Orron Energy AB · OMXSTO:ORRON
Orron Energy AB — Lundin Petroleum — Investor Presentation (May 2015)
35 slides from Orron Energy AB's investor presentation, May 2015
Slide 1: Lundin Petroleum Corporate Presentation
Lundin Petroleum Corporate Presentation May 2015 WF12012 06 May 15 Lundin Petroleum 1
Slide 2: Company Overview and History
Lundin Petroleum AB Company Overview and History Lundin Petroleum AB 2001 ~USD 50 million Raised cash equity Ticker - Nasdaq Stockholm LUPE No cash equity raised since Shares in Issue, million 311.1 2015 ~USD 5.0 billion Market Cap + Distribution (UK) ~ USD 0.7 bn of which held in Treasury, million
Slide 3: Asset Overview Core Areas: Europe, SE Asia
Lundin Petroleum Asset Overview Core Areas: Europe, SE Asia Exploration Norway Development Production Russia Netherlands France Malaysia TOTAL Indonesia 2P reserves: 187.5 MMboe (1) Contingent resources: 404 MMboe (2) WF11304 p1 01.15 (1) End 2014 Reserves (2) Excludes Johan Sverdrup Lundin Petroleu
Slide 4: Financial Performance
Full Year Full Year Financial 2013 2014 Performance EBITDA (MUSD) 960.9 671.3 Operating cash flow (MUSD) 975.6 1,138.5 Net result (MUSD) 72.9 -431.9 Production (boepd) 32,700 24,900 Average Brent oil price (USD/boe) 108.66 99.00 Cost of operations (USD/boe) 9.60 10.9 2,000 1,800 Net Result Operating
Slide 5: First Quarter 2015 Liquidity
First Quarter 2015 Liquidity MUSD at 31 March 2015 Debt Outstanding 3,115 Cash Balances 52 Net Debt Position 3,063 Full access to USD 4 billion under low oil price sensitivity Margin on Loan Facility: 2.75% Conservative leverage on Johan Sverdrup WF12061 p08 05.15 Lundin Petroleum 5
Slide 6: 2P Reserves December 2014
2P Reserves 31 December 2014 Gas, 8% Total 187.5 MMboe Malaysia, 13.8 Indonesia, 1.4 France, 21.1 Oil & NGL, 92% Netherlands, 2.5 MMboe Brynhild, 20.5 End 2013 194.1 Alvheim, 19.1 - 2014 Production -9.1 - Sales -5.6 + Reserve additions (excl. sales/acquisitions) +8.2 Volund, 8.2 Viper Kobra, 1.3 End
Slide 7: 2P Reserves History
2P Reserves History Johan Sverdrup 300 250 Cumulative 200 Production Malaysia Norway MMboe 150 Tunisia Netherlands 100 Indonesia France 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year End WF12010 p3 01.14 Excluding discontinued operations Lundin Petroleum 7
Slide 8: Contingent Resource Growth
Contingent Resource Growth 1,200 1,000 Norway - J. Sverdrup 800 Malaysia Russia MMboe 600 Others Norway 400 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 WF12010 p5 12.14 Year End Excluding discontinued operations Lundin Petroleum 8
Slide 9: 2015 Production Forecast
Lundin Petroleum 2015 Forecast Production Malaysia, 16% Q1 2015 production: 25,800 boepd Indonesia, 4% Volund outperformed (reservoir), Netherlands, 3% Brynhild underperformed (facilities, weather) 2015 production guidance: 41,000 - 51,000 boepd France, 7% Production guidance impacted by: Start-up d
Slide 10: Production Forecast From Ongoing Development
Production Forecast From Ongoing Development Johan Other existing contingent and Sverdrup prospective resources not included in production forecast Bertam, 05.04.15 Ivar Bøyla, 19.01.15 Aasen Edvard Brynhild, 25.12.14 Grieg Exit Rate 2015: 75,000 boepd 41–51,000 boepd 33,000(1) 30,400(1) 23,800(1) W
Slide 11: Norway - Greater Alvheim Area
Norway - Greater Alvheim Area 2P Reserves (net): 19.1 MMboe 2C Contingent Resources (net): 4.9 MMboe 2014 Net Production: 17,030 boepd 2014 net production: 9,670 boepd Operating costs (1) ~6 USD/boe Future activity Gross Volund Estimated Ultimate Recovery 80 52 1 well workover in 2015 2C Contingent
Slide 12: New Production Brynhild, Bøyla, Bertam
New Production Brynhild, Bøyla, Bertam New fields will add a plateau production capacity of ~25,000 boepd Plateau Production Reserves Field Net Boepd(1) Net MMboe Brynhild Brynhild 10,800 20.5 First Oil: 29 December 2014 Development: Subsea Tie-back to Pierce FPSO 2 producer, 1 producer & injector,
