Lundin Petroleum. Corporate Presentation. March Lundin Petroleum. WF12176 p

Transcription

1 Corporate Presentation March 2016 WF12176 p

2 Europe s Largest Independent E&P Company Reserves 685 MMboe Contingent Resources 386 MMboe 2016 Production Guidance 60,000 70,000 boepd Strong balance sheet and liquidity position No cash equity raised since 2001 Share price >40 X increase in value since 2001 WF12176 p

3 Successful Organic Growth Strategy Norway Undeveloped barrel value Low cost - High value Norway Finding cost/boe 8.7 (1, 2) USD/boe 0.7 USD/boe (1) Post-tax deal value for OMV s acquisition of PL338 (20%) from RWE Dea. Total consideration was million converted to USD at 1.31:USD with effective date 01 January Gross 2P reserves at the time where 187 MMboe WF12176 p (2) Average analyst valuation of Johan Sverdrup is USD/boe based 15 research reports on as published between Dec 2015 and Feb

4 Geographical Focus Norway assets represent 95% reserves 81% 2016 production Southern Barents Sea Barents Sea estimated yet to find resource potential 8.8 billion barrels North Sea estimated yet to find resource potential 4.7 billion barrels Access + Scale of Resource + Favourable Tax Regime WF12176 p Greater Alvheim / Utsira High 4

5 Proven Track Record Alta / Gohta Edvard Grieg 2007 Johan Sverdrup MMboe 830 MMboe of net commercial resources discovered by Lundin in Norway Alvheim / Volund ,270 MMboe 206 MMboe 407 MMboe WF12176 p Note: all resource numbers are gross 5

6 Norway Quality Assets - Alvheim Hub OPEX < 6 USD/boe Gross Alvheim Estimated Ultimate Recovery (MMboe) 2C Contingent Resources Cumulative Production End of Year 2P Reserves % Alvheim Alvheim FPSO Vilje Kneler B WF12176 p P Reserves Alvheim Volund Bøyla Total PDO (1) Year end % 35% 15% 2015 WI MMboe net (1) Bøyla Volund Viper/Kobra (under development) Producing structure Infill drilling Undeveloped gas discovery Prospect Infill opportunities breakeven < 30 USD/boe Production Gas lift Water injection 6

7 Norway Quality Assets Edvard Grieg Area Gross Edvard Grieg 2P Reserves MMboe Edvard Grieg Platform 2C gross Contingent Resources Apollo, Rolvsnes, Luno II & Luno II North 2P Reserves 90 Gas Export to SAGE Oil Export to Grane Ivar Aasen (WI 1.385%) onstream Q % Luno South (WI 50%) Edvard Grieg (WI 50%) Apollo (WI 50%) 2007 Discovery PDO 2015 Luno II North (WI 50%) Rolvsnes (WI 50%) WF12176 p Edvard Grieg discovery initially estimated to hold between MMboe gross with mid-point of 128 MMboe Luno II (WI 50%) potential future tie-back to Edvard Grieg 7

8 Norway Edvard Grieg Project delivered on schedule and on budget Strong intial facilities and reservoir performance Gross plateau production of 100,000 boepd expected 2H 2016 WF12176 p

9 Norway Quality Assets Johan Sverdrup Largest Phase 1 development on the NCS Major importance to all stakeholders Up to 40% of NCS oil production at plateau PDO approved and full field reserves are booked million boe (2P net to ) Working Interest Johan Sverdrup Unit Statoil % % Petoro % Det norske % Maersk % Breakeven oil price 30 USD/bbl (1) 1 Based on ERCE 2P reserves profile as at 31 Dec 2015 Assumes USD : NOK 8.5 and latest cost savings Processing platform Wellhead & Drilling platform Living Quarter Riser platform WF12176 p Gross Reserves: billion boe 9

10 Norway Utsira High Quality Assets Johan Sverdrup PDO Submitted Phase I PDO Approval Phase I PDO Submission Phase II First Oil Phase I First Oil Phase II Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q Phase I PRODUCTION Full Field Phase I CAPEX FX SPLIT Phase 1 Full Field 380 PDO Latest (3) Gross Mboepd (1) PDO -12% Latest 220 (2) 190 (2) Gross NOK billion USD 20% Other 20% NOK 60% 315 WF12176 p (1) Nominal, NOK6:USD (2) Real 2016, NOK6:USD (3) Latest debottlenecking (1) Nominal, NOK6:USD (2) Real 2016, NOK6:USD (3) Latest debottlenecking 10

11 Norway Big Fields Tend to Get Bigger Maximise resource and value through the life cycle WF12176 p Factor Change in Total Oil Reserves since PDO Troll II Valhall Ula Tordis Gullfaks Sør Ekofisk Balder Norway fields bigger than 120 MMboe Oseberg Requires participation in development phase Vigdis Glitne Draugen Snorre Fram Statfjord øst Eldfisk Alvheim Brage Heidrun Gullfaks Veslefrikk Statfjord Nord Tor Murchison Norne Tyrihans Top five fields in Norway by size Oseberg Sør Oseberg øst Gyda Edvard Grieg Grane Goliat Statfjord Njord Jotun 11

