Panoro Energy ASA · OSL:PEN

Panoro Energy ASA — Q1 2013 Earnings Presentation

21 slides from Panoro Energy ASA's earnings presentation, May 15, 2013

  1. Slide 1: First quarter 2013 financials

    First quarter 2013 financials May 15, 2013

  2. Slide 2: Disclaimer

    Disclaimer This presentation does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA (“Company”). This presentation contains certain statements that are, or may be deemed to be, “forward-looking statements”, which include all statements other than state

  3. Slide 3: Highlights

    Highlights First quarter 2013 and subsequent events  Signed SPA for divestment of Rio das Contas (Manati) for USD 140 million plus up to USD 20 million contingent earn-out  Divestment processes continuing for MKB and Aje  EBITDA of USD 8.0 million in the first quarter, up from USD 5.6 million in

  4. Slide 4: Divestment of Rio das Contas - Manati field

    Divestment of Rio das Contas - Manati field Manati (Brazil) BCAM-40 Operator Petrobras (35%) Panoro Working Interest 10% Other Partners Queiroz Galvão (45%), Brasoil (10%) 1st Production 2007 Current stage Production 4

  5. Slide 5: Divestment of subsidiary in Brazil Rio das Contas

    Divestment of subsidiary in Brazil Rio das Contas Panoro has entered into a sales agreement to divest its Brazilian subsidiary Rio das Contas Produtora de Petróleo Ltda (RdC) to GeoPark Holding. The transaction comprises a divestment of all shares in RdC , which is the direct beneficial owner of 10%

  6. Slide 6: Divestment impact

    Divestment impact  The transaction is expected to generate a net gain for Panoro Energy  Limited or no capital gains tax is expected from the sale of Rio das Contas, mainly related to the accumulated loss in Panoro Energy Gain and taxes do Brasil  Gains and taxes are both depending on the timing

  7. Slide 7: Bond redemption illustration

    Bond redemption illustration Assuming ANP approval post November 15, 2013 180 $160m 160 20 140 $119m 120 7 USD million 100 80 140 60 112 40 20 0 Cash upon closing + Bond Principal + Earn-out up to $20m 6% Call Premium (Assuming Closing 6-9 months) 7

  8. Slide 8: Key events through divestment process

    Key events through divestment process Event Date  Signature of Sales and Purchase  May 14, 2013 Agreement  Effective date of transaction  April 30, 2013  Closing (at ANP approval)  Expected approval in 4-9 months  Bond repayment  Pending ANP approval  Long Stop date  9 months + 3 months ex

  9. Slide 9: First quarter update

    First quarter update Jan Kielland, CEO 9

  10. Slide 10: Manati field

    Manati field Maintence shutdown completed successfully Manati (Brazil) BCAM-40 Operator Petrobras (35%) Working Interest 10% Other Partners Queiroz Galvão (45%), Brasoil (10%) 1st Prod 2007 Current stage Production  Gas price of 8.73 USD/MMBtu, up from 7.85 USD/MMBtu in Q4-12 due to 7.91 % annual i

  11. Slide 11: Remaining Brazilian assets: BS-3 area

    Remaining Brazilian assets: BS-3 area Santos Basin developments - Cavalo Marinho (50%), Estrela do Mar (65%), Coral (35%) BS-3 area (Brazil) Project Status Operator W.I. range Petrobras (35-100%)  Ongoing discussions regarding two main Working Interest range 35-65% Queiroz Galvão (0-15%), challenge

  12. Slide 12: Mengo-Kundji-Bindi (MKB)

    Mengo-Kundji-Bindi (MKB) Kundji pilot program in production testing MKB (Congo) Project Status Operator SNPC - Congo National Oil Company (60%)  Gross production from the Kundji field Working Int. 20% amounted to approximately 70 000 bbl in Q1- Other Partners PetroCI (20%) 13, compared with 79 000

  13. Slide 13: Aje

    Aje Large gas, condensate and oil discovery Aje (Nigeria) OML 113 Project Status Operator YFP  Gas, condensate and oil discovery in water depth Working Int. 6.502%* 100-1,500 meters, 24 km from coastline, close to Other Partners Vitol, Jacka Resources, Chevron Lagos and West-Africa Gas Pipeline 1st

  14. Slide 14: Dussafu

    Dussafu Large exploration license with multiple discoveries and prospects Dussafu (Gabon) Exploration portfolio Key Facts Operator Harvest Natural Resources (66.67%)  Large PSC with favourable fiscal terms located in the pre-salt Working Interest 33.33% trend of the Congo Basin  Panoro’s oil disco

  15. Slide 15: Financial review

    Financial review Anders Kapstad, CFO

  16. Slide 16: Financial highlights

    Financial highlights Q1-2013 and subsequent events  EBITDA of USD 8.0 million in Q1-13, up from USD 5.6 million in Q4-12  Cash position of USD 68.5 million at end of Q1-13 (incl. restricted cash)  Divestment of Rio das Contas will make the company debt free  Limited capital commitment going forw

  17. Slide 17: Profit & Loss statement (USD '000)

    Profit & Loss statement (USD ’000) Condensed consolidated statement of comprehensive income Q4-2012 Q1-2013 Oil and Gas revenue 10,845 12,725 Total revenues 10,845 12,725 Production costs (1,461) (1,217) Exploration related costs (94) (216) Strategic review costs - (230) General and administrative c

  18. Slide 18: Profit & Loss items Q1-2013

    Profit & Loss items Q1-2013 (1.5) 2.5 (2.4) (5.2) (1.5) (1.5) 18

  19. Slide 19: Group balance sheet

    Group balance sheet Per Mar 31, 2013 Balance sheet (USD ‘000) Dec 31, 2012 Mar 31, 2013 Licenses and production assets 251,986 264,527 Other non-current assets 23,793 24,971 Total non-current assets 275,779 289,498 Trade and other receivables 19,019 20,863 Cash and bank balances 73,503 68,466 Other

  20. Slide 20: Outlook

    Outlook  The Company has focused on asset divestments, capital discipline and cost cuts in order to strengthen the financial situation  Main tasks moving forward include: - Ensuring a smooth assignment of Rio das Contas to GeoPark - Ensuring successful divestments of Aje and MKB - Capitalizing on

  21. Slide 21: First quarter 2013 financials

    First quarter 2013 financials Q&A Please visit www.panoroenergy.com for more information

Panoro Energy — Q1 2013 Earnings Presentation on 6ix