Dno Asa Class A · OSL:DNO
Dno Asa Class A — DNO International — Q1 2012 Earnings Presentation
26 slides from Dno Asa Class A's earnings presentation, May 21, 2012
Slide 1: Q1 2012 Presentation DNO International
Q1 2012 Presentation DNO International London, 21 May 2012
Slide 2: Opening remarks and strategy update
Bijan Mossavar-Rahmani Executive Chairman Opening remarks and strategy update
Slide 3: Building a leading MENA E&P Company
Building a leading MENA E&P Company 2014: Tawke to 200,000 bopd capacity by 2013: end 2014 Continue material Appraise and organic growth develop other discoveries 2012: Bolt-on MENA Complete RAK acquisitions merger 2011: Larger and more diversified MENA Strengthen and E&P portfolio refocus DNO Q1 20
Slide 4: A MENA focused player
1 2 A MENA focused player Kurdistan Ras Al Khaimah (UAE) Early entry Targeting field re- Rapid production growth development projects World-class reserves Exploration upside • 17 licences in 5 countries • 531 mmboe of 2P reserves(1) at 3 Oman 31 March 2012; up from 372 Increase off
Slide 5: Early entry and strong track record in Kurdistan
Early entry and strong track record in Kurdistan Early Entry in Competitive Low-Cost High Exploration Advantageous Kurdistan PSC Terms of Operations Success Position in Kurdistan One of the first E&P entrants Contractor takes 16–38% US$2.11/bbl lifting cost in 2011 85% drilling success r
Slide 6: Appraisal and development projects in other areas
Appraisal and development projects in other areas 1 2 3 Yemen Oman UAE Continue infill drilling as rigs become Complete three well drilling program on Initiate re-development of Saleh gas available Bukha/West Bukha fields condensate field Development of the Yaalen field with Pursue de
Slide 7: Balanced MENA portfolio across E&P value chain
Balanced MENA portfolio across E&P value chain Exploration Appraisal Development Production Tunisia Hammamet Offshore Fkirine RAK RAK Onshore Saleh / RAK B Tawke Kurdistan Deep Peskhabir Tawke Dohuk Benenan / Bastora Block 47 Oman Block 30 Block 8 Block 31 Block 53 Yaalen Block 43 Yemen Gabdain Bloc
Slide 8: Drilling programme for 2012 and 2013
Drilling programme for 2012 and 2013 2012 2013 Country License Well Kind 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Tawke-16 Production Tawke-14 Production Tawke-18 Production Tawke-19 Production Tawke-17 Deep Exploration Tawke Jeribe wells Workover Kurdistan Cretaceous Production, 4 well
Slide 9: Significant reserves & production growth 2007-2012
Significant reserves & production growth 2007-2012 2P Reserves (Company Working Interest) Production (Company Working Interest) 531 42.1 40.0 500 40 CAGR: 26% CAGR: 23% 400 372 30 mmboe . 300 kboe/d . 21.5 kboepd 20 17.4 194 15.7 200 14.5 163 155 149 10 100 0 0 2007 2008 2009 2010 2011 Q1 12 1Q2012
Slide 10: Well positioned versus UK listed independents
Well positioned versus UK listed independents (1) 2P Reserves (WI) and Operatorship Status Production (WI) 1,000 80 900 800 700 60 600 kboepd mmboe . kboe/d 500 40 400 300 20 200 100 N/A N/A 0 (2) 0 Dragon Oil DNOGenelTullow Premier AfrenSoco EnQuest Melrose Gulfsands Salamander Cairn HeritageOphir
Slide 11: Q1 2012 Operational and financial results
Helge Eide Managing Director Q1 2012 Operational and financial results
Slide 12: Profitable growth and increased reserves
Q1 2012: Profitable growth and increased reserves Q1 2012 vs Q1 2011 Total production volumes somewhat higher than same quarter last year • Production from Yemen on decline as expected +5% • Reduced export volumes offset by increased local sales in Kurdistan WI production • New production from recen
Slide 13: Significant improvement compared with previous year
Q1 2012: Significant improvement compared with previous year Key financial parameters (NOK million) 800 712 700 565 600 513 500 400 307 281 Q1 2011 300 Q1 2012 200 146 117 100 0 Operating revenue EBITDA Net profit Netback -100 -115 -200 Q1 2012 Presentation 13
