Orron Energy Ab · OMXSTO:ORRON
Orron Energy Ab — Lundin Petroleum — Investor Presentation (July 2010)
38 slides from Orron Energy Ab's investor presentation, July 2010
Slide 1: Lundin Petroleum Presentation
Lundin Petroleum Presentation July 2010
Slide 2: Disclaimer
2 Disclaimer DISCLAIMER Certain statements made in this presentation involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. Certain statements relating to Lundin Petroleum’s business and operations are based on management’s expectations
Slide 3: Lundin Petroleum - Renewed Growth
3 Lundin Petroleum - Renewed Growth Strong Operating Cash Flow and Balance Sheet 2010 operating cashflow multiple of 2.8 Production Growth 20% production growth 2009 33,000 boepd by end 2010 with Volund onstream Production to double by 2014/2015 with Gaupe, Nemo and Luno developments in Norway Organ
Slide 4: Asset Overview - Three Core Areas: Europe, Russia, Far East
4 Asset Overview Norway - 14,300 boepd - Reserves: 120.9 mmboe Russia - 6 exploration wells in 2010 - 4,000 boepd - Reserves: 16.9 mmboe Netherlands - 2,200 boepd - Reserves: 3.4 mmboe France - 3,100 boepd Vietnam - Reserves: 21.9 mmboe Tunisia - 1 exploration well in 2010 - 1,100 boepd - Reserves:
Slide 5: Value Creation - Spin-off of UK Assets
5 Value Creation - Spin-off of UK Assets Lundin Petroleum Petrofac Shareholders Shareholders 55% 45% Petrofac UK Assets UK Assets EnQuest shares listed on main board of London Stock Exchange and secondary listing on NASDAQ OMX Stockholm in April 2010 Assets transferred to EnQuest free of debt Value
Slide 6: Value Creation - UK Spin-off
6 Value Creation - UK Spin-off Value of distribution Booked profit (1) approx USD 657 million approx USD 357 million Acquired UK assets in 2004 163.5 MUSD Capital Expenditure 595 MUSD Carrying value of UK assets Post-tax operating cash flow 945 MUSD approx USD 300 million 2P reserves increase by 100
Slide 7: Cash Flow Netback
7 Cash Flow Netback Based on $70/bbl Brent Assumes 9 months from 1 April 2010 $/boe Revenue 61.2 Cost of operations -10.0 Tariffs + other -1.0 Royalty and direct taxes -3.4 Cash margin netback 46.8 Depletion -12.8 Margin netback 34.0 Operating Cash Flow 44.7 EBITDA 43.6 Full Year 2010 Development ca
Slide 8: Strong Cash Flow
8 Strong Cash Flow Operating Cash Flow Q1 2010 USD 146 Million cash flow multiple less than 3 Operating Cash Flow multiples Operating Cash Flow multiples USD Million USD Million 2,000 2,000 +500 1,750 1,750 1,500 1,500 1521 1521 1,250 1,250 1,000 1,000 750 750 500 2.6 x 3.5 x 500 2.8 x 3.1 x 3.8 x 4
Slide 9: Liquidity (MUSD)
9 Liquidity (MUSD) at 31 March 2010 Debt Outstanding 569 Cash Balances 69 (1) Net Debt Position 500 (1) excludes approx. MUSD 17 held by Etrion Corp. Total Credit Facility 850 Availability under credit facility not impacted by UK spin-off WF10985 p7 04.10
Slide 10: Reserves Growth
10 Reserves Growth 300 Reserves Replacement Ratio of 361% (cumulative production: 76.3 MMBOE) * Luno successfully appraised in 2010 reserves increase 250 expected for 2011 200 U.K. MMboe 150 Russia Norway Tunisia Venezuela 100 Netherlands Indonesia France 50 0 1.1.2003 1.1.2004 1.1.2005 1.1.2006 1.1
Slide 11: 2010 Proven & Probable Reserves
11 2010 Proven & Probable Reserves Tunisia Russia (0.3) Gas 16.8% (16.9) France (21.9) Oil 83.2% PSC 7.7% Tax Royalty Indonesia 92.3% (13.7) Netherlands (3.4) 2009 Reserves Replacement Ratio 398% Norway (120.9) 2009 Increase in Reserves 26% Total 2P Reserves 177 MMboe WF10892 p2 06.10 Oil Price (Bre
Slide 12: Resource Base
12 Resource Base Continued focus on organic driven growth Norway, SE Asia & Russia Norway France (9.6) Other (44.6) (13.6) Tunisia Russia Russia/Others (0.3) (16.9) 11% France (21.9) SE Asia 25% Indonesia (13.7) Russia Netherlands (163.3) (3.4) Norway Norway (120.9) 64% 2P Reserves Contingent Resour
Slide 13: Production Growth
13 Production Growth Luno Production Growth onstream from Norway Development Projects Krabbe Onstream Nemo +100% increase Onstream in production Volund Gaupe boepd Onstream Onstream 29-33,000 26,900 Q1 2010 2010 2011 2012 2013 2014/2015 (exluding UK) Forecast WF10925 p7 04.10
