Slide 1: 2021 Interim Results Presentation
2021 Interim Results Presentation
Slide 2: 2021 operational and financial highlights
2021 0perational and financial highlights Cover photo: Signing of the Baeshiqa first phase development plan by the license Management Committee chairperson Dr Khazal Auzer (KRG) and vice chairperson Tom Allan (DNO). Page 2
Slide 3: 2021 operational highlights
2021 operational highlights Net production thousand boepd • Net production to DNO’s interest of 94,500 barrels of oil equivalent per day (boepd) in 110.3 2021 (94,200 boepd in Q4 2021), of which 81,500 barrels of oil per day (bopd) from the 100.1 94.5 Kurdistan region of Iraq (80,600 in Q4 2021) 87.
Slide 4: 2021 financial highlights
2021 financial highlights Revenues USD million 971 1,004 • Record revenues topped USD 1 billion in 2021, up 63 percent from a year earlier, on 829 back of high oil and gas prices and solid production 615 • North Sea revenue boosted by spot gas price exposure in strong European market 347 • Return to
Slide 5: Reserves and resources overview
Reserves and resources overview 2P Reserves Contingent Resources (2C) Norway 52 Norway 112 UK 1 9.3 years UK 2 2P reserves-to- production ratio 321 Kurdistan 71 Yemen 5 189 MMboe MMboe 14.8 years 2P reserves+contingent (2C)-to- production ratio Kurdistan 267 Middle East North Sea Net to DNO at yeare
Slide 6: Kurdistan operations
Kurdistan operations • Tawke license gross production averaged 108,700 bopd in 2021, of which Peshkabir field 61,800 bopd (52,700 bopd in 2020) and Tawke field 46,900 bopd (57,600 bopd in 2020) • Captured and injected 7.6 billion cubic feet (461,500 tonnes of CO2) of otherwise flared Peshkabir gas i
Slide 7: Organic growth in Kurdistan with Baeshiqa development
Organic growth in Kurdistan with Baeshiqa development • DNO’s first new field development in Kurdistan since • Well test production totaling 15,000 barrels of 40 degree Peshkabir startup in 2017 API oil from Baeshiqa-2 and 22 degree API oil from Zartik-1 trucked to export market at time of discovery
Slide 8: North Sea operations
North Sea operations • 2021 North Sea net production of 12,900 boepd (17,400 in 2020), down due to natural decline, delayed new production and planned maintenance • Seven development wells and five exploration wells drilled in 2021 • Four discoveries, of which two likely commercial, notably Røver No
Slide 9: Four projects closing in on 2022 PDO
Four projects closing in on 2022 PDO Brasse development concept Subsea template with three producing • Brasse (DNO 50 percent and operator) on track for 2022 PDO wells and tie-back to the Oseberg facilities • Work ongoing to finalize development concept with partner Vår Energi and host (Oseberg) ope
Slide 10: North Sea 2022 exploration drilling
Alve Gjøk Marulk 7 North Sea 2022 exploration drilling Iris/Hades NORWEGIAN SEA Gross 2022 Fenja volumes, DNO Licence Prospect Type MMboe CoS interest Q1 Q2 Q3 Q4 1 P293B Kveikje Exploration 10-25 55% 29% 2 P2401/PL969 Edinburgh Exploration 100-675 29% 45% 3 PL1085 Overly Exploration 5-80 64% 25% 4
Slide 11: Edinburgh prospect to spud in Q1 2022
Edinburgh prospect to spud in Q1 2022 UK NORWAY • One of the largest undrilled structures in the North Sea • Edinburgh prospect straddles UK/Norway border Water depth 70m • DNO drove the cross-border alignment and equalized equity of 45 percent across all four UK/Norway licenses Jack-up drilling rig
Slide 12: Following Røver Nord success, more DNO wells in highly prospective area
Following Røver Nord success, more DNO wells in highly prospective area Grosbeak Kveikje • String of recent discoveries northwest of Norway’s giant Troll field (2022) leading to stepped up exploration interest in area Swisher • Kveikje exploration well (DNO 29 percent) to spud in Q1 2022 Toppand • R
Slide 13: 2021 financial review
2021 financial review Page 13
Slide 14: DNO financial results – key figures
DNO financial results – key figures Revenues Netback Operating profit USD million USD million USD million 521 782 1,004 971 377 321 829 606 559 489 615 76 347 232 -315 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 • Revenues exceeded USD 1 billion in 2021, all-time high
Slide 15: Financial summary
Financial summary USD million Q4 2021 Q3 2021 2021 2020 Revenues 396.5 253.5 1,004.1 614.9 Production costs -52.9 -56.8 -218.8 -217.3 Movement in overlift/underlift -58.8 2.1 -18.3 -11.3 Depreciation, depletion and amortization -53.3 -51.0 -206.0 -361.4 Cost of goods sold -165.1 -105.6 -443.1 -
Slide 16: 2021 cash flow
2021 cash flow • Operational cash flow of USD 625 million in 2021 (USD 2021 cash flow 253 million in 2020) USD million • North Sea tax refunds of USD 175 million received in 2021 (USD 236 million in 2020) • Investment activities of USD 362 million (USD 256 million in 2020) comprise of USD 276 millio
Slide 17: Capital structure
Capital structure Cash deposits Net interest-bearing debt Equity ratio USD million USD million Percent 737 62 61 729 513 473 486 477 430 36 153 35 31 -30 -129 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 • Strengthening of balance sheet with increased cash deposits • Ne
Slide 18: Ramping up operational spend in 2022
Ramping up operational spend in 2022 Total operational spend • Planned operational spend of USD 800 million in 2022 driven by USD million ramp up of Tawke drilling and Baeshiqa first phase development Capex Expex Opex Abex • Estimated Kurdistan capex accounts for around 60 percent of 800 786 project
Slide 19: Important notice
Important notice This presentation (the “Presentation”) has been prepared and delivered by DNO ASA (“DNO” or the “Company”). Copyright of all published material including photographs, drawings and images in this document remains vested in DNO and third party contributors as appropriate. Accordingly,
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