North Sea Exploration & Undeveloped Discoveries

Transcription

1 1 North Sea Exploration & Undeveloped Discoveries WF9917 Lundin Petroleum Analyst Presentation Oslo, 11 December 2007

2 2 Disclaimer DISCLAIMER Certain statements made in this presentation involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. Certain statements relating to Lundin Petroleum s business and operations are based on management s expectations, estimates and projections. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Certain statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements. Lundin Petroleum makes no commitment, and disclaims any duty, to update or revise any of these statements. This presentation is for informational purposes only and is not intended as a solicitation or offering of securities in any jurisdiction. The information contained in this presentation is not intended to qualify, supplement or amend information disclosed under corporate and securities legislation of any jurisdiction applicable to Lundin Petroleum and should not be relied upon for the purpose of making investment decisions concerning any securities of Lundin Petroleum. WF9917 North Sea Exploration & Undeveloped Discoveries Oslo, 11 December 2007

3 3 Disclaimer Agenda Introduction Drilling Programme Luno and Scolty Discoveries Norway Exploration United Kingdom Exploration North Sea Contingent Resources Conclusion WF9917 North Sea Exploration & Undeveloped Discoveries Oslo, 11 December 2007

4 4 Introduction WF9917 North Sea Exploration & Undeveloped Discoveries Oslo, 11 December 2007

5 5 Lundin Petroleum - Value Creation through Exploration Four Core Areas: Europe, Africa, Russia, Far East United Kingdom 5 production licences, 20 exploration licences Norway 1 production licence, 2 development licences, 22 exploration licences Russia 4 producing licences, 1 exploration licence Ireland 4 exploration licences France 14 production licences, 2 exploration licences Congo Brazzaville 1 exploration licence Core Area Reserves* Production** Europe MMboe 21,100 boepd Africa 3.8 MMboe 7,400 boepd Russia 30.3 MMboe 4,900 boepd Far East 17.6 MMboe 2,700 boepd Total MMboe 36,100 boepd Netherlands 18 production licences, 1 exploration licence Tunisia 1 production licence, 2 development licences Ethiopia 3 exploration licences Sudan 1 exploration licence Kenya 1 exploration licence Cambodia 1 exploration licence Vietnam 1 exploration licence Indonesia 3 production licences, 2 exploration licences 2 study option licences * Certified reserves as at ** Actual production for first nine months 2007 WF

6 Strategy 6 Increase reserves and production proactive exploration strategy organic growth of exploration acreage redistribution of cash flow into high potential areas Transfer contingent resources to reserves near field development of fallow discoveries redevelopment of late life fields EXPLORATION DEVELOPMENT PRODUCTION 5.2 Bn boe Prospective resources 197 MMboe Contingent resources MMboe 2P Reserves WF

7 Strong Financial Flexibility 7 Operating Cash Flow Capital Expenditure Development Exploration Net Debt/Equity Ratio First Nine Months 2007 $ 325 MM $ 228 MM $ 133 MM 16% Net Bank Debt at end Sep 2007 $ 241 MM US$ 1 billion of new financing facilities arranged in October 2007 underwritten by BNP Paribas, Royal Bank of Scotland and Bank of Scotland WF

8 8 Exploration Growth in the North Sea Significant exploration portfolio in the North Sea 40 Prospects and 34 Leads identified Prospective Resources of 1.1 bn boe Leads Resources of 1.46 bn boe Secured rigs for continuous drilling over next 2-3 years Projected Net Risked Actual as per Nov Lundin's Creaming Curve for Prospective Resources (risked) in Norway/UK 250 Risked mmboe Orange Lytham/Haupt Birch/Kopervick Luno Scolty Banchory Ridgewood Torphins Delgany Lemond Lavvo Alvheim Deep Mon Aegis Helena D Buhund Hugin S Armstrong Merckx Skalle Blizzard Verdandi (Oil) A Monster (Ibsen) Kielland Hugin W Ty N S Kneler Marihone A Hugin Central Hugin N Marihone B Phi North E Kneler WF

9 Exploration Growth in the North Sea 9 Significant exploration portfolio in the North Sea Most successful company in terms of licence awards in the UK 24th Round and Norway s APA2006 round Pro-active farm-in strategy to build up acreage in core areas Added 31 licences to the North Sea portfolio since 2004 Achieved a ground floor entry in the majority of the licences 16 Lundin's Licence Additions in the North Sea (Norway/UK) Acquired/Farm-ins Licence Awards 14 No of Licences added WF