Slide 14: Norway Production - Alvheim Field
14 Norway Production - Alvheim Field 40 Alvheim net Lundin 2P reserves Cumulative Production 35 2.3 Hydrocarbon Volume [MMboe] End of Year Reserves Lundin Petroleum 15% 30 32.2 33.4 7.3 Marathon 65% 25 28.4 29.7 ConocoPhillips 20% 25.1 20 Production first three months 2010 15 at 14,300 boepd net - a
Slide 15: Norway Production - Volund Onstream
15 Norway Production - Volund Onstream Volund Field Alvheim Field Lundin Petroleum 35% Marathon 65% (operator) Gross reserves 49 MMboe Achieved first oil in April 2010 from one Volund Field Gekko production well Subsea tie-back to Alvheim Volund Manifold Net plateau production 8,700 boepd Phase 2 de
Slide 16: France - Production
16 France - Production Reims Plivot La Motte Noire Pays du Vert-la-Gravelle Saulnois Major operated portfolio Paris Fontaine-au-Bron Villeperdue Val-des- Est Champagne Nancy Marais Production: 3,000+ boepd Merisier Mairy Soudron Courdemanges Dommartin Lettrée Net reserves: 22 MMboe Grandville Stable
Slide 17: Russia, Komi - Production
17 Russia, Komi - Production Komi Three producing fields (W.I. 50%) Russia Sotchemyu East Sotchemy-Talyu North Ireal SOTCHEMYU-TALYU - FIELDS PECHORA SEA Net Reserves 16.9 MMboe NORTH IRAEL FIELD Production 4,000 boepd 4 km from existing Transneft NORTH IRAEL NORTH IRAEL VERKHINYAYA pipeline system
Slide 18: Norway - Production Growth
18 Norway - Production Growth Alvheim/Volund KM Gaupe (Pi) 008 009 0026 0027 Resources : 11 MMboe First Oil: Q4 2011 0025 Plateau Production: 5,000 boepd 0024 Norway Nemo Sweden Resources : 9 MMboe First Oil: 2012/13 Luno Mapped area Plateau Production: 6,000 boepd Krabbe 015 0015 0016 0017 0018 Res
Slide 19: Greater Luno Area - Luno Field Development
19 Greater Luno Area - Luno Field Development Lundin Petroleum interest: 50% (operator) PL413 Wintershall 30%, RWE 20% PL363 Peik field PL036c Discovery 16/1-8 (2007) Alvheim field Major light oil discovery Volund field PL203 PL505BS PL412 PL150 Tested 5,700 boepd 008 009 PL547S Significant working
Slide 20: Greater Luno Area - Successful Second Appraisal Well
20 Greater Luno Area - Successful Second Appraisal Well 16/1-8 16/1-13 16/1-10 16/1-12 (Luno discovery well) (Luno 2 appraisal well) nd (Luno 1st appraisal well) (Luno South discovery well) 50 metres Tested Tested of excellent 4,000 bopd 5,700 bopd quality sand ??? ?? OWC TRIASSIC Likely increase in
Slide 21: Subsea Tieback Development - PL292 Gaupe
21 Subsea Tieback Development - PL292 Gaupe (Pi) 1 10b 15 29c 29cF1 7 12a 0015 8 0015/12 (Area 8) 0016 12f REV 016 12g PL292 is located in Blocks 6/3 and 15/12 9 PL292b 10a 29aF1 12e 12c Lundin Petroleum 40% 29aE 15/12-19 PL292 12d BG Norge 60% (operator) Gaupe Discovery Armada 2P gross reserves of
Slide 22: Development - PL148 Nemo & PL301 Krabbe
22 Development - PL148 Nemo & PL301 Krabbe Nemo PL495 022/15 (Area 2) PL453 S PL453 S Lundin Petroleum 50% interest (operator) BANKS 07 Partner: Talisman (30%) Noreco (20%) Nemo PHYLLIS PL148 Field development project - Nemo Mungo PL148 PDO submission 2011 NORWAY MORTIMER 2P Gross reserves: 17.8 MMb
Slide 23: Exploration – 2010 Drilling
23 Exploration – 2010 Drilling Second half 2010 exploration drilling Second half 2010 drilling 8 exploration wells is targeting 200-250 MMboe 2H 2010 Forecast Exploration Expenditure 230 MUSD 2H 2010 exploration targets: 225 MMboe net unrisked Norway, 167 Barchan, 74.5 Norall, 18.6 Russia, 26 Earb S
Slide 24: Exploration - Norway
24 Exploration - Norway Major position built through organic growth Further 7 new licences in APA 2009 licensing round Production licences Exploration licences Norway number of licences Number of licences per Company post APA2009 award 45 250 40 Lundin Norway ranked No.3 in terms New APA 2009 Award
Slide 25: Exploration - Norway - Proven Track Record
25 Exploration - Norway - Proven Track Record Discoveries up to year end 2009 5 Finding Cost USD/boe 4.8 Success Rate 45% WF10989 p2 04.10
Slide 26: Exploration - Norway - Key Areas
