Norwegian Energy Company ASA - A Report of Q3 2007

Transcription

1 Norwegian Energy Company ASA Presentation of Q November 2007

2 Important information The information included herein contains certain forward-looking statements that address activities, events or developments that Norwegian Energy Company ASA expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by Norwegian Energy Company ASA, which are beyond its control and are subject to certain additional risks and uncertainties. As a result of these factors, actual events may differ materially from those indicated in or implied by such forward-looking statements. 2

3 Agenda Highlights Noreco overview Operational review Financial review Outlook and summary 3

4 Highlights Operating revenues of 392 MNOK, EBITDA of 120 MNOK and a net result after finance and tax of -100 MNOK in Q3 07. Production of 10,350 boed realised at an average price of 72 $/boe Acquisition of Altinex ASA completed Rig contract for the semisubmersible drilling rig West Alpha secured Appraisal drilling programme on the Huntington discovery commenced Extensive application submitted in the APA 2007 licensing round Disposal of non-core assets provided a focused North Sea E&P portfolio Oslo Børs listing process 4

5 Agenda Highlights Noreco overview Operational review Financial review Outlook and summary 5

6 Noreco overview Noreco is an independent oil and gas company focusing on the North Sea Balanced asset portfolio 7 fields in production 14 discoveries 48 exploration licenses More than 60 oil and gas professionals in Stavanger (main office), Oslo and Copenhagen Photo: Johnny Syversen Listed on Oslo Børs under ticker NOR 6

7 Agenda Highlights Noreco overview Operational review Financial review Outlook and summary 7

8 Portfolio and reserves Noreco portfolio Total risked resources (mmboe) Risked exploration resources P reserves producing fields 2P reserves non-developed discoveries Contingent resources Reserves and resource estimates have been verified by Senergy and DeGolyer & MacNaughton Note: Noreco has an option to farm into 20% PL370 from Petro-Canada 8

9 Noreco value creation Exploration resources 2P reserves producing 2P reserves non-developed Contingent resources Appraisal drilling Development Subsurface/ commercial work Exploration drilling Work up drillable exploration prospects License rounds License access Prospects Discoveries Developments Production 9

10 Strong production base Noreco production Comparison with peers Q Oct 07 Production (boed net) Average price ($/boe) Production outside North Sea Production Q3 07 (boed net) Production Q3 07 (boed net) Brage Nini Siri South Arne Cecilie Enoch Lulita 0 Noreco Pertra Revus DNO / NOIL PA Resources Source: Company reports (Q3 2007) 10

11 Huntington appraisal programme ongoing Noreco 20%, Oilexco (40% operator), E.ON Ruhrgas AG (25%), Carrizo (15%) The Huntington consists of oil discoveries in Paleocene (Forties Fm), Upper Jurassic (Fulmar Fm) and Triassic Noreco resource estimates for Huntington (gross) Forties Fm : 85 mmboe Fulmar Fm : 80 mmboe Triassic : 75 mmboe The Paleocene appraisal program is extensive and will reduce uncertainty significantly Appraisal drilling of the Fulmar Fm is planned to commence shortly The operator is targeting a fast track development of the assets Huntington Appraisal (Forties Fm) Field Outline UK22/14-NW UK22/14b-05 UK22/14-NW UK22/14-NE UK22/14-NC2 Huntington Forties Fm Discovery Paleocene Sand Paleocene Shale OWC Paleocene Shale UK22/14-L5 Nelson All Forties appraisal sidetracks have been completed. Logging ongoing. Testing UK22/14-01 decision pending Howe Montrose Arbroath Huntington Everest 22/14b P /19b Marnoc 11

