Dno Asa Class A · OSL:DNO
Dno Asa Class A — DNO International — Q2 2013 Earnings Presentation
31 slides from Dno Asa Class A's earnings presentation, 2013
Slide 1: Interim presentation 2013 Second quarter
Interim presentation 2013 Second quarter
Slide 2: Q2 2013 and year-to-date highlights
Q2 2013 and year-to-date highlights • Net profit of NOK 280 million on operating revenue of NOK 764 million • Company working interest (CWI) production of 38,720 boepd (increased from 29,061 boepd in Q1); YTD production of 33,917 boepd CWI • Expanded exploration and appraisal portfolio with four new
Slide 3: Operational milestones at the Tawke field
Operational milestones at the Tawke field • Highest production in a single day (112,949 barrels) • Highest sales in a single day (102,393 barrels) • Highest production from one well in a single day (25,052 barrels) • Largest number of tankers loaded in a single day (532 tankers or one every 2 minute
Slide 4: Other progress in Kurdistan
Other progress in Kurdistan • Horizontal drilling results at Tawke-20 transform development outlook • Tawke-17 oil discovery proves Deep Jurassic exploration play • Summail gas field development launched in Dohuk license • Continuing development and further appraisal of the Bastora and Benenan oil f
Slide 5: Diversified portfolio of assets in six countries
Diversified portfolio of 20 assets in six countries KURDISTAN REGION OF IRAQ UAE, OMAN, YEMEN & SOMALILAND TUNISIA • 3 licenses • 14 blocks • 3 blocks • 467 MMbbls 2P reserves CWI* • 53 MMboe 2P reserves CWI* • Multiple discoveries to be appraised • 24,682 bopd production CWI** • 14,039 boepd produc
Slide 6: Operations Update
Interim presentation 2013 Operations Update
Slide 7: Tawke-20 horizontal well
Tawke-20 horizontal well N S Tawke-20A T-11 • Drilled high in the reservoir to penetrate multiple Euphrates Gercus fracture systems Tawke-15 Khurmala Kolosh Bekhme • Maximizes oil rate and minimizes pressure draw 600m down – less stress on reservoir • Well brought onstream under natural flow Oil wat
Slide 8: Horizontal drilling at Tawke – next steps
Horizontal drilling at Tawke – next steps • Horizontal drilling is a field wide initiative • Concluding drilling operations at Tawke-23 well and preparing to test • Preparing to spud Tawke-21 well Cretaceous well distribution Tawke -26 Tawke -20 Tawke -22 Tawke -24 Tawke -23 Tawke -21 Vertical well
Slide 9: Tawke-17 discovery well
Tawke-17 discovery well • Confirmed oil in the Jurassic Sargelu interval which flowed 1,500 bopd of 26-28˚ API oil • Will complete Tawke-17 as a production well • Will acquire data ahead of an appraisal program Map of deep exploration potential – top Jurassic Tawke-17 discovery well Potential extent
Slide 10: Dohuk license – Summail gas development
Dohuk license – Summail gas development • Fast-track development to supply gas to the Dohuk Power Plant • Re-enter and complete existing Summail-1 well • First gas targeted January 2014 from Summail-1 • Spud Summail-2 well in Q4; Summail-3 in 2014 Summail -1 Summail -2 well site Afreke well site Vil
Slide 11: Erbil license – Benenan field
Erbil license – Benenan field Benenan-3 well • Encountered additional 210 meter oil column in Najmeh reservoir • Preparing to initiate production Benenan-4 well • Appraisal well to confirm extent of Najmeh reservoir • 2.5 km step-out from Benenan-3 well location Q2 2013 interim presentation Slide 11
Slide 12: Erbil license – Bastora field
Erbil license – Bastora field Bastora-2 well • Encountered oil in primary Cretaceous Bekhme target • Encountered Bastora-1A Flowed 1800 – 2000 bopd additional oil in deeper Cretaceous Qamchuqa target • Preparing to test multiple Qamchuqa zones in Q3 Q2 2013 interim presentation Slide 12
Slide 13: Current drilling program
Current drilling program 21 August Country Rig 2013 2014 Kurdistan Rig-9 Bastora-2 Benenan-4 Bastora-3 Rig-10 Tawke-20 Tawke-23 Tawke-22 Summail-2 Summail-3 P-1 Rig-32 Tawke-17 drilling and testing Tawke-21 Tawke-24 ST Summail-1 Sindy completion Yemen Rig-905 Yaalen-5 Nabrajah-9S3 G-13 Salsala-1 N-1
Slide 14: Ras Al Khaimah – Saleh field
Ras Al Khaimah – Saleh field Saleh Field Seismic Cross Section Saleh-8 2.6 2.7 2.8 Total Depth 2.9 IIam Thamama Entry Nahr Umr GWC Thamama 3.2 Gamma spikes indicating possible factures • Saleh-8 targeting undeveloped Thamama gas condensate reservoir • Successfully drilled well to total depth – geolo
Slide 15: Ras Al Khaimah Saleh field reservoir navigation
Ras Al Khaimah Saleh field reservoir navigation Curtain section of Saleh-8 model with offset well Saleh-2 Q2 2013 interim presentation Slide 15
Slide 16: Oman Block 8
