Slide 1: DNO ASA 3. Quarter 2001
DNO ASA 3. Quarter 2001 Helge Eide Haakon Sandborg Managing Director Finance Director Presentation of 3Q 2001
Slide 2: Agenda
3Q 2001 DNO ASA 1. 2001 YTD OVERVIEW 2. FINANCIAL PERFORMANCE 3. OIL & GAS ACTIVITIES 4. CLOSING COMMENTS Presentation of 3Q 2001
Slide 3: UK
2001 YTD OVERVIEW UK Presentation of 3Q 2001
Slide 4: 2001 YTD Overview - Heather
2001 YTD OVERVIEW Heather Completed infill drilling on Heather followed by well intervention work Presentation of 3Q 2001
Slide 5: 2001 YTD Overview - West Heather
2001 YTD OVERVIEW West Heather Map Drilling of West Heather well confirming oil discovery in Brent Emerald formation Increased Resource Base by 10 MBOE Presentation of 3Q 2001
Slide 6: 2001 YTD Overview - Claymore
2001 YTD OVERVIEW Claymore Sold 1 % share in Claymore – gain MNOK 35 Presentation of 3Q 2001
Slide 7: Norway
2001 YTD OVERVIEW NORWAY Presentation of 3Q 2001
Slide 8: 2001 YTD Overview - Jotun
2001 YTD OVERVIEW Jotun Acquired 2 % additional share in Jotun Presentation of 3Q 2001
Slide 9: 2001 YTD Overview - Glitne
2001 YTD OVERVIEW Glitne Production start on Glitne in August Presentation of 3Q 2001
Slide 10: Yemen
2001 YTD OVERVIEW YEMEN Presentation of 3Q 2001
Slide 11: 2001 YTD Overview - Tasour
2001 YTD OVERVIEW Drilled new production well Yemen at Tasour - Yemen Presentation of 3Q 2001
Slide 12: 2001 YTD Overview - Sharyoof
2001 YTD OVERVIEW Sharyoof CPF under construction Commenced development of Sharyoof - Yemen Presentation of 3Q 2001
Slide 13: Block 43
2001 YTD OVERVIEW Block 43 Tasour Tasour Sharyoof Sharyoof Securing DNO 75 % and Operatorship in Block 43 Yemen Presentation of 3Q 2001
Slide 14: 3Q Production
2001 YTD OVERVIEW § UK 4.889 BOPD 3Q PRODUCTION § Norway 3.944 BOPD § Yemen 2.889 BOPD 14000 11.772 BOPD 12000 10000 BOPD 8000 6000 4000 2000 0 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 Presentation of 3Q 2001 UK Norway Yemen
Slide 15: 3Q YTD Production
2001 YTD OVERVIEW § UK 5.386 BOPD 3Q YTD PRODUCTION § Norway 3.808 BOPD § Yemen 3.204 BOPD 15754 BOPD 16000 12398 BOPD 14000 12000 10000 BOPD 8000 6000 4000 2000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT 2001 Presentation of 3Q 2001 UK NORWAY YEMEN
Slide 16: Resources - MBOE (P + P)
2001 YTD OVERVIEW 100 RESOURCES – MBOE (P + P) 10,0 80 10,0 60 69,9 66,6 40 20 0 -3,4 -20 1 JAN 2001 PRODUCED YTD 3Q 30 SEP 2001 PL 203 Presentation of 3Q 2001 POTENTIAL INCREASE WH
Slide 17: Agenda
3Q 2001 DNO ASA 1. 2001 YTD OVERVIEW 2. FINANCIAL PERFORMANCE 3. OIL & GAS ACTIVITIES 4. CLOSING COMMENTS Presentation of 3Q 2001
Slide 18: Key Financials January - September 2001
Key Financials January – September 2001 Presentation of 3Q 2001
Slide 19: Brent Monthly Closing Average and DNO Oil Production
Brent Monthly Closing Average and DNO Oil Production § Brent Monthly Average USD 24-26/bbl in 3Q01 § DNO Production 11.722 BOPD in 3Q01 18000 30 16000 25 14000 12000 20 10000 BOPD USD 15 8000 6000 10 4000 5 2000 0 0 N N R B AY G L T P AR OC JU JA JU AP SE FE AU M M Presentation of 3Q 2001 DNO Oil Pr
Slide 20: Income Statement 3Q 2001
