Third quarter results
Det norske oljeselskap ASA had a good third quarter. The development of the Ivar Aasen field is on track. The concept selection for Johan Sverdrup is proceeding according to plan. Det norske participated in a promising discovery on the Gohta prospect in the Barents Sea. The company has strengthened its financing by entering into a new USD 1 billion revolving credit facility during the quarter.
Exploration
The oil and gas discovery on the Gohta prospect, where Det norske holds a 40 percent interest, confirms the potential for oil activities in the North. Preliminary estimates indicate volumes between 113 and 239 million barrels of oil equivalents. The discovery confirms a new play which entails positive consequences for oil and gas exploration in the Barents Sea.
In addition to the discovery of Gohta in the Barents Sea, Det norske participated in one exploration well in the North Sea and one in the Barents Sea.
Jette
Production from Jette reached one million barrels in September. Most recent data indicates a reduced decline rate compared to previous quarters. The field produced an average of 4 378 barrels of oil equivalents per day net in the third quarter. This amounted to 74 percent of the total production in the third quarter.
Ivar Aasen
The development of the Ivar Aasen field is on track. The first cut of steel for construction of the topsides and jacket has been made at the sites in Singapore and Italy. Det norske has completed an ocean bottom seismic survey enabling improved mapping of the field’s main structure. The unitisation process with the partners in production licence 457 continues.
Progress in Sverdrup
Good progress is being made in the concept selection process for the Johan Sverdrup field. The field will be developed in several phases, but the number of phases and the schedule for these remain to be decided. Plan for development and operation (PDO) is planned for submission to the authorities towards the end of 2014.
Financials
Det norske entered into a new USD 1 billion revolving credit facility during the quarter, equivalent to approximately NOK 6 billion. This facility contains an uncommitted accordion option which could increase the facility to USD 2 billion, equivalent to approximately NOK 12 billion. The new credit facility matures in 2018 and replaces the company’s NOK 500 million credit facility with maturity 31 December 2015.
The company reported NOK 324 million in revenues in the quarter, as compared to NOK 49 million in the third quarter of 2012. The operating loss was NOK 518 million. The net loss for the quarter was NOK 158 million.
New chief executive officer
Karl Johnny Hersvik has been appointed as the new chief executive of Det norske. He comes from the position as Senior Vice President of Statoil’s Research and Development division. Mr. Hersvik will take up the position as CEO effective from 1 May 2014.
Summary of financial results and operating performance:
| MNOK = NOK million | Q3 13 | Q2 13 | Q1 13 | Q4 12 | Q3 12 | 2012 | 2011 |
| Jette (boepd), 70 % | 4 378 | 3 594 | 0 | 0 | 0 | 0 | 0 |
| Atla (boepd), 10 % | 981 | 1 446 | 1 253 | 2 070 | 0 | 513 | 0 |
| Varg (boepd), 5 % | 377 | 398 | 425 | 395 | 481 | 556 | 846 |
| Glitne (boepd), 10 % | 0 | 0 | 43 | 75 | 95 | 174 | 329 |
| Enoch (boepd), 2 % | 0 | 0 | 0 | 0 | 0 | 4 | 48 |
| Jotun Unit (boepd), 7 % | 204 | 175 | 209 | 231 | 206 | 210 | 281 |
| Total production (boepd) | 5 940 | 5 613 | 1 929 | 2 771 | 782 | 1 458 | 1 505 |
| Oil and gas production (Kboe) | 547 | 511 | 174 | 255 | 72 | 545 | 548 |
| Oil price realised (USD/barrel) | 112 | 103 | 112 | 110 | 111 | 115 | 112 |
| Operating revenues (MNOK) | 324 | 286 | 80 | 117 | 49 | 332 | 372 |
| Cash flow from production (MNOK) | 269 | 227 | 37 | 40 | 2 | 114 | 180 |
| Exploration expenses (MNOK) | 588 | 271 | 234 | 195 | 403 | 1 609 | 1 012 |
| Total exploration expenditures (expensed and capitalised) (MNOK) | 618 | 373 | 306 | 375 | 536 | 1 656 | 1 810 |
| Operating loss (MNOK) | -518 | -277 | -251 | -358 | -2 318 | -3 843 | -1 191 |
| Net loss for the period (MNOK) | -158 | -41 | -20 | -47 | -589 | -957 | -459 |
| No. of licences (operatorships) | 74 (30) | 72 (30) | 69 (28) | 67 (26) | 67 (26) | 67 (26) | 67 (28) |
Find the report and presentation attached. A live webcast from the presentation will be available at our website from 08:15 (CET), www.detnor.no.
Contacts:
Torgeir Anda, VP Communication, tel.: +47 99 11 22 03.
Knut Evensen, VP Investor Relations, tel.: +47 950 77 622
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