North Energy Asa · OSL:NORTH

North Energy Asa — Q2 2010 Earnings Presentation

24 slides from North Energy Asa's earnings presentation, Aug 19, 2010

  1. Slide 1: North Energy Q2 2010

    North Energy Q2 2010 19 August 2010

  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 • Fogelberg update • Stirby farm-in • Exploration programme • Financials • Outlook North Energy ASA, Markedsgata 3, 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: PL 433: Fogelberg discovery

    PL 433: Fogelberg discovery PL 433 in the Norwegian Sea Acquired 2009 Discovery Fogelberg PL 433 Operator Centrica (28%) Hydrocarbons Gas/cond. Discovery Morvin, under 2009 Partners Petro-Canada (30%) P10 estimate development Faroe Petroleum (15%) P50 estimate E.ON Ruhrgas (15%) P90 estimate North E

  5. Slide 5: PL 433: Previously disclosed information

    PL 433: Previously disclosed information • In April, North Energy and its partners in PL 433 confirmed that well 6506/9-2S had found gas and condensate in two productive reservoir formations • The well was successfully drilled with the semi-submersible drilling rig West Alpha, without reportable HSE

  6. Slide 6: PL 433: Commerciality

    PL 433: Commerciality • Evaluations in second quarter have confirmed the early volume estimates • Content of condensate and CO2 in the gas is similar to other discoveries and fields in the area • North Energy’s evaluations gives positive project economics also based on conservative volume estimates

  7. Slide 7: PL 433: Likely development solution

    PL 433: Likely development solution • The most likely development solution for Fogelberg consists of:  2-3 gas producers drilled from one subsea template  Tie-back to Åsgard B platform (20 km east of Fogelberg)  Gas processing at Åsgard B  Export via ÅTS or new Haltenbanken gas export pipeline •

  8. Slide 8: PL 433: Growing pool of undeveloped gas supporting new gas export line

    PL 433: Growing pool of undeveloped gas supporting new gas export line • More than 200 billion Sm3 of gas in the Haltenbanken area without identified gas export options  Gro 38 billion Sm3  Asterix 15 billion Sm3  Luva 53 billion Sm3  Victoria 37 billion Sm3  Linnorm 34 billion Sm3 PL 433 • New

  9. Slide 9: PL 433: Considerations regarding appraisal

    PL 433: Considerations regarding appraisal • Volume range is well understood based on data from the exploration well • Commerciality is established also in the lower range of volume estimates • The largest uncertainty in the present development scenario is gas export route and timing • North Energy

  10. Slide 10: PL 433: Next steps

    PL 433: Next steps • Work will continue in the license on several areas  Specialist analysis of fluids and core data (not expected to impact volumes)  Further evaluation of gas export options • Commerciality to be established in the license group • Work plan to be established for next milestones 

  11. Slide 11: Agenda

    Agenda • Fogelberg update • Stirby farm-in • Exploration programme • Financials • Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  12. Slide 12: PL 341: Stirby farm-in

    PL 341: Stirby farm-in • North Energy farms into 11% of the PL 341 Stirby well from Talisman • In line with North Energy’s strategy  Promising POS and volumes  Close to infrastructure  Attractive terms • Prospect quality and attractiveness key driver for adding first North Sea well to the explora

  13. Slide 13: PL 341: Location map

    PL 341: Location map PL 341 Stirby Alvheim PL 341 Stirby Gudrun East Brae Gudrun Sleipner Sleipner Vest North Energy ASA, Markedsgata 3, Alta, Norway. 13 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  14. Slide 14: PL 341: Attractive prospect

    PL 341: Attractive prospect • Moderate HPHT gas/cond. prospect PL 341 in North Sea  30% Probability of Success Awarded APA 2004 Main prospect Upper Stirby  97 mill. boe in main prospect (unrisked) Expiry December 2012 Hydrocarbon type Gas/ condensate  Main risks: Reservoir presence and quality Op

  15. Slide 15: Agenda

    Agenda • Fogelberg update • Stirby farm-in • Exploration programme • Financials • Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  16. Slide 16: Outlook with 5 firm wildcat wells to be drilled

    Exciting 18 months outlook with 5 firm wildcat wells to be drilled North Energy ASA, Markedsgata 3, 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: Agenda

    Agenda • Fogelberg update • Stirby farm-in • Exploration programme • Financials • Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  18. Slide 18: North Energy ASA – Profit & Loss

    North Energy ASA – Profit & Loss 2Q 2Q 1H 1H Year MNOK 2010 2009 2010 2009 2009 Payroll 12,6 15,6 30,1 27,1 62,4 Depreciation 1,1 0,5 2,0 1,0 3,4 Exploration expenses 17,8 30,1 31,2 46,5 113,1 Drilling costs PL433 capitalised Other operating expenses 13,1 7,5 25,2 11,0 28,8 Increase due to listing p

  19. Slide 19: North Energy ASA – Balance sheet

    North Energy ASA – Balance sheet 30.jun 30.jun 31.des MNOK 2010 2009 2009 Assets Fixed Assets 126,2 14,8 32,6 Capitalised drilling PL433 of 105 MNOK Receivables 370,2 193,4 164,0 Accumulated tax receivables of 303 MNOK Cash and cash equivalents 171,7 39,9 45,7 Total Assets 668,1 248,1 242,3 Equity a

  20. Slide 20: Solid financial situation

    Solid financial situation • Cash balance of NOK 172 million • Expected tax reimbursement of NOK 303 million • No interest bearing debt • Net cash position of NOK 474 million • NOK 300 million exploration loan facility with SEB fully available North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+4

  21. Slide 21: Agenda

    Agenda • Fogelberg update • Stirby farm-in • Exploration programme • Financials • Outlook North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  22. Slide 22: Outlook

    Outlook • 6 months outlook  Drilling of PL 341 Stirby  APA 2010 licensing round • 18 months outlook  21st ordinary licensing round  Jette exploration well in the Norwegian Sea  Three well drilling campaign in the Barents Sea  Further work and maturing of plans on Fogelberg  Drilling decision

  23. Slide 23: Actively participating in the Lofoten/Vesterålen and Eastern Barents Sea discussions

    Actively participating in the Lofoten/Vesterålen and Eastern Barents Sea discussions North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

  24. Slide 24: Thank you for your attention!

    Thank you for your attention! North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

North Energy — Q2 2010 Earnings Presentation on 6ix