Dno Asa Class A · OSL:DNO
Dno Asa Class A — DNO International — Q4 2013 Earnings Presentation
24 slides from Dno Asa Class A's earnings presentation, Feb 20, 2014
Slide 1: Interim Presentation 2013 Fourth Quarter and Full Year
Interim Presentation 2013 Fourth Quarter and Full Year
Slide 2: 2013 highlights
2013 highlights • Record levels of operating revenue of NOK 2.97 billion and of operating cash flow of NOK 1.73 billion • Operating profit of NOK 580 million following one-off charges for goodwill and impairments; absent charges, record operating profit of NOK 1.48 billion • Meanwhile, company worki
Slide 3: CWI production
CWI production 2013 full year average 39,170 boepd 2012 full year average 38,354 boepd 3,907 4,143 5,745 Kurdistan 10,736 Oman Yemen 24,527 28,466 2013 quarterly production 60,000 Kurdistan Oman Yemen 50,000 40,000 CWI boepd 38,045 30,000 24,682 23,765 20,000 11,332 10,000 13,374 10,064 10,948 8,610
Slide 4: Continuing to grow wellhead capacity at Tawke
Continuing to grow wellhead capacity at Tawke 300,000 • Horizontal drilling is a field wide initiative and expected to take 250,000 wellhead capacity from 155,000 bopd to 270,000 bopd by yearend Gross wellhead capacity bopd 200,000 • Tawke-21 and Tawke-22 wells completed and undergoing testing 150,0
Slide 5: Facilities expansion at Tawke
Facilities expansion at Tawke • Connected to new Kurdistan export pipeline at Fish Khabur • New single day record for deliveries (pipeline and tanker) of 136,600 barrels • Utilize early production packages to double facilities capacity to 200,000 bopd at end 2014 • New 24 inch pipeline to supplement
Slide 6: Progress at the Dohuk license
Progress at the Dohuk license • Completed and tested Summail-1 well • Summail-3 well now drilling and Summail-2 well to spud in second quarter • Initial deliveries of 30-50 million cubic feet per Dohuk day (MMcfd) in first quarter following trunkline commissioning • Deliveries to ramp up to 100-120
Slide 7: Progress at the Erbil license
Progress at the Erbil license • Benenan-4 well drilled as both appraisal and production well ld • Proved up oil outside mapped closure in several Cretaceous Najmeh intervals • Expect material uplift in oil-in-place volumes • Temporary production facilities installed at Erbil Benenan-3 and Bastora-2
Slide 8: Progress across portfolio
Progress across portfolio • Continue to de-risk, high grade and actively manage the portfolio • Completed acquisition of interest in Sfax and Ras El Besh offshore Tunisia • Acquired Block SL18 in Somaliland and farmed down to 60 percent • Added Block 36 in Oman and Block 84 in Yemen • Active 2014 pr
Slide 9: Current drilling program (firm and contingent)
Current drilling program (firm and contingent) 20.02.2014 2013 2014 2015 Q4 Q1 Q2 Q3 Q4 Q1 Rig-9 Benenan-4 Tawke-24 Tawke – 29 (Jurassic) Benenan-5 Rig-10 Tawke-22 Summail-3 Summail-2 Tawke-25 Tawke-28 Summail-4 (gas) or -5 (oil) Kurdistan Rig-32 Tawke-21 Tawke-26 Peshkabir-1A Tawke-27 Peshkabir-2 T
Slide 10: Exploration and Appraisal Activities
Interim Presentation 2013 Exploration and Appraisal Activities
Slide 11: Prospective resources to be drilled in 2014
Prospective resources to be drilled in 2014 Prospective Resources Targeted 2014 E&A Drilling Program Gross Un-risked DNO Interest MMbbls Percentage Kurdistan Peshkabir 225 55.00 Tawke Jurassic 150 55.00 Yemen Salsala (BL 32) 7 38.95 SW Terrace (BL 43) 2 56.50 Gabdain (BL 72) 55 18.00 Oman Paleozoic
Slide 12: Peshkabir
