Orron Energy AB · OMXSTO:ORRON
Orron Energy AB — Lundin Petroleum — Investor Presentation (November 2017)
39 slides from Orron Energy AB's investor presentation, November 2017
Slide 1: Lundin Petroleum Corporate Presentation
Lundin Petroleum Corporate Presentation November 2017 31 Oct 17 WF12310
Slide 2: Delivering Growth: 4 x Production
Lundin Petroleum Delivering Growth 4 x Production 90 >85 Mboepd (1) 80 Production (Mboepd) 70 60 Production Guidance 50 40 30 20 Cash operating cost (USD/boe) 10 <4.60 USD/boe (1) 0 2015 2016 2017 WF12310 p14 08.17 (1) 2017 forecast Lundin Petroleum 2
Slide 3: At a Glance
Lundin Petroleum At a Glance Geographical Focus Norway pure play Organic growth strategy Strong production growth with low operating costs Resource base of ~1 billion barrels WF12310 p01 02.17 Lundin Petroleum 3
Slide 4: Key Metrics
Lundin Petroleum Key Metrics Grow resource base and production organically with a disciplined geographical focus 2P Reserves Production Cash Operating Costs Operating Cash Flow 800 90 85 12 1500 714 10.7 80 700 654 10 70 1200 Net MMboe 600 59 Million USD Net Mboepd 60 8 USD/boe 500 6.8 900 860 50 40
Slide 5: Financial Highlights - First Nine Months 2017
Lundin Petroleum Financial Highlights - First Nine Months 2017 Operating Cash Flow EBITDA from continuing operations from continuing operations 1,200 1,200 1095.5 1,071.7 1,000 1,000 97% 800 800 125% Net Result Million USD Million USD from continuing operations 600 600 600 557.0 475.8 431.8(1) 400 4
Slide 6: Norway Forecast Development Expenditure on Committed Projects
Norway Forecast Development Expenditure on Committed Projects Forecast Development Expenditure (Million USD) Committed Projects 1,000 Johan Sverdrup Phase 1 Johan Sverdrup Phase 2 Edvard Grieg drilling Alvheim Area infill drilling 2017 2018 2019 2020 WF12168 p20 02.17 Lundin Petroleum 6
Slide 7: Debt
Lundin Petroleum Debt USD 5.0 billion RBL secured Attractive margin: 315 bps No amortisation until end 2020 5,000 5,000 ~ USD 1 billion 4,115 91 4,024 85 Available Liquidity 4,000 Headroom MUSD 3,000 2,000 1,000 0 RBL RBL Cash Net Debt Tax refund 30/09/17 Nov 2017 Sources of Liquidity WF12310 p07 05
Slide 8: Norway Investment Framework
Lundin Petroleum Norway Investment Framework Southern Barents Sea Organic Growth 8.8 billion barrels (1) Significant yet to find resources Material acreage position in both the southern Barents Sea and Norwegian Sea 4.9 billion barrels (1) the North Sea Building positions in the Norwegian Sea and th
Slide 9: Key Production Asset – Edvard Grieg
Lundin Petroleum Key Production Asset – Edvard Grieg Edvard Grieg Platform Oil Export to Grane Lundin operated Gas Export to SAGE 2P reserves: 223 MMboe Ivar Aasen (WI 1.385%) onstream Q4 2016 Increased facilities capacity: 145,000 bopd (1) gross Reservoir performance better than expected – signific
Slide 10: Continuous Reserves Growth – Alvheim Area
Producing structure Lundin Petroleum Infill drilling 2018/19 infill drilling Continuous Reserves Growth – Alvheim Area Undeveloped gas discovery Prospect Production Gas lift Strong reservoir performance BoA Water injection 2 infill wells Facilities well managed Online 2018 Alvheim FPSO Production de
Slide 11: Johan Sverdrup
Full Field Lundin Petroleum Break Even Price Johan Sverdrup Largest Phase 1 development on NCS Investment Cost Phase 1 progressing to schedule – 60% complete Reserves Estimate Capacity Project metrics continue to get better Working Interest – Johan Sverdrup Unit Statoil 40.0267% Lundin 22.6000% Peto
Slide 12: Johan Sverdrup Phase 1 – Key Milestones Being Delivered on Schedule
Johan Sverdrup Phase 1 – Key Milestones Being Delivered on Schedule Riser platform jacket installed - July 2017 Drilling Platform Topsides assembled - September 2017 Riser Platform Drilling Platform Jacket Topsides Norway Oslo Haugesund WF12378 p13 07.17 Johan Sverdrup Lundin Petroleum 12
Slide 13: Johan Sverdrup
Lundin Petroleum Johan Sverdrup Concept Select PDO Submission First Oil First Oil Phase 2 Phase 2 Phase 1 Phase 2 2017 2018 2019 2020 2021 2022 PRODUCTION CAPACITY First oil Phase 1: Late 2019 Phase I Full Field First oil Phase 2: Q4 2022 440 Mbopd 660 Mbopd FULL FIELD - GROSS CAPEX PDO (1) Current(
