Okea Asa · OSL:OKEA
Okea Asa — Pareto Energy Conference 2020
14 slides from Okea Asa's conference presentation, September 2020
Slide 1: OKEA ASA – Pareto Energy Conference
OKEA ASA Pareto Energy Conference September 2020
Slide 2: Building a sustainable business
Building a sustainable business Continue to develop project portfolio for organic growth Continue the strong operational track record Cost reduction and efficiency measures at existing assets Increase volume basis in focus areas Pursue inorganic growth possibilities 2
Slide 3: Organic production targets within existing financing
Organic production targets within existing financing Net to OKEA 3
Slide 4: Draugen (OKEA operated asset) - Significantly improved performance
Draugen (OKEA operated asset) - Significantly improved performance Demonstrated improvements in production efficiency under OKEA operatorship OKEA operatorship • Excellent HSE performance • High production and high regularity • Stable production with few unplanned deferrals • Modification projects a
Slide 5: Draugen - Improvement program for all parameters
Draugen - Improvement program for all parameters Materially extended field life 850 mill NOK 200 mill NOK 90% RF 70% (from 1.000 mill NOK) (from 300 mill NOK) (from 86%) (from RF 67%) OPEX CAPEX Production Reserves -15% + -33% + +4% + +50% Cost/Activity reduction Cost/Activity reduction Availability
Slide 6: Draugen - Going forward
Draugen - Going forward Energy supply • Substituting diesel used for power by gas import • Starting October 2020 • Long-term solution assessment ongoing • CCS or Power from Shore Reserves • IOR on Draugen • D2 recompletion on 2021 can yield 3 mmboe • New water injection can yield 12 mmboe • New infi
Slide 7: Draugen – New volumes from Hasselmus
Draugen – New volumes from Hasselmus The first tieback to the Draugen platform •The first OKEA operated subsea development •Fast track development •16 mmboe with a break even below 30USD/boe •First gas early 2023 •FEED started in July 7
Slide 8: Gjøa (partner operated) - Key asset and area hub
Gjøa (partner operated) - Key asset and area hub •Solid operations executed by Neptune •High production, high regularity •P1 project on track • Ongoing production drilling (2 wells) • Production start Q4 2020 •OKEA’s Aurora acquisition • Strategic positioning in the Gjøa Area 8
Slide 9: Aurora - Fast track tie-in to Gjøa
Aurora - Fast track tie-in to Gjøa Strengthening OKEAs position in the Gjøa area; strategic fit with low cost field development • SPA signed with Equinor for their 40% WI in July • OKEA’s operator experience key enabler for the deal • Partners are Petoro (35%) and Wintershall Dea (25%). Current oper
Slide 10: Improved financial robustness and flexibility
Improved financial robustness and flexibility Bond amendment successfully concluded •Projected breach of bond covenants during 2020 following market turmoil •Bond amendments accepted at bondholder meetings in June Temporary tax changes significantly improves liquidity for OKEA •Negative instalments
Slide 11: Development projects – Yme (Repsol operated)
Development projects – Yme (Repsol operated) •Work ongoing at Egersund yard with expected ready for sail away from Egersund in Q4 2020 •Production start 2021 •At plateau approx. 7 500 boepd net to OKEA 11
Slide 12: Development projects - Grevling/Storskrymten (OKEA operated)
Development projects - Grevling/Storskrymten (OKEA operated) Grevling •PL973 exploration wells (Jerv and Ilder) to be drilled in 2021 by semi-submersible drilling rig COSL Innovator •CCS study ongoing (partly funded by Gassnova) 12
Slide 13: Outlook
Outlook Current portfolio to yield substantial production growth Aggressive organic development requires no new equity Continue to seek inorganic growth opportunities Demonstrated strong operator capabilities improves strategic position 13
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