North Energy Asa · OSL:NORTH
North Energy Asa — Q1 2011 Earnings Presentation
25 slides from North Energy Asa's earnings presentation, May 4, 2011
Slide 1: North Energy Q1 2011
North Energy Q1 2011 4 May 2011
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
Slide 3: Agenda
Agenda Highlights Q1 Financials Exploration update Outlook North Energy ASA, Markedsgata 3, Alta, Norway. 3 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 4: Highlights Q1
Highlights Q1 Successful farm-in transactions with upcoming wells 10% in PL 370 Kakelborg – well early 2012 Additional 20% in PL 385 Jette - well late 2011/early 2012 Solid awards in recent licensing rounds Five licenses awarded, including one operated, in APA 2010 License in strategic i
Slide 5: Drilling program expanded through farm-ins
Drilling program expanded through farm-ins Farm-in of 10% in PL 370 Kakelborg Located in the North Sea approx. 30 km northwest of the Snorre Field Drilling Q1 2012 with Transocean Arctic Partners: Wintershall (op) 40%, Agora 30% and Concedo 20%. Increase of 20% in PL 385 Jette Giving a t
Slide 6: Full score in the APA 2010 licensing round
Full score in the APA 2010 licensing round Full score with five licenses High quality application demonstrating excellent understanding of the prime target areas – the Barents Sea and the Norwegian Sea One operated license, PL 590, in the Norwegian Sea Recognition of North Energy's capabilit
Slide 7: New license in important strategic area in 21R
New license in important strategic area in 21R North Energy awarded 20% in PL 601 in 21R In the Norwegian Sea just south of Lofoten On trend with prospectivity in Nordland VI North Energy’s application in 21R was selective and in line with the company’s exploration strategy Adding more acr
Slide 8: APA 2011 offers new acreage close to LoVe
APA 2011 offers new acreage close to LoVe Previously unavailable parts of Nordland III and V have been included in APA 2011 One of North Energy’s core area is just south of Nordland VI Areas in Nordland VI, where impact studies have been carried out, may be awarded Operated license as early as
Slide 9: New acreage available in the Barents Sea
New acreage available in the Barents Sea The boundary agreement was ratified in Q1 2011 Impact assessment of the area will be initiated shortly New acreage closer to shore available New Zone were petroleum activity is allowed area Map: BBC increases from 50 km to only 35 km from the coast, i
Slide 10: Agenda
Agenda Highlights Q1 Financials Exploration update Outlook North Energy ASA, Markedsgata 3, Alta, Norway. 10 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 11: North Energy ASA – Profit & Loss
North Energy ASA – Profit & Loss 1Q 1Q Year 4Q MNOK 2011 2010 2010 2010 Payroll 18,8 17,4 62,1 16,1 Additional staff/recruitment cost Depreciation 1,5 0,9 4,6 1,5 Exploration expenses 7,4 13,5 179,0 118,6 No wells drilled Q1 2011 Other operating expenses 10,4 12,1 43,4 10,4 Stock exchange listing in
Slide 12: North Energy ASA - Balance sheet
North Energy ASA - Balance sheet 1Q Year end Year end MNOK 2011 2010 2009 Assets Fixed Assets 198,5 161,9 32,6 Capitalised drilling PL433 of MNOK 110 Receivables 381,5 385,5 164,0 Acc tax receivables of MNOK 378 Cash and cash equivalents 15,2 90,7 45,7 Total Assets 595,2 638,1 242,3 Equity and liabi
Slide 13: Solid financial situation
Solid financial situation Expected tax reimbursement 2011 of NOK 346 million Expected tax reimbursement 2012 of NOK 32 million Liquidity as of Q1 2011 Net cash position of NOK 372 million Exploration loan facility of MNOK 760 to cover drilling program 2011 – 2012 negotiated with DnB NOR, SEB