10 Norwegian & UK Continental Shelf Licences 10 Major acreage position in UK and Norwegian North Sea with 50 licences North Sea Operated Positions 1,000 Net remaining reserves (mmboe) Operated Non-Operated Source: Wood Mackenzie Pathfinder Includes probable developments and technical reserves * 2P + contingent resources 0 WF Talisman Nexen Can Nat Maersk Venture Apache BG Centrica LUNDIN PETROLEUM* RWE Dea Tullow Hess Petro-Canada Oilexco Perenco Nautical Pet ATP Antrim Engy BHP Billiton DONG E.ON Ruhrgas Dana Lundin Petroleum operated assets Lundin Petroleum non-operated assets

11 Norway North Sea Summary Organisation 11 Total of 25 licences of which 14 are operated Solid reserves base with significant resource base Lundin Petroleum 47.2 mmboe of reserves, 44 mmboe of contingent resources and 611 mmboe of unrisked prospective Lundin Petroleum resources UK Norway NS exploration and drilling team Strong production growth profile Alvheim development due G&G onstream and Reservoir 2Q-07 with expected Drilling net and production Completion of 14,100 boepd by year end Volund field due onstream 2Q-09team team UK Norway Good near field development Exploration opportunities Manager: Drilling Manager: Drilling Manager: Alan Curran Alvheim deep has gross prospective H.C. Rønnevik. resources of Simon 950 bcf Richards J.Bysveen. Torstein Sanness Kneler South has significant oil potential - 25 years industry Nemo experience - Team of 14 and Phi North due to be drilled 3/4Q-07 - Team of 5+ - Team of years industry experience in UKCS employees; employees; employees; South East Tor appraisal well due to be spudded 1Q years experience in NCS years - Established Oryx Orange Energy prospect, as - 13 Consultants years with gross prospective resources of 44 mmboe, due to be drilled May/June-07 - Part of Saga s founding team experience major UK operator experience - Reactivated DNO on - Growth of Kerr High McGee s impact CNS exploration potential NCS in 2000 business and sale PL 338 to Maersk Luno exploration well, with gross potential prospective resources of 250 mmboe, - Established due to be Lundin spudded Norway April-07 - Managing Director PL 304 Lundin Aegis/Buhund UK prospects in 2003 PL 438 Lavvo and Skalle prospects Signficant potential in structures in PL 400,409,412 WF

12 Drilling Schedule Licence Prospect/ Discovery Equity Unrisked Gross mmboe Rig Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q P1301 Ridgewood 30% 41 Galaxy II PL292 Pi North 40% 9 Maersk Guardian PL148 Nemo 50% 20.6 Maersk Giant PL338 Luno 50% Bredford Dolphin PL338 Luno 50% P1107 Torphins 40% 28 GSF Arctic II PL340 Marihone A/B 15% 39 Bredford Dolphin PL304 Aegis 60% 104 Identified PL006c SE Tor 75% 22.5 Maersk Gallant PL363 Mon 60% 123 PL412 Hugin South 30% 86 West Alpha PL409 D 100% 94 PL359 Lemond 70% 198 PL400 Blizzard 50% 59 Jack-up P1399 Delgany 15% 74 P1410 A 60% 143 P090/PL088 Peik 41% 27.4 Songa Dee PL203 Alvheim Deep 15% 158 Songa Dee PL203 South Kneler 15% 32 Songa Dee Songa Dee Rig secured for 1.5 years from end Q to end 2011 PL150 Ibsen 35% 47 Songa Dee PL438 Lavvo/Skalle 35% 159 Songa Dee WF Exploration Well Appraisal Well

