Atlantic Petroleum P/f · OMXCOP:ATLA_DKK
Atlantic Petroleum P/f — Shareholder Meeting (April 2015)
34 slides from Atlantic Petroleum P/f's shareholder meeting presentation, Apr 24, 2015
Slide 1: Chairman's Statement – Annual General Meeting
Chairman’s Statement Annual General Meeting April 24, 2015
Slide 2: Lower Oil Prices in 2014
Lower Oil Prices in 2014 ( ATLANTIC PETROLEUM $per barrel 160 140 120 100 40 7 atl 20 2006 2009 2010 2012 2013 2014
Slide 3: Too much Production of Oil – Inventories are Soaring
Too much Production of Oil – Inventories are Soaring
Slide 4: Production of Crude Oil in the US
Production of Crude Oil in the US
Slide 5: Oil – Cost of Production
Oil – Cost of Production In Norway and UK cost of production on average is app. $50 – 70 per barrel
Slide 6: What does this mean for Atlantic Petroleum?
What does this mean for Atlantic Petroleum? The situation Most new projects are not profitable Production is not generating cash The response from Atlantic Petroleum Reducing costs Sales of assets The purpose? To survive the present glut in the market To protect the values created
Slide 7: Oil Prices will Increase, but When and by How Much?
Oil Prices will Increase, but When and by How Much? Only 2/3 of global oil production today is profitable at $60 per barrel Less than 1/3 of the future pipeline is profitable at $70 per barrel (Goldman) US rig counts is in free fall…will affect production later this year 7
Slide 8: Atlantic Petroleum - Status
Atlantic Petroleum - Status The Short-term Challenge To stay in the game until the market regains normality Strengths Low debt ratio Flexible cost base Sellable assets The Long-term Challenge Securing finance for future production (Orlando) Securing finance for future exploration (
Slide 9: 2014 Results
AGM PRESENTATION – 24th APRIL 2015 2014 RESULTS
Slide 10: Disclaimer
DISCLAIMER This presentation includes statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements No representation or warranty (expressed or implied) is made as
Slide 11: 2014 Performance
AGM PRESENTATION – 24th APRIL 2015 2014 PERFORMANCE
Slide 12: Highlights
HIGHLIGHTS Produced 586,000 boe (1605 boepd) Commercial gas discovery on Pegasus West in September 2014 – Tested at over 90MMscf/d (15,000 boepd) Gas discovery on Norway PL528/PL528B Ivory – Results being analysed; assessing commerciality EBITDAX of DKK 124MM Operating Cashflow DKK96.8MM f
Slide 13: 2014 Production
2014 PRODUCTION 2500 Production Guidance 1,520 - 1,600 boepd 2000 1500 boepd 1000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Blackbird 129 167 130 126 105 12 0 186 654 460 339 453 Ettrick 815 894 759 732 695 501 0 275 593 487 412 586 Chestnut 977 1033 1076 894 804 742 598 778 753 712 666
Slide 14: Share Performance 2014
( SHARE PERFORMANCE 2014 ATLANTIC PETROLEUM Price Volume 140.00 45,000 120.00 ny 40,000 sooo ae 35,000 peewee ere 30,000 80.00 \ 25,000 60.00 | 20,000 4000 IN 15,000 | 10,000 20.00 HHA ta bl | | H) 5,000 o.oo {IML ilo oe POPE OP Bs eee mam Volume ——AP Share Price (DKK) ———Brent Oil ($/bbl)
Slide 15: Share Price Performance
SHARE PRICE PERFORMANCE Share Price performance 2014 (%) 0% North Energy Parkmead Providence Ithaca Serica AP Trap Oil Iona Noreco -10% -11% -20% -30% -40% -44% -50% -60% -61% -62% -63% -70% -67% -70% -80% -90% -93% -100% -95% A challenged segment
Slide 16: Shareholders
SHAREHOLDERS Shareholders 1/3 Institutional in 37 countries Shareholders by end 2014
Slide 17: Exploration & Appraisal
( ATLANTIC PETROLEUM Exploration & Appraisal
Slide 18: Building a Solid Position in the Aasta Hansteen Area
BUILDING A SOLID POSITION IN THE AASTA HANSTEEN AREA Aug -14 PL 528 farm down 6% to Repsol PL 602 take over 10% from Ithaca Oct -14 PL 528 spud of Ivory Dec -14 PL 528: The Ivory well proved 2-8 BSM3gas in the Kvitnos Formation Jan -15 PL 802: Awarded 20% in APA 2014 Feb -15 PL 704, 705, 802: Signed
Slide 19: Roald Rygg Discovery
ROALD RYGG DISCOVERY Nise 1 regional PL 602 located in the Vøring Basin, next to Currently drilling the Roald Rygg well (6706/11-3) in PL602 TWT map Aasta Hansteen development. The waterdepth is c. 1300 m. Ivory Ownership: Statoil: 42.5 %* (Op), Centrica 20%, Petoro 20%, Wintershall 10%, Atlanti
Slide 20: Developments
( ATLANTIC PETROLEUM Developments
Slide 21: Orlando Field Development
ORLANDO FIELD DEVELOPMENT JV partners & equities Orlando Field Iona Energy 75% (Operator) Atlantic Petroleum 25% CPR estimates Orlando net 2P reserves of 3.8 MMboe Orlando initial rates expected at 10,000+ bopd Development Progress Infrastructure agreements signed in October 2014 for first
Slide 22: Pegasus Field Development
PEGASUS FIELD DEVELOPMENT – a significant gas discovery JV partners & equities: Centrica 55% (Operator) Third Energy 35% Atlantic Petroleum 10% CPR estimates 176BCF in Pegasus & Pegasus North discovered and tested resource is economic History Original discovery well drilled in 2010 found g
Slide 23: Pegasus West Timeline
PEGASUS WEST TIMELINE Discovery Test Result Did the market react?
