North Energy Asa · OSL:NORTH

North Energy Asa — Q3 2016 Earnings Presentation

18 slides from North Energy Asa's earnings presentation, Nov 10, 2016

  1. Slide 1: North Energy Q3 2016

    North Energy Q3 2016 Comfortably positioned in a challenging market 10 November 2016 CEO Knut Sæberg

  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  Q3 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  4. Slide 4: Q3 highlights and subsequent events

    Q3 highlights and subsequent events  High grading of portfolio continues  Agreements for the sale of licences PL 378, 719 and 762 entered in the quarter  Three of the remaining licences facing drill-or-drops in Q1 2017  Application submitted in the APA 2016 licensing round  Acreage with interes

  5. Slide 5: Agenda

    Agenda  Q3 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  6. Slide 6: Licence portfolio update

    Licence portfolio update  The 2015 revised exploration strategy raised North Energy’s commercial thresholds  Response to the adverse market conditions  High grading of portfolio  16 licences acquired through Explora transaction  Year to date the Company has divested PL 378, 507, 707, 719, 722,

  7. Slide 7: Remaining active portfolio

    Remaining active portfolio Licence Prospect Interest Operator Location Status PL 805 Highbury 40% Lundin Barents Sea DoD Q1 2017 PL 757 Batur 30% Centrica Norwegian Sea DoD Q1 2017 PL 770 Saarikoski 20% Edison Barents Sea DoD Q1 2017 PL 713 Pingvin 20% Statoil Barents Sea BoK Q2 2017 PL 616 Haribo 1

  8. Slide 8: Upcoming drill-or-drop: PL 805, adjacent to the Alta and Gotha discoveries

    Upcoming drill-or-drop: PL 805, adjacent to the Alta and Gotha discoveries  North E&P has a major interest in PL 805 (part of blocks 7120/2, 7120/3 and 7121/1)  Licence partnership  Lundin 40% (O)  Petoro 20%  North E&P 40%  Located close to the Alta and Gotha discoveries  Several play models

  9. Slide 9: APA 2016 application

    APA 2016 application  APA2016 – one application submitted  Several areas evaluated  Stratigraphic trap in Lower Cretaceous  Hammerfest basin  Large hydrocarbon potential (400 mmbbl recoverable)  Trap considered main risk  Oil prone migration  Moderate depth to reservoir 2100 m  Sand proven

  10. Slide 10: Agenda

    Agenda  Q3 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  11. Slide 11: Profit & Loss Q3 2016

    Profit & Loss Q3 2016 (North Energy group consolidated) NOK Million Q3 2016 Q3 2015 YTD 2016 YTD 2015 2015 Gain/loss from licence sale - - 9,5 (0,4) 5,4 Sale of licences mainly PL722, PL 507 Exploration expenses (7,2) (117,6) (17,5) (350,9) (415,2) Licences work program Payroll (8,0) (12,2) (34,2) (

  12. Slide 12: Significant drop in cost levels contributing to the result improvements

    Significant drop in cost levels contributing to the result improvements  Exploration and licence expenses down 95 per cent Y/Y as per 30 Sept  No. of licences reduced from 22 to 8 following strict high grading process  No drilling activity YTD and no commitments going forward  Cost levels expect

  13. Slide 13: Balance Sheet 30 September 2016

    Balance Sheet 30 September 2016 (North Energy group consolidated) NOK Million 30.09.2016 30.06.2016 31.12.2015 Comments on 30.09.2016 Assets Fixed assets 1,8 2,4 3,8 Capitalized drilling cost 0,0 0,0 0,0 Deferred tax asset 193,0 200,4 149,8 Def. tax on loss carried forward Investments 41,2 30,7 Shar

  14. Slide 14: Solid net cash position

    Solid net cash position (North Energy group consolidated)  Net cash position of NOK Net cash position Q3 2016 161 million 20  2015 tax refund settled on 2 62 November  Total exploration loan facility lowered to NOK 200 million after repayment of loan North Energy ASA · post@northenergy.no · (+47)

  15. Slide 15: Agenda

    Agenda  Q3 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  16. Slide 16: Revised strategy yielding results

    Revised strategy yielding results % North Energy Oslo Benchmark Index North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  17. Slide 17: Summary and outlook

    Summary and outlook  Comfortably positioned in a challenging market  Cost levels brought to a minimum, no major remaining investment commitments  Financial flexibility with NOK 161 million in net cash  High grading of portfolio almost completed  Remaining licences offers commercially interestin

  18. Slide 18: Q&A

    Q&A North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

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