Income Statement 3Q 2001 § Pre-tax Profit of NOK 41 mill. on Claymore Sale § 8% Drop in Oil Production Volume § Earnings Improvement in Associated Companies § Pre-Tax Profit of NOK 112 mill. (NOK Mill.) 3Q01 2Q01 1Q01 4Q00 3Q00 YTD 01 YTD 00 Operating Revenue 327 314 287 208 163 928 465 EBITDA (Net
Slide 21: Quarterly Operating Revenue, EBITDA and EBIT
Quarterly Operating Revenue, EBITDA and EBIT (NOK 100 mill.) 1Q01 2Q01 3Q01 Production Cost 101 108 115 - UK Well Intervention Program 7 10 = Quarterly Prod. Cost, net of WI Program 101 101 105 Prod. Cost pr. bbl in USD, net of WI Program* 10,02 10,14 11,45 * @USD/NOK 8.50 350 300 250 200 Revenue NO
Slide 22: Change to Gross Treatment of Revenue/Tax for Yemen Block 32
Change to Gross Treatment of Revenue/ Tax for Yemen Block 32 § Accounting for Yemen Bl. 32 changed from net to gross treatment § Operating revenue presented gross, including PSA volume payable to Yemen authorities § PSA volume classified and deducted as tax payment § Better view of field performance
Slide 23: Balance Sheet 3Q01 - Assets
Balance Sheet 3Q01 - Assets § Further Significant Investment in Producing Assets (NOK mill.) 3Q01 2Q01 YE 2000 Fixed Assets 1.205 1.030 631 Financial Fixed Assets 502 498 495 Intangible Assets 122 124 128 Total Fixed Assets 1.829 1.652 1.254 Cash and Cash Equiv. 222 474 88 Other Current Assets 276 1
Slide 24: Balance Sheet 3Q 2001 - Shareholders Equity and Liabilities
Balance Sheet 3Q 2001 - Shareholders Equity and Liabilities § No Major Changes in Third Quarter (NOK mill.) 3Q01 2Q01 YE 2000 Shareholders' Equity 916 880 797 Interest-Bearing Long-Term Debt 650 674 158 Provisions for Liabilities and Charges 391 356 316 Total Long-Term Liabilities 1.041 1.030 474 In
Slide 25: Leverage Maintained at Moderate Level
Leverage Maintained at Moderate Level § Interest-Bearing Debt to Capitalization 41.5% at end of 3Q01 45 40 35 30 25 % 20 15 10 5 0 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 Debt/Capitalization Presentation of 3Q 2001
Slide 26: Cash Flow 3Q 01
Cash Flow 3Q 01 § NOK 163 mill. Cash Flow from Operations § High Investment Level § Funding of Investments from Cash Flow and Proceeds from Bond Issue (NOK Mill.) 3Q01 2Q01 1Q01 YTD01 YTD00 Cash Flow from Operations 163 148 215 525 178 Cash Flow from Investing -380 -93 -277 -749 -325 Cash Flow from
Slide 27: Financial Performance - Key Figures
Financial Performance - Key Figures § Lower Margins in 3Q01, Strong YTD Figures 3Q01 2Q01 1Q01 4Q00 3Q00 YTD 01 YTD 00 Earnings per Share NOK 0,83 0,46 0,74 -0,18 -0,41 2,03 1,33 EBITDA per Share NOK 2,80 3,55 3,13 1,44 0,99 9,40 3,43 Revenue Growth % 4,1 9,4 38,1 27,3 3,1 99,6 353,2 EBITDA Margin %
Slide 28: Agenda
3Q 2001 DNO ASA 1. 2001 YTD OVERVIEW 2. FINANCIAL PERFORMANCE 3. OIL & GAS ACTIVITIES 4. CLOSING COMMENTS Presentation of 3Q 2001
Slide 29: Heather Area
HEATHER AREA Presentation of 3Q 2001
Slide 30: Heather Area
HEATHER AREA DUNLIN/MERLIN EIDER MURCHISON 213 TERN STATFJORD HUDSON HUTTON / NW HUTTON CORMORANT PELICAN BRENT 206 207 1 HEATHER STRATHSPEY Shetland LYELL ALWYN NORTH Islands EMERALD ELLON NINIAN/ DUNBAR SCHIEHALLION COLUMBA 2 3 4 FRIGG 5 6 7 8 9 BRUCE 10 Orkney NESS NEVIS BERYL GRYPHON Heather Alp
