Orron Energy AB · OMXSTO:ORRON
Orron Energy AB — Lundin Petroleum — Investor Presentation (February 2003)
41 slides from Orron Energy AB's investor presentation, February 2003
Slide 1: Lundin Petroleum Presentation
Lundin Petroleum Presentation WF5213 February 2003
Slide 2: Lundin Petroleum AB
SLIDE 2 Lundin Petroleum AB A Swedish independent upstream oil company listed in Stockholm WF5134 08.02
Slide 3: History
SLIDE 3 History August 2001 Lundin Oil AB sold to Talisman Energy - US$ 400 cash - 1 share in LUPE Lundin Petroleum's exploration assets - Sudan - Iran September 2002 completed acquisition of Coparex International - US$ 180 million Lundin Petroleum today - diversified portfolio - producing over 17,0
Slide 4: Lundin Petroleum AB - Corporate Information
SLIDE 4 Lundin Petroleum AB - Corporate Information Shares Outstanding 249 million Fully Diluted 254 million Current Market Capitalisation SEK 2.1 billion (USD 250 million) Trading Symbol LUPE Quoted on Stockholm New Market Number of Shareholders 26,000 approx. Major Shareholders Lundin family & man
Slide 5: Lundin Petroleum Share Price History
0 1 2 3 4 5 6 7 8 9 10 Sept 01 SEK Oct 01 Nov 01 Dec 01 Jan 02 Feb 02 Mar 02 Apr 02 May 02 Jun 02 Jul 02 Lundin Petroleum Share Price History Aug 02 Sep 02 Oct 02 Nov 02 Dec 02 Jan 03 Source: Bloomberg Feb 03 SLIDE 5 WF5185 02.03
Slide 6: Management Team
SLIDE 6 Management Team IAN H. LUNDIN - Chairman Petroleum Engineer with over 20 years experience in the oil and gas industry. President and CEO of Lundin Oil and its predecessors from 1990 - 2002 C. ASHLEY HEPPENSTALL - President and CEO Worked in the investment/commercial banking sector for 10 yea
Slide 7: Lundin Petroleum Reserves / Production
SLIDE 7 Lundin Petroleum Reserves / Production PROVEN & PROBABLE PRODUCTION RESERVES Tunisia Venezuela Sudan Venezuela Tunisia Indonesia Norway Indonesia Netherlands Netherlands Norway France France TOTAL 122 MMBOE TOTAL over 17,000 BOEPD WF5139 02.03
Slide 8: Financial Highlights
SLIDE 8 Financial Highlights Fourth Quarter Results (ending 31 December 2002) Average Production 14,600 BOEPD Operating cash flow SEK 106 million (US$ 12 million) (~ SEK 0.43 per share) Net income SEK 56 million (US$ 6 million) (~ SEK 0.23 per share) Reserves 122 million barrels (~ $ 2.0 per barrel)
Slide 9: Fourth Quarter Results
SLIDE 9 Fourth Quarter Results (ending 31 December 2002) millions SEK Operating Income 251 Production Costs (117) Depletion (47) Gross Profit 86 Other Income 6 G+A (37) Restructuring Costs (20) Financial Income/ Foreign Exchange Movements 43 Profit Before Tax 80 Tax (24) Net Profit 56 WF54371 02.03
Slide 10: Value Drivers
S LI D E 1 0 Value Drivers Existing production generating cash flow which currently values Lundin Petroleum on a 3.6 cash flow multiple for 2003 using $25/barrel oil price Production growth from existing producing assets and undeveloped discoveries A major oil discovery in Sudan to provide additiona
Slide 11: Lundin Petroleum Worldwide Assets
SLIDE 1 1 Lundin Petroleum Worldwide Assets Venezuela France Norway Netherlands Tunisia Indonesia Exploration & Production Albania Sudan Iran Exploration WF5138 09.02
Slide 12: France Production and Exploration Licences
S LI D E 12 France 15 Production and 5 Exploration Licences 2003 Production Forecast (average) : 4580 BOPD Reserves 23 million barrels (P1+P2, as of 1st January 2003) Paris Basin Licences 11 Production & 4 Exploration Licences 2003 Production Forecast: 3280 BOPD Reserves 13 million barrels Aquitaine
Slide 13: France - Villeperdue Facility, Paris Basin
S LI D E 13 France - Villeperdue Facility, Paris Basin WF5417 02.03
Slide 14: France - Further Upside
S LI D E 14 France - Further Upside PARIS BASIN - Val Des Marais exploration well. Potential to double Lundin's existing reserves in the Paris Basin - Development optimisation of existing fields (workovers, infill drilling, water injection and reservoir engineering studies) - Other exploration targe
Slide 15: Netherlands