Slide 24: Near Developments – Kells & Perth
NEAR DEVELOPMENTS – KELLS & PERTH KELLS – P1607 3/8d Iona Energy (Operator) 75%, Atlantic Petroleum 25% CPR estimates Kells net 2P reserves of 2.25 MMboe Kells initial rates expected at 7,000+ bopd First production expected 2017 Development plan Subsea tieback to Ninian Central Platform PERT
Slide 25: Summary & Outlook
( ATLANTIC PETROLEUM Summary & Outlook
Slide 26: Targets 2015
TARGETS 2015 TARGETS 2015 PRODUCTION FINANCIAL EXPLORATION 560,000 BOE EBITDAX POSITIVE DRILL NORWAY ROALD RYGG
Slide 27: Development and Near Development
DEVELOPMENT AND NEAR DEVELOPMENT DEVELOPMENT & NEAR DEVELOPMENT 2015 2016 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q P1606 ORLANDO EXECUTE PRODUCTION P1607 KELLS DEFINE EXECUTE UK P1724 PEGASUS ASSESS SELECT DEFINE EXECUTE PRODUCTION P354 CHESTNUT II ASSESS SELECT DEFINE EXECUTE PRODUCTION P218 & P588
Slide 28: Exploration
EXPLORATION EXPLORATION 2015 2016 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q NORWAY PL705 NAPOLEON / SURNA Possible Well PL602 ROALD RYGG Firm Well P1610 MAGNOLIA / LIBERATOR Possible Well P1906 GREATER YORK Possible Well UK P2082 SKERRYVORE Firm Well P2126 AURORA Contingent Well P2128 ANDROMEDA Conti
Slide 29: Reserves (CPR Numbers)
RESERVES (CPR NUMBERS) MMBoe 60 Reserves Contingent resources 50 Prospective resources 40 30 20 10 0 2009 2010 2011 2012 2013 2014 1) Source: Competent Person’s Reports by Fugro Robertson (year 2009-2012) & GCA (year end 2013 & 2014) 29
Slide 30: Potential Production Profile
POTENTIAL PRODUCTION PROFILE The building blocks are in place for a mid-size NW Europe E&P company
Slide 31: The Opportunity Set
THE OPPORTUNITY SET Development of current UK projects can deliver 5,000-7,000 boe/d production in 2017/18: • Three oil projects – additional equity may be available to Atlantic Petroleum • One oil with substantial gas project • One gas project • 2 projects are with Centrica as operator. • The proje
Slide 32: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT DKK 1,000 Note 2014 2013 Revenue 3 343,146 417,421 Cost of sales 4 -530,002 -221,767 Gross loss/profit -186,856 195,655 Exploration expenses 5 -214,862 -119,647 Pre-licence exploration cost -12,631 -11,064 General and administration cost 6,7,8,10, 25 -41,548 -58,410 Dep
Slide 33: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET DKK 1,000 Note 2014 2013 Non-current assets Goodwill 15,32 51,917 54,354 Intangible assets 16 16,576 26,482 Intangible exploration and evaluation assets 17 258,653 216,682 Tangible development and production assets 18 369,079 621,504 Property plant and equipment 19 2,036 2
Slide 34: Q&A
( ATLANTIC PETROLEUM Q&A
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