Active exploration summer ahead

Transcription

1 27 June 2011 Active exploration summer ahead DETNOR, NORTH and RGT Please refer to important disclosures at the end of this document Thomas Aarrestad Direct: Mobile:

2 Summary During the summer months, we expect results from 8 significant exploration wells for the Oslo E&P s. Both Det norske, North Energy and Rocksource are highly exposed and we recommend to BUY a basket of these names Several exciting wells this summer Krafla West, Norvarg, Skalle, Breiflabb, Kora (W-Africa), Chamonix, Aldous Major South and Aldous Major North High relative exposure for all three companies this summer DETNOR: 7% of risked value to be tested this summer (6 wells) NORTH: 10% of risked value to be tested this summer (1 well) RGT: 27% of risked value to be tested this summer (3 wells) We recommend to BUY a basket of DETNOR, NORTH and RGT DETNOR: TP NOK 45 NORTH: TP NOK 40 RGT: TP NOK 4.8 2

3 The highest value creation takes place in the exploration phase E&P value chain First major value creation takes place in the exploration phase when discoveries are made Second key value generating milestone is approval of the Plan for Development and Operations (PDO) 3

4 Look to smaller companies for exploration exposure # net wells per USDbn market cap # wells Rocksource, Det norske and North among companies providing highest exploration exposure High number of wells combined with small to medium sized market capitalization 2 0 RGT DETNORNORTH BRIDGE NOR FPM LUPE PMO 4

5 Norvarg - drilling underway PL 535 Norvarg prospect Barents Sea prospect west of Ververis discovery Moderate resource potential mill boe Mainly natural gas potential Potential production via Snøhvit (Train 2) Chance of success 29% Main risk is reservoir quality and trap integrity Rocksource estimates 60% (due to EM) Ownership PL 535 Total (operator, 40%) Det norske (20%) North Energy (20%) Rocksource (20%) Significant unrisked value potential (Assume 200 mill boe) DETNOR: NOK 6.8/share NORTH: NOK 34/share RGT: NOK 2.4/share Drilling started 30 April Results expected August Potential preliminary results in June Source: Pareto Research, Rocksource, Det norske, North Energy 5

6 Krafla West drilling underway PL 035 Krafla West prospect North Sea prospect West of Krafla oil discovery Krafla estimated at 40 mill boe (13-56) Similar size potential at Krafla West Upside from potential lower oil/water contact A discovery could open up further prospects in the area Chance of success: High Both oil and gas potential Ownership PL 035 Statoil (operator, 50%) Det norske (25%) Svenska Pet. (25%) Significant value potential for DETNOR Krafla: NOK 2.5/share Krafla West: NOK 2.5/share (unrisked) Drilling started 25 May Results expected in June / early July Source: Pareto Research, Statoil, Det norske Likely tie-back to one of the subsea installations in the Oseberg area 6

7 Skalle drilling underway PL 438 Skalle prospect Barents Sea prospect south of Skrugard Moderate resource potential 250 mill boe Chance of success 30% Unrisked value potential DETNOR: NOK 2.5/share Drilling started 16 May Results expected July Source: Pareto Research, Lundin Ownership PL 438 Lundin (operator, 25%) Petoro (20%) RWE Dea (20%) Spring Energy (17.5%) Det norske (10%) Talisman (7.5%) 7

8 Kora (West-Africa) Drilling to start in June AGC Profond Kora prospect Kora is the largest exploration target on a large offshore block (9,838 sq km) which straddles the Senegal and Guinea Bissau border High unrisked resource potential estimated at approximately 450 million boe gross Chance of success 50% (RGT) Key risks: source and migration Significant unrisked value potential RGT: NOK 3.5/share Ownership AGC Profond Ophir Energy (operator, 36.7%) Noble Energy (30%) Rocksource (12.5%) L Entreprise (12%) FAR Limited (JV Party) (8.8%) Rocksource recently announced a farm-down agreement with Noble Energy in AGC Profond, involving an initial payment of $28m to RGT Maersk Deliverer is currently on the way from Ghana to commence drilling Source: Pareto Research, Rocksource, Det norske, North Energy 8