Oman Block 8 • Continued strong production performance – 20,126 boepd gross (10,064 boepd CWI) • West Bukha-5 and West Bukha-3 well interventions completed Using horizontal / highly deviated wells to optimize field performance • West Bukha 3D seismic reprocessing on schedule for completion in Decemb
Slide 17: Oman Block 36
Oman Block 36 • Farm-in completed for 75% participating interest • Presence of proven source rocks and multiple stacked reservoir units • Work program comprises seismic reprocessing, 2D seismic acquisition and two wells Q2 2013 interim presentation Slide 17
Slide 18: Yemen Activities
Yemen Activities Block 32 • Drilled Godah-13 infill production well • Salsala-1 exploration well drilling ahead Block 43 • Nabrajah-9S3 pilot drilled to test Shuqra formation above basement • 3D seismic planned Block 72 • Gabdain-3 exploration well Block 47 • Plan to initiate production early 2014 a
Slide 19: Yemen Block 84
Yemen Block 84 • Block 84 awarded to DNO early July 2013 (59.5% participating interest) • 731 km2 surface area • Located in the Masila basin adjacent to >1 billion bbls of discovered oil • Under-explored acreage in a core area Q2 2013 interim presentation Slide 19
Slide 20: Tunisia – Sfax and Ras El Besh
Tunisia – Sfax and Ras El Besh • Farm-in for 87.5% participating interest • Gross contingent resources of 35 – 60 MMbbls • Gross prospective resources of 500 – 700 MMboe Salloum • Salloum-1 tested 1,848 bopd • Potential to drill from shore location and tie into nearby production facilities • One wel
Slide 21: A full-cycle exploration and production company
A full-cycle exploration and production company MENA focused opportunity set spanning the upstream asset life-cycle Exploration Appraisal Development Production • SL-18 (Somaliland) • Sfax & Ras El Besh • Tawke Expansion (Kurdistan) • Tawke (Kurdistan) (Tunisia) • Block 36 (Oman) • Summail gas (Kurd
Slide 22: Financial Summary
Interim presentation 2013 Financial Summary
Slide 23: Q2 2013 financial results – key figures
Q2 2013 financial results – key figures • Quarterly revenues and Quarterly key financials profits up on higher sales in 800 Revenues Netback Operating Profit Kurdistan 700 • Q2 netback increased to NOK 433 million 600 • Investments funded by 500 operational cash flow YTD NOK million 400 300 200 100
Slide 24: Quarterly CWI production (boepd)
Quarterly CWI production (boepd) 50,000 45,000 3,745 10,983 40,000 35,000 10,064 Oman CWI boepd 30,000 25,000 13,374 Kurdistan 20,000 33,851 2,003 30,914 24,682 15,000 Yemen 17,279 10,000 11,332 5,000 3,952 3,948 4,501 4,355 3,975 0 Q2 2012 - Total 23,234 Q3 2012 - Total 41,544 Q4 2012 - Total 46,39
Slide 25: Q2 2013 revenue and gross profit distribution
Q2 2013 revenue and gross profit distribution Revenues – NOK million Gross Profit – NOK million Oman Oman 200 127 Kurdistan 432 Kurdistan 299 Yemen Yemen 27 133 Q2 2013 interim presentation Slide 25
Slide 26: Increasing investments in line with plan
Increasing investments in line with plan • Capex and capitalized Capex and capitalized exploration exploration increased to NOK 500 466 million in Q2 450 Other UAE • Drilling of Saleh-8 well offshore 400 Oman Ras Al Khaimah commenced in Kurdistan Yemen 350 the quarter 300 • Other Q2 investments fund
Slide 27: Robust capital structure
Robust capital structure Cash position Net debt/cash Equity ratio NOK million NOK million Percent 1,800 500 60 % 58 % 1,645 1,648 55 % 1,600 1,508 400 50 % 1,385 300 1,400 257 43 % 200 183 1,200 40 % 39 % 100 1,000 2 0 30 % 800 -100 600 20 % -200 400 -300 10 % 200 -400 Percent -426 0 -500 0% 2010 20
Slide 28: Q2 2013 income statement
Q2 2013 income statement NOK million Q2 2013 Q2 2012 YTD 2013 YTD 2012 Highlights Sales 763.7 155.4 1,345.1 866.9 • Q2 sales up on Cost of goods sold -332.2 -232.3 -613.2 -492.6 increased domestic offtake in Kurdistan Expensed exploration -14.3 -19.0 -25.1 -33.5 • YTD sales up 55% on Admin/other -50
Slide 29: Q2 2013 cash flow statement
Q2 2013 cash flow statement NOK million Q2 2013 Q2 2012 YTD 2013 YTD 2012 Highlights Profit/(loss) before income tax 350.4 -163.2 597.4 227.6 • YTD investments funded by Non cash items & changes in working capital 52.1 618.3 473.4 616.4 operational cash Taxes and interest paid -107.3 -102.5 -228.2 -
Slide 30: Interim presentation 2013 Second quarter
Interim presentation 2013 Second quarter
Slide 31: Important notice
Important notice This presentation (the “Presentation”) has been prepared and delivered by DNO International ASA (“DNO” or the “Company”). The Presentation and its contents is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person than the intended