S LI D E 15 Netherlands No r t h S e a 19 Production and 4 Exploration Licences Exploration Licence 2003 Production Forecast (average): 3000 BOEPD Production Licence Reserves 9 MMBOE (P1+P2, as of 1st January 2003) F6 0 KM 100 Operator: TotalFinaElf (majority of assets) E10 F12 Lundin Interest: rang
Slide 16: Netherlands - Further Upside
S LI D E 16 Netherlands - Further Upside Further development drilling Existing exploration targets identified (3 contingent wells defined for 2003-2004) Total upside identified (2003-2004) could provide additional 4.5 MMBOE of reserves Potential to increase current Netherlands reserves base by 50% W
Slide 17: Tunisia
S LI D E 17 Tunisia 2 Production and 3 Development Licences (Oudna, Birsa & Zelfa) 2003 Forecast Production (average): 2190 BOPD Reserves 3.2 million barrels (P1+P2, as of 1st Jan 03 excluding Oudna) Operator: Lundin Petroleum Oudna, Birsa & Zelfa Oudna, Birsa & Zelfa Development Licences within Lun
Slide 18: Tunisia Isis Field
S LI D E 18 Tunisia Isis Field IKDAM FPSO Vessel owned by Ikdam Production SA Ownership: Lundin 40% / PGS 40% / Brodvig 20% Commercial arrangement such that Lundin and PGS have a 50%commercial interest in the vessel Ikdam Production SA: non consolidated in Lundin accounts Valued at no cost in Lundin
Slide 19: Tunisia - Further Upside
S LI D E 19 Tunisia - Further Upside Isis - 40% Further Development of the Isis Field (Isis NE). New Development Well Oudna Development - 50% Estimated Gross Reserves: 17 mmbo (not included in certified reserves) Capex: 33.6 mm$, Opex: 12mm$/year Estimated First Production 2007 (subject to final dev
Slide 20: Venezuela Production Licence
S LI D E 2 0 Venezuela 1 Production Licence 2003 Production Forecast (net) : 2840 BOEPD Reserves 8.8 million barrels (P1+P2, as of 1st Jan 2003) Operator - Tecpetrol Lundin Interest: 12.5% Caribbean Sea Lake M a r a ca ib o V E N E ZUE L A Rosario CO L O N Gu y a n a COLON La Palma Columbia Ecuador
Slide 21: Oil Production History on Colon Unit
S LI D E 21 Oil Production History on Colon Unit Los Manueles 3.1mmb Bonito 1.7mmb Rosario 10.7mmb West Tarra 1.7 mmb Las Cruces 2.0 mmb Socuavo 1.0 mmb La Palma 5.3 mmb 20000 18000 DAILY OIL PRODUCTION RATE (BOPD) 16000 14000 12000 10000 8000 6000 4000 2000 0 1995 1996 1997 1998 1999 2000 2001 2002
Slide 22: Venezuela - Further Upside
S LI D E 22 Venezuela - Further Upside La Palma full field development (lower reservoir) Well defined undrilled prospects within prolific petroleum system Further exploration potential at the deeper Cretaceous level - proven concept WF5386 02.03
Slide 23: Indonesia
S LI D E 23 Indonesia 2 Production and 4 Exploration Licences 2003 Production Forecast: 2500 BOEPD Reserves: 11.8 million barrels (P1+P2, as of 1st Jan 2003) Lematang (15%) Salawati Island (13.9%) / Basin (25%) Exploration licence 2 production licences Singa gas discovery/develop. Sareba (100%) 2003
Slide 24: Indonesia - Salawati
S LI D E 24 Indonesia - Salawati Sorong Arar Block 2 Production Licences N. Sele discovery Production Licences 3D - Salawati Island- Lundin Interest: 13.9% Klalin - Salawati Basin- Lundin Interest: 25% SALAWATI Arar - Operator: Petro China ISLAND Matoa 2003 Production Forecast PAPUA SW 'O' 3D - 2500
Slide 25: Indonesia - Further Upside
SLIDE 25 Indonesia - Further Upside Lematang Block, Singa Gas Development Singa 1 & 2 gas discovery Proven & probable reserves: 4.2 mmboe Potential gas sales agreement (~25mmscf/day) Capex : 38.7 mm$ (incl. 1 further develop. well), Opex : 3mm$/Year First gas : 2005 Life of the field : 19 Year Walio
Slide 26: Norway
S LI D E 26 Norway 0 KM 200 Lundin Petroleum (OER) Interest * - Njord 2.5% - Brage 4.4424% Atlantic Oil Reserves : 5.0 MMBOE (OER Gross) 2003 Production Forecast : 2370 BOEPD NJORD A tlantic NORWAY B R AG E Oslo Finland NORWAY OFFS HORE LIC E NC E S SWEDEN Sweden Estonia North Sea L atv ia D E N M A
Slide 27: Norway - Further Upside
S LI D E 27 Norway - Further Upside Further production acquisition opportunities Exploitation of existing undeveloped discoveries WF5433 02.03
Slide 28: Sudan - Blocks 5A & 5B