9 Breiflabb drilling to start in June PL 416 Breiflabb prospect North Sea prospect southwest of the Troll Field Moderate resource potential mill boe recoverable (DETNOR) 170 mill boe (RGT) Chance of success 44% (RGT) Key risk elements hydrocarbon charge (RGT) source/migration (DETNOR) Ownership PL 416 E.ON Ruhrgas AS (operator, 50%) Rocksource ASA (35%) Det Norske Oljeselskap ASA (15%) Significant unrisked value potential (Assume 100 mill boe) RGT: NOK 2.2/share DETNOR: NOK 2.5/share Rocksource has secured several licenses to the south with follow up potential Source: Pareto Research, Rocksource, Det norske 9

10 New major North Sea oil area discovered billion boe potential - Lundin and Det norske with leading roles Luno / Avaldnses / Draupne area Total of mill boe discovered so far Avaldsnes ( ) Luno (150) Draupne (140) Apollo (15-65) Tellus (40) Another mill boe potential Aldous Major South ( ) Aldous Major North ( ) Luno 3 (100) Asha/Noor/Luno N (20/163/30) Source: Lundin Petroleum 10

11 Aldous Major South drilling to start in July PL 265 Aldous Major South prospect Ownership PL 265 Statoil (operator, 40%) Petoro AS (30%) Det Norske Oljeselskap AS (20%) Lundin (10%) North Sea prospect in block 16/2 Medium resource potential mboe (Lundin) Chance of success 39% (Lundin) Significant unrisked value potential (Assume 185 mill boe) DETNOR: NOK 6.2/share Drilling start up July 2011 Source: Pareto Research, Rocksource, Det norske, North Energy 11

12 Aldous Major North drilling to start in August PL 265 Aldous Major North prospect Ownership PL 265 Statoil (operator, 40%) Petoro AS (30%) Det Norske Oljeselskap AS (20%) Lundin (10%) North Sea prospect in block 16/2 Medium resource potential mboe (Lundin) Chance of success 39% (Lundin) Significant unrisked value potential (Assume 135 mill boe) DETNOR: NOK 4.6/share Drilling start up August 2011 Source: Pareto Research, Rocksource, Det norske, North Energy 12

13 Chamonix drilling to start in July PL 471 Chamonix prospect Norwegian Sea prospect on the Halten Terrace, west of Mikkel Moderate resource potential mill boe Chance of success 19% Primary risk element: Trap Ownership PL 471 OMV (Norge) AS (50%) Norwegian Energy Company ASA (NORECO) (30%) Sagex Petroleum Norge AS (20%) Significant unrisked value potential (Assume 117 mill boe) NOR: NOK 3.1/share Expected spud in July 2011 with Borgland Dolphin Source: Pareto Research, Rocksource, Det norske, North Energy 13

14 High exploration activity in exploration drilling program (North Sea) Prospect Start PL Operator MBOE Prob. NOR RGT DETNOR NORTH BRIDGE RIG 2011 Dovregubben 1Q 468 DETNOR % Aker Barents Svaneøgle 1Q 545 Noreco 50 29% West Alpha Ronaldo 1Q 434 Nexen 87 40% Songa Delta Gullris 1Q 522 BG Aker Barents Arran 1Q Statoil 4 72% Brage platform Krafla 1Q 035 STL Ocean Vanguard Krafla West 2Q 35 STL Ocean Vanguard Norvarg 2Q 535 Total % West Phoenix Skalle 2Q 438 Lundin % Transocean Leader Breiflabb 2Q 416 EoN % Borgland Dolphin Aldous Major/North 3Q 265 STL % Transocean Leader Chamonix 3Q 471 OMV % Borgland Dolphin Heilo 3Q 530 Gdf Suez % Aker Barents Ulvetanna 3Q 356 DETNOR Luna (DCS) 4Q 02/05 Noreco % Maersk Resolve Zapffe 4Q 518 Dong 70 23% West Phoenix Phoenix 4Q 559 RGT % Borgland Dolphin Kalvklumpen 4Q 414 DETNOR % Bredford Dolphin Zidane 2 4Q 435 RWE Dea % West Alpha Albert 4Q 519 Lundin % Salina 4Q 533 Eni Lupin 4Q 360 Statoil % Clapton 4Q 440S Faroe % Maersk Guardian Sum # of remaining wells Source: Pareto Research 14

