Noreco A leading North Sea E&P company
September 2019
Noreco A leading North Sea E&P company September 2019 - - PowerPoint PPT Presentation
Noreco A leading North Sea E&P company September 2019 Disclaimer THIS PRESENTATION (THE INFORMATION MATERIAL) HAS BEEN PRODUCED AND PARTY SOURCES ARE SOLELY OPINIONS AND FORECASTS WHICH ARE SUBJECT DELIVERED BY NORWEGIAN ENERGY
September 2019
THIS PRESENTATION (THE “INFORMATION MATERIAL”) HAS BEEN PRODUCED AND DELIVERED BY NORWEGIAN ENERGY COMPANY ASA (THE “COMPANY”). THIS INFORMATION MATERIAL DOES NOT CONSTITUTE AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR SELL ANY SHARES IN THE COMPANY. THE COMPANY DOES NOT MAKE ANY UNDERTAKING, REPRESENTATION OR WARRANTY (EXPRESS OR IMPLIED) AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION (WHETHER WRITTEN OR ORAL AND WHETHER INCLUDED IN THIS INFORMATION MATERIAL OR ELSEWHERE) CONCERNING THE COMPANY OR OTHER MATTERS DESCRIBED HEREIN. NEITHER THE COMPANY NOR ANY OF ITS PARENT OR SUBSIDIARY UNDERTAKINGS OR ANY SUCH PERSON’S AFFILIATES, OFFICERS, EMPLOYEES OR ADVISERS ACCEPT ANY LIABILITY WHATSOEVER ARISING DIRECTLY OR INDIRECTLY FROM THE USE OF THIS INFORMATION MATERIAL OR OTHERWISE IN CONNECTION WITH THE MATTERS DESCRIBED HEREIN. THE DISTRIBUTION OF THIS INFORMATION MATERIAL IN CERTAIN JURISDICTIONS IS RESTRICTED BY LAW. THIS INFORMATION MATERIAL IS NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. THIS INFORMATION MATERIAL MAY CONTAIN CERTAIN FORWARD-LOOKING STATEMENTS RELATING TO THE BUSINESS, FINANCIAL PERFORMANCE AND RESULTS OF THE COMPANY AND/OR THE INDUSTRY IN WHICH IT OPERATES. FORWARD-LOOKING STATEMENTS CONCERN FUTURE CIRCUMSTANCES AND RESULTS AND OTHER STATEMENTS THAT ARE NOT HISTORICAL FACTS, SOMETIMES IDENTIFIED BY THE WORDS “BELIEVES”, EXPECTS”, “PREDICTS”, “INTENDS”, “PROJECTS”, “PLANS”, “ESTIMATES”, “AIMS”, “FORESEES”, “ANTICIPATES”, “TARGETS”, AND SIMILAR EXPRESSIONS. THE FORWARD- LOOKING STATEMENTS CONTAINED IN THIS INFORMATION MATERIAL, INCLUDING ASSUMPTIONS, OPINIONS AND VIEWS OF THE COMPANY OR CITED FROM THIRD PARTY SOURCES ARE SOLELY OPINIONS AND FORECASTS WHICH ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM ANY ANTICIPATED DEVELOPMENT. NEITHER THE COMPANY NOR ANY OF ITS SUBSIDIARY UNDERTAKINGS OR ANY SUCH PERSON’S AFFILIATES, OFFICERS OR EMPLOYEES PROVIDES ANY ASSURANCE THAT THE ASSUMPTIONS UNDERLYING SUCH FORWARD-LOOKING STATEMENTS ARE FREE FROM ERRORS, NOR DOES ANY OF THEM ACCEPT ANY RESPONSIBILITY FOR THE FUTURE ACCURACY OF THE OPINIONS EXPRESSED IN THIS INFORMATION MATERIAL OR THE ACTUAL OCCURRENCE OF THE FORECASTED DEVELOPMENTS. THE COMPANY ASSUME NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS OR TO CONFIRM THESE FORWARD-LOOKING STATEMENTS TO OUR ACTUAL RESULTS. BY ATTENDING OR RECEIVING THIS INFORMATION MATERIAL YOU ACKNOWLEDGE THAT YOU WILL BE RESPONSIBLE FOR YOUR OWN ASSESSMENT OF THE MARKET AND THE MARKET POSITION OF THE COMPANY AND THAT YOU WILL CONDUCT YOUR OWN ANALYSIS AND BE SOLELY RESPONSIBLE FOR FORMING YOUR OWN VIEW OF THE POTENTIAL FUTURE PERFORMANCE OF THE COMPANY’S BUSINESS AND A POTENTIAL INVESTMENT IN THE COMPANY. THE CONTENTS OF THIS INFORMATION MATERIAL ARE NOT TO BE CONSTRUED AS FINANCIAL, LEGAL, BUSINESS, INVESTMENT, TAX OR OTHER PROFESSIONAL
NEITHER THE DELIVERY OF THIS INFORMATION MATERIAL NOR ANY FURTHER DISCUSSIONS OF THE COMPANY WITH ANY OF THE RECIPIENTS SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE SUCH DATE. THIS INFORMATION MATERIAL IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS INFORMATION MATERIAL IS SUBJECT TO THE EXCLUSIVE JURISDICTION OF NORWEGIAN COURTS WITH OSLO DISTRICT COURT AS EXCLUSIVE LEGAL VENUE.
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AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS INVESTOR PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY’S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS.SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS INVESTOR PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS INVESTOR PRESENTATION.
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Undergrunds Consortium1 (DUC), the licence holder of the Sole Concession Area in Denmark
through 2020 by liquids production guarantee and price hedging
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H1 2019 average production
kboepd Contingent resources
million boe 2P reserves
million boe
1 DUC is the owner of the Danish North Sea’s key infrastructure points. The bulk of Denmark’s produced hydrocarbons are landed via the Gorm and
Tyra hubs. Four pipelines secure exports from the hubs to the Danish mainland and the international market. All fields are operated by Total, the French supermajor. 2 Subsequent offering 3 Pro-forma 2018. Interest bearing debt does not include the convertible bond
Liquidity at closing + SO2
USD million 2018 NIBD / EBITDA3
DUC discoveries DUC Non-DUC Outside DCS
perspectives
experience
Denmark
fields, in discoveries and in the greater Sole Concession Area
5 20.0% 43.2%
(op.)
36.8%
1
1 Owned by the Danish state
10 20 30 40 50 60 2020 2021 2022 2023 2024
1 Noreco is protected by a liquid volume guarantee to 31 Dec 2020. 22 Oct 2018 Noreco and Shell Trading and Supply entered into a fixed price
arrangement at market terms for 80% of the guaranteed liquid volume guarantee until 30 Sep 2020. 1 Aug 2019 Noreco entered into fixed price arrangements for the remaining guaranteed volumes at market terms 2 Estimated OPEX per boe following redevelopment and normalised production
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Illustrative net daily production rate, ‘000 boepd
Identified opportunities for additional production currently being evaluated 2P gas production
Tyra back
Reduced production due to Tyra redevelopment
2P gas and liquid production
Company estimate
OPEX estimate
USD 13
per boe2 Protected volumes1 Oil price hedging in place1
1 Tyra redevelopment project enables continued production from the field and improves infrastructure for increased production in the area. Operator
expects production will peak at around 60,000 boepd gross. Expected to enable the additional production of more than 200 mmboe (gross). Potential to unlock other adjacent fields and prospects, including Adda, Alma, Boje and Freja
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Project scope
Replacing two existing accommodation and one processing platform by one single accommodation platform and one processing platform. The jackets of the wellhead and riser platforms will be raised and topsides replaces. No new wells are planned as part of the redevelopment
DKK
CAPEX DKK
ABEX
Scheduled completion
Infrastructure redevelopment will provide strong foundation for future reserves growth1
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Hydrocarbons initially in place1 (HCIIP)
bn boe
bn boe
bn boe HCIIP in Sole Concession area Historic production and current remaining 2P Remaining HCIIP over and above 2P
bn boe Noreco’s share = 36.8 %
1 Company estimate
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Noreco’s share of remaining HCIIP1 above 2P
2
bn boe
Enhanced
Discoveries with plan Discoveries without plan Resources lacking technology Movable resources Non- movable resources Current
2P
million boe
million boe3
Company estimate
Non-commercial
1 Hydrocarbons initially in place 2 Company estimate 3 Company’s current assessment of additional recoverable reserves in producing fields (3P) and contingent resources (2C) in discoveries with plan.
Noreco is currently analysing all available G&G data in a comprehensive effort to redetermine accessible resources. All volumes are net to Noreco
“Noreco aims to deliver annual 2P growth”
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STOIIP4 Produced (implied recovery) Ultimate recovery with current 2P estimate Operator’s stated ultimate recovery rate ambition
2
bn boe
2
bn boe (26%)
2
%
3
%
5
bn boe
6
bn boe (20%)
5)6)7)
%
%
Chalk reservoir potential – field case study
1 The Valhall Area, operated by Aker BP, is located on the Norwegian continental shelf, across the border from DUC’s Halfdan field on the Danish
shelf and in similar geological formations. 2 Norwegian Petroleum Directorate (NPD) 3 Aker BP (target recovery rate for hydrocarbons)
4 Stock-tank oil initially in place 5 Quartz+Co 2013 report 6 Danish Energy Agency (DEA) 7 Senergy (Lloyd’s Register) per YE 2018
Sole Concession Area comprises 1,636 square kilometres which is only partially explored
Undiscovered prospective resources
1 bn boe
Hydrocarbons initially in place
bn boe
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Noreco is currently undertaking its
additional prospectivity in the region
1 Company estimate
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Know your assets Know the position
assets
Maximise value with minimal risk Asymmetric risk positions exist
Tyra East platform in the Danish North Sea