DNO International Corporate Presentation. September 2012

Transcription

1 DNO International Corporate Presentation September 2012

2 DNO International 1 Three licenses in Kurdistan: Tawke (operator) Erbil (operator) Dohuk (operator) Reserves: 530 million boe P50 CWI 2 Five licenses in Yemen and one additional under negotiation: Block 53 Block 72 Block 32 (operator) Block 43 (operator) Block 47 (operator) Block 48 (under negotiation/operator) 3 Four licenses in Oman: Block 8 offshore (operator) Block 30 onshore (operator) Block 31 onshore (operator) Block 47 onshore (operator) 4 Three licenses in UAE (Ras Al Khaimah): RAK B offshore (operator) RAK Saleh offshore (operator) RAK onshore (operator) 5 Two licenses in Tunisia: Fkirine onshore (operator) Hammamet offshore 1 Oslo Head quarter 2 London office 3 Regional Middle East hub and COO s office in Dubai 4 Iraq head office in Erbil, Kurdistan 5 Oman head office in Muscat 6 UAE head office in Ras Al Khaimah 7 Yemen head office in Sana a 8 Tunisia head office in Tunis Production: 40,000 Bopd CWI in 2011 Licenses: 17 Operatorships: 14 Lifting cost: 5 USD/bbl in 2011 (Average all operations)

3 DNO is following an ambitious strategy for growth in the MENA region P50 Oil and gas operations in the Middle East and North Africa: Kurdistan reserves: mmboe Gross production capacity: 75,000 bopd Tunisia Kurdistan (Iraq) Licenses: Tawke (55%) Dohuk (40%) Erbil (40%) Oman P50 reserves: 27.0 mmboe Gross production capacity: 14,000 boepd United Arab Emirates Licenses: Block 8 (50%) Block 30 (100%) Block 31 (100%) Block 47 (50%) Yemen Oman The MENA region has 57% of the world s proven oil reserves and 41% of proven natural gas reserves. Increasing production capacity by 30% in 2013 DNO is today operating oil fields in the region with gross capacity around 100,000 boepd Ongoing investments in Kurdistan, Yemen and Oman will increase capacity to around 130,000 boepd in 12 months Gross production capacity of 200, ,000 boepd based on present MENA portfolio is achievable by end 2014 Yemen P50 reserves: Gross production capacity: Licenses: 10.5 mmboe 12,000 boepd Block 32 (39%) Block 43 (57%) Block 47 (40%) Block 53 (24%) Block 72 (18%) Block 48 (100%)* UAE (Ras Al Khaimah) P50 reserves: Licenses: Tunisia LIcenses 22.8 mmboe RAK B (70%) RAK Saleh (70%) RAK Onshore (100%) Hammamet (30%) Fkirine (50%) P50 reserves as reported per 31 March *)Negotiating PSC

4 Unlocking reserves and resources through aggressive drilling in 2012 and 2013 Oil and gas operations in the Middle East and North Africa: Kurdistan P50 reserves: Gross production capacity: mmboe 75,000 bopd Licenses: Tawke (55%) Dohuk (40%) Erbil (40%) Oman P50 reserves: Gross production capacity: Licenses: 27.0 mmboe 14,000 boepd Block 8 (50%) Block 30 (100%) Block 31 (100%) Block 47 (50%) Yemen For illustration only P50 reserves: Gross production capacity: Licenses: 10.5 mmboe 12,000 boepd Block 32 (39%) Block 43 (57%) Block 47 (40%) Block 53 (24%) Block 72 (18%) Block 48 (100%)* Around 25 wells on the drilling program for remaining 2012 and 2013 Exploration and appraisal wells targeting potential recoverable gross oil and gas volumes of mmboe (unrisked) Around 2/3 of the volume potential in Kurdistan licenses UAE (Ras Al Khaimah) P50 reserves: Licenses: Tunisia 22.8 mmboe RAK B (70%) RAK Saleh (70%) RAK Onshore (100%) LIcenses Hammamet (30%) Fkirine (50%) P50 reserves as reported per 31 March *)Negotiating PSC

