Panoro Energy ASA · OSL:PEN
Panoro Energy ASA — Q4 2010 Earnings Presentation
23 slides from Panoro Energy ASA's earnings presentation, Feb 18, 2011
Slide 1: Fourth Quarter 2010 Financials
Fourth Quarter 2010 Financials February 18, 2011
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA (“Company”). This presentation contains certain statements that are, or may be deemed to be, “forward-looking statements”, which include all statements other than state
Slide 3: Operational Review
Operational Review Kjetil Solbrække, CEO
Slide 4: Highlights
Highlights Fourth Quarter 2010 and subsequent events • EBITDA of USD 5.3 million • Closed the USD 30 million Ajapa sale • Successful completion of USD 140 million bond issue • Operator submitted new development plans for Cavalo Marinho and Estrela do Mar • Round 9 farm-down completed for USD 15 mill
Slide 5: Delivering on 18 months business plan
Delivering on 18 months business plan Event Status Close sale of the Ajapa field offshore Nigeria Refinance existing debt with long term debt aligned to Manati cash flow Secure financing for Brazil exploration wells through farm-down Submit Plan of Development for Cavalo Marinho and Estrela do Mar o
Slide 6: Attractive and balanced asset portfolio
Attractive and balanced asset portfolio E&P independent with South Atlantic focus Manati Aje BS-3 (Santos) Dussafu Offices: London, Rio, Oslo Congo MKB Santos Exploration Panoro license area 6
Slide 7: Manati (10%)
Manati (10%) Record production in Q4-10 Gross production MMm3/day BCAM-40 8,0 6,63 6,68 Manati (Brazil) 5,83 5,86 5,58 5,48 Operator Petrobras (35%) 6,0 4,96 5,03 4,31 Working Interest 10% 4,0 Other Partners Queiroz Galvão (45%), Brasoil (10%) 1st Prod 2007 2,0 Current stage Production 0,0 Q1-09 Q2-
Slide 8: Mengo-Kundji-Bindi (20%)
Mengo-Kundji-Bindi (20%) MKB (Congo) MKB • Well testing to date has confirmed: Operator SNPC - Congo National Oil Company (60%) Working Interest 20% • Sufficient permeability Other Partners PetroCI (20%) 1st Prod 2010 test production Current stage Pilot project commenced • Good results from fracking
Slide 9: BS-3 area – New development plans filed Jan 13, 2011
BS-3 area – New development plans filed Jan 13, 2011 Santos Basin developments - Cavalo Marinho (50%), Estrela do Mar (65%) • Shared gas export system, also with other fields in the area (e.g Tiro and Sidon) • Pilot production in low permeability B1 reservoir in Estrela do Mar Estrela do Mar • Final
Slide 10: BS-3 area – New development plans filed Jan 13, 2011
BS-3 area – New development plans filed Jan 13, 2011 Santos Basin developments - Cavalo Marinho (50%), Estrela do Mar (65%) Production (BOE/day) net to Panoro According to plans of development; 20 000 • Production start-up Q1-2015 • Break-even* oil price of USD ~50 per barrel 15 000 • Total CAPEX ne
Slide 11: BS-3 area – Further upside potential
BS-3 area – Further upside potential Cavalo Marinho (50%), Estrela do Mar (65%), Coral (35%) Volumes (MMBOE) net to Panoro 120 100 80 60 40 20 0 Cavalo Estrela do Upside in Panoro BS-3 Marinho Mar B2/B3 upside in B1 exploration reservoirs EdM 11
Slide 12: Round 9 exploration blocks
Round 9 exploration blocks Successful farm-down to Vanco Round 9 (Brazil) SM-1035, SM-1036, SM-1100 Farm-down of 35% of 50% to Vanco Operator Vanco (70%)* Working Interest 15%* • Panoro to retain 15% carried interest Other Partners Brasoil 15%* Net resources (MMboe) 130-165 (unrisked prospects) • Ne
Slide 13: Exploration asset - Dussafu
Exploration asset - Dussafu Exploration adjacent to infrastructure Exploration portfolio Dussafu (Gabon) Dussafu Marin (33.33%), Gabon Operator Harvest Natural Resources (66.67%) Working Interest 33.33% • Awarded Letter of Intent for drilling rig Other Partners No others Net resources (MMboe) 30 MMb
Slide 14: Ruche-Marine-1 prospect, Dussafu (33.33%)
Ruche-Marine-1 prospect, Dussafu (33.33%) Q2-2011 drilling in Gabon • Primary prospects in the Gamba pre-salt fairway at 2,820 meter depth • Three contingent secondary targets in the Dentale (max TD at 3,700 meters) • Water depth of 116 meters A’ Closing Contour 2,870m Ruche-Marine-1 approved work p
Slide 15: Portfolio outlook
Portfolio outlook Indicative timelines 2011 2012 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Additional gas contract/ Manati, Brazil compressor station decision MKB, Congo Pilot project testing & appraisal drilling Production build-up & appraisal Filing Cavalo Marinho, Brazil Concept selection FEED FID POD Est
Slide 16: Outlook
Outlook • Drilling of the Ruche Marine prospect in Gabon • Commence 6 well drilling A’ program in MKB Closing Contour 2,870m • BS-3 development concept Santos Basin 16
Slide 17: Financial Review
Financial Review Anders Kapstad, CFO
Slide 18: Financial highlights
Financial highlights Q4-2010 and subsequent events • EBITDA of USD 5.3 million • Strong balance sheet at end Q4-2010: – Total assets of USD 420 million, equity ratio of 53% – Cash position of USD 62 million – Net interest-bearing debt of USD 76 million • Successful completion of USD 140 million bond
Slide 19: Profit & Loss Statement (USD '000)
Profit & Loss Statement (USD ’000) Condensed consolidated statement of comprehensive income Q3-2010 Q4-2010 Oil and Gas revenue 11,734 12,438 Other income - - Total revenues and other income 11,734 12,438 Production costs (1,220) (1,822) Exploration and dry-hole costs (96) 25 General and administrat
Slide 20: P&L items Q4-2010
P&L items Q4-2010 USDm 6,0 4,0 -2.4 5.3 2,0 -1.7 0,0 -2,0 -4,0 -5.3 -11.1 -6,0 -8,0 5.7 -10,0 -12,0 EBITDA Depreciation Impairment Share-based Net finance cost Warrant/Other Income tax Net income paym. benefit 20
Slide 21: Balance sheet
Balance sheet Per December 31, 2010 USDm Assets Equity and Liabilities 450 Cash & 400 Short-term liabilities cash equivalents 350 Other current assets 300 Long-term liabilities 250 200 Non-current assets Equity 150 100 50 0 Net interest-bearing debt was USD 76 million per Dec 31, 2010 21
Slide 22: Solid financial position
Solid financial position After recent asset and financial transactions USDm 180 • Cash flow 2011-2013 will cover OPEX, SG&A, principal, interest and taxes 160 • USD ~175 million available for 140 investments 120 • CAPEX to enhance value of: – Cavalo Marinho 100 – Estrela do Mar 80 – MKB – Dussafu 60
Slide 23: Fourth Quarter 2010 Financials Q&A
Fourth Quarter 2010 Financials Q&A Please visit www.panoroenergy.com for more information