Slide 31: Resources - Heather Area
RESOURCES – HEATHER AREA WEST HEATHER MAP Drilling of West Heather well confirming Heather + West Heather Resource Base oil discovery in Brent Emerald formation 50 -60 MBOE Increased Resource Base by 10 MBOE Production until 2010+ Presentation of 3Q 2001
Slide 32: Licenses in Norway
LICENSES IN NORWAY JOTUN FIELD - 3.25 % (EXXON/MOBIL OPERATOR) GLITNE FIELD - 10,00 % (STATOIL OPERATOR) PL 203 - 15.00 % (NORSK HYDRO OPERATOR) PL 006C - 10.00 % (AMERADA HESS OPERATOR) PL 148 - 30.00 % (AMERADA HESS OPERATOR) Presentation of 3Q 2001
Slide 33: Jotun
JOTUN Jotun Partners Exxon/Mobil (OP) : 45.00 % DNO : 3.25 % Enterprise : 45.00 % Conoco : 3.75 % SDØE : 3.00 % 3 Q 2001 YTD PRODUCTION Net to DNO (3.25 %) 3393 BOPD First Oil November 1999 Presentation of 3Q 2001
Slide 34: Glitne
GLITNE Statoil Operator 58.9% DNO 10.0 % Total/Elf/Fina 21.8% Pelican 9.3% 3 Q 2001 YTD PRODUCTION Net to DNO (10.00 %) 3650 BOPD First Oil 29 August 2001 Presentation of 3Q 2001
Slide 35: PL 203
PL 203 Status: Field Development Plan (PUD) for gas expected spring 2002 Development of oil resources now more likely Resources (Net to DNO): Gas: 7 mill. BOE Oil: 3 mill. BOE Presentation of 3Q 2001
Slide 36: Licenses in Yemen
LICENSES IN YEMEN 280.000 bopd production Presentation of 3Q 2001
Slide 37: Yemen Overview
YEMEN OVERVIEW Tasour Tasour Block 43 Sharyoof Sharyoof 3Q YTD 2001 PRODUCTION Net to DNO Tasour CPF Presentation 3204 BOPD of 3Q 2001
Slide 38: Block 32
Block 32 Prospects and Leads Short Term Drilling Plans: 1 New production well at Tasour Field 1 Exploration Well in Tasour Area Presentation of 3Q 2001
Slide 39: Sharyoof
Block 53 Sharyoof Sharyoof CPF under construction Short Term Plans Oil by end 2001 – Expected start-production of 10.000 – 15.000 BOPD (DNO 2.500 – 3.700 BOPD) Drilling 3 additional producers 1H 2002 – building production to max. 25.000 BOPD (DNO 6.125 BOPD) Presentation of 3Q 2001
Slide 40: Main Activities 2H 2001
MAIN ACTIVITIES 2 H 2001 • First Oil on Glitne • Drilling on West Heather • Drilling in the Tasour Area • First Oil on Sharyoof • Drilling the ”Tyr” Prospect Presentation of 3Q 2001
Slide 41: Agenda
3Q 2001 DNO ASA 1. 2001 YTD OVERVIEW 2. FINANCIAL PERFORMANCE 3. OIL & GAS ACTIVITIES 4. CLOSING COMMENTS Presentation of 3Q 2001
Slide 42: Closing Comments
CLOSING COMMENTS DNO has been subject to a substantial growth during past 5 During past 3 years the Company has, as Operator, drilled 11 wells: onshore-, platform- and sub-sea wells The Company has operated the Heather Field since 1997, as well as the appraisal and development of the Tasour Field in
Slide 43: Closing Comments
CLOSING COMMENTS DNO has now become an Oil Company which has the experience and expertise to operate in all stages: seismic acquisition, drilling, field development as well as - operation With such experience and expertise DNO is well positioned for additional value creation in years to come Present
Slide 44: Thank you for your attention
THANK YOU FOR YOUR ATTENTION ! THIS PRESENTATION IS AVAILABLE ON www.dno.no Presentation of 3Q 2001