Slide 1: Presentation of fourth quarter 2021
Presentation of fourth quarter 2021 OKEA ASA 11 February 2022
Slide 2: General and disclaimer
General and disclaimer This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and p
Slide 3: OKEA fourth quarter 2021 results: Highlights
OKEA fourth quarter 2021 results Highlights Fourth quarter 2021 highlights Gjøa platform Operations • Production 16 038 boepd • High production reliability, no planned maintenance shutdowns • Yme first oil on 25 October - Inspirer rig transaction executed • Sale of regional headquarters in Kristians
Slide 4: Oil and gas markets significantly strengthened
Oil and gas markets significantly strengthened Dated Brent oil prices climbing above USD 90/bbl and European gas prices at record high levels Brent oil price European gas, coal, power and CO2-prices Source: Refintiv 4
Slide 5: Production volumes and reliability
Production volumes and reliability No planned maintenance shutdowns in the quarter; continued high reliability Production (boepd) Draugen platform 2021 avg: 15 530 20 000 Inn med bilde Draugen 16 171 16 557 16 316 16 038 Gjøa Ivar Aasen 15 000 13 210 Yme 7 592 7 246 6 735 7 231 Q4 21 10 000 7 128 Ga
Slide 6: Safety and emissions
Safety and emissions Serious Incident Frequency – per million work-hours* Total Recordable Incident Frequency – per million work-hours 6.2 5.3 5.3 5.0 4.8 4.8 4.7 4.5 4.2 3.4 3.6 3.5 1.8 1.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4
Slide 7: Draugen – WI 44.56%
Draugen – WI 44.56% Production Reserves 7 231 boepd 27.9 mmboe • Net production 7 231 boepd and production reliability 99% • Hasselmus project progressing according to plan • Production start is planned for Q4 23 with gross plateau gas production of more than 4 400 boepd • Power from shore concept s
Slide 8: Gjøa – WI 12%
Gjøa – WI 12% Production Reserves 8 367 boepd 7.5 mmboe • Net production to OKEA from Gjøa in the quarter was 8 367 boepd and production reliability was 100% • Lower production in the quarter mainly due to some of the old Gjøa wells being shut-in due to Duva coming onstream • In Q4 Gjøa was compensa
Slide 9: Ivar Aasen – WI 0.554%
Ivar Aasen– WI 0.554% Production Reserves 223 boepd 2.1 mmboe* • Net production to OKEA from Ivar Aasen was 223 boepd and production reliability was 99% • Purchase of 2.223% WI in the Ivar Aasen field from Neptune Energy Norge AS was announced in November and will increase OKEA’s ownership share fro
Slide 10: Yme New Development – WI 15%
Yme New Development – WI 15% Production Reserves 217 boepd 10.7 mmboe • First oil on 25 October 2021 • Net production to OKEA from Yme in the quarter was 217 boepd • Challenges relating to operation of subsea storage tank with heavy emulsions and high oil in water content halted the production for a
Slide 11: Four licences awarded to OKEA in APA 2021
Four licences awarded to OKEA in APA 2021 Draugen area TYRIHANS Strengthening ILX opportunities in core areas 1119 MIKKEL • OKEA ASA awarded four new production licences, three as operator • Strengthens portfolio of near-field exploration opportunities around 1159 1117 Draugen and Gjøa production hu
Slide 12: OKEA net reserves (2P) 48.3 mmboe – up 16% from end-2020
OKEA net reserves (2P) 48.3* mmboe – up 16% from end-2020 OKEA 2P reserves development EOY 2020 to EOY 2021 OKEA net reserves (2P) and net contingent resources (2C) +16% 2.1 3.6 50 48.3 41.6 46.6 1.7 -0.1 10.7 45 0.0 2.1 0.5 0.0 1.4 2.4 10.3 40 0.9 2P 2C 3.7 48.3* mmboe 24.6 mmboe 35 27.9 -5.9 30 7.