Slide 14: Big Fields Get Bigger
Lundin Petroleum Big Fields Get Bigger 3,200 3P Reserves 2C Contingent Resources 3,000 Cumulative Production 2,800 2P Reserves 2,600 16% 2,400 2,200 600 Gross MMboe 500 400 98% 300 36% EG South West 200 100 WF12297 p08 08.17 0 PDO End 2016 PDO End 2016 PDO End 2016 Alvheim Area Edvard Grieg Johan Sv
Slide 15: Low Carbon Footprint
Lundin Petroleum Low Carbon Footprint Norway has one of the lowest carbon emission rates per barrel in the world 2015 Greenhouse Gas Emissions Intensity 40 Carbon mitigation technology and improved emissions management 35 30 Lundin Petroleum low carbon intensity kgCO2 e/boe provides a competitive ad
Slide 16: Appraisal Focus
Lundin Petroleum Loppa High & Filicudi Trends Appraisal Focus Southern Barents Sea Alta/Gohta Significant resource upside in existing field areas Hammerfest Alta/Gohta appraisal drilling in 2017 - Completed Possible Alta EWT in 2018 Rolvsnes appraisal drilling/testing in 2018 De-risks larger area po
Slide 17: Exploration Strategy
Southeastern Trend Lundin Petroleum Southern Barents Sea 8.8 billion barrels (1) Exploration Strategy Southern Loppa High & Filicudi Trends Barents Sea Hammerfest Focus on organic growth 3 high impact trends in southern Barents Sea Continuous activity Norwegian Sea 4.9 billion barrels (1) 2017 explo
Slide 18: Southern Barents Sea High Impact Exploration Trends
Southern Barents Sea 3 High Impact Exploration Trends Loppa High Trend >1 Bn bo(1) Southeastern Trend Multi billion barrel Potential PL715 Kråktind Børselv(3) Korpfjell (3) 609 First exploration well completed Neiden Discovery Non-commercial gas discovery 25–60 MMboe (2) Wisting Johan Castberg 851 K
Slide 19: Key Messages
Lundin Petroleum Key Messages 10.7 OPEX Production Guidance (USD/boe) (Mboepd) >150 >120 6.8 >85 <4.6 ~4.5 59.3 20.7 32 2015 2016 2017 J. Sverdrup J. Sverdrup 2015 2016 2017 J. Sverdrup Guidance Phase 1 Plateau Guidance Phase 1 Strong production growth with low operating costs Exciting organic growt
Slide 20: Appendix
Lundin Petroleum Appendix Lundin Petroleum 20
Slide 21: Guidance Update
2017 Guidance Update New Old Production Guidance (boepd) 85,000 80-85,000 Cash operating costs (USD/boe) <4.60 4.60 CAPEX (MUSD) 980 1,085 E&A Expenditure (MUSD) 210 210 WF12380 Q3 p16 10.17 Lundin Petroleum 21
Slide 22: Financial Performance
Financial Performance EBITDA Operating Cash Flow Total Capex 2,000 Full Year Full Year 1,800 2015 2016 1,600 EBITDA (MUSD) 384.7 902.6 1,400 1,200 Operating cash flow (MUSD) 699.6 1010.8 1,000 Production (boepd) 32,300 72,600 800 Average Brent oil price (USD/boe) 52.39 43.73 MUSD 600 Cost of operati
Slide 23: Funding and Liquidity - 2017 Guidance
Lundin Petroleum Funding and Liquidity - 2017 Guidance YTD Actuals Brent 50 USD/bbl Forecast (1) 46 80 70 60 USD/boe 50 40 33 39 32 30 8 20 10 0 Liquidity OCF (2) Capex/ Finance/ Liquidity Headroom E&A G&A Headroom start 2017 end 2017 Tax Pools of USD 2.7(3) billion -> No cash tax due pre Johan Sver
Slide 24: Net 2P Reserves December 2016
Net 2P Reserves 31 December 2016 Reserves Life Index 26 years(2) Cummulative production to date, 10% Total 714.1 MMboe Remaining Reserves, 90% Edvard Grieg, 127.0 MMboe Ivar Aasen, 2.4 End 2015 653.6 - 2016 Production -21.8 Alvheim Area, 29.3 + Asset Acquisition +29.5 Brynhild, 3.9 + Reserve Additio
Slide 25: Peer Comparison – Reserves Life Index
Lundin Petroleum Peer Comparison – Reserves Life Index (1) Lundin Petroleum’s growth profile better than peers 30 25 20 Years 15 10 5 0 Lundin Petroleum WF12310 p10 02.17 (1) Data Source: based on latest 2P reserves and production data disclosed by peer group companies Peer Group: Aker BP, Enquest,
Slide 26: Net Contingent Resources December 2016
Net Contingent Resources 31 December 2016 MMboe 31 Dec 2015 Balance 202.2 End 2016 + Discovery (Neiden) + 8.6 + Revisions + 43.2 Total 249.4 MMboe - Divested/Relinquished (+ Acquisition) -3.9 - 2C to 2P -0.7 Salina, 7.6 Alvheim Area, 7.7 31 Dec 2016 Estimate 249.4 Neiden, 8.5 Johan Sverdrup, 47.0 To
Slide 27: 2017 Production
Lundin Petroleum 2017 Production First Nine Months First nine months production of 87.1 Mboepd Production Efficiency (%) Q3 production of 89.2 Mboepd Reservoir and facilities outperformance Edvard Grieg Increased Edvard Grieg facilities capacity Annual CMD, 93% Updated full year production guidance:
Slide 28: 2017 Development Activity Norway
Lundin Petroleum Barents Sea 2017 Development Activity Norway 2017 Budget 980 MUSD Alvheim Area Other Utsira High Norwegian Sea Edvard Grieg Johan Sverdrup Phase 1 Johan Sverdrup Phase 1 Facilities construction Development drilling Edvard Grieg Development drilling Norway Ivar Aasen North Sea Projec
Slide 29: 2017 Exploration & Appraisal Activity
Korpfjell 1 exploration well Lundin Petroleum Barents Sea 2017 Exploration & Appraisal Activity Børselv 1 exploration well Filicudi 1 exploration well 2017 Budget 210 MUSD 2 (Hufsa & Hurri) follow-on wells Alta/Gohta 1 Alta appraisal well 1 Gohta appraisal well Extended well test planning Exploratio
Slide 30: Southern Barents Sea Alta / Gohta
Southern Barents Sea Area Southern Barents Sea Alta / Gohta Norway Gohta-3 appraisal well Poor reservoir quality Alta Discovery Downgrades resource estimate – update at year end Alta-4 sidetrack Gohta considered as satellite to larger Alta discovery Alta-4 Alta-3 No impact on Alta appraisal and conc
Slide 31: Edvard Grieg Reservoir Performance
Edvard Grieg Reservoir Performance Southwest appraisal well 10–30 MMboe gross resource upside Potential resource upside in other areas of the field Fourth water injection well currently drilling Latest drilling results inline with prognosis Communication with rest of field Northern Tellus area (OP5)
Slide 32: Utsira High
Lundin Petroleum Utsira High Norway PL167b Significant resource upside in existing field areas Utsira High Rolvsnes appraisal drilling/testing in 2018 Lille Prinsen PL167 De-risks larger potential of Goddo Luno II concept studies ongoing, further appraisal Ivar PL501 drilling planned in 2018 Aasen J
Slide 33: Low cost - High value: The Most Successful Explorer
Lundin Petroleum Low cost - High value The Most Successful Explorer Norway Undeveloped barrel value Second most active explorer No. exploration wells (wildcat) 60 Norway 55 Finding cost/boe >5 (1) 50 Commercial discovery USD/boe Non-commercial discovery 45 Dry hole 0.7 USD/boe Cumulative Wells 40 35
Slide 34: Southern Barents Sea Filicudi Trend 2017 Drilling
Southern Barents Sea Filicudi Trend 2017 Drilling Hurri prospect: Kramsnø Nunatak Skrugard Johan Castberg Adjacent to the recent Filicudi discovery Skavl Havis EM anomaly Drivis Bjørnøyrenna Fault complex 7219/9-1 Hufsa prospect: PL532 Between Filicudi and Salinas discoveries PL609 Johan Castberg lo
Slide 35: Drilling Schedule
2017 Drilling Schedule Well LUPE 2017 Licence - Prospect type Operator WI % Q1 Q2 Q3 Q4 1 PL533 - Filicudi exp Lundin 35.00 Discovery 2 PL492 - Gohta-3 app Lundin 40.00 Completed 3 PL609 - Alta-4 app Lundin 40.00 Completed 4 PL609 - Børselv exp Lundin 40.00 Completed 5 PL533 - Hufsa exp Lundin 35.00
Slide 36: Creating Shared Value from Responsible Energy Management
Lundin Petroleum Creating Shared Value from Responsible Energy Management NORWAY: RGI SCORE AND RANK Norwegian oil and gas sector is #1 in the Resource Governance Index (RGI) 1st Operating in the world class governance environment of Norway gives Lundin Petroleum a competitive edge in providing low
Slide 37: Lundin Petroleum's Shareholders
Lundin Petroleum’s Shareholder structure Shareholders Others, 8% Retail, 9% Institutional Investors, 34% Number of shares in issue: 340.4 million Statoil ASA, 20% Average traded volume per trading day in 2016: ~1.2 million shares (1) Lundin Family, 29% Part of OMX30, NASDAQ Stockholm Geographically(
Slide 38: Disclaimer
Disclaimer Forward-Looking Statements Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, includi
Slide 39: www.lundin-petroleum.com
& Lundin Petroleum www.lundin-petroleum.com
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