Okea Asa · OSL:OKEA
Okea Asa — Merger or Acquisition (March 2023)
15 slides from Okea Asa's merger presentation, Mar 20, 2023
Slide 1: OKEA acquires 28% in PL037 (Statfjord Area) from Equinor
OKEA acquires 28% in PL037 (Statfjord Area) from Equinor 20 March 2023
Slide 2: Cautionary statement
Cautionary statement • This presentation contains forward looking information • Forward looking information is based on management assumptions and analysis • Actual experience may differ, and those differences may be material • Forward looking information is subject to significant uncertainties and
Slide 3: Transformational deal in world-class assets
Transformational deal in world-class assets Advancing to league of producers with more than 40,000 barrels per day in 2024 Net production* • 28% WI in PL037 (Statfjord Area), world-class assets in 4 producing fields and a strong track record for IOR; enhancing OKEA’s robustness and operational diver
Slide 4: Transaction deep dive
Transaction deep dive • 28% WI in PL037 which comprises: – 23.93123% WI in Statfjord Unit – 28% WI in Statfjord Nord – 14% WI in Statfjord Øst Unit – 15.4% WI in Sygna Unit • Fixed cash consideration of USD 220 million including approx. NOK 300 million in tax balances • Contingent consideration base
Slide 5: Attractive transaction characteristics
Attractive transaction characteristics Scale and Strong Enhanced financial diversification partnership flexibility • Significant increase in • Dedicated and competent • No new financing required production, reserves and operator in FLX organisation resources enhancing robustness committed to improvi
Slide 6: Transaction matches OKEA's strategy
Transaction matches OKEA’s strategy TRANSACTION CONTRIBUTIONS STRATEGY Scale and diversification Near term value An organisation fit A larger and more creation focus for growth robust portfolio Focus on shareholder Capitalising on existing Strengthening resource value creation through capabilities a
Slide 7: Scale and diversification
Scale and diversification Step change in asset base, production and reserves with significant upside Change # fields producing or under # fields producing development 6 4* +67% • Step change in production growth and diversification – Increasing 2023 production by 60% – Increasing 2P reserves by 68%
Slide 8: Partnership between the two dedicated mid- to late-life operators on the NCS
Partnership between the two dedicated mid- to late-life operators on the NCS Statfjord Area is operated by Equinor’s FLX unit overview* FLX unit with an ambition to enhance field production, costs and CO2 emissions Statfjord in 2019 • Limited basis for investments • Limited drilling activity, few ne
Slide 9: The transaction enhances OKEA's financial flexibility
The transaction enhances OKEA’s financial flexibility The transaction enhances financial flexibility for further ~18 USD/boe growth, repayment of debt and/or increased dividends OPEX* (2023-2026) • No new financing required • The majority of the purchasing price, based on current forward prices, wil
Slide 10: Acquired assets
Acquired assets
Slide 11: Statfjord Area PL037 – Key facts
Statfjord Area PL037 – Key facts Statfjord A Platform A • Production start in 1979 Platform B • Production start in 1982 Statfjord Unit Platform C • Production start in 1985 • Late-life project completed in 2017 - platform modifications and infill drilling Statfjord B • Statfjord field life extensio
Slide 12: Summary
Summary ww
Slide 13: Summary
Summary Transformational transaction with 60% increase in production and 68% increase in reserves Huge and prolific field with substantial upside potential and a dedicated and competent operator Start of an operational and strategic cooperation between the two dedicated late-life operators on the NC
Slide 14: Q&A
Q&A Growth Value creation Capital discipline
Slide 15: General and disclaimer
General and disclaimer This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and p