Peshkabir • Peshkabir-1 well discovered moveable oil in the Jurassic • 200 km2 of new 3D seismic data Peshkabir-1A Peshkabir-1 greatly improved imaging of northern and southern flanks of the structure • Significant bulk volume upside potential • Formations below OWC at Peshkabir-1 well could also of
Slide 13: Tawke Jurassic
Tawke Jurassic • Tawke-17 well confirmed oil in the Jurassic Sargelu interval which flowed 1,500 bopd of 26-28˚ API oil • Tawke-29 well to appraise potential extent of Jurassic reservoir Map of deep exploration potential – top Jurassic Tawke-17 discovery well Potential extent of Jurassic reservoir c
Slide 14: Yemen
Yemen Block 32 • Appraise Salsala oil discovery in 2014 (Salsala-1 well tested 5,900 bopd) Block 43 • Nabrajah-18 S2 side-track to test Shuqra formation Block 72 • Gabdain-3 well to test basement prospectivity Block 84 • Evaluation of new exploration block Interim Presentation 2013 – Fourth Quarter
Slide 15: Oman Block 36
Oman Block 36 • Block 36 shares the same petroleum systems as the prolific Rub al Khali Basin • Large closures mapped on existing data • Majority of block in oil window • Reprocessing of existing 2D seismic data underway with acquisition of new seismic data planned in 2014 • First exploration well t
Slide 16: Tunisia – Sfax and Ras El Besh
Tunisia – Sfax and Ras El Besh • Three existing discoveries with estimated combined resources of 35 to 60 MMbbls • Several exploration opportunities have also been identified • Plan to drill Jawhara-3 exploration well in Q3 to test prospective upside • Play concept already proved with Jawhara-1 Jawh
Slide 17: Financial Summary
Interim Presentation 2013 Financial Summary
Slide 18: 2013 financial results – key figures
2013 financial results – key figures • Investments funded by operating cash flow • Revenue growth on higher production • Q4 impairment charges reduced profits Revenues Netback Operating profit 3,000 2,000 1,600 1,800 1,400 2,500 1,600 1,200 1,400 899 2,000 1,000 NOK million NOK million NOK million 1
Slide 19: Increasing investments
Increasing investments 3,000 • Continue to invest to grow Development Exploration 2,500 • 2013 investments of NOK 1,756 million 2,000 • 2014 planned investments of NOK NOK million 1,500 2,700 million (of which exploration NOK 600 million and development 1,000 NOK 2,100 million) • Expect expenditures
Slide 20: Robust capital structure
Robust capital structure • Strong financial position • Capacity to execute work program and capitalize on new opportunities Cash position Net debt/cash Equity ratio 1482 1,800 500 428 1,645 1,618 400 60 % 57 % 1,600 1,508 55 % 1,385 300 1,400 50 % 200 1,200 43 % NOK million NOK million 39 % 100 40 %
Slide 21: Financial results – summary
Financial results – summary NOK million Q4 2013 Q3 2013 Q4 2012 FY2013 FY2012 • Higher production in Sales 811.7 810.2 1,434.3 2,967.0 2,841.8 Oman helped Cost of goods sold -293.8 -317.8 -373.5 -1,224.8 -1,212.7 increase revenues Expensed exploration -23.6 -12.2 -19.5 -60.9 -78.0 • Stable lifting A
Slide 22: 2013 cash flow statement
2013 cash flow statement NOK million Q4 2013 Q3 2013 Q4 2012 FY 2013 FY 2012 • Disciplined Profit before income tax -440.8 366.6 996.0 523.2 1,322.5 capital allocation Non cash items & changes in 1,071.9 136.1 28.1 1,681.4 563.1 • Investments working capital increased by 40 Taxes and interest paid -
Slide 23: Interim Presentation 2013 Fourth Quarter and Full Year
Interim Presentation 2013 Fourth Quarter and Full Year
Slide 24: 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