North Energy Asa · OSL:NORTH

North Energy Asa — Q4 2014 Earnings Presentation

23 slides from North Energy Asa's earnings presentation, Feb 12, 2015

  1. Slide 1: North Energy Q4 2014

    North Energy Q4 2014 12 February 2015 Knut Sæberg, acting CEO Kristen Berli, SVP Exploration and BD

  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  Q4 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: Q4 highlights and subsequent events

    Q4 highlights and subsequent events  Successful awards in the APA 2014  20% ownership in PL 805 on the Loppa High, adjacent to the Gotha and Alta discoveries  Preparations underway for APA 2015 and the 23rd Licensing Round  Drilling underway on Tvillingen South in PL 510  Spud late December  P

  5. Slide 5: Reflecting on 2014 as a whole

    Reflecting on 2014 as a whole  Barents position strengthened  Successful awards in the APA rounds  Strategic cooperation with EMGS  Financial position strengthened  NOK 285 million private placement  Securing visibility and predictability  On track of HC but still no commercial breakthrough 

  6. Slide 6: Update on the strategic review

    Update on the strategic review  Launched in December by the Board of Directors, currently ongoing  Board response to unsatisfactory share price development  Actively challenging strategy to find commercial oil  Goal: Maximise shareholder value  Exploring both stand-alone options and M&A  DNB M

  7. Slide 7: Agenda

    Agenda  Q4 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  8. Slide 8: Profit & Loss Q4 2014

    Profit & Loss Q4 2014 NOK Million Q4 2014 Q3 2014 2014 2013 Profit 0,0 0,2 3,5 98,6 Exploration expenses (91,9) (56,6) (332,1) (696,6) PL713 and purchase of Seismic data Payroll (16,3) (15,6) (52,9) (51,0) Other operating expenses (9,9) (5,9) (36,2) (33,4) EBITDA (118,0) (77,9) (417,7) (682,4) Depre

  9. Slide 9: Balance Sheet 31 December 2014

    Balance Sheet 31 December 2014 NOK Million 31.12.2014 30.09.2014 31.12.2013 Assets Fixed Assets 164,9 167,5 139,2 Deferred tax asset and cap. drilling cost Long term receivables - 299,1 - Tax receivable refund (Dec. 2014) Short term receivables 414,0 424,2 368,5 Tax receivable refund (Dec. 2015) Cas

  10. Slide 10: A fully funded 2015 drilling campaign

    A fully funded 2015 drilling campaign  The current four well 2015 exploration Net cash* position Q4 2014 campaign is fully funded 20  Q4 2014 net cash position of NOK 325 million 56  Unused convertible loan facility of NOK 169 million  Unused exploration loan facility NOK 895 million  Cost cutt

  11. Slide 11: Agenda

    Agenda  Q4 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  12. Slide 12: APA 2014 Awards

    APA 2014 Awards APA 14  PL 805: Award on the Alta- Gotha trend  20% equity to North  Lundin operator  PL 591 C: Award on follow-up potential close to this years Zumba well in PL 591  15% equity to North  Tullow operator North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northener

  13. Slide 13: PL 805 – a Barents Sea licence in a good neighbourhood

    PL 805 – a Barents Sea licence in a good neighbourhood  Licence with multiple Alta prospects close to the Gotha Highbury recent Gotha and Alta PL 805 discoveries Leads  Fits into Norths core focus area Skalle  A discovery could contribute to the next Barents development North Energy ASA · post@no

  14. Slide 14: Portfolio

    Portfolio  25 licences  8 in the Barents Sea  11 in the Norwegian Sea  6 in the North Sea  APA awards not included North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  15. Slide 15: Back-to-back drilling throughout 2015

    Back-to-back drilling throughout 2015 Firm wells Timing Licence Prospect Interest Operator Location Rig Q4 2014 2015 PL 510 Tvilling Sør 20% Maersk Norwegian Sea Leiv Eiriksson Q4 Q1 PL 591 Zumba 15% Tullow Norwegian Sea TBA Q2 - Q3 PL 616 Haribo 15% Edison North Sea TBA Q2 - Q3 PL 708 Ørnen 10% Lun

  16. Slide 16: PL 510 Tvillingen Sør – ongoing

    PL 510 Tvillingen Sør – ongoing 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 40% Gross mean 109 mmbo

  17. Slide 17: PL 616 Haribo – well close to Hod field, south in North Sea

    PL 616 Haribo – well close to Hod field, south in North Sea PL 616 in the North Sea Awarded APA 2011 Main prospect Haribo Operator Edison (25%) Hydrocarbons Oil Partners Concedo (20%) Expected drilling Q3 2015 Noreco (20%) Reservoir Narve Skagen44 (15%) Prob. of success 25% (Operator) North Energy (

  18. Slide 18: PL 591 Zumba – significant prospect next to Heidrun

    PL 591 Zumba – significant prospect next to Heidrun PL 591 in the Norwegian Sea Awarded APA 2011 Main prospect Zumba Operator Tullow (80%) Hydrocarbons Gas and Oil Partners North Energy (15%) Expected drilling Q3 2015 Lime Petroleum (5%) Reservoir Rogn Prob. of success 27% (Operator) Gross mean unri

  19. Slide 19: PL 708 Ørnen – exciting Permian well

    PL 708 Ørnen – exciting Permian well PL 708 in the Barents Sea Awarded 22. round Main prospect Ørnen (Seiland east) 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

  20. Slide 20: Exploration ambition: Find commercial oil

    Exploration ambition: Find commercial oil  Explore where competitive edge is sharpest  Main exploration focus in clearly defined target areas in the Barents and Norwegian Sea based on G&G expertise  Opportunistic approach w.r.t. North Sea  Exclusively focusing on oil prospectivity  Clearly defi

  21. Slide 21: Agenda

    Agenda  Q4 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  22. Slide 22: Summary and outlook

    Summary and outlook  Four wells scheduled for 2015  Testing a total of approx. 700 mmboe of which approx. 100 mmboe net to North Energy  2015 programme fully funded  Focusing on maturing quality opportunities for 2016 and beyond  Exploring where competitive edge is sharpest  Exclusively target

  23. Slide 23: Q&A

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

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