12 Extensive E&A drilling program Noreco Explo E share Appr A 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q P1114 Huntington 20,0 % A Oilexco Pl 274 Oselvar 15,0 % A Dong Rig secured PL148 Nemo 20,0 % A Lundin Operator with rig 6/95 Siri West 29,0 % E Dong Planned well PL348 17,5 % E StatoilHydro Operator PL271/302 30,0 % E StatoilHydro PL274 Ipswich 15,0 % E Dong 9/95 Gita/Maja 12,0 % E Maersk PL055 Brage Exp 20,0 % E StatoilHydro PL006C 2 wells 25,0 % A/E Lundin PL442 20,0 % E Statoil/Hydro PL408 30,0 % E Pertra PL385 20,0 % E Statoil/Hydro PL378 20,0 % E Revus PL382 20,0 % E BG PL412 40,0 % E Noreco PL316 35,0 % E Talisman PL347 17,5 % E StatoilHydro PL391 20,0 % E BG PL398 30,0 % E Lundin PL412 2nd well 40,0 % E Noreco PL400 30,0 % E Lundin PL ,0 % E Noreco PL414 20,0 % E Petra PL417 20,0 % E Revus PL435 20,0 % E RWE-Dea PL360 15,0 % E Statoil PL361 30,0 % E Talisman PL447 20,0 % E Petro-Canada Five appraisal wells and 25 exploration wells to drilling program has rig assigned to the wells. Wells in 2009/2010 has operators with rigs on contract Appraisal/exploration drilling program to 2010 exposes Noreco to more than 200 mmboe net risked resources West Alpha Seadrill 12

13 8th largest acreage holder on the NCS StatoilHydro Petoro Talisman BG Eni DNO/Petra ConocoPhillips Noreco Revus RWE Dea Shell ExxonMobil Total Lundin DONG NCS acreage (net 1000 km2) After 2 years of operation, Noreco ranks 8 th out of 70 companies on the NCS in terms of net held acreage Noreco submitted an extensive application in the NCS APA 2007 license round on 29 September NCS is under explored, and has vast resources to play for In addition, Noreco holds acreage in Denmark and UK Source : Selmer Reseach 13

14 Aggressive approach to growth and business development Acquisition of Altinex ASA completed 29 Aug Acquisition of shares in the market Mandatory offer 100% Squeeze out May June Jul Aug In parallel with the Altinex transaction, Noreco has been very active in the acquisition market Acquisition of a 15% interest PL274 (Oselvar) from Revus completed in September Acquisition of a 10% interest in PL256 from Dong completed in September Acquisition of a 35% interest in PL316CS from Talisman completed in September Acquisition of a 12% interest in PL440 S from Lundin signed 1 October Acquisition of a 12% interest in 9/95 and 9/06 from Chevron signed 8 November Disposal of non-core assets concluded ahead of plan Altinex Services AS agreement with IKM Testing AS signed 26 Oct 2007 Altinex Reservoir Technology AS agreement with IKM Laboratorium AS signed 31 Oct 2007 Oman assets agreement with Tethys Oil AB signed 8 Nov 2007 Relinquishment of German licenses October

15 Agenda Highlights Noreco overview Operational review Financial review Outlook and summary 15

16 Key financials Profit and loss statement Balance sheet 3Q 07 3Q Assets Operating revenues Total intangible assets Other fixed assets Total operating expenses Total fixed assets EBITDA (18 790) Total current asets Depreciation and amortization Total assets EBIT (14 614) (19 003) Equity and liabilities Net financials ( ) (900) Total equity Minority interest EBT ( ) (19 903) Total long-term liabilities Tax (73 878) (15 526) Total current liabilities Total liabilities Profit / (loss) for the period ( ) (4 378) All figures NOK 1000 Total equity and liabilities Net interest bearing debt as of 30 September 2007 is NOK 4.4 billion Private placement of 550 MNOK in new equity completed on 22 Oct 16

17 Agenda Highlights Noreco overview Operational review Financial review Outlook and summary 17

18 Strategy Grow through license rounds and acquisitions Progress Resources from Prospect to Production Optimize Production License award Leads Prospects Discoveries Developments Production 18

19 Key milestones / newsflow Listing on Oslo Børs / Oslo Axess - Appraisal results for Huntington - Drill 3 exploration and appraisal wells - Sale of non-core assets - Application / awards APA Drill 9 exploration and appraisal wells - Further appraisal results for Huntington - Submit plan for development of Huntington and Nini East - Appraisal wells - pending 2007 discoveries - Application / awards APA Application 20th round wells 19

20 Summary Noreco now has a focused North Sea E&P portfolio Strong market fundamentals and untapped potential in the North Sea Good production base generating strong cash flow Seven producing fields generated 10,350 boed at 72 $/boe in Q3 October runrate 11,400 boed at 82 $/boe Potential to double production from existing discoveries in portfolio by 2010 Extensive exploration and appraisal programme ongoing Aggressive approach to growth and business development continues Further consolidation expected in the industry - Noreco intends to take an active role On track to become a leading independent oil and gas company in the North Sea 20

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