2012 second quarter results
Det norske oljeselskap ASA reported a loss in the amount of NOK 217
million after taxes in the second quarter of 2012. Exploration costs in
the quarter amounted to NOK 417 million. Det norske experienced good
progress in significant company projects such as Atla, Draupne and the
Johan Sverdrup Field in the second quarter. However, on Jette, the
company has encountered technical challenges during the production
drilling in the third quarter.
CEO Erik Haugane comments:
- We have experienced problems related to completion of the first
production well on Jette. Consequently, we need to alter the design of
this well. It is too early to draw any conclusions on possible impact on
the project. However, the company maintains its plan to commence
production in first quarter 2013. At the same time we are pleased to
report good progress on Draupne, and that the development of the Johan
Sverdrup discovery is proceeding as planned.
The Johan Sverdrup Field represents a dominant part of the resources in
Det norske. The field owners will cooperate on the planning of the Johan
Sverdrup Field to reach an investment decision and to submit a Plan for
Development and Operation (PDO). Partners are making good progress. The
partnership aims to start production in 2018. A substantial number of
appraisal wells will be drilled over the next year of which two wells
will be drilled in PL 265 in 2012. In addition, one well is currently
drilled on the Geitungen prospect in PL 265. This well aims to find
additional volumes in the Northern part of the license. Also a well in
PL 502 will be drilled by the end of 2012. This well is located south of
The Johan Sverdrup Field. Det norske owns 20 percent in PL 265 and 22
percent in PL 502.
During the second quarter a continuation of Draupne (DG2) was decided by
the license partnership. Det norske aims to submit a Plan for
Development and Operation (PDO) during 2012. Production start-up is
scheduled for the fourth quarter of 2016, at the earliest. The Draupne
project is progressing according to plan.
On Jette, Det norske has encountered problems related to the completion
of the first production well. Originally, the objective was to reach the
reservoirs through two long wells; this has not been successful.
Consequently, the estimate of recoverable volumes, and hence the value
of the field, will probably be reduced. Det norske aims to start
produksjon on Jette in the first quarter of 2013. Det norske has earlier
this year reduced its ownership interest in Jette from 88 percent to 70
The development of Atla is on track. One production wells was completed
in June. Production is expected to start this year. Det norske holds a
10 percent ownership interest in Atla.
The exploration well on Clapton, in Production License 440S, was dry.
Det norske holds a 10 percent ownership interest in the license. Det
norske's cost was carried after the sale of 20 percent in 2010.
Storebjørn, in Production License 450, was also dry. Det norske is the
operator, and holds a 60 percent interest in the license. The
exploration well on Ulvetanna, located in Production License 356, has
recently been completed, with a negative outcome. Det norske is the
operator, with a 50 percent ownership interest in the license.
At the end of the second quarter, Det norske's equity ratio was 37.2
percent. During the first quarter, Det norske produced in excess of
1,000 barrels per day, attaining a price of USD 107 per barrel. The cash
flow from production during the quarter amounted to NOK 22 million. The
loss after taxes for the second quarter was NOK 217 million. Exploration
costs in the quarter were NOK 417 million.
Knut Evensen, VP Investor Relations, tel.: +47 950 77 622
Erik Haugane, CEO, tel.: +47 907 21 655
Find the presentation and Q2 Report attached. A live webcast from the
presentation is available at the company website from 8.15 a.m.,
About Det norske:
Det norske oljeselskap ASA (DETNOR) specialize in extracting petroleum
resources on the Norwegian Continental Shelf (NCS). We are an ambitious
company with significant exploration activity. Recently we have taken
part in some major discoveries, Johan Sverdrup being the single most
important. We now face several development projects, among them Jette as
operator, and Draupne.
Det norske has its headquarter located in Trondheim, and offices in Oslo
and Harstad. As of today we are more than 190 employees. Det norske is
listed on the Oslo Stock Exchange with the ticker "DETNOR".
More about Det norske at www.det