26 Exploration - Norway - 3 Key Areas Barents Sea Area Greater Alvheim Area Greater Luno Area Barents Sea Area Greater Alvheim Area Greater Luno Area 2009 APA award WF10757b 03.10
Slide 27: Exploration - Greater Alvheim Area
27 Exploration - Greater Alvheim Area LundinPetroleum Operator LundinPetroleum Partner PL413 2009 APA Award PL088 PL088 9/14a-6 2009 Discoveries PL413 0 KM 4 9/15a-1 PL088 bs PL036C P090 PL340 (15%) PL088 BS 9/15a-2 PEIK UK 24/6-1 PL036C Marihøne light oil discovery 20-30 MMboe PL088 24/6-3 HEIMDAL
Slide 28: Greater Luno Area - Further Exploration Potential
28 Greater Luno Area - Further Exploration Potential PL 501 (40%) PL304 Avaldsnes exploration well in 2010 UK Utsira High PL546 0 KM 20 Prospective resources 127 MMboe gross unrisked Apollo prospect 16/1-14 PL 338 (50%) Avaldsnes prospect Luno and Luno South 127 MMboe Apollo exploration well in 2010
Slide 29: Greater Luno Area - Apollo Prospect Summary
29 Greater Luno Area - Apollo Prospect Summary 25/10-7 S 25/11-17 Apollo prospect to be drilled in Q3 2010 HANZ 25/10-8 PL304 PL546 Extension of Draupne discovery into PL338 PL001B PL457 PL501 PL167 16/2-2 Apollo Prospect Further exploration upside based upon 3D seismic 16/1-7 16/1-2 0016/01 (Area 7
Slide 30: Barents Sea - Drilling in 2011
6916 6914 30 Barents Sea - Drilling in6814 2011 SWEDEN 6813 22°E 21°E 63 Numerous multi-stacked prospects matured in the portfolio Lead Prospect Oil field PL438 Rauto Gas field Licenced Area (NPD) Lundin Petroleum 25% (operator) Lundin Norway Licences 3 prospects Pulk (Salina) Operated Non-Operated
Slide 31: Geological play types
31 Geological play types PL533 PL492 PL438 PL490 NW Skalle SE Lavvo 7120/1-1R 7120/2-1 Pleistocene Shallow gas anomalies Shallow gas anomalies Early Jurassic 1000 ene eoc Pal Numerous structural and ou s? Late Tria ssic Paleo ce ne e stratigraphic play types tac Cre sic Trias Potential for stacked e
Slide 32: Russia - Lagansky - Morskaya Discovery
32 Russia - Lagansky - Morskaya Discovery 0 KM 20 Lundin Northern Caspian Concession Oil Field Petrovskaya-1 Morskaya Discovery Gas Field Laganskaya-1 Morskaya-1 COC well Rakushechnoye Field Severo- 4.4 TCF Rakushechny Rak-4 Rak-1 Viktor Filanovski Rak-2 600 MMbbls 1.2 TCF Yuri Korchagin Lagansky Bl
Slide 33: Exploration - South East Asia - Building a New Core Area
33 Exploration - South East Asia - Building a New Core Area THAILAND TOTAL CAMBODIA Exploration Licences: 9 VIETNAM Direct Joint Studies: 1 Production Licences: 3 Block 06/94 SB303 Total Prospective Resources: 426 MMboe Sabah Area Baronang Cakalang SABAH SB307/308 BRUNEI MALAYSIA Basin Margin Play S
Slide 34: SE Asia - Drilling Activity
34 SE Asia - Drilling Activity 15 exploration wells to be drilled over next 3/4 years 2010 2011 2012 2013 Blocks Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2 wells Vietnam Block 06/94 5 wells 4 wells Malaysia Blocks PM308A/B/SB303 3D SB307&308 1 well Indonesia Rangkas PSC 2D 2 wells Indonesia B
Slide 35: Targeted Prospective Resources – 2010 Drilling Schedule
35 Targeted Prospective Resources – 2010 Drilling Schedule (1) (2) Country Licence - Prospect Operator LUPE% NURPR CoS% NRPR Q1 Q2 Q3 Q4 1 Norway PL476 - Frusalen Det norske 30.00 - - - P&A dry 2 Norway PL359 - Luno High Lundin 40.00 - - - P&A - non commercial 3 Norway PL501 - Avaldsnes Lundin 40.00
Slide 36: Lundin Petroleum - Renewed Growth
36 Lundin Petroleum - Renewed Growth Strong Operating Cash Flow and Balance Sheet 2010 operating cashflow multiple of 2.8 Production Growth 20% production growth 2009 33,000 boepd by end 2010 with Volund onstream Production to double by 2014/2015 with Gaupe, Nemo and Luno developments in Norway Orga
Slide 37: Lundin Petroleum’s Shareholders
37 Lundin Petroleum’s Shareholders Number of shares: 318 million Owned by Lundin Petroleum: 5.6 million shares Average traded volume per day: 1.7 million (free float turnover of 2 time per year) Part of OMX30, NASDAQ OMX Stockholm Shareholder structure Geographically Retail , 15% USA , 5.5% Lundin f
Slide 38: Lundin Petroleum
38 Lundin Petroleum WF11011 www.lundin-petroleum.com