5 Substantial activity ahead in Kurdistan Tawke 2 Dohuk 3 Erbil 3 Plans to increase capacity to 100,000 bopd in 2012 and 200,000 bopd by 2014 (gross) Extensive drilling plan Further appraisal through Tawke Deep well 3D seismic completed on Summail discovery Gas development considerations ongoing Heavy oil study initiated First stage of the Benenan/Bastora development commenced through Benenan-3 drilling 3D seismic on Peskhabir discovery 5

6 Appraisal and development projects in other areas Yemen Oman UAE Continue infill drilling as rigs become available Development of the Yaalen field with production in Block 47 in Q Commence appraisal drilling of the Gabdain discovery in Block 72 Complete three well drilling program on Bukha/West Bukha fields Pursue development of gas discoveries in Block 30 Initiate re-development of Saleh gas condensate field Evaluate commercial viability of RAK B field 6

7 Increasing reserves and production 600 2P Reserves 40,000 WI Production 35, , , , ,000 10,000 MMboe Q Boepd 5, Q Value addition through: 53% CAGR in 2P reserves since 2009 Doubling of production since

8 Competitive cost structure Low Finding & Development Costs Low Lifting Costs USD/Boe Q USD/Boe Q Low cost structure provides strong operational margins 3-year average finding & development cost of USD 1.20 per boe Average YTD 2012 lifting cost of USD 7.25 per boe YTD 2012 lifting costs in Kurdistan of USD 3.20 per bbl 8

9 Kurdistan a world-class resource base Material discoveries of both oil and gas Momentum building through increasing production capacity and infrastructure development Consolidation continues through string of large scale M&A deals over last twelve months Entry of majors highlights the industry s continued interest in the region 9

10 DNO has the most advanced oil operations in Kurdistan today Pioneer Was first IOC to commence exploration in Kurdistan Connected The only IOC connected to the international market by pipeline infrastructure Growth Is fully committed to continuous future growth in Kurdistan The giant oil field Tawke was discovered in 2006 and commenced production in June 2007 The Tawke export infrastructure was connected with the Iraq-Turkey pipeline system early 2009 to deliver crude oil to the international market Significant storage and export pumping facilities at Fishkabour tie-in point with a capacity of 300,000 bopd 10

11 DNO s reserves and resources in Kurdistan have steadily increased Development in DNO s 2P reserves in Kurdistan from the Tawke discovery in 2006 to the last revision in March Built on high quality assets, still with strong upside potential 97% of present Kurdistan reserves from the Tawke field Several exploration and appraisal wells at Tawke will be drilled over the next months to unlock additional potential at the field. Main focus are Tawke Deep and Tawke North Ongoing activities can potentially unlock large additional reserves in the Erbil and Dohuk licenses The Tawke oil is of good quality Million barrels of oil on 2P/P50 company working interest basis 11

12 Tawke: Extensive short term drilling plan Currently drilling: Tawke-18 side track to Footwall prospect ongoing Tawke-17 (Tawke Deep) Tawke-19 Tawke-14 Tawke-13 Tawke-17 Next well: Tawke-14 side track Tawke-19 Tawke-18 Tawke-16 Green: Old P50 model Red: Reservoir volume indicated on reprocessed seismic and interference testing 12

13 Tawke-18 A combined producer and exploration well Tawke N-Fault is the major thrust fault with approx 800m displacement in this section of the structure Tawke-18 has a primary objective of increasing Cretaceous production capacity in the Tawke Field By extending T-18 below the Tawke main thrust fault and into the footwall fault block, the well will penetrate an untested section of the Cretaceous within the Tawke Field Producing Cretaceous Top Cretaceous Prospective Cretaceous 13

14 Tawke-17 (Tawke Deep) Production capacity well in discovered Cretaceous fault-block Exploration test in Jurassic and Triassic 14

15 Peshkabir-1 discovery well Confirmed movable oil in Jurassic. Further testing planned in 2012 Discovery notice submitted to KRG 200 sq km 3D seismic survey initiated as part of a comprehensive appraisal program 15

