northern oil asa pareto offshore seminar september 5, 2001 john m dahlen, ceo
TRANSCRIPT
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Northern Oil ASA
Pareto Offshore Seminar
September 5, 2001
John M Dahlen, CEO
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Northern Oil ASA
Disclaimer
The documentation herein contains forward-looking statements, including beliefs and expectations. These statements are based on current plans, estimates and projections, as well as expectations about external conditions and events. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. We caution you that a number of important factors could cause actual results or outcomes which differ materially from those expressed in any of these forward-looking statements.
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Northern Oil ASA
Main holdings• Naftex Energy Corporation
NOI holding: 79,400,000 shares - 84.2%Listed at TSE (tier 3) – CDNXTrading symbol: YNF
• Petrolex Energy Corporation
NOI holding: 42,687,098 shares - 62,9% Listed at TSETrading symbol: PXV
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Northern Oil ASA
Main business activities• Naftex Energy Corporation
* Block BS-3 - Santos Basin Offshore Brazil (Fields: Coral, Estrela-do-Mar, Caravela Sul)
* WEEM-license - Eastern Desert Egypt
• Petrolex Energy Corporation
* Rubiales Oilfield Colombia
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Northern Oil ASANaftex Energy Corporation
Brazil
Block BS-3
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Northern Oil ASANaftex Energy Corporation
Santos Basin Brazil
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Northern Oil ASANaftex Energy Corporation
Block BS-3
Brazil
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Northern Oil ASANaftex Energy Corporation
Offshore Brazil - BS-3 (Santos Basin)• Exploration Well: Caravela Sul
Target: doubling reserves or more
Reservoirs: Zones: B1 B2 B3 B4
Investments: USD 18 –22 millCompletion: September 2001Rig: Nymphea (Pride)Share: 27.5% (incl carry of Petrobras: 42.3%)
Further work: evaluation, 3D seismic, appraisal drilling (??)
Partners: Petrobras(35% Operator), Queiroz Galvao(30%), Starfish(7,5%)
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Northern Oil ASANaftex Energy Corporation
Offshore Brazil - BS-3 (Santos Basin)• Development: Coral field
Production wells: 2 (3) wellsSub-sea Completion: Horizontal X-mas trees
Flexible Production LinesProduction unit: Semi-sub Atlantic Zephyr
Capacity 20,000 bpdOffshore Loading: Storage TankerProduction start: April 2002
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Northern Oil ASANaftex Energy Corporation
Offshore Brazil - BS-3 (Santos Basin)Development: Coral Estrela do Mar Investments:
USD 50 mill USD 25 millReserves: 19 (25) mill bbls 8 (10) mill bblsProd. start up: April 2002 4Q 2002
Share: 27.5%Petrobras prefinancing: (share of investments 38.4%)
Total reserves: 27 (35) mill bblsProducing Zones B1: 9mill, B2: 18mill, B3
Partners: Petrobras(35% Operator), Queiroz Galvao(30%), Starfish(7,5%)
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Northern Oil ASANaftex Energy Corporation
Egypt
WEEM license
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Northern Oil ASANaftex Energy Corporation
Eastern Desert Egypt
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Northern Oil ASANaftex Energy Corporation
• Egypt - WEEM
Production 1,000 bbls/day
Reserves Proven 1.2 mill bblsPossible +/-10 mill bbls
Revenue share EGPC approx. 50%
Share 50%
Operator: Cabre/Bitech (50%)
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Northern Oil ASANaftex Energy Corporation
• Egypt - WEEM
Contemplate to dispose of the asset
Disputes with partner (Cabre/Vanguard)Farm-inOperatorship
Bitech has acquired Vanguard
Lukoil acquires Bitech
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Northern Oil ASA Petrolex Energy Corporation
Colombia
Rubiales Field
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Northern Oil ASA Petrolex Energy Corporation
Colombia
Rubiales
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Northern Oil ASAPetrolex Energy Corporation
Rubiales – Colombia: Reserves and ProductionProduction Start up: September 25, 2000
6 wells : 1,500 - 1,800 bopd. Potential one year: 5-10,000 bopd
Reserves (SEC definitions)Proven undeveloped: 12 mill barrelsProbable undeveloped 160 mill barrels
Recoverable (not SEC): 210 mill barrels
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Northern Oil ASAPetrolex Energy Corporation
Rubiales – Colombia: Operations6 wells: down hole mechanical pumpsProcessing: heating and separationStorage: in-field tanks 10,000 barrelsTransport: trucking to Bogotá-area Sales: to local industry as fuel oil
as feed-stock for refineries
Share: 80%Operator: Tethys/ITS (20%)
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Northern Oil ASAPetrolex Energy Corporation
Rubiales – Colombia: Development 2001/2002
Completed drilling program:
Vertical well: 400-500 bopd
Horizontal well: stuck production liner
Facilities upgrades
Upcoming dry season development under consideration:
Wells: Re-entry, new horizontal vs. vertical
Facilities: Process, Storage, Loading
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Northern Oil ASAPetrolex Energy Corporation
Rubiales – Colombia: Planning• Reservoir Management
• Well optimization: Horizontal vs. Vertical
• Development plans incl. alternative full field developments
Transport alternatives (pipeline vs. trucking)
Corporation with partners
Security issues
• Financing alternatives
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Northern Oil ASA
Ownership
Board
Management
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Northern Oil ASA
Major Sharholders• Osprey Maritime 42.73%
• Aksjefondet Gambak 4.21%
• Odin Norden 3.73%
• Storebrand Livsforsikring 2.40%
• Union Bank of Norway 2,04%
90,250,000 shares outstanding 2,750 shareholders
As per September 1, 2001
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Northern Oil ASA
Board of Director• Erling Lind, Chairman
• Tor Olav Trøim
• Ole Melberg
• Jon-Aksel Torgersen
• Yngvar B Heide
• Pierre Godec, Special Advisor to the Board
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Northern Oil ASA
Management• John M Dahlen, President &CEO
• Geir Walderhaug, Finance and Control
• Hans Morten Strømmevold, Operations and Development
• Strong local representation
Rio, Bogota, Cairo
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Northern Oil ASA
Conclusions
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Northern Oil ASA
• Brazil– New discovery – major upside potential
– Coral and Estrela-do-Mar developments:
Dev. cost $3 (2)/bbl, Opex $7 (5)/bbl
• Colombia– Substantial potential– Substantial risks
• Egypt– Insignificant – contemplated disposed of
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Northern Oil ASA