First quarter 2014 results

Det norske oljeselskap ASA announces a good first quarter 2014. The development of the Ivar Aasen field is on schedule. Fabrication of the living quarters, steel jacket and platform deck is ongoing. A development concept has been agreed for the Johan Sverdrup field.

The development of the Ivar Aasen field is progressing according to plan. Det norske is the operator of the field and has a 35 percent ownership interest. The field will be developed with a fixed steel jacket, platform deck and living quarters. In March 2014, construction of the living quarters commenced at Stord. The Ivar Aasen field extends into the neighbouring licence 457, located due east of Ivar Aasen, resulting in a larger development. Negotiations related to the distribution of ownership interests in the field are ongoing; these are due to be completed in June.

The Johan Sverdrup field

A development concept for the Johan Sverdrup field was agreed in February. The field will be developed in several phases. The first phase includes process platform, drilling platform, riser platform and living quarters, and the field centre has been designed so as to facilitate capacity for future development. The first development phase has capacity for production of more than 70 percent of the field’s resources. The production capacity in the first phase will be between 315,000 and 380,000 barrels of oil equivalents per day. Statoil announced that the field contains between 1,800 and 2,900 million barrels. The total investment in the first phase is estimated at between NOK 100 and 120 billion.

The Johan Sverdrup field extends into three licences. Negotiations pertaining to the distribution of ownership interests are expected to be completed in the first quarter of next year, which is also when the Plan for development and operation of the field is to be submitted. Start-up of production from the Johan Sverdrup field is expected in the fourth quarter of 2019.

Discoveries

Det norske participated in two new discoveries in the first quarter; in the Trell and Langlitinden prospects. Langlitinden was the company’s first own-operated well in the Barents Sea. The Trell well was completed in licence 102F in February. A 21-metre gross oil column was encountered. Tests indicated good production properties. Det norske is a partner in the licence, with a 10 percent ownership interest. The licence partnership will evaluate the discovery further, together with other prospects in the licence.

The Langlitinden well in licence 659 in the Barents Sea encountered oil-bearing sand of Triassic age. Extensive testing has been carried out, indicating poor production properties. Det norske does not assess the volumes in the well to be commercially recoverable. Det norske holds a 20 percent ownership interest in production licence 659.

Production

Det norske produced 260,569 barrels of oil equivalents in the first quarter of 2014, averaging 2,895 barrels per day. More than half of the production, 1,458 barrels per day, originates from the own-operated Jette field, where Det norske has a 70 percent interest. The average realised oil price in the period was USD 107 per barrel.

Other events

Det norske was awarded six new licences in the APA round in January, of which two as operator. All licences are located in the North Sea. Gro G. Haatvedt will take up her position as Senior Vice President Exploration in Det norske during the second quarter.

Financials

Det norske reported NOK158 million (80) in revenues in the first quarter. Exploration expenses amounted to NOK 110 million (234), contributing to an operating loss of NOK 101 million (251). Net financial costs were NOK 60 million (32). The net result for the period was NOK 21 million (-20), after tax income of NOK 182 million (262).

The equity ratio as at end of Q1 2014 was 31 percent (42).

Summary of financial results and operating performance

MNOK= NOK million Q1 14 Q4 13 Q3 13 Q2 13 Q1 13 2013
     Jette (boepd), 70% 1 458 2 710 4 378 3 594 0 2 683
     Atla (boepd), 10% 750 1 031 981 1 446 1 253 1 177
     Varg   (boepd), 5% 500 412 377 398 425 403
     Glitne (boepd), 10% 0 0 0 0 43 11
     Enoch (boepd), 2% 0 0 0 0 0 0
     Jotun Unit (boepd), 7% 188 175 204 175 209 191
Total production (boepd) 2 895 4 328 5 940 5 613 1 929 4 463
Oil and gas production (Kboe) 261 398 547 511 174 1 629
Oil price realised (USD/barrel) 107 109 112 103 112 107
Operating revenues (MNOK) 158 254 324 286 80 944
EBITDA (MNOK) -12 -400 -348 -127 -216 -1 091
Cash flow from production (MNOK) 112 151 269 227 37 684
Exploration expenses (MNOK) 110 544 588 271 234 1 637
Total exploration expenditures (expensed and capitalised) (MNOK) 151 400 581 373 306 1 659
Operating loss (MNOK) -101 -1 182 -518 -277 -251 -2 227
Net profit/loss(-) for the period (MNOK) 5 -329 -158 -41 -20 -548
No of licences (operatorships) 77 (27) 80 (33) 74 (30) 72 (30) 69 (28) 80 (33)


Investor contact:
Jonas Gamre, Investor Relations Manager, tel.: +47 971 18 292

Press contact: Torgeir Anda, VP Communication, tel.: + 47 99 11 22 03

See a live webcast from the presentation from 08:15 a.m. at the company website - www.detnor.no/en. Find the report and presentation attached.


About Det norske:
Det norske oljeselskap ASA (DETNOR) is an active exploration company on the Norwegian Continental Shelf. Det norske’s headquarters is in Trondheim. The company also has offices in Oslo and Harstad. Det norske is listed on the Oslo Stock Exchange with the ticker "DETNOR". More about Det norske at www.detnor.no/en/

About Us

Aker BP is a fully-fledged E&P company with exploration, development and production activities on the Norwegian Continental Shelf (NCS). Measured in production, Aker BP is one of the largest independent oil companies in Europe. Aker BP is listed on Oslo Stock Exchange with ticker 'AKERBP'. More about Aker BP at www.akerbp.com/en/.