13 Norway Rig 2008Summary 13 Total of 25 licences of which 14 are operated Solid reserves base with significant resource base 47.2 mmboe of reserves, 44 mmboe of contingent resources and 611 mmboe of unrisked prospective resources Strong production growth profile Alvheim development due onstream 2Q-07 with expected net production of 14,100 boepd by year end Volund field due onstream 2Q-09 Good near field development opportunities Bredford Dolphin Alvheim deep has gross GSF prospective Arctic IIresources of 950 bcfmaersk Gallant Maersk Giant Kneler South has significant oil potential 3rd Generation Nemo and Semi Phi North due 3rd to be Generation drilled 3/4Q-07 Semi Jack-up Jack-up Water depth: South 1,500ft East Tor appraisal Water well due depth: to be 1,200ft spudded 1Q-08 Water depth: 121m Water depth: 107m Drilling depth: Orange 20,000ft prospect, with gross Drilling prospective depth: 25,000ft resources of 44 mmboe, Drilling due depth: to be 10,000m drilled May/June-07 Drilling depth: 10,000m BOP max: 10,000 psi BOP max: 5,000 psi BOP max: 12,000 psi BOP max: 12,000 psi To drill High appraisal impact well exploration potential 385,000 well 1 (Sep07) Contracted for 100 days, Contracted for 1 well on Luno PL discovery 338 Luno exploration 425,000 well, with well gross 2 (Mar08) potential prospective 1 well resources + 1 side-track of 250 mmboe, due (approx to be spudded 60 days) April-07 USD 374,000 PL 304 per Aegis/Buhund day prospects PL 438 Lavvo and Skalle prospects Signficant potential in structures in PL 400,409,412 USD 325,000 per day USD 255,000 per day WF

14 Norway Rig 2008/2009 Summary 14 Total of 25 licences of which 14 are operated Solid reserves base with significant resource base 47.2 mmboe? of reserves, 44 mmboe of contingent resources and 611 mmboe of unrisked prospective? resources Strong production growth profile Alvheim development due onstream 2Q-07 with expected net production of 14,100 boepd by year end Volund field due onstream 2Q-09 Good near field development opportunities PL 304Alvheim deep has gross prospective resources Songa of Dee 950 bcf Additional rig - from 2009 Kneler South has significant oil potential SemiNemo and Phi North due to be drilled 3/4Q-07 3rd Generation Semi Semi Under South Negotiation East Tor appraisal well due to be spudded Water depth: 1Q-08 1,600ft Under Negotiation Orange prospect, with gross prospective Drilling resources depth: of 44 mmboe, 30,000ftdue to be drilled May/June-07 BOP max: 15,000 psi High impact exploration potential Winterized PL 338 Luno exploration well, with gross 2+1 potential year contract prospective fromresources of 250 mmboe, due to be spudded April-07 PL 304 Aegis/Buhund prospects Q1 09 at USD 425,000/day PL 438 Lavvo and Skalle prospects Signficant potential in structures in PL 400,409,412 WF

15 Norway Maturation Summary of Assets in North Sea 15 Business Opportunities Total of 25 licences of which 14 are operated Portfolio Management Solid reserves base with significant resource base 47.2 New mmboe Ventures of reserves, 44 mmboe of contingent resources and 611 mmboe of unrisked prospective resources Opportunities lost Strong production growth profile Alvheim development due onstream 2Q-07 with expected net production of 14,100 boepd by year end Producing fields: Volund A: field due onstream 2Q-09 B: C: Maturation Good near field development opportunities Viable Com discoveries: Solan, P090, P1125, Alvheim deep has gross prospective resources of 950 bcf Execution business P1275, P1283, P1397, Peik, PL006c, PL148, PL292, Jotun Unit Kneler Stranded South has assets: significant oil potential P1406, P1410, P1421, PL304,PL335, PL338,PL340, Alvheim Nemo and Phi North due to be drilled P1463, 3/4Q-07 P1471, P1487, PL359, PL363, PL409, PL412, Volund South Farmin: East Tor appraisal well due PL103b,PL167,PL398s, to be spudded 1Q-08 P1301, P1399, P1089&1295, Heather Orange prospect, with gross prospective PL400,PL410,PL413 resources of 44 mmboe, P1107&1109 due to be drilled May/June-07 Broom PL438,PL440s APA 2007 Thistle High impact New licences exploration applied potential for P1129 PL 338 Luno exploration well, with P1206, gross P1384, potential P1176 prospective resources of 250 mmboe, due to be spudded April-07 PL 304 Aegis/Buhund prospects PL 438 Lavvo and Skalle prospects Opportunities dropped Signficant potential in structures in PL 400,409,412 TIME WF