Slide 14: Production and gross profit contribution per country of operations
Q1 2012: Production and gross profit contribution per country of operations Production (CWI boepd) Gross profit (NOK million) Oman 6,213 Oman 101.7 Yemen 4,169 Yemen Kurdistan 85.5 276.7 Kurdistan 31,734 Q1 2012 Presentation 14
Slide 15: 42,116 boepd (Company Working Interest)
Q1 2012: 42,116 boepd (Company Working Interest) 60,000 50,000 5,390 40,000 6,213 5,881 4,439 4,169 4,311 30,000 Oman Yemen Kurdistan 43,192 20,000 32,334 34,064 31,734 30,345 10,000 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 39,945 48,582 36,773 34,656 42,116 Q1 2012 Presentation 15
Slide 16: Positive trends in production and lifting costs
Positive trends in production and lifting costs COMPANY WORKING INTEREST PRODUCTION BOEPD LIFTING COSTS USD/BBL 45000 15 40000 35000 42 116 39 966 30000 10 25000 13.0 20000 15000 5 8.1 10000 17 381 12 285 5.0 5.5 5000 0 0 2009 2010 2011 Q1 2012 2009 2010 2011 Q1 2012 16
Slide 17: Drilling ongoing to add production capacity and further delineate the field
Tawke: Tawke-13 Drilling ongoing to add production Tawke-14 Tawke-17 capacity and further delineate the field Tawke-19 • The wells Tawke-14 and Tawke-16 Green: Old P50 model confirms the presence of Red: Reservoir volume indicated on reprocessed seismic and reservoir in the red area Tawke-16 interfe
Slide 18: Peshkabir prospect: Currently testing
Peshkabir prospect: Currently testing Second test First test • Two test performed to date – both produced water • Further testing in progress Q1 2012 Presentation 18
Slide 19: West Bukha-5 well: Drilling ahead
West Bukha-5 well: Drilling ahead • Drilling with the Noble jack up rig Roy Rhodes • Spudded on 2 December 2011 • Currently drilling horizontal section in the Thamama reservoir Q1 2012 Presentation 19
Slide 20: Bukha Alpha/West Bukha: Update on pipeline blockage
Bukha Alpha/West Bukha: Update on pipeline blockage North Bukha A • Pipeline carries a mixture of oil, gas and small amounts of water from WB via BA to shore terminal • Blockage occurred during routine pigging on 23 March and diagnostic surveys have indicated location of blockages • Efforts underway
Slide 21: Steady growth in reserves
Steady growth in reserves PROVED PLUS PROBABLE RESERVES (2P/P50) MMBOE 600 COMPETENT PERSON REPORT (D&M) AS OF 31 MARCH 2012: 531 159 MMBOE INCREASE IN 2P/P50 RESERVES RESULTING FROM FURTHER 500 UPGRADE OF TAWKE RESERVES AND ADDING RESERVES FROM THE NEW MENA ASSETS 400 372 ASR (D&M) AS OF 31 DECEMBE
Slide 22: Adding reserves at low cost
Adding reserves at low cost COMPANY WORKING INTEREST PROVED PLUS PROBABLE RESERVES MMBOE FINDING & DEVELOPMENT COSTS USD/BBL 600 15 500 531.0 400 10 372.0 300 10.6 9.5 200 5 194.2 100 149.4 1.2 1,2 0 0 Year End 2009 Year End 2010 Year End 2011 Q1 2012 2007-2009 2008-2010 2009-2011 Three years rollin
Slide 23: Well positioned for future growth
Q1 2012: Well positioned for future growth Quarterly key financials • Positive contribution from 1200 new MENA assets Revenues Netback Operating Profit • Significant improved 1000 financial performance 800 • Maintaining a solid cash NOK million position 600 400 200 0 Q1 2011 Q4 2011 Q1 2012 Q1 2012
Slide 24: Capital expenditure
Capital expenditure Yemen Kurdistan Oman UAE Other 250 § Capex NOK 210 million in Q1 § Of which Kurdistan represents 200 NOK 115 million and Oman NOK 91 million NOK million 150 100 50 0 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q1 2012 finance presentation 24
Slide 25: Robust cash position maintained
Q1 2012: Robust cash position maintained Cash Net Interest-Bearing Debt Q1 2010 Q1 2011 Q1 2012 Q1 2010 Q1 2011 Q1 2012 1,800 200 1,602 6 1,600 0 1,400 -200 1,200 -400 NOK million NOK million 984 1,000 -600 -509 800 671 -800 600 -1,000 400 200 -1,200 -1,161 0 -1,400 Q1 2012 finance presentation 25
Slide 26: Important Notice
IMPORTANT NOTICE The information contained in this results presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions co