Dno Asa Class A · OSL:DNO
Dno Asa Class A — Investor Presentation (January 2006)
27 slides from Dno Asa Class A's investor presentation, Jan 19, 2006
Slide 1: DNO ASA: Transforming resources to reserves at low cost
DNO ASA Transforming resources to reserves at low cost Updated 19 January 2006
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS BEING FURNISHED T O YOU SOL EL Y FOR YOUR INFORMATION ON A CONFIDENTIAL BASIS AND MAY NOT BE REPRODUCED, REDIST RIBUT ED OR PASSED ON, IN WHOL E OR IN PART, TO ANY OT HER PERSON. IN PARTICULAR, THIS PRESENTATION NOR ANY COPY T HEREOF MAY BE TAKEN OR T RANSMITTED OR DI
Slide 3: A pure-play E&P company
A pure-play E&P company Key facts about DNO Strong business Operational facts fundament... December 05 Production 18.000 BOPD A pure-play E&P investment Reserves (P+P) pr. 3Q 73 MBOE Diversified, risk balanced portfolio Financial facts High-margin production profile Sales (9 months 2005) USD 1
Slide 4: New Growth Cycle
New Growth Cycle Realizing values in 2004 P50 Reserves (MBOE) 1996 - 2005 150 USD 240 million sales proceeds 144 125 Returning values 100 73 86 Cash and shares dividend of 50 64 approximately USD 150 million 34 29 3 since 2003 0 3 15 1996 1997 1998 1999 2000 2001 2002 2003 2004 Q3 05 New growth
Slide 5: Review of Portfolio
Review of Portfolio
Slide 6: Worldwide portfolio
Worldwide portfolio 24 Licenses – 12 as Operator Northern Europe (15) Middle East (7) Norway Yemen PL 048B “Glitne Field” 10.00% Block 32 (Tasour) 38.95% (O) PL 305 30.00% (O) * Block 43 (Nabraj ah) 56.67% (O) PL 305 B 30.00% (O) * Block 44 65.10% (O) PL 229 15.00% Block 72 34.00% (O
Slide 7: Yemen - a continued success
Yemen - a continued success Yemen Highlights Good production performance Third field on stream (Nabrajah) Successful drilling results Increased reserves 19.01.2006 January 2006 Slide 7
Slide 8: Yemen - The highly prospective Masila area
Yemen - The highly prospective Masila area Gross Production from Masila – ca. 280.000 BOPD Oil production from several levels (Qishn, Sarr, Basement) Gross production from DNO’s 3 assets – ca. 35.000 BOPD Oil production is is tied back to Block 14 facilities 19.01.2006 January 2006 Slide 8
Slide 9: Nabrajah #9 Basement Appraisal
Nabrajah - Nabrajah #9 Basement Appraisal Nabrajah #2 Nabrajah #8 Nabrajah #9 Nabrajah #5 19.01.2006 January 2006 Slide 9
Slide 10: Yemen Potential - Qishn and Basement
Yemen Potential - Qishn and Basement Qishn Prospects Basement Prospects Large potential High number of prospects at both Qishn and Basement levels Stepping up exploration drilling activity 10 - 12 new exploration wells expected by end 2006 19.01.2006 January 2006 Slide 10
Slide 11: Northern Iraq - Unique opportunity
Northern Iraq - Unique opportunity Update on Northern Iraq PSA covers approx. 4 000 sq. km. Minimum work program includes 250 km 2D seismic + 3 wells within 4 years from June 2004 Acquisition of 440 km 2D seismic completed in Q3 First well spudded in December 2005 19.01.2006 January 2006 Sli
Slide 12: Northern Iraq - Seismic acquisition completed
Northern Iraq - Seismic acquisition completed in September 2005 19.01.2006 January 2006 Slide 12
Slide 13: Northern Iraq - Drilling operations commenced
Northern Iraq - Drilling operations commenced in November 2005 19.01.2006 January 2006 Slide 13
Slide 14: North Sea - High potential prospect inventory
North Sea - High potential prospect inventory High upside potential 15 Licenses 6 as Operator One producing asset DNO approved as operator on NCS and UKCS Drilling activity New oil discovery on Goliat reported in January 2006 One well in progress on Hummer prospect 1 well on Jaguar
Slide 15: Norway - New Goliat Oil Discovery
Norway - New Goliat Oil Discovery adding 30 mill. barrels net to DNO P50 reserves before Goliat South well, 50 million barrels - 7,5 million barrels net to DNO 1 appraisal / exploration on Goliat South prospect completed in January 06 Goliat gross P 50 estimate is now 250 million barrels - 37,
Slide 16: Norway - Hummer Prospect (PL143CS)
Norway - Hummer Prospect (PL143CS) Swap with Talisman for a 35 % WI in return for a 10 % WI in PL 265 (Ragnarock) Operator is Paladin Resources 1 exploration well on the Hummer prospect spudded in December 2005 P50 unrisked resource potential given oil discovery is 33 million barrels, which
Slide 17: UK - Jaguar Prospect
UK - Jaguar Prospect DNO 50 % and Operator 1 exploration well to commence in January 2006 Unrisked resource potential given oil discovery is estimated by DNO in the range of 54 - 280 million barrels full field, with a most likely estimate of 138 million barrels - which is 69 million barrels net
Slide 18: Norway - Additional drilling plans
Norway - Additional drilling plans PL 305 Lie (30 % - Op.) 1 exploration well planned, late 2006 or early 2007 P50 unrisked resource potential is 68 million barrels – 20,4 million barrels net to DNO PL 341 Thorkildsen (30% Op.) 1 exploration well planned in 2007 P50 unrisked resource potenti
Slide 19: Performance first 9 months 2005
2005 Performance first 9 months
Slide 20: Production and lifting costs
Production and lifting costs - Increased production to 18 000 BOPD in December 2005 Production (BOPD) Lifting Cost (USD/Bbl) 18 000 9 16 000 8 8,29 1 330 14 000 1 166 7 2 334 1 580 1 469 1 671 1 779 6,50 12 000 6 1 524 6 628 5,79 10 000 4 534 5 5,28 5 195 6 024 5,10 4 051 6 035 4,79 4,76 6 145 8 000
Slide 21: Building on New Growth Strategy
Building on New Growth Strategy - Further improvements in Q3 2005 Quarterly figures (USD million) Highlights 70 Sales 66 Record revenue and operating profit Exploration costs 60 Profit / (loss) from operating activities Strong result of operations from producing assets 52 50 49 46 46 40 39 7 36
Slide 22: Netback to Investment Coverage
Netback to Investment Coverage - High share of FD&A costs funded by producing assets Netback (RoO) to Total Investments (USD Million) Acquisition and development 40 Netback (RoO) includes 35 Development Nabrajah field Acquisition and development 30 Development drilling on the Tasour Exploration
Slide 23: Capital Structure
Capital Structure - Building on a strong balance sheet Solid financial structure Balance Sheet 31.12.2004 and 30.09.2005 400 46 % of balance sheet in cash 350 27 Other current assets 300 Net funds (cash balances less 250 16 160 interest-bearing debt) USD 2,9 mill. 200 Cash 150 Capacity for fur
Slide 24: Reserve Economics: Top Quartile Performance
Reserve Economics Top Quartile Performance FDA USD/bbl (P+P) Recycle Ratio USD/bbl (P+P) Reserve Replacement Ratio (P+P) 3,00 4,5 6,00 3-year rolling average 3 years rolling average 4,3 3-years rolling average 5,00 4,1 3,9 2,50 4,00 3,7 3,5 3,00 3,3 2,00 2,00 3,1 2,9 1,00 2,7 1,50 2,5 0,00 2003 2004
Slide 25: Reserve development
Reserve development Reserves, proven and probable (mboe) Unrisked resources (mboe) 80 2 500 70 2 000 Northern Iraq 60 + 150 % Middle East 50 1 500 40 North Sea 1 000 30 20 Northern Europe 500 Yemen (basement not included) 10 0 0 31.12.04 30.09.05 Low High Increased reserves Substantial upside potent
Slide 26: Outlook - Transforming resources to reserves
Outlook - Transforming resources to reserves Production 2005 – 2011 (BOPD) Potential reserves vs. max. unrisked resources 200 000 2 500 Million barrels 180 000 High growth potential Medium growth potential 100 % 160 000 2 000 Producing assets 140 000 120 000 1 500 100 000 80 000 1 000 1 970 60 000 2
Slide 27: Summary & Outlook
Summary & Outlook Summary Strong operational and financial results in 2005 Increased reserves at low costs Delivering values to shareholders Outlook Increased drilling activity Focus on transforming resources into reserves - at low costs Further financial improvements in 2006 Increased