Slide 13: Overview France & Netherlands
Overview France & Netherlands France Netherlands Hydrocarbon Type Oil Gas " 2014 Production Net, MMboe 2.9 1.9 2P Reserves Net (1), MMboe 21.1 2.5 Offshore Best Estimates Contingent 13.1 – Netherlands Resources Net (1), MMboe Onshore 2014 Operating Cash Flow 53 25 Netback, USD/Boe Asset Description
Slide 14: Norway & Malaysia Development Projects
Norway Norway & Malaysia Development Projects United Kingdom Bøyla Stavanger " Ongoing Norwegian Developments Ivar Aasen Unit Edvard Grieg Johan Sverdrup Edvard Grieg (Lundin 50% operator) North Sea Norway Brynhild (Lundin 90% operator) First oil achieved Dec. 2014 Bøyla (Lundin 15%) First oil achie
Slide 15: Lundin Norway Edvard Grieg Development
Lundin Norway Norway - Southern Utsira High Edvard Grieg Development 0 KM 20 UK PL625 PL779 PL546 PL167 & PL167B PL501 Lundin Petroleum interest: 50% (operator) Remaining Workload PL673 Ivar Aasen Unit OMV 20%, Wintershall 15%, Statoil 15% PL338 PL674 Offshore installation 2P reserves: 187 MMboe gro
Slide 16: Peninsular Malaysia Bertam Development
Peninsular Malaysia Bertam Development Facilities Bertam Development PM307 - Lundin Petroleum 75% (operator), Petronas Carigali 25% PDO approved in October 2013 Gross 2P reserves: 18.4 MMbo Gross plateau production: 15,000 bopd Bertam Location Map 0 KM 20 First oil: 05 April 2015 PM319 PM307 Sotong
Slide 17: Edvard Grieg Work Status
Development Projects Edvard Grieg Work Status Edvard Grieg development drilling and topsides load-out Topsides - LQ and Helideck en route to Stord WF11898 p01 04.15 Lundin Petroleum 17
Slide 18: Johan Sverdrup Development
Norway Johan Sverdrup Development Working Interest (2) Johan Sverdrup Lundin Norway 22.1200% Phase 1 PDO submitted in February 2015 Statoil 40.0267% 22 wells + 7 sidetracks drilled to date on Johan Sverdrup Maersk 8.1200% Gross Contingent Resources: 1,700–3,000 MMboe (1) Det norske 11.8933% Appraisa
Slide 19: Johan Sverdrup Phase I - Concept Development Key Facts
Norway - Johan Sverdrup Phase I - Concept Development – Key Facts Facilities – Phase 1 Four bridge linked steel jacket platforms to be installed during 2018 and 2019 Power supply from shore Wells – Phase 1 35 production and injection wells to be drilled in total for Phase 1 – majority drilled from w
Slide 20: Johan Sverdrup Development
Norway Johan Sverdrup Development Contract awards Kværner Verdal for delivery of jacket for the riser platform Aker engineering & procurement management for the riser & processing platform topsides Aibel EPC contract for the drilling platform Allseas contract for the installation of three platforms
Slide 21: Exploration & Appraisal Drilling
Norway Neiden Barents Sea Remaining 2015 prospects Alta (2) 2015 Appraisal wells Ørnen Exploration & Appraisal Drilling Barents Sea Area Norway 2 exploration wells drilled Norwegian Sea Gemini (PL338C) - Dry Zulu (PL674BS) - Gas discovery, non-commercial Lorry 7 exploration wells remaining 6 operate
Slide 22: Remaining 2015 Prospective Resources
Remaining 2015 Prospective Resources 2015 net unrisked prospective resources 600 Norway SE Asia Unrisked 500 Million boe 400 Target Unrisked 300 ~550 MMboe 200 100 0 y n g as rth el n en n an rr eli se ne ng rk id Lo ku No pp Fo Ør Re Mo Ne ng Ze II Me no Lu 2015 net risked prospective resources 150
Slide 23: Norway - Barents Sea Overview
0 KM 400 0 KM 400 Svalbard Norway - Barents Sea Overview Norway North Sea Barents Sea Denmark Russia Norway 70°0'0"N Netherlands Ireland Lundin Petroleum is a major licence United Germany holder in the Loppa High area Lundin Petroleum licence Sweden Finland Kingdom Operator Licensed Area Prospects O
