Dno Asa Class A · OSL:DNO
Dno Asa Class A — DNO International — Investor Day (2008)
29 slides from Dno Asa Class A's investor day presentation, 2008
Slide 1: A Long Term Success Story
DNO INTERNATIONAL ASA A LONG TERM SUCCESS STORY
Slide 2: Yemen: A Promising Oil Region
YEMEN: A PROMISING OIL REGION A COUNTRY WITH POTENTIAL • The search and exploration for oil in Yemen goes back to the 1930s • Oil discovery in the summer of 1984, when Hunt Oil Company successfully drilled the wildcat well in the Marib Al-Jawf basin (Block 18) • In 1991, significant oil discoveries
Slide 3: DNO Assets
DNO ASSETS CAPITAL MARKETS DAY 2008 3
Slide 4: DNO in Yemen
DNO IN YEMEN 10 YEARS IN YEMEN • Strong organization to handle exploration, field development and production • Proud of the HSE history • Good reputation and excellent cooperation with Ministry • Already proved success in four of the eight participating blocks • Strong record on drilling operations
Slide 5: Historical Production
HISTORICAL PRODUCTION STABLE PRODUCTION • More than 38 MMbbl in ultimate 50 000 reserves are proven net to DNO* +Godah +Nabrajah from 1998 to 2007. 45 000 + Bl53 South +Sharyoof > 75 MMbbl • Continuous appraisal drilling Tasour 40 000 as well as successful exploration 35 000 Oil Production Rate (bop
Slide 6: Distribution of Value
DISTRIBUTION OF VALUE BLOCK 32 AND 43 CASH-FLOW PSA ARRANGEMENTS Yemen Minstry Cost oil to contractor Profit oil to contractor • Block 32 1 500 • Produced per 31.12.07: 32,21 MMbbl USD 1.309 million • Cumulative cash flow in total: USD 1.309 million • USD 613 million has been provided for the Yemen
Slide 7: Masila Basin Geology
MASILA BASIN GEOLOGY Chrono- strat. Masila Basin Tectonics E. Oligocene 30 Red Sea Habshiya L. Eocene Priabonian Rus Bartonian 40 Middle Eocene Jeza Tertiary Lutetian Uplift 50 E. Pal. L. Palaeocene Early Eocene Maastric. Danian Selandian Thanetian Ypresian Umm er Radhuma 60 Sharwayn 70 Campanian La
Slide 8: Fast Track Development
FAST TRACK DEVELOPMENT MINIMIZE LEAD-TIME FROM DISCOVERY TO FIRST OIL 1999 2000 2001 2002 2003 2004 2005 2006 Field Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Tasour 18 months Cumulative gross production of 32.2 MMbbl • Discovery • Development • F
Slide 9: Producing Assets in Yemen
PRODUCING ASSETS IN YEMEN
Slide 10: Tasour and Godah
TASOUR AND GODAH BARRELS OF OIL PER DAY (GROSS) 15 000 13 500 12 000 AVERAGE DAILY PRODUCTION: 8,987 BOPD BLO C K 32 10 500 TH E TA SO U R FI ELD 9 000 7 500 6 000 4 500 TH E G O DA H FI EL D 3 000 1 500 0 January 2007 February 2008 CAPITAL MARKETS DAY 2008 10
Slide 11: Operations on Tasour & Godah
OPERATIONS ON TASOUR & GODAH Tasour production well Tasour CPF CAPITAL MARKETS DAY 2008 11
Slide 12: Sharyoof and Bayoot/Hekma
SHARYOOF AND BAYOOT/HEKMA BARRELS OF OIL PER DAY (GROSS) 16 000 AVERAGE DAILY PRODUCTION: 10,820 BOPD TH E SHA RYO O F F I ELD 14 000 B LO C K 53 12 000 10 000 8 000 T H E BAYO OT F I EL D 6 000 4 000 2 000 0 TH E H EKM A FI EL D January 2007 February 2008 CAPITAL MARKETS DAY 2008 12
Slide 13: Operations in Block 53; Bayoot/Hekma
OPERATIONS IN BLOCK 53; BAYOOT/HEKMA Bayoot SW-2, 4 and 5 Bayoot S-1 wellhead production facility Caption Caption CAPITAL MARKETS DAY 2008 13
Slide 14: Nabrajah
NABRAJAH BARRELS OF OIL PER DAY (GROSS) 10 000 9 000 B LO C K 43 8 000 AVERAGE DAILY PRODUCTION: 6,987 BOPD 7 000 6 000 5 000 4 000 TH E N A BRA JA H FI E LD 3 000 2 000 1 000 0 January 2007 February 2008 CAPITAL MARKETS DAY 2008 14
Slide 15: Operations on Nabrajah
OPERATIONS ON NABRAJAH Nabrajah Basement CPF Nabrajah Qishn CPF CAPITAL MARKETS DAY 2008 15
Slide 16: Exploring the Potential
EXPLORING THE POTENTIAL
Slide 17: Block 32: Overview
