installed offshore and ready for hook up into turret WF9066 05.07 Alvheim FPSO topsides installation in N
Slide 12: Norway - Volund Development
Norway - Volund Development Lundin Licences Oil Field Gas Field Volund (35%) Vilje Alvheim Facility Operator - Marathon PL088 Well Manifold 2P reserves 48.6 MMboe gross Water Disposal/Wells Gas Export Umbilical Exploration discovery in 2004 PL203 Flowline Plan of development approved in 2007 Gas Lif
Slide 13: Greater Alvheim Area - Upside Potential
Greater Alvheim Area - Upside Potential 2P Reserves Alvheim Field (15%) 28.5 MMboe: FALLOW ACREAGE Boa, Kameleon, Kneler Volund Field (35%) 17 MMboe Contingent Resources 6.9 MMboe: East Kameleon branch wells (15%) Gekko (15%) Kobra (15%) EAST KAMELEON PL340 (15%) EAST KNELER Prospective Resources Un
Slide 14: 2007 Proven & Probable Reserves
2007 Proven & Probable Reserves Total 176.4 MMboe Russia (30.3) France (22.6) Netherlands (5.4) Gas 10.9% 176.4 Oil 89.1% Indonesia (17.6) Norway (47.2) Tunisia (3.8) mmboe 01.01.2006 146.1 - Produced (excl Russia) -9.8 - Venezuela Mixed Enterprise -4.4 UK (49.3) + new reserves (excl Acquisitions) 1
Slide 15: Production Growth
Production Growth 2008 Onwards 2007 forecast 2005 34,000 - 37,000 BOEPD Actual 2006 2004 33,100 BOEPD Actual Actual 29,400 BOEPD 28,900 BOEPD 2003 Actual 2002 16,100 BOEPD Alvheim Actual 14,010 BOEPD net plateau production 2001 NIL 14,000 bopd WF9586 06.07
Slide 16: Contingent Resources - Existing Discoveries
Contingent Resources - Existing Discoveries 133 MMboe net Lundin Petroleum Congo (Brazzaville), 6.6 Indonesia, 9.3 Norway, 45.1 France, 12.4 Tunisia, 4.9 UK, 54.7 WF9257 03.07
Slide 17: Thistle Redevelopment
Thistle Redevelopment 6 8b 4d 7a 8a 6b 5 Nor MAGNUS NORTH WEST UK way Magnus 6c Thistle 4c Recovery Factor < 50% PENGUIN CLUSTER 0034/04 (Area 10) 11b 11a 12a 13a 3-D Seismic 14 033 Drilling Rig Reactivation 12b 13b 6a 4b 4a Direct Oil export Don West 18a Don 0033 18aF4 South9dDon SYGNA 16b 18c PLAY
Slide 18: Norwegian Undeveloped Discoveries
Norwegian Undeveloped Discoveries PL006c: South East Tor 75% interest (operator) gross resources: 22.5 mmboe appraisal drilling in 2008 PL148 7/7-2: Nemo 50% interest (operator) gross resources: 20.6 mmboe appraisal drilling in Q4 2007 PL292: Phi South 40% interest gross resources: 10.9 mmboe apprai
Slide 19: Production Forecast
Production Forecast 120 Exploration 100 2P + contingent resources 80 Mboepd 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 WF9688 08.07
Slide 20: Exploration Work Programme - Second Half 2007
Exploration Work Programme - Second Half 2007 Major Exploration drilling activity in second half 2007 Second Half 2007 Exploration Drilling Activity Unrisked Prospective Resource Country Wells Area Potential MMboe Net Lundin UK 2 PL1301, PL1107/1109 32 Norway 3 PL335, PL338, PL292 140 Russia 1 Lagan
Slide 21: Second Half 2007 Exploration Drilling Activity
Second Half 2007 Exploration Drilling Activity 1.3 billion boe unrisked prospective resources targeted in 2H 2007 Likely Drilling Schedule Second Half 2007 Contracted Country Licence Net Interest Operator Rig Q3 Q4 Norway PL338 50% Lundin Bredford Dolphin PL335 18% BG Maersk Guardian PL292 40% BG Ma
Slide 22: Norwegian & UK Continental Shelf Licences
Norwegian & UK Continental Shelf Licences (50) 6204 6203 216 Lundin Petroleum assets prior 217 to 2007218 219 220 6201 6202 6203 6204 Lundin Petroleum 6103 licence awards 2007 6106 6105 6104 214 0033 208 209 0036 Tromso 213 210 0034 0035 211 6004 5 exploration wells remaining in 2H 2007 6005 207 0 K