12 Low Cost - High Value Production Guidance (Mboepd) (1) OPEX (USD/boe) 60 to 70 > ~ Guidance J. Sverdrup Phase 1 J. Sverdrup Plateau Guidance J. Sverdrup Plateau (1) Excluding Inventory movement and MTM assets recognised in relation to Brynhild opex share USD 2 Bn WF12176 p Norway Tax Pool As at at USD : NOK 8.5 No cash tax paid at oil price < 60 USD/bbl until Johan Sverdrup first oil 12

13 2016 Funding Liquidity and Net Debt New 7 year RBL of up to USD 5.0 billion secured in February 2016 Current commitment USD 4.3 billion Attractive margin: 315 bps 5 year grace period (no amortisation until end 2020) 6, ,000 4, ,000 3,858 3,786 MUSD 3, million (committed) 1.65 billion (committed plus optional) 2,000 Available Liquidity Headroom 1,000 WF12176 p RBL ERF RBL Accordion Sources of Liquidity Bertam FPSO sale RBL Cash Net Debt 31/12 13

14 Exploration Strategy Southern Barents Sea Geographical focus Norway Shallow water and reservoirs Less than 500 metres water depth Leverage on technology extensive 3D seismic usage Targeting conventional oil play types Norway Key exploration areas Greater Alvheim / Utsira High WF12176 p

15 Norway Southern Barents Sea licences Operator Partner Licenced Area 23 rd Round Blocks Oil Gas Prospect Industry Broadband 3D Seismic Discoveries Barents Sea ~ 1 billion boe discovered recently Development Johan Castberg, ~550 MMbbl Breakeven <45 USD/bbl (1) Hoop Area Southeast Barents Sea Reserves Snøhvit 1.67 bn Boe (2) Goliat (2) (3) 180 MMboe Yet to Find Barents Sea 8.8 billion barrels (2), ~100 wells Loppa High Area Johan Castberg discoveries Filicudi Prospect Neiden Prospect Alta & Gohta discoveries Wisting discovery PL609 Barents Sea (1) Statoil CMU Feb 16, (2) NPD, (3) Expected startup in 2016 Snøhvit Area PL708 Goliat development WF12176 p Norway 0 KM

16 Norway Southern Barents Sea Loppa High Exploration & Appraisal Norway Loppa High Area 609 Børselv licences Operator Partner Oil Gas Gohta/Alta discoveries opens up the area Kramsnø Prospect for significant new discoveries Johan Castberg Neiden Prospect (WI 40%) 204 MMboe gross Alta appraisal programme to continue in 2016/2017 Multiple prospects identified programme: Alta-3 re-entry & test Neiden exploration re-entry Filicudi exploration well Alta/Gohta area development feasibility study Iskrystall Favignana Filicudi Prospect (WI 35%) 258 MMboe gross Drivis Formica Salina Gohta Discovery (WI 40%) Procida 492 Skavl Ponza Rauto Lakselv North Lakselv South B Alta + Gotha gross contingent Rein 767 Loppa High Alta Discovery (WI 40%) resources : Mboe Barents Sea WF12176 p Play fairway up to 1 billion barrels 438 Skalle Hammerfest Basin SNØHVIT 0 KM 20 16

17 Norway Utsira High Resources and Upside Potential Norway major operated acreage position ~2.7 billion boe of gross reserves under development 3 PDO approved Edvard Grieg, Ivar Aasen and Johan Sverdrup Utsira High 44 MMboe of net contingent resources high margin barrels to existing infrastructure Luno II, Luno II North, Apollo, Rolvsnes PL779 Ivar Aasen PL501 Johan Sverdrup Unit Multiple prospects and leads defined Apollo PL338 3,000 Utsira High Discoveries (gross Mboe) PL338C Edvard Grieg (Luno South) Rolvsnes Johan Sverdrup PL674 2,500 2,000 1,500 Luno II/North Johan Sverdrup Apollo Ivar Aasen Edvard Grieg Luno II Luno II North PL815 PL265 PL501B 1,000 PL359 licences 500 PL778 PL410 Norway Operator Partner WF12176 p Year End PL544 0 KM 10 North Sea Oil field Oil discovery Gas Prospect/lead 17

18 Malaysia Exploration and Production Core exploration positions in Peninsular Malaysia and Sabah Malaysia Sabah Total acreage is 28,000 km, second largest after Petronas MMboe gross 2P reserves 96 MMboe gross contingent resources Peninsular Malaysia Bertam 2016 net production guidance 8,450 boepd Bertam (WI 75%) Key exploration areas 2nd largest offshore acreage holder (1) WF12176 p Broad strategic farm-down to Dyas - Strong technical non-operated partner - Spread risk in high equity blocks - Work together in new opportunities (1) source: IHS

19 Key Messages Reserves 685 MMboe Contingent Resources 386 MMboe 2016 Production Guidance 60,000 70,000 boepd WF12176 p Strong balance sheet and liquidity position Strong production growth with low unit operating costs Proven value creation track record Consistent sustainable organic growth strategy going forward Continued strong focus on cost discipline and operating efficiency 19

20 Disclaimer This information has been made public in accordance with the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980). Forward-Looking Statements Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, including the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading Risks and Risk Management and elsewhere in the Company s annual report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement. WF8278 p

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