Slide 14: Net cash according to plan
Net cash according to plan “Net cash” position Q1 2011 Net cash position of NOK 372 million 21 -40 32 Unused exploration loan facility of NOK 720 million 346 372 Developing in line with funding plans at the IPO 15 Cash 2011 Tax 2012 Tax Net working Interest- Net cash refund refund capital bear
Slide 15: Agenda
Agenda Highlights Q4 Financials Exploration update Outlook North Energy ASA, Markedsgata 3, Alta, Norway. 15 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 16: High-impact exploration program kicked off
High-impact exploration program kicked off Norvarg wildcat well spudded April 30th Drilling program, firm wells mmboe Drilling program set to test 83 mmboe net 90 80 risked resources over the next 15 months 70 6 firm wells in place of which 3 are in 2011 60 Two drill-or-drop decisions to be
Slide 17: PL 535 Norvarg – first high-impact well in 2011
PL 535 Norvarg – first high-impact well in 2011 PL 535 in the Barents Sea Awarded 20th round (2009) Main prospect Norvarg Operator Total (40%) Hydrocarbons Gas Partners North Energy (20%) Expected drilling Q2 2011 Det norske (20%) Prob. of success 29% Rocksource (20%) Gross mean unrisked 226 mmboe N
Slide 18: PL 530 Heilo – second high-impact well in 2011
PL 530 Heilo – second high-impact well in 2011 A B PL 530 in the Barents Sea 0.500 Seabed Awarded 20th round (2009) Main prospect Heilo Heilo ,1270m Operator GDF Suez (40%) Hydrocarbons Oil w/gas cap 1.000 Partners North Energy (20%) Expected drilling Q3 2011 S (TWT) Front Exploration (20%) Prob. of
Slide 19: PL 518 Zapffe – third high-impact well in 2011
PL 518 Zapffe – third high-impact well in 2011 PL 518 and PL 518B in the Barents Sea Awarded APA 2008 Main prospect Zapffe Operator DONG (40%) Hydrocarbons Oil Partners North Energy (30%) Expected drilling Q4 2011 Front Exploration (20%) Prob. of success 25 % Sagex (10%) Gross mean unrisked 280 mmbo
Slide 20: PL 385 Jette – firm well late in 2011/early 2012
PL 385 Jette – firm well late in 2011/early 2012 PL 385 in the Norwegian Sea Acquired 2009 Main prospect Jette Operator Statoil (45%) Hydrocarbons Gas Cond. Partners North Energy (35%) Expected drilling Q4 2011 /Q1 2012 Noreco (20%) Prob. of success 37% Gross mean unrisked 95 mmboe Net mean risked 1
Slide 21: PL 370/PL370B Kakelborg- drilling in Q1/2012
PL 370/PL370B Kakelborg- drilling in Q1/2012 PL 370 / PL370B Kakelborg in the North Sea Awarded Acquired 2011 Main prospect Kakelborg Operator Wintershall (40%) Hydrocarbons Oil Partners North Energy (10%) Expected drilling Q1 2012 Agora (30%) Prob. of success 30% Concedo (20%) Gross mean unrisked 1
Slide 22: PL 498 Skagen – drilling in 2012
PL 498 Skagen – drilling in 2012 PL 498 in the North Sea Acquired 2009 Main prospect Skagen Operator Lotos (25%) Hydrocarbons Oil Partners North Energy (25%) Expected drilling 2012 Edison Int. (25%) Prob. of success 36% Skagen 44 (25%) Gross mean unrisked 75 mmboe Net mean risked 7 mmboe Work plan D
Slide 23: Agenda
Agenda Highlights Q4 Financials Exploration update Outlook North Energy ASA, Markedsgata 3, Alta, Norway. 23 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no
Slide 24: Outlook
Outlook 6 months outlook Norvarg exploration well in the Barents Sea Heilo exploration well in the Barents Sea + possible sidestep Zapffe exploration well in the Barents Sea + possible sidestep Drilling decision on PL 510 Scarecrow APA 2011 application 12 months outlook Drilling of J
Slide 25: Thank you for your attention!
Thank you for your attention! North Energy ASA, Markedsgata 3, Alta, Norway. 25 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no