Slide 23: Indonesia - Tengis Exploration Well
Indonesia - Tengis Exploration Well China Pacific Java Sea Ocean Philippines Tengis Prospect Cepu Indonesia Java BLORA BLORA Indian Ocean JAVA Australia Oil field/discovery Gas field/discovery Condensate field/discovery Oil pipeline 0 10 20 km Gas pipeline Tengis-1 exploration well on the Blora PSC
Slide 24: Russia Exploration - Lagansky Block
Russia Exploration - Lagansky Block 2 exploration wells in 2007 Tengutinskoye Lundin Promyslovskoye Concession Sallkhinskaya Oleynikovskoye Mezhevoye Oil Field Gas Field Kurgannoye Petroskaya Lead Kamyshanskoye S. Gas Condensate Dorozhnoye Kamyshanskoye V. Laganskaya Prospect Prospects Ulan-Khol Mor
Slide 25: Russia Lagansky Block - Alliance with Gazprom
Russia Lagansky Block - Alliance with Gazprom Gazprom option to purchase 50% + one share in Lagansky during exploration phase Lundin Petroleum option to purchase 30% in Lagansky from minority partner during exploration phase If options exercised Lundin Petroleum and Gazprom 50:50 partnership Lundin
Slide 26: Sudan - Block 5B
Sudan - Block 5B Block B Central EGYPT Thar Jath (Dev) LIBYA Re Duar 0 Km 20 d Se nal a Thar Jath Port Sudan lei Ca Baang 1 Block 5B Jong Jarayan 1 CHAD ERITREA Block 5A Khartoum Haar SUDAN Kosti Bahr El Zaraaf Fagil Pakwak Laer ETHIOPIA White Nile Riang Tungrab CENTRAL Wau AFRICAN REPUBLIC Bei BLOC
Slide 27: Sudan - Block 5B
Sudan - Block 5B National Petroleum Commission (NPC) has confirmed the legal validity ofthe Block 5B partnership. Requested by NPC to accommodate “Nile Pet” (Government of South Sudan oil company) with a 10% interest in Block 5B. Commencement of three well swamp drilling programme in the fourth quar
Slide 28: New Ventures - 2007
New Ventures - 2007 Signed 5 PSC in First Half 2007 Vietnam Ethiopia Congo (Brazzaville) GABON 0 KM 50 DJIBOUTI Ho Chi Minh 0 KM 100 ADIGALA AREA CONGO (Brazzaville) ETHIOPIA VIETNAM BLOCKS 2 & 6 BLOCKS 7 & 8 MARINE XI SOMALIA ANGOLA CONGO KENYA (Kinshasa) 0 KM 200 BLOCK 06-94 WF9598 08.07
Slide 29: Prospective Resources - Net Unrisked Resources
Prospective Resources - Net Unrisked Resources 2006 Prospective Resources - 3.4 bn boe net unrisked 2007 Prospective Resources - 5.4 bn boe net unrisked Venezuela UK UK Vietnam Ireland Norway Norway Venezuela Albania Vietnam France Russia Indonesia Ireland Netherlands Albania Russia Tunisia France T
Slide 30: Overall Prospective Resources 2007 & Beyond
Overall Prospective Resources 2007 & Beyond (net unrisked)* 2H 2007 Drilling 1.3 billion boe, 24% 4.1 billion boe, 76% 2008+ Drilling * Includes the licence awards from the Norwegian APA 2006 and UK 24th licensing rounds Excludes prospective resources from Congo and Ethiopia WF9315 08.07
Slide 31: Exploration Upside Potential
Exploration Upside Potential MMboe (unrisked, net to Lundin) 2000 2008 Russia, France, Norway, UK, Vietnam, Ethiopia, Sudan 1500 Block 5B success, Sudan 2007(500) Indonesia - 6 wells, 2007 (30) 1000 UK, 2007 (32) Lagansky, Russia 2007 (533) 500 Luno success + 2 other wells - Norway, 2007 (137) Conti
Slide 32: Financial Results - First Half 2007
Financial Results - First Half 2007 1800 1800 +4% 1600 1600 +15% 1400 1400 1200 1200 Million SEK 1641.9 1581.1 1000 1000 800 800 1420.8 1231.6 +2% 600 600 400 400 509.7 502.1 200 200 0 0 Net Profit Net Profit Operating Operating EBITDA EBITDA first half 2007 first half 2006 Cash Flow Cash Flow first
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