North Energy Asa · OSL:NORTH
North Energy Asa — Q3 2010 Earnings Presentation
19 slides from North Energy Asa's earnings presentation, Nov 12, 2010
Slide 1: North Energy Q3 2010
North Energy Q3 2010 12 November 2010
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
Slide 3: Agenda
Agenda • Highlights Q3 • Exploration update • North Energy – a stronger player in the north • 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
Slide 4: Highlights Q3
Highlights Q3 • Expanding and proving up license portfolio § APA and 21R applications submitted § PL 341 Stirby farm-in approved and drilling commenced § Rigs secured on all firm wells • Strengthening position in Northern Norway § Safety and coastal protection projects with Statoil and fishery organ
Slide 5: Agenda
Agenda • Highlights Q3 • Exploration update • North Energy – a stronger player in the north • 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
Slide 6: Rigs secured on all firm wells
Rigs secured on all firm wells 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
Slide 7: Targeting average finding cost of less than one USD/boe
Targeting average finding cost of less than one USD/boe Dorothy Vågar Tana Dorothy Heilo Vågar Tana Heilo * Jette Stirby Norvarg Fogelberg Norvarg Fogelberg Jette Stirby North Energy ASA, Markedsgata 3, Alta, Norway. Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · w
Slide 8: PL 341 Stirby
PL 341 Stirby PL 341 in the North Sea Acquired 2010 – approved as Main prospect Upper Stirby partner 29 October License December 2012 Hydrocarbon Gas Expiry type condensate Operator Det norske (30%) Drilling Ongoing Partners Wintershall (20 %) POS 30% Marathon (12%) North Energy (11%) Gross resource
Slide 9: PL 341 Stirby – currently drilling
PL 341 Stirby – currently drilling 24/12-6 S2 m md RT Stirby Upper 4321 4321 Base Cretaceous (BCU) 4419 4419 Marine shales 4782 4782 Stirby (source) Middle 5020 5020 Lower Jurassic and Triassic Stirby TD TD5422 5422 Lower Top Top Mid Jurassic Mid Jurassic Well 24/12-6 S2 • Drilling commenced on 16 A
Slide 10: Agenda
Agenda • Highlights Q3 • Exploration update • North Energy – a stronger player in the north • 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
Slide 11: Strengthening position in core areas – the Norwegian Sea and the Barents Sea
Strengthening position in core areas – the Norwegian Sea and the Barents Sea • Preparing for opening of new areas § Active player in the political debate – also locally § Acquisition of seismic data § Evaluating strategic partnerships Map: BBC • Participating in safety and coastal protection project
Slide 12: Strong focus on value creation
Strong focus on value creation • Actively pursuing attractive business development opportunities on the NCS § Including high quality farm-ins in the North Sea § Balance upside, risk and financial exposure • Dedicated strategic and commercial management § Vigdis Wiik Jacobsen appointed Portfolio Mana
Slide 13: Agenda
Agenda • Highlights Q3 • Exploration update • North Energy – a stronger player in the north • 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
Slide 14: North Energy ASA – Profit & Loss
North Energy ASA – Profit & Loss 3Q 2Q 3Q Year MNOK 2010 2010 2009 2009 Payroll 16,0 12,6 17,6 62,4 Depreciation 1,1 1,1 0,5 3,4 Exploration expenses 29,2 17,8 42,5 113,1 Increase seismic reprocessing Other operating expenses 7,8 13,1 9,9 28,8 Less activity during summer months Operating loss 54,0 4
Slide 15: North Energy ASA - Balance sheet
North Energy ASA - Balance sheet 3Q 3Q Year end MNOK 2010 2009 2009 Assets Fixed Assets 133,6 15,2 22,8 Capitalised drilling PL433 of 103 MNOK Receivables 393,2 223,2 173,8 Acc tax receivables of 345 MNOK Cash and cash equivalents 107,1 40,7 45,7 Total Assets 633,9 279,1 242,3 Equity and liabilities
Slide 16: Solid financial situation
Solid financial situation • Cash balance of NOK 107 million • Expected tax reimbursement of NOK 345 million • No interest bearing debt Liquidity as of Q3 2010 • Net cash position of NOK 452 million • NOK 300 million exploration loan facility with SEB fully available • Exploration loan facility to co
Slide 17: Agenda
Agenda • Highlights Q3 • Exploration update • North Energy – a strong player in the north • 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
Slide 18: Outlook
Outlook • 6 months outlook § Announcement of results from Stirby well § Jette exploration well in the Norwegian Sea § Further work and maturing of plans on Fogelberg § Results from APA 2010 and 21R licensing rounds § Increase of exploration loan facility § Drilling decision on Vågar • 12 months outl
Slide 19: 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