Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company — Corporate Update (May 2016)
11 slides from Bluenord Asa's corporate update, May 2016
Slide 1: Norwegian Energy Company ASA – Company update, May 2016
Norwegian Energy Company ASA - Company update May, 2016
Slide 2: Content
Content • So far, so good – the year in review • Noreco ASA Balance Sheet as at Q1 2016 • Norwegian Energy Company ASA today • Siri Insurance Claims • Tax Credits • Abandonment Escrow • Noreco Norway • Zidane 2
Slide 3: So far, so good – the year in review
So far, so good – the year in review Settlement agreement in Denmark • prerequisite for approved restructuring • secured full control over the SIRI insurance claim and subsidiaries • capped abandonment liability and stopped cash leakage SIRI - Partnership with QVT and Awilhelmsen Special Opportu
Slide 4: Noreco ASA Balance Sheet
Noreco ASA Balance Sheet Non-IFRS Balance Sheet as at 31.03.2016 NOK million 31.03.2016 31.12.2015 Restricted Cash 569 581 Value of subsidiaries 550 588 Bank deposits 134 274 Total Assets 1.254 1.443 Equity 518 521 Bond loan 156 326 Guarantee provision 569 581 Other liabilities 10 14 Total liabiliti
Slide 5: Norwegian Energy Company ASA today
Norwegian Energy Company ASA today Net debt free, with a strong cash position and valuable assets: • SIRI insurance claims • Several subsidiaries with substantial value potential (UK, DK) in tax credits • Abandonment escrow • Zidane PDO payment • 10% of Lulita field Asset Portfolio Book Value (31.03
Slide 6: SIRI – Pursuit of claims with QVT and Awilhelmsen Special Opportunities
SIRI – Pursuit of claims with QVT and Awilhelmsen Special Opportunities • Secured a minimum payment of USD 15 million, underpinned the remaining debt outstanding • Two very strong partners to help pursue the claim; three axes of effect – expert competence, strategy – financial strength – signal effe
Slide 7: Tax Credits – Strategy to monetize
Tax Credits – Strategy to monetize Two options: 1. Clean sale of subsidiaries to third party – least attractive in current market conditions 2. Partnership to gain exposure to production – Interesting opportunities in todays market – Noreco uses tax credits and entities as currency – third party deb
Slide 8: Abandonment Escrow
Abandonment Escrow • As part of DK settlement the Nini/Cecilie decommissioning liability was capped at DKK 445m • Cost level in industry has been significantly reduced • Noreco has engaged advisors to reassess the budgeted decommissioning cost 8
Slide 9: Noreco Norway
Noreco Norway Post completion of DetNor transaction • Remains a fully owned subsidiary of Noreco ASA with the following assets: – 20% of Norwegian Energy Company UK – Zidane – success payment – Residual cash 9
Slide 10: Zidane
Zidane • In 2011 Noreco divested their interest in the Zidane-1 discovery to OMV, part of the transaction was a success payment @ PDO (based on reserve levels in the upcoming exploration well Zidane-2) • In 2012 the Zidane-2 prospect was declared a discovery with approx. gross 205 bcf and 1,5 mill b
Slide 11: YF NORECO
YF NORECO
Norwegian Energy Company — Corporate Update (May 2016) on 6ix