Slide 13: H1 22 deliveries and outlook
H1 22 deliveries and outlook . Four new licenses awarded in APA 2021 Further ramp-up of production at the Yme field Hamlet well in Gjøa license to be spudded in February Closing of Ivar Aasen transaction Progressing Hasselmus towards first gas Q4 23 and Power from shore on Draugen to reduce CO2 emis
Slide 14: Financials
Financials
Slide 15: Oil and gas production, sales and revenues - per asset
Oil and gas production, sales and revenues - per asset Record high petroleum revenue Production (boepd) Sold volumes (boepd) 2021 avg: 15 530 2021 avg: 15 843 20 000 20 000 18 794 Draugen 18 102 Draugen 16 557 Gjøa 16 979 Gjøa - compensation volumes 16 171 16 316 16 038 Ivar Aasen 15 198 Gjøa 15 000
Slide 16: Realised liquids prices in fourth quarter
Realised liquids prices in fourth quarter Continued increase since low point in mid-20 Lifted volumes vs Dated Brent - 2020/2021/2022e Realised liquids prices vs Dated Brent – Q4 21 USD/bbl kbbl USD/bbl 100 950 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 95 95 900 850 90 90 850 85 85 800 79.7 78.9 80 0.3 1.4 78.
Slide 17: Higher gas production and record gas prices in fourth quarter
Higher gas production and record gas prices in fourth quarter Gas price at all-time high in December Sold volumes vs average gas market price - 2020/2021 GBp/th. kboe 215 280 220 Q1 Q3 Q1 Q3 210 260 193 200 190 190 240 190 176 180 171 220 167 165 170 159 158 160 154 156 154 155 160 200 151 146 150 1
Slide 18: Income statement
Income statement Q4 21 comments Operating income: • Increase in sold volumes and higher realised prices Figures in NOK million Q4 21 Q3 21 Q4 20 2021 2020 Total operating income 1 725 1 026 584 3 882 1 730 Production expenses: • NOK/boe of 171 compared to 108 in Q3 21 Production expenses -291 -181 -
Slide 19: Statement of financial position
Statement of financial position Figures in NOK million Assets 31.12.2021 30.09.2021 31.12.2020 Goodwill 769 769 769 Q4 21 comments Oil and gas properties 4 685 4 585 3 758 Asset retirement reimbursement right 3 108 3 088 3 029 Trade and other receivables 1 053 714 514 • Total liquidity of NOK 2 249
Slide 20: Cash development Q4 21
Cash development Q4 21 NOK million 3 400 3 200 3 000 2 800 2 600 +744 46 2 400 207 109 109 70 9 15 11 2 200 +534 210 2 000 957 1 800 1 600 1 400 1 200 2 249 1 000 2 039 800 1 504 600 400 200 0 Cash and cash Operating Net taxes Investment Proceeds from Bond Interest paid Payments of Share issue FX ef
Slide 21: Cash development 2021
Cash development 2021 NOK million 3 400 +1 378 3 200 355 3 000 840 2 800 2 600 109 217 2 400 184 2 200 36 16 15 210 +1 168 2 000 2 160 1 800 1 600 1 400 1 200 2 249 1 000 2 039 800 600 400 871 200 0 Cash and cash Operating Net taxes Investment Proceeds from Bond Interest paid Payments of Share issue
Slide 22: 2022 production guiding 18,500-20,000 boepd - up from 18,000-19,000 boepd
2022 production guiding 18,500-20,000 boepd - up from 18,000-19,000 boepd 2021 actuals within guiding both on production and capex Production – thousand boepd Capex* – NOK million 22 Gjøa accelerated compensation 1 200 950 – 1 150 21 0.9 – 1.2 1 100 20 0.6 – 0.8 1 000 18.5 – 20 19 900 18 17 – 19 800
Slide 23: Summary and outlook
Summary and outlook
Slide 24: Summary and outlook
Summary and outlook Growing production and reserves in strong oil and gas markets Solid cash position High-quality deliveries in operations and projects
Slide 25: Growth Value creation Capital discipline
Growth Value creation Capital discipline 25