S LI D E 2 8 Sudan - Blocks 5A & 5B Bl oc EGYPT k HEGLIG LIBYA 2 Muglad Basin Re d Se EL TOOR a Proven & Probable Reserves : Port Sudan UNITY MUNGA - 1 Billion barrels Bl oc Bl k Current Production : oc 1 CHAD k 4 - over 250,000 BOPD ERITREA Khartoum Rubkona SUDAN Thar Jath Discovery BLOCK 5A ETHIOP
Slide 29: Sudan - Gross Capital & Operating Cost Summary
S LI D E 2 9 Sudan - Gross Capital & Operating Cost Summary 206 $MM Unit Average Capital Cost $1.4/bbl Total Operating Cost (gross) 351.3 $MM Unit Average Operating Cost (2004-2027) $2.4/bbl WF5365 02.03 .... gross cost to first oil estimated at 147 $MM
Slide 30: Sudan Block 5A - Further Upside
SUDAN BLOCK 5A - FURTHER UPSIDE 750 000 800 000 850 000 900 000 B lo B ck HEGLIG La Loba-1 B lo lo ck 2 Nabaq-1 Heglig El Full-1 ck TOMA 4 KANGA Toma-1 1 Kanga-1 Barki-1 1100 000 Hamra West-1 Hamra-1 16 EL TOOR El Mahafir-1 BARKI HAMRA 12 El Toor-1 5 Wizeen-1 8 Toma South-1 TOMA SOUTH El Ghazal-1 El
Slide 31: Sudan - Block 5A Prospectivity Summary
S LI D E 3 1 Sudan - Block 5A Prospectivity Summary Most Likely Unrisked Reserves MMBBL Thar Jath Field 159 9 existing prospects 747 2 existing leads 589 Total 1495 Further estimated upside 625 (requires seismic coverage) Total 2120 WF5434 02.03
Slide 32: Iran - Munir Block
S LI D E 3 2 Iran - Munir Block MUNIR BLOCK TURKMENISTAN TURKEY Gachsaran 11,000 MMBO SYRIA IRAQ IRAN Khayrabad 0 Munir Block Th e Garangan G ul f Seh Bibi Hakimeh Qanat-1 SAUDI UAE ARABIA 2,700 MMBO Baba Munir OMAN Re Chillingar Village d A Se Siah Makan O a Shahrenjan-1 Chahar Bisheh Munir Block K
Slide 33: Iran - Munir Block Field Stack
S L IDE 3 3 Iran - Munir Block Field Stack MUN-02-02 0 KM 10 Mun 02-02 Asmari Anticline - Munir Block WF5435 02.03
Slide 34: Munir Block - S-1 Prospect
S LI D E 34 Munir Block - S-1 Prospect Preliminary Reserves Estimate of S-1 Prospect OOIP................................ 1737 MMbbl Potential Reserves............. 434 MMbbl Drilling S-1 prospect (sept-dec) TD 2695m estimated dry hole cost 8.8 MM$ WF5373 02.03
Slide 35: Albania - Blocks D and E
S LI D E 3 5 Albania - Blocks D and E Onshore awarded MONTENEGRO Offshore awarded Open area Lundin 66.7%, operator Lundin KOSOVO Preussag 33.3% ( Paying 50% of the well cost) Oil field Gas field (biogenic) Block D: 770 km2 Tirana South Prospect Tirana North Lead Block E: 620 km2 Large structure on t
Slide 36: Albania - Block D & E
S LI D E 3 6 Albania - Block D & E 3D Model of Tirana Subthrust Anticline Prospective Trend TOP IONIAN CARBONATE TIRANA NORTH CULMINATION TIRANA SOUTH-1 WELL LOCATION km 35 No rth TIRANA SOUTH CULMINATION The trend has potential gross reserves of +1 billion barrels oil equivalent WF5332 01.03
Slide 37: Production Forecast
S LI D E 3 7 Production Forecast Thousands of barrels/day 40 40 35 35 Tunisia (Oudna) 30 30 25 25 Indonesia (Lematang) Sudan (Thar Jath) 20 20 15 Norway 15 Indonesia Tunisia 10 10 Venezuela 5 Netherlands 5 France 0 0 2003 2004 2005 2006 2007 2008 2009 2010 WF5132 02.03 ...... total 2003 production f
Slide 38: Netback Calculations - Lundin Petroleum
S LI D E 3 8 Netback Calculations - Lundin Petroleum USD / bbl Revenue Brent Price 23.00 Total Government take (1.91) Price (discount) / premium (1.09) Price received 20.01 Swap revenue 0.17 Other Revenues 0.79 Total Revenue 20.96 Operating costs Operating costs (7.66) Transport and pipeline (0.84)
Slide 39: Exploration Potential
S LI D E 3 9 Exploration Potential 2003-2004 Potential net unrisked reserves = over 500 MMBO 10 exploration wells will be drilled during 2003 Financial exposure ~ $25 million Lundin group exploration success rate in last 5 years (commercial discoveries) = 47% WF5144 02.03
Slide 40: The Future for Lundin Petroleum
S LI D E 4 0 The Future for Lundin Petroleum Lundin Petroleum is a focused independent oil and gas exploration and production company Low risk producing assets in geographically diverse areas Appraisal and development project providing near term growth Major ongoing exploration programs in countries
Slide 41: www.lundin-petroleum.com
w w w . lu n d in - p e tr o le u m . c o m WF5161
Lundin Petroleum — Investor Presentation (February 2003) on 6ix