North Energy Asa · OSL:NORTH

North Energy Asa — Q3 2015 Earnings Presentation

20 slides from North Energy Asa's earnings presentation, Nov 12, 2015

  1. Slide 1: North Energy Q3 2015

    North Energy Q3 2015 12 November 2015

  2. Slide 2: Important information

    Important information This presentation and its appendices (together the “Presentation”) have been prepared and delivered by North Energy ASA (“North Energy” or the “Company”). The Presentation is prepared for information purposes only, and is not to be used for any other purpose. The Presentation d

  3. Slide 3: Agenda

    Agenda  Q3 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  4. Slide 4: North Energy – Status entering 2016

    North Energy – Status entering 2016 A robust financial platform Cost cutting programme soon completed No firm commitments – opportunistic approach going forward Streamlined organisation Well positioned for the future North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  5. Slide 5: Q3 highlights and subsequent events

    Q3 highlights and subsequent events  Non-commercial discovery on the Tvillingen Sør prospect in the Norwegian Sea  30 meter hydrocarbon column discovered  Below pre-drill expectations  Dry well on the Haribo prospect in the North Sea (reported in Q2 report)  Tight chalk with no significant hydr

  6. Slide 6: Agenda

    Agenda  Q3 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  7. Slide 7: Profit & Loss Q3 2015

    Profit & Loss Q3 2015 NOK Million Q3 2015 Q2 2015 Q3 2014 2014 Gain/loss from licence sale - (0,4) 0,2 3,5 Exploration expenses (117,6) (116,2) (56,6) (365,1) 510 (MNOK 76) and 616 (MNOK 29) Payroll (12,2) (12,1) (15,6) (52,9) Other operating expenses (9,7) (11,9) (5,9) (36,2) Incl. restructuring co

  8. Slide 8: Balance Sheet 30 September 2015

    Balance Sheet 30 September 2015 NOK Million 30.09.2015 30.06.2015 31.12.2014 Assets Fixed assets 6,3 7,5 9,9 Capitalized drilling cost 4,4 5,2 11,5 Deferred tax asset 151,4 146,1 131,7 Incl. tax loss carried forward MNOK 143,8 Long term receivables 329,3 215,3 4,4 Mainly tax receivables Dec. 2016 Sh

  9. Slide 9: Healthy financial position

    Healthy financial position Net cash* position Q3 2015  Q3 2015 net cash 800,0 position of NOK 219 700,0 million 20 600,0 62 319  Unused exploration 500,0 481 loan facility NOK 469 400,0 million 300,0  Extended until 2017 200,0 374  Accordion option up to 100,0 219 MNOK 1,150 9 0,0 Cash 2015 tax

  10. Slide 10: Extensive cost cutting measures showing results

    Extensive cost cutting measures showing results No. of employees 50  Net G&A in 2016 slashed by 70 per cent 40 compared with 2014 30 20  2016 cash burn at a minimum 10 0  YE 2014 YE 2015 YE 2016 Robust cash position allows for opportunistic and selective approach to No. of offices new opportuniti

  11. Slide 11: Agenda

    Agenda  Q3 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  12. Slide 12: North Energy – the licence portfolio

    North Energy – the licence portfolio  Currently 21 licences  PL 722 and PL 708 sold*  PL 601 and PL 693 to be relinquished*  Drop decision made in PL 503  DoD / BoV 2016 - 16 licences  DoD 2017 - 2 licences  2 wells finalized in Q3 2015  Evaluation of drilling candidates * Dependent on Gover

  13. Slide 13: The Haribo and Tvillingen South wells finalized in Q3 2015

    The Haribo and Tvillingen South wells finalized in Q3 2015 Tvillingen South Haribo North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  14. Slide 14: PL 510 – Non-commercial discovery in Tvillingen South

    PL 510 – Non-commercial discovery in Tvillingen South  APA license 2009, Maersk operator  Hydrocarbon column of up to 30 meters in well and 90 meters in total  Excellent reservoir quality encountered  The deeper reservoir targets were water wet  Discovered resources below pre-drill estimates 

  15. Slide 15: PL 616 – dry well in the Haribo prospect

    PL 616 – dry well in the Haribo prospect  Farm in licence 2014, Edison operator  Many different prospect evaluated  All chalk reservoir were tight with no hydrocarbon indication  Geophysical modelling indicated presence of reservoir quality in the chalk – work ongoing to explain the mismatch Nor

  16. Slide 16: Upcoming drill or drop decisions

    Upcoming drill or drop decisions License Prospect Interest Operator Location DoD Deadline PL 503 Valberget 12.5% Lotos North Sea Q4 2015 PL 503 C Valberget 12.5% Lotos North Sea Q4 2015 PL 601 Nupen 20% Wintershall Norwegian Sea Q4 2015* PL 590 Sierra 30% North Energy Norwegian Sea Q1 2016 PL 656 Se

  17. Slide 17: Drilling candidate: PL 762 Vågar

    Drilling candidate: PL 762 Vågar  Prospect description:  Ca. 200 mmboe oil/gas prospect  Carbonate prospect – unproven play  Several structures within the licence – significant upside potential  Commerciality:  Potential tie-in to Norne  Drill or drop: Q1 2017 Norwegian Sea North Energy ASA ·

  18. Slide 18: Agenda

    Agenda  Q3 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  19. Slide 19: Summary and outlook

    Summary and outlook  On track to conclude extensive downsizing programme by end 2015  Burn rate slashed by 70% compared with 2014  Comfortable financial position in challenging market  No firm wells but opportunistic approach w.r.t. future activities  Financial position enabling new quality opp

  20. Slide 20: Q & A

    Q&A North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

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