Slide 24: Norway - Barents Sea Loppa High Exploration
Norway - Barents Sea Loppa High Exploration Lundin Petroleum Licences Fields Operated Non Operated Oil Gas Prospects Alta Discovery 0 KM 20 PL609 (Lundin 40%, operated) Bjørnøya Bassenget 46 metres gross oil column / 11 metres gross gas column ex Børselv 609 pl – tested ~3,300 bopd om tC ul Gross re
Slide 25: Utsira High Area Evolution
Norway Utsira High Area Evolution Lundin Petroleum Operator Lundin Petroleum Partner Oil Gas Prospect Lead NGL 2004 - 2007 2008 - 2010 2011 - 2014 024 025 024 PL546 (2010) 025 PL625 024 (2012) 025 I. Aasen Unit PL674 Ivar Aasen PL546 (001b,242,338BS,457) PL625 PL546 Discovery 2008 PL501 PL501 Ragnar
Slide 26: Utsira High 2015 Exploration Drilling
Field Discovery Prospect Norway - Utsira High 2015 Exploration Drilling Zulu Significant remaining potential in the Utsira High Exploration – 4 wells PL359 (50%): Luno II North – 24 MMboe (1) Hanz Johan Sverdrup PL338C (50%)(2): Gemini – Dry PL674BS (35%): Zulu – Gas Discovery PL544 (40%): Fosen – 1
Slide 27: Norway Exploration Story in Numbers
Norway Exploration Story in Numbers Second largest holder of operated acreage Largest resources discovered on NCS 2007–2014 (1) Licence acreage 25,000 Shell ENI Suncor Talisman Cumulative km2 20,000 APA 2014 BG VNG Centrica 15,000 Det norske Total 10,000 OMV 5,000 RWE Lundin 0 Petroleum 2003 2004 20
Slide 28: Why Invest in Norway?
Why Invest Undiscovered Resources on the NCS 17.8 Bn bbls Source: NPD Wells drilled in Norway? Norwegian Sea 5.2 Bn bbls Barents Sea 7.6 Bn bbls Excellent exploration potential remains No independents until recently Lower drilling density than UK North Sea Close to existing infrastructure 5.0 Bn bbl
Slide 29: Finding Cost & Value Creation
Norway Finding Cost & Value Creation Lundin Petroleum most successful exploration company in Norway during the last decade Continue to pursue value creation through exploration OMV Acquisition of PL338 (20%) Norway - Cumulative Finding Cost (USD/boe)(1) PL338 (Edvard Grieg) Transaction value USD/bbl
Slide 30: South East Asia 2015 Activity
South East Asia 2015 Activity Total Exploration Licences: 12 Cambodia Production Licences: 1 Vietnam Joint Study Area: 1 Philippines Cakalang WI: 90% SB303 WI:75% Lundin Petroleum Operator Lundin Petroleum Partner WI: 50% PM328 Baronang WI: 85% Sabah Area WI: 75% PM307 Gurita WI: 90% SB307/308 WI:42
Slide 31: 2015 Exploration & Appraisal Drilling Schedule
2015 Exploration & Appraisal Drilling Schedule Well LUPE CoGS(2) 2015 Country Licence - Prospect type Operator WI % NUPR(1) NRPR(3) Q1 Q2 Q3 Q4 1 Norway PL579 - Morkel exp Lundin 50.00 98 21% 21 Ongoing 2 Norway PL359 - Luno II North exp Lundin 50.00 12 36% 4 3 Norway PL674BS - Zulu exp Lundin 35.00
Slide 32: Lundin Petroleum's Shareholders
Lundin Petroleum’s Shareholder structure Shareholders Others, 14% Lundin Family, 32% Retail, 14% Number of shares in issue: 311.1 million Market Cap: USD 5.0 billion Institutional Owned by Lundin Petroleum: approx. 2 million shares Investors, 40% Average traded volume per day in 2014: ~1.4 million G
Slide 33: Production Forecast From Ongoing Development
Production Forecast From Ongoing Development Johan Other existing contingent and Sverdrup prospective resources not included in production forecast Bertam, 05.04.15 Ivar Bøyla, 19.01.15 Aasen Edvard Brynhild, 25.12.14 Grieg Exit Rate 2015: 75,000 boepd 41–51,000 boepd 33,000(1) 30,400(1) 23,800(1) W
Slide 34: Disclaimer
Disclaimer This information has been made public in accordance with the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980). Forward-Looking Statements Certain statements made and information contained herein constitute "forward-looking information" (with
Slide 35: www.lundin-petroleum.com
C - Lundin Petroleum www.lundin-petroleum.com