BLOCK 32: OVERVIEW DNO’S FIRST BLOCK IN YEMEN Partners Participating interest Paying interest • The block covers an area of 592 km 2 DNO Yemen 38.95% 41.00% • DNO-operated since 1998 Ansn Wikfs Trans Globe 42.93% 13.12% 45.19% 13.81% • DNO will continue to appraisal the TYC 5.00% - block area to mai
Slide 18: Block 43: Overview
BLOCK 43: OVERVIEW AN IMPORTANT CONTRIBUTOR • The block covers an area of 2,026 km 2 • Huge exploration potential • Exploration costs repaid by cost-oil • The block is situated on the rim of the Ghayl Bin Yumain basin - south/west of Block 32 • Nabrajah field on production since July 2005 • 3 infill
Slide 19: Block 53: Overview
BLOCK 53: OVERVIEW AT THE START OF A SECOND GROWTH • The block covers and area of 457 km and is 2 operated by Dove Energy • The Sharyoof field came on production late 2001 • Still successful contribution from infill drilling • 2 infill wells planned for 2008 • Bayoot/Hekma has promising potential EX
Slide 20: Block 53: Bayoot/Hekma
BLOCK 53: BAYOOT/HEKMA THE START OF A SECOND DEVELOPMENT GROSS PRODUCTION FROM BAYOOT/HEKMA • Successful exploration and appraisal drilling 5 000 through 2007 and 2008 has provided 4 wells already completed for production from this area • The current well production capacity is more 4 000 than 5 000
Slide 21: Block 47: Overview
BLOCK 47: OVERVIEW A HUGE EXPLORATION BLOCK • The Block covers and area of 7 606 km partly 2 situated along the flank of the prolific GBY-basin and adjacent to Block 84 and Block 43 EXPLORATION/APPRAISAL WORK IN 2008 • The Yaalen-1 discovery was made in January • The success is now followed up by ap
Slide 22: Block 47: Yaalen Discovery
BLOCK 47: YALEEN DISCOVERY THE FOURTH SUCCESSFUL BLOCK IN YEMEN • Yaalen-1 discovered oil in January • Oil samples were recovered from both Qishn sandstone and Kholan sandstone. Prospective zones are identified in basement and Naifa/Saaf Formation carbonates • Extensive testing will start in mid Apr
Slide 23: Block 44: Overview
BLOCK 44: OVERVIEW FOCUS ON NEW TARGETS • The Block 44 is a huge exploration block, north of Block 32 • The block covers an area of 6 332 km 2 • Exploration work has been focusing on the flank of the Ardah basin • No success to date EXPLORATION WORK IN 2008 • One well is planned to be drilled in the
Slide 24: Block 72: Overview
BLOCK 72: OVERVIEW RENEWED OPTIMISM ON IMPROVED SEISMIC • The Block covers and area of 1,821 km 2 • Situated SW of the producing Block 51 (Nexen) EXPLORATION WORK IN 2008 • The acquisition of 3D seismic data in two area in the block, in addition to more 2D data was completed in March • Two wells wil
Slide 25: Block 52: Overview
BLOCK 52: OVERVIEW THE NEW BLOCK IN THE PORTFOLIO • The block covers and area of 1,299 km 2 • Located NW of Block 10 (Total) and Block 53 Partners Participating interest Paying interest • Prospective trends from proven Qishn and DNO Yemen 57.76% 72.23% Basement oil pools in adjacent blocks can be An
Slide 26: Exploration Blocks
EXPLORATION BLOCKS 2D SEISMIC ONE WELL 2D SEISMIC 44 ONE WELL 52 2D AND 3D SEISMIC THREE WELLS 47 72 84 2D AND 3D SEISMIC TWO WELLS SIGNING PSA POTENTIAL 3D CAPITAL MARKETS DAY 2008 26
Slide 27: Closing Remarks
CLOSING REMARKS
Slide 28: Closing Remarks
CLOSING REMAKS BASED ON THE FOLLOWING FACTS • 10 years of Exploration and Production experience in Yemen • Strong organization with good reputation. • 2 plus 1 drilling rig available/ short lead time from idea to drilling target • Strong on geological techniques and databases • Seismic acquisition,
Slide 29: Disclaimer: Forward Looking Statement
DISCLAIMER: FORWARD LOOKING STATEMENT This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, est