15 Risked Valuation of Det norske oljeselskap Unrisked Value Risked Value PRODUCING ASSETS mmboe NOKm USD/boe NOK/Share Probability NOKm USD/boe NOK/Share Varg (5%) % Glitne (10%) 0.2 (13) (11.4) (0.1) 100% (13) (11.4) (0.1) Enoch (10%/2%) % Jotun (7%) % TOTAL PRODUCING % DISCOVERIES Commercial Draupne (35%) , % 1, Ermintrude (Dagny) (2-7%) % Total commercial discoveries , % 1, Uncertain commerciality Krafla (25%) % Jetta (60%) % David/Atla (10%) % Frøy (50%) , % Ragnarrock (20%) % Ragnarrock Graben (20%) % Øst Frigg Gamma/Delta (20%) % Grevling (30%) % Fulla (15%) % Desmond PL 332 (40%) % Storskrymten (45%) % Storklakken (100%) % Total uncertain discoveries , % 1, TOTAL DISCOVERIES , % 3, EXPLORATION Norvarg (40%) % Krafla West (25%) % Skalle (10%) % Aldous West/North (20%) 64 1, % Exploration 2011, rem , % Exploration , % TOTAL EXPLORATION , % 1, OTHER ASSETS Cash , , IB Debt (1,532) (12.0) (1,532) (12.0) Assumed new equity OTHER ASSETS 2, , NET ASSET VALUE 19, , Source: Pareto Research 15

16 Risked Valuation of North Energy Unrisked Value Probability Risked Value m m boe NOKm USD/boe NOK/Share Com b. NOKm USD/boe NOK/Share DISCOVERIES Uncertain com m erciality Fogelberg (12%) - PL % Total uncertain discoveries % TOTAL DISCOVERIES % EXPLORATION Norvarg (20%) - PL % Heilo (20%) - PL % Zappfe (30%) - PL , % Jette (35%) - PL % Kalkelborg (10%) - PL % Skagen (25%) - PL % Vågar (40%) - PL % Scarecrow (40%) - PL % TOTAL EXPLORATION 328 5, % OTHER ASSETS Cash IB Debt OTHER ASSETS NET ASSET VALUE 5, , Source: Pareto Research 16

17 Risked Valuation of Rocksource Unrisked Value Risked Value PRODUCING ASSETS m m boe NOKm USD/boe NOK/Share Probability NOKm USD/boe NOK/Share DISCOVERIES Uncertain com m erciality Trident (100%) % Mulle, UK (10%) % Total uncertain discoveries % TOTAL DISCOVERIES % EXPLORATION Kora (AGC) (12.5%) 56 1, % PL Norvarg (20%) % PL Breiflabb (35%) % PL Heilo (20%) % PL Phoenix (60%) 96 2, % exploration 250 2, % TOTAL EXPLORATION 517 8, % 1, OTHER ASSETS Cash IB debt (342) (1.0) (342) (1.0) Equity issue proceeds (Feb'11) Partial sale of Kora block Sale of US onshore Potential repayment of tax refunds (60) (0.2) 50% (30) (0.1) TOTAL OTHER ASSETS NET ASSET VALUE 9, , Source: Pareto Research 17

18 Risked Valuation E&P valuation sheet Share Net Cash* Producing Discoveries Net Asset Value Price / NAV EV / GAV Recomm- Target & other assets Comm- Un- Explor- Core Full Core Full Core Full endation Price assets ercial certain ation NAV NAV NAV NAV GAV GAV (NOK) Bridge Energy (BRIDGE) Unrisked Probability 74% 100% 74% 50% 15% Risked BUY 15 Det norske (DETNOR) Unrisked Probability 100% 100% 59% 44% 15% Risked BUY 45 DNO International (DNO) Unrisked (0.4) Probability 100% 82% 52% 42% 15% Risked 6.4 (0.4) BUY 11 Interoil (IOX) Unrisked (12.5) Probability 100% 100% 50% 50% - Risked 8.6 (12.5) HOLD 10 Noreco (NOR) Unrisked (10.1) Probability 100% 100% 90% 45% 15% Risked 6.3 (10.1) BUY 20 Norse Energy (NEC) Unrisked Probability 100% 100% 50% 10% 0% Risked BUY 1.5 North Energy (NORTH) Unrisked Probability 100% % 15% Risked N/A 0.23 BUY 40 Panoro Energy (PEN) Unrisked Probability 100% 100% 60% 29% 15% Risked BUY 15 PA Resources (PAR) Unrisked (4.4) Probability 100% 100% 80% 38% 15% Risked 3.0 (4.4) HOLD 4.0 Questerre (QEC) Unrisked Probability 100% 100% 0% 15% 10% Risked BUY 15 Rocksource (RGT) Unrisked Probability 100% % 15% Risked N/A 0.45 BUY 4.8 Median *Net Cash at 2010Y, (I) Calculated at WACC 10% (8% in Norway); Long term oil price assumption of USD 120/bbl from 2012 and onwards (USD 116/bbl assumed for 2011) Core NAV calculated as net cash + producing assets + commercial discoveries; Risked exploration value includes prospects to be drilled in 2011 and

