• Acquires 78% of Didon Field and 35% of Zarat permit • Purchase

• Acquires 78% of Didon Field and 35% of
Zarat permit
• Purchase price USD 230 million
• Reserve base increases from 38 MBOE to 118 MBOE
• Increase in daily production from current level of
approx. 3,300 to approx. 10,000 bbl/d in 2005
• Approx. 21,000 bbls/d in 2006
Outline
„ The transaction
„ Didon oil field
„ Zarat permit
– Elyssa discovery
– Zarat discovery
„ Tunisian concession terms
„ Volve transaction
„ Summary
„ Appendices
– Financial information
The Transaction
„ PA acquires MP Zarat’s 78% share in Didon field and 35% in Zarat permit,
Tunisia
– Up from 22.22% to 100% in Didon field
– Up from 9.99% to minimum 45% in Elyssa and Zarat discoveries
– PA becomes operator and takes over all operating assets and personnel
„ Sellers financial position creates one-off ”special price”opportunity
– PA already owns 22% in the permit and has full knowledge of the asset base
– First refusal on license gave advantage for PA Resources
ƒ Carve out of owning company
ƒ Simpler and faster due diligence process
ƒ Competing bids for shares in owning company
„ Major increases in daily production and P50 reserves
– Acquire approx. 7,000 bbls per day in 2005 increasing to 15,500 bbls per day in 2006
– Acquire P50 reserves of 80 MBOE as per 31.12.04
„ Acquisition subject to Tunisian governmental approval
– Approval of transfer of Didon assets and operator ship expected in July
– Approval of extension and transfer of Zarat permit expected in September
The Transaction cont.
„ Acquisition price USD 230 million
–
–
–
Different financing alternatives being considered
Considering establishment of oil price floor
Effective date 01.01.05, meaning adjustment of price from 01.01.05 until
closing. Accounting effect at closing.
„ Payment structure
–
–
–
USD 45 million at signing
Additional USD 60 million at August 18 at latest
Remaining amount at closing
ƒ Closing immediately after governmental approvals
„ No financial guarantees given from PA
– If PA fails to meet the above payment deadlines the seller has the right to
demand from PA an indemnity of USD 25 million as compensation
Preliminary financing plan
New deal
USD
230 mill.
Volve
USD
30 mill.
Capex Didon phase II
USD
16 mill.
Total
USD
276 mill.
Existing cash at hand
USD
45 mill.
Equity raised (June 05)
USD
23 mill.
Debt financing *
USD
150 mill.
Cash flow
Net financing need *
(*) Subject to change
(+)
USD
(58 mill.)
A transforming transaction
„ Increase in total daily production from
current level of 3,300 bbl per day to
approx. 21,000 bbl per day in 2006
MBOE
Development reserves 2005
oil equivalents
130
120
„ Increase in company reserve base from
38 MBOE to 118 MBOE
–
–
–
Didon from 7.3 to 32.9 MBOE (100% oil)
Elyssa from 7.8 to 35.3 MBOE (50% oil)
Zarat from 7.8 to 35.0 MBOE (45% oil)
110
100
90
80
70
60
50
40
„ Further exploration potential
30
20
10
0
Dec 31
Didon/ Zarat
Revaluation
June
Volve
Didon/ Zarat
Acquisition Acquisition
June
June
Total
June
A major oil and gas player in Tunisia
Jelma expl.
expl. permit
Makthar expl.
expl. permit
Douleb & Semamma fields
Tamesmida field
Douleb export pipeline
Skhira storage and export facilities
Zarsis storage and export facilities
Zarat expl.
expl. permit
Didon field
Ezzaouia field
El Bibane field
Didon field
Key information
„ New operator PA Resources (100%)
„ Production from two horizontal offshore
wells
„ Remaining recoverable reserves 32.9
MBOE as per YE 2004
BOE/day
Didon expected Production Profile PA share
25 000
20 000
15 000
10 000
5 000
0
2004
*
2005e
2006e
2007e
2008e
(*) Transaction assumed completed in Q4 2005
2009e
Didon development project phase II
2005 outlook
„ Execute Didon phase II with a fixed
platform (jacket) development
„ Currently the project is in line with
schedule
