North Energy Asa · OSL:NORTH

North Energy Asa — Q2 2012 Earnings Presentation

25 slides from North Energy Asa's earnings presentation, Aug 22, 2012

  1. Slide 1: North Energy Q2 2012

    North Energy Q2 2012 22 August 2012

  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  Highlights Q2  Financial update  Exploration update  Outlook North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  4. Slide 4: Highlights Q2 and later events

    Highlights Q2 and later events  Dry well on Kakelborg in the North Sea  High business development activity  Swapped into the Frode oil prospect in North Sea  Increased equity interest in the Vågar license  Signed farm-down agreement with Lime Petroleum  Appraisal well on Norvarg firmed up  Pr

  5. Slide 5: Agenda

    Agenda  Highlights Q2  Financial update  Exploration update  Outlook North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  6. Slide 6: North Energy – Profit & Loss

    North Energy – Profit & Loss Q2 Q2 Year Q1 MNOK 2012 2011 2011 2012 Payroll 10,7 15,9 70,9 18,0 Less headcount and increased charge out Depreciation 2,5 1,7 7,2 2,5 Exploration expenses 166,2 20,1 340,2 24,1 Dry PL 450 Storebjørn Other operating expenses 10,9 9,5 40,0 9,7 Operating loss -190,4 47,2

  7. Slide 7: North Energy – Balance sheet

    North Energy – Balance sheet Q2 Year end Year end MNOK 2012 2011 2010 Assets Fixed Assets 422,2 418,6 161,9 Capitalized drilling cost Long term receivables 181,5 0,0 0,0 Tax receivable refund - Dec 2013 Short term receivables 659,1 608,4 385,5 Mainly tax receivable refund - Dec 2012 Cash and cash eq

  8. Slide 8: Strong net cash position

    Strong net cash position “Net cash” position Q2 2012  Net cash position of NOK 243 million  Unused exploration loan facility of NOK 455 million  Sale of Fogelberg of NOK 70 million not included (completion late August)  Proceeds of NOK 27,5 million from sale to Lime Petroleum not included North

  9. Slide 9: Agenda

    Agenda  Highlights Q2  Financial update  Exploration update  Outlook North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  10. Slide 10: Kakelborg – dry well in the North Sea

    Kakelborg – dry well in the North Sea  Well 33/6-4 was estimated at Kakelborg anomaly 30% chance of success  The seismic anomaly represents a lithological effect and not presence of hydrocarbons  The effect is now analyzed to avoid a similar dry well in the future PL 370 PL 370B North Energy ASA,

  11. Slide 11: Drilling activity 2012 - 2013

    Drilling activity 2012 - 2013  Two more wells in 2012 Wells 2012  PL 385 Jette wildcat (15% Wells 2013 WI, operated by Statoil)  PL 498 Skagen wildcat (25% WI, operated by Lotos)  Two wells in 2013  PL 535 Norvarg appraisal (20% WI, operated by Total)  PL 299 Frode wildcat (20% WI, operated by

  12. Slide 12: Drill or Drop (DoD) licences

    Drill or Drop (DoD) licences  Three drill or drop decisions Drill or drop licences the next six months  PL 526 – 15 Nov 2012  PL 590 – have applied for 6 month extension (6 Feb 2013)  PL 503 – DoD/relinquishment 23 Jan 2013  Drop decision on PL 536 Elbrus  Taken in the licence15th of August No

  13. Slide 13: Current drilling program with rig slots

    Current drilling program with rig slots 2012 2013 August Sept. Sept. Mars June Nov. Nov. Dec. Dec. Feb. April May Jan. Oct. Oct. July PL 385 Jette West Alpha PL 498 Skagen Maersk Guardian PL 535 Norvarg, appr. Leiv Eiriksson PL 299 Frode Maersk Giant Oil Gas-Condensate Gas w/possible oil leg North E

  14. Slide 14: PL 385 Jette – expected spud Q3

    PL 385 Jette – expected spud Q3 PL 385 in the Norwegian Sea Acquired 2009 Main prospect Jette Operator Statoil (45%) Hydrocarbons Gas cond. Partners North Energy (15%) Expected drilling Q3 2012 Noreco (20%) PoS 37% Dong (20%) Gross mean 95 mmboe unrisked Net mean risked 12 mmboe Work plan Drill one

  15. Slide 15: PL 385 Jette – located in prolific area

    PL 385 Jette – located in prolific area  Jette prospect similar to the recently discovered Alve North accumulation 8 kms to the South Jette  The Jette South prospect in between and possible next target  Both oil and gas encountered in two reservoir intervals  Historically, high success rate in M

  16. Slide 16: Development of Jette as tie-in to the Norne facilities in case discovery

    Development of Jette as tie-in to the Norne facilities in case discovery Source: NPD / North Energy Foto Statoil North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  17. Slide 17: PL 498 Skagen – drilling Q4 2012

    PL 498 Skagen – drilling Q4 2012 PL 498 in the North Sea Acquired 2009 Main prospect Skagen Operator Lotos (25%) Hydrocarbons Oil Partners North Energy (25%) Expected drilling Q4 2012 Edison Int. (25%) PoS 36% Skagen 44 (25%) Gross mean 75 mmboe unrisked Net mean risked 7 mmboe Work plan Drill one w

  18. Slide 18: PL 299 Frode – drilling Q2 2013

    PL 299 Frode – drilling Q2 2013 PL 299 in the North Sea Acquired 2012 Main prospect Frode Operator Talisman (31.5%) Hydrocarbons Oil Partners DONG (20%) Expected drilling Q2 2013 Agora (28.5%) PoS 29% North Energy (20%) Gross mean 18 mmboe unrisked Net mean risked 1 mmboe Work plan Fulfilled Drill o

  19. Slide 19: Norvarg appraisal well

    Norvarg appraisal well  Rig firmed up  Leiv Eiriksson semi-sub  Key objectives of the appraisal well  Increase understanding of Leiv Eiriksson Leiv Eiriksson different reservoir qualities within the structure  Increase understanding of the gas production potential  Firm up volume estimates 10

  20. Slide 20: Exploration success in core areas – the Norwegian Sea and the Barents Sea

    Exploration success in core areas – the Norwegian Sea and the Barents Sea Largest discoveries in the north (Norwegian  The Fogelberg discovery  First exploration well # Discovery Area Million boe Operato 1 Skrugard Barents Sea 260 Statoil  The Norvarg discovery 2 Havis Barents Sea 252 Statoil  T

  21. Slide 21: Looking to capitalize on North Energy’s core competence in the attractive 22nd round

    Looking to capitalize on North Energy’s core competence in the attractive 22nd round  Since start-up, North Energy has built up in- depth understanding of the Barents Sea geology Bilde fra 22R  Cooperation with crew i arbeid universities in Tromsø and (Kristin) St. Petersburg  Cooperation with ma

  22. Slide 22: Agenda

    Agenda  Highlights Q2  Financial update  Exploration update  Outlook North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  23. Slide 23: Outlook

    Outlook  6 months outlook  Jette exploration well in the Norwegian Sea  Skagen exploration well in the North Sea  Drill or drop decision on PL 590  Drill or drop decision on PL 526  Drill or drop decision on PL 503  12 months outlook  Drill or drop decision on PL 594 and PL 564 in the Barent

  24. Slide 24: Q&A

    Q&A North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. 24 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  25. Slide 25: Thank you for your attention!

    Thank you for your attention! Welcome back to our next presentation 31 October North Energy ASA, Markveien 38b, Postboks 1243,9504 Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

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