19 Disclaimers and disclosures V This document provides additional disclosures and disclaimers relevant to research reports and other investment recommendations ( Recommendations ) issued by Pareto Securities AS ( Pareto ), cf. the Securities Trading Act Section 3-10 with further regulations. Basis and methods for assessment Recommendation for shares and share related instruments are based on price targets fixed with different valuation methods that may include analysis of earnings multiples (absolute and relative), valuation of a company using DCF calculations (discounted cash flow) and by carrying out net asset value (NAV) assessments. Price targets are changed when earnings and cash flow forecasts are changed. They may also be changed when the underlying value of the issuer s assets changes or when factors impacting the required rate of return change. Pareto credit analysts provide credit ratings which is a framework for comparing the credit quality of rated debt securities. The ratings are based on the same rating scale as international rating agencies and represent the opinion of Pareto as to the relative creditworthiness of securities. A credit rating on a stand alone basis should not be used as a basis for investment operations. Pareto Securities may also provide credit research with more specific price targets. These price targets are based on different valuation methods. These methods may include analysis of key credit ratios and other factors describing the securities creditworthiness, peer group analysis of securities with similar creditworthiness and different DCF-valuations. Definitions of key terms: * Equity: Buy: Pareto expect this financial instruments total return to exceed 10% over the next six months. Hold: Pareto expect this financial instruments total return to be 0-10% over the next six months. Sell: Pareto expect this financial instruments total return to be negative over the next six months. Trading Buy: Pareto expect this financial instruments total return to exceed 10% over the next month. Trading Sell: Pareto expect this financial instruments total return to be negative over the next month. Credit: Buy: The risk premium is considered as favorable relative to credit risk Hold: The risk premium is considered as acceptable relative to credit risk Sell: The risk premium is not considered as acceptable relative to risk * Please note that these definitions are guidelines only. Credit Ratings Please be aware that all credit ratings mentioned in this report are Pareto Securities own credit rating estimate unless other is mentioned. Please also note that all descriptions of loan agreement structure and loan agreement features are also obtained from sources which Pareto Securities believes to be reliable, but Pareto Securities does not represent or warrant its accuracy. Be aware that investors should go through the specific complete loan agreement before investing in any bonds and not base an investment decision based solely on information contained in this report. Definitions of credit ratings: AAA Best Quality AA+ / AA / AA- Strong ability for timely payments A+ / A / A- Somewhat more exposed for negative changes BBB+ / BBB / BBB- Adequate ability to meet payments. Some elements of protection. BB+ / BB / BB- Speculative risk. Future not well secured B+ / B / B- Timely payments at the moment, but very exposed to any negative changes CCC+ /CCC/ CCC- Default a likely option The distribution and history of ratings can be found in the semi-annually published High Yield Bond Reports available at Risks related to investments and Recommendations There is risk attached to all investments in financial instruments. The analyst s assessment of the risk is identified by the terms High, Medium or Low Risk in the relevant Recommendation. There may be uncertainties with respect to the accurateness and reliability of any information, interpretation and assessment. There are uncertainties and risks attached to the correctness of any Recommendation by Pareto and with respect to forward looking statements and expectations. 19