16 Summail-1 discovery well 3D seismic completed Declaration of Commerciality in progress Gas development considerations ongoing Heavy oil study initiated 16

17 Developing the Benenan/Bastora oil discoveries Benenan/Bastora development initiated by spudding the Benenan-3 horizontal well Designed to further appraise the Benenan discovery and contribute to additional production First stage contemplates drilling of two new horizontal wells and one side track from Hawler-1 17

18 Renewed focus on Yemen Block 53 DNO holds 24.45% (32.60% paying) Operated by Dove Gross production around 5,600 bopd Block 32 DNO holds 38.95% (41.00% paying) Operated by DNO Gross production around 2,900 bopd Block 72 DNO holds 18.00% (20.00% paying) Operated by Total One commitment well in 2013 Block 43 DNO holds 56.67% (66.67% paying) Operated by DNO Gross production around 1,700 bopd Block 47 DNO holds 40.00% (50.00% paying) Operated by DNO 7.4 million barrels in gross reserves Gross production capacity from Q expected at 5,000 bopd, increasing to 10,000 bopd by Q Block 48 Under negotiation (3D and one commitment well) DNO will hold 87.50% (100.00% paying) Operated by DNO 3,840 km2 18

19 Restoring and increasing production from West Bukha WB-5, the first of a three well drilling campaign, completed 4.3 km pipeline replaced Production resumed early September Accelerated recovery of deferred production 19

20 Block 31 Oman onshore Al Jariya high impact prospect AL JARIYA Prospect Line NV BLOCK 31 Top Carbonates Regional Time Map Very interesting HPHT prospect with significant volume potential Will be matured for possible drilling in

21 Solid financial performance Growth in revenue and operating profit Revenues Netback Operating Profit Increasing cash and balance sheet strength 2,000 1,600 1,200 1,385 Cash Balances 1,645 1,638 Operational cash flow covering investments 1,400 1,200 1, Capex & Exploration 1, LTM Q Q Plan 2012 Figures in NOK million 21

22 Outlook Targeting continued production increases Building additional production capacity through facility upgrades and new wells Significant reserves upside from high impact exploration and appraisal drilling Growing the organization and preparing for increased activity in all disciplines Continue to develop DNO into a significantly larger E&P player in the MENA region A recruitment campaign was launched in July in Norwegian and Middle East newspapers. 22

23 IMPORTANT NOTICE The information contained in this results presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The information set out herein may be subject to updating, revision, verification and amendment and such information may change materially. DNO International ASA is under no obligation to update or keep current the information contained in this presentation and any opinions expressed herein are subject to change without notice. None of DNO International ASA or any of its respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this presentation or its contents, or otherwise arising in connection with this presentation. This results presentation and the information contained herein are not an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States (within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the Securities Act )). There will be no public offering of securities in the United States. This document does not constitute a prospectus for the purposes of the Directive 2003/71/EC (the Prospectus Directive ). Any investment decision regarding any securities issued by DNO International ASA should only be made on the basis a prospectus prepared and published in accordance with the requirements of the Prospectus Directive and any applicable national laws. This presentation is not an offer to sell, or an invitation to buy, or the solicitation of an offer to buy securities issued by DNO International ASA. This presentation includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms anticipates, estimates, expects, aims, continues, intends, may, plans, considers or will, or, in each case, their negative, and comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places and include, but are not limited to, statements regarding DNO International ASA s intentions, beliefs or current expectations concerning, amongst other things, results of operations, financial position, prospects, growth, strategies and expectations of the hydrocarbons industry. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this presentation reflect DNO International ASA s current view with respect to future events and are subject to risks relating to future events and uncertainties and assumptions relating to DNO International ASA and its group s financial position, prospects, results of operations, growth, strategy and expectations of the hydrocarbons industry. Any forward-looking statement speaks only as of the date on which it is made. Forward-looking statements are not guarantees of future performance, and the actual results, performance, achievements or industry results of DNO International ASA and its group s results of operations, financial position and the development of the hydrocarbons industry. Even if the results of operations, financial position and the development of the markets and the industry in which DNO International ASA and its group operate are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. 23