North Energy Asa · OSL:NORTH

North Energy Asa — Q2 2015 Earnings Presentation

22 slides from North Energy Asa's earnings presentation, Aug 19, 2015

  1. Slide 1: North Energy Q2 2015

    North Energy Q2 2015 19 August 2015 Adjusting to the challenging market conditions

  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  Q2 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  4. Slide 4: Q2 highlights and subsequent events

    Q2 highlights and subsequent events  Dry well on the Zumba prospect in the Norwegian Sea  No reservoir section encountered, false positive being analysed  Safe operations on time and budget  Dry well on the Haribo prospect in the North Sea  Tight chalk with no significant hydrocarbon indication

  5. Slide 5: Agenda

    Agenda  Q2 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  6. Slide 6: Profit & Loss Q2 2015

    Profit & Loss Q2 2015 NOK Million Q2 2015 Q1 2015 Q2 2014 2014 Gain/loss from licence sale (0,4) 0,0 2,6 3,5 Exploration expenses (116,2) (117,1) (84,8) (365,1) Dry wells 591/616 Payroll (12,1) (16,3) (11,2) (52,9) Included one time costs of MNOK 1,4 Other operating expenses (11,9) (9,9) (10,3) (36,

  7. Slide 7: Balance Sheet 30 June 2015

    Balance Sheet 30 June 2015 NOK Million 30.06.2015 31.03.2015 31.12.2014 Assets Fixed assets 7,5 8,6 9,9 Capitalized drilling cost 5,2 17,0 11,5 PL 510/PL708 Deferred tax asset 146,1 131,2 131,7 Incl. tax loss carried forward MNOK 141 Long term receivables 215,3 119,3 4,4 Mainly tax receivables Dec.

  8. Slide 8: Q2 2015 net cash position of NOK 261 million

    Q2 2015 net cash position of NOK 261 million Net cash* position Q2 2015  Q2 2015 net cash position of NOK 261 million – a reduction 20 from NOK 294 million 62 Q1 2015  Unused exploration loan facility NOK 660 million  Extended until 2017  Accordion option up to MNOK 1,150 * Excluding convertible

  9. Slide 9: Agenda

    Agenda  Q2 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  10. Slide 10: North Energy – the licence portfolio

    North Energy – the licence portfolio  22 licences  Licences 484, 507, 595 and 587 out of the portfolio  2 wells to be drilled in H2 2015  Several future drilling candidates identified  Drill or drop decision in eleven licences within Q2 2016 North Energy ASA · post@northenergy.no · (+47) 78 60

  11. Slide 11: The Zumba and Haribo wells drilled during Q2

    The Zumba and Haribo wells drilled during Q2 Zumba Haribo North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  12. Slide 12: PL 591 – dry well in the Zumba prospect

    PL 591 – dry well in the Zumba prospect  Farm in licence 2014, Tullow operator, North Energy 15%  Safe drilling operation on time and budget  The target, upper Jurassic sand – not present Leiv Eiriksson  Presence of reservoir was the major risk pre- drilling  Geophysical modelling indicated pre

  13. Slide 13: PL 616 – dry well in the Haribo prospect

    PL 616 – dry well in the Haribo prospect  Licence from APA 2011, Edison operator, North Energy 15%  Many different prospects evaluated  Safe drilling operation on time and budget  Prospect represented by Chalk interval in Cretaceous – down flank of the Hod field  All chalk reservoirs were tight

  14. Slide 14: Remaining wells 2015

    Remaining wells 2015 Jurassic target – Norwegian Sea Permian / Carboniferous target - Barents Sea PL 510 Tvillingen South in the Norwegian Sea PL 708 Ørnen in the Barents Sea Timing License Prospect Interest Operator Location Rig 2015 PL 510 Tvilling Sør 20% Maersk Norwegian Sea Leiv Eriksson Ongoin

  15. Slide 15: Tvillingen South – a potential tie-back to Kristin

    Tvillingen South – a potential tie-back to Kristin PL 510 in the Norwegian Sea Awarded APA 2008 Main prospect Tvillingen South Operator Maersk (50%) Hydrocarbons Gas Condensate Partners North Energy (20%) Expected drilling Ongoing Edison (30%) Reservoir Lower to Middle Jurassic Prob. of success Medi

  16. Slide 16: Ørnen – a robust Barents oil prospect

    Ørnen – a robust Barents oil prospect PL 708 in the Barents Sea Awarded 22. round Main prospect Ørnen Operator Lundin (40%) Hydrocarbons Oil Partners North Energy (10%) Expected drilling Q4 2015 Edison (20%) Reservoir Upper Permian Lukoil (20%) Prob. of success Medium Lime (10%) Gross mean 301 mmboe

  17. Slide 17: Potential future drilling candidates

    Potential future drilling candidates  Several future potential drilling candidates identified:  PL 590, Norwegian Sea  PL 762, Norwegian Sea  PL 656, Norwegian Sea  PL 707, Barents Sea  PL 722, Barents Sea  However, given the current adverse market conditions and outlook the Company will be v

  18. Slide 18: Drill or drop licences 2015

    Drill or drop licences 2015 DoD Deadline License Prospect Interest Operator Location Rig 2015 PL 707 Seiland West 10% Edison Barents Sea N/A Q2* PL 503 Valberget 12,5% Lotos North Sea N/A Q4 PL 503 C Valberget 12,5% Lotos North Sea N/A Q4 PL 601 Nupen 20% Wintershall Norwegian Sea N/A Q4 • Operator

  19. Slide 19: Drill or drop licences 2016

    Drill or drop licences 2016 DoD Deadline License Prospect Interest Operator Location Rig 2016 PL 590 Sierra 30% North Energy Norwegian Sea N/A Q1 PL 656 Selsbane 10% EON Norwegian Sea N/A Q1 PL 693 Eagle 15% OMV Norwegian Sea N/A Q1 PL 769 Grid 20% OMV Barents Sea N/A Q1 PL 770 Saarikoski 20% Edison

  20. Slide 20: Agenda

    Agenda  Q2 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  21. Slide 21: Summary and outlook

    Summary and outlook  Two wells expected during H2  Tvillingen Sør ongoing, Ørnen expected to spud in Q4  Faced with 11 drill-or-drops over the next year  Adverse market conditions effecting short term strategy  Very selective on future commitments, including applications in licensing rounds  A

  22. Slide 22: Q & A

    Q&A North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

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