20 Disclaimers and disclosures Standards and supervision Pareto complies with the standards for recommendations issued by the Norwegian Securities Dealers Association and the Norwegian Society of Financial Analysts. Pareto is under the supervision of the Financial Supervisory Authority of Norway. No agreement with the issuer concerning Recommendations Unless otherwise is stated on the first page, the recommendation has not been presented to the issuer before dissemination. In instances where all or part of a report is presented to the issuer prior to publication, the purpose is to ensure that facts are correct. Organisation and duty of confidentiality All employees of Pareto are subject to duty of confidentiality towards clients and with respect to handling inside information. Pareto has established Chinese walls and other organisational procedures for the purpose of minimizing conflicts of interest within Pareto and in the Pareto group and between clients. Compensation schemes for analysts No part of analysts salaries or compensations relates directly to investment banking services or other services provided by Pareto or related companies to issuers. Analysts are however part of the general bonus scheme. Updating of Recommendations Pareto has no fixed schedule for updating. Disclosure of assignments and mandates Please see Appendix B for an overview of (a) all financial instruments in which Pareto or related companies are market makers or liquidity providers, (b) all financial instruments where Pareto or related companies have been lead managers or co-lead managers over the previous 12 months and (c) all issuers of financial instruments to whom Pareto or related companies have rendered investment banking services over the previous 12 months. Please be aware that agreements and services that are still subject to confidentiality are excluded. Previous Recommendations For an overview of Pareto s Recommendations in the financial instruments of the issuing company the last 12 months, including data on changes in Recommendations, please log on to type in company name or symbol in the search field and click search. Under Pareto Info / Analyse, or under "Research", you will find previous Recommendations. Please be aware that certain informal Recommendations may be excluded.. Statistics on Recommendations Please see Appendix C for quarterly statistics on the overall ratio of Trading Buy, Buy, Hold, Sell and Trading Sell in Pareto s Recommendations in financial instruments, including a split with respect to issuers where Pareto have provided investment banking services the previous 12 months. Additional provisions on Recommendations distributed in the United States This research report is prepared by Pareto Securities AS and distributed in the United States by Pareto Securities Inc. The research report is intended for distribution in the United States to institutional investors only. Pareto Securities Inc. is a broker-dealer registered with the U.S. Securities and Exchange Commission and is a member of FINRA & SIPC. U.S. persons seeking more information about any of the securities discussed in this report, or wishing to execute a transaction in these securities, should contact Pareto Securities Inc. at 150 East 52nd Street, NY 10022, Tel To the extent required by applicable U.S. laws and regulations, Pareto Securities Inc. accepts responsibility for the contents of this publication. Investment products provided by or through Pareto Securities Inc. or Pareto Securities AS are not FDIC insured, may lose value and are not guaranteed by Pareto Securities Inc. or Pareto Securities AS. Investing in non-u.s. securities may entail certain risks. This document does not constitute or form part of any offer for sale or subscription, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The securities of non-u.s. issuers may not be registered with or subject to SEC reporting and other requirements. The information available about non-u.s. companies may be limited, and non-u.s. companies are generally not subject to the same uniform auditing and reporting standards as U.S. companies. Market rules, conventions and practices may differ from U.S. markets, adding to transaction costs or causing delays in the purchase or sale of securities. Securities of some non-u.s. companies may not be as liquid as securities of comparable U.S. companies. Pareto Securities Inc. and/or Pareto Securities AS may have material conflicts of interest related to the production or distribution of this research report which are disclosed on the following Appendix A and Appendix B. 20

21 Disclaimers and disclosures Additional information for recipients in Singapore This research reports is prepared by Pareto Securities AS and distributed in Singapore by Pareto Securities Asia Pte Ltd ( Pareto Securities Asia ). Pareto Securities AS is a company established under the laws of Norway being licensed and supervised by Norwegian regulators. Pareto Securities Asia is an exempt financial advisor under the Singapore Financial Advisers Act and a subsidiary of Pareto Securities AS. This report is directed only to "accredited investors", "expert investors" and "institutional investors" as defined in the Singapore Securities and Futures Act. This report is intended for general circulation amongst such investors and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should seek advice from a financial adviser regarding the suitability of any product referred to in this report, taking into account your specific financial objectives, financial situation or particular needs before making a commitment to purchase any such product. Please contact Pareto Securities Asia, 16 Collyer Quay, # Hitachi Tower, Singapore , at in respect of any matters arising from or in connection with this report. This report does not provide individually tailored investment advice or offer tax, regulatory, accounting or legal advice. The securities or other financial instruments discussed in this report may not be suitable for all investors. This report has been prepared and issued for distribution to professional investors only and all recipients should seek independent investment advice prior to making any investment decision based on any information contained in this report. Prior to entering into any proposed transaction, recipients should determine, in consultation with their own investment, legal, tax, regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences, of the transaction. Disclaimer Pareto and the analyst accept no responsibility and expressively disclaim any and all liabilities for any and all losses related to investments caused by or motivated by Recommendations from Pareto. Any person receiving a Recommendation from Pareto is deemed to have accepted this disclaimer. The disclaimer shall apply even if an Investment Recommendation is shown to be erroneous or incomplete or based upon incorrect or incomplete facts, interpretations or assessments or assumptions by Pareto, and irrespective of whether Pareto or any person related to Pareto can be blamed for the incident. Contact information: Pareto Securities AS, P.O. Box 1411 Vika, N-0115 Oslo, Norway. Tel.:

22 Disclaimers and disclosures Appendix A Disclosure requirements pursuant to the Norwegian Securities Trading Regulations section 3-10 (2) and section 3-11 (1), letters a-b Pareto Securities AS does not alone or - together with affiliated companies or persons own a portion of the shares exceeding 5 % of the total share capital in any company where a recommendation has been produced or distributed by Pareto Securities AS. Pareto Securities AS may hold financial instruments in companies where a recommendation has been produced or distributed by Pareto Securities AS in connection with rendering investment services, including Market Making. Please find below an overview of material interests in financial instruments held by employees in Pareto Securities AS, in companies where a recommendation has been produced or distributed by Pareto Securities AS. By material interest is meant holdings exceeding a value of NOK Analyst Company Holdings Total Holdings Company Analyst Holdings Total Holdings Atea Noreco Avocet Mining Odfjell Bonheur Olav Thon Eiendom Bw Offshore Orkla Camillo Eitzen Panoro Energy Cermaq Petroleum Geo-Services Dnb Nor Polarcus Dno International Questerre Energy Dof Renewable Energy Eitzen Chemical Salmar Emgs Sandnes Sparebank Eoc Seadrill Farstad Shipping Sevan Marine Fred Olsen Energy Ship Finance Frontline Siem Offshore Gjensidige Forsikring Solstad Offshore Golar Lng Energy Songa Offshore Havila Shipping Sparebank 1 Sr-Bank Inmeta Asa Sparebanken Øst Kongsberg Automotive Spectrum Kongsberg Gruppen Statoil Lerøy Seafood Group Statoil Fuel & Retail Maritime Industrial Services Storebrand Norse Energy Subsea Norse Energy T-Retter Telenor Norsk Hydro Tgs-Nopec Geophysical Norske Skogindustrier Veidekke Northland Resources Wilh. Wilh. Holding A-Aksjer Norwegian Air Shuttle Yara International This overview is updated monthly (last updated ). Appendix B Disclosure requirements pursuant to the Norwegian Securities Trading ST Regulation 3-11, letters d-f, ref the Securities Trading Act Section 3-10 Overview over issuers of financial instruments where Pareto Securities AS have prepared or distributed investment recommendation, where Pareto Securities AS or related companies have been lead manager/co-lead manager or have rendered publicly known not immaterial investment banking services over the previous 12 months: - Aker Drilling - Golden Close Maritim Corp - Polarcus - Akva Group - Havila Shipping - Prosafe - Altona Mining - Havyard - Prosafe Production - Archer - Inmeta - Prospector Offshore Drilling - Austevoll Seafood - InterOil - Rocksource - BassDrill - Jasper Explorer - Rowan Drilling - Bergen Group - Krillsea - Saga Tankers - Blom - Lighthouse Caledonia - Sandnes Sparebank - BOA - Marine Accurate Well - SAS - Camillo Eitzen & Co. - Middle East Jackup Company - Seadrill - Color Group - Morpol - Sevan Drilling - Cultivos Marinos - Mosvold Supply - Sevan Marine - Det Norske Oljeselskap - Noreco - Ship Finance - Discover Offshore - Norse Energy - Skeie Drilling & Production - DNO International - Northland Resources - Sparebanken Nord-Norge - DOF - Norway Royal Salmon - Sparebanken Sogn & - DOF Installer - Ocean Rig - Sparebanken Vest - DOF Subsea - PA Resources - Standard Drilling - Equinox Offshore - Pacific Drilling - TTS Group - Fjord Line - Panoro Energy - Unison Forsikring - Floatel International - Petrosaudi - Vantage Drilling - Gjensidige - PGS - Wilh. Wilhelmsen - Global Tender Barges This overview is updated monthly (this overview is for the period ). Appendix C Disclosure requirements pursuant to the Norwegian Securities Trading ST Regulation 3-11 (4) Column I shows the overall ratio of Trading Buy, Buy, Hold, Sell and Trading Sell in Pareto s Recommendations in financial instruments. Column II shows the ratio of Trading Buy, Buy, Hold, Sell and Trading Sell in Pareto s Recommendations in financial instruments where Pareto Have provided investment banking services to the issuer the previous 12 months. Column I Column II Trading Buy 0.7% 0.0% Buy 65.2% 82.9% Hold 23.2% 17.1% Sell 10.9% 0.0% Trading Sell 0.0% 0.0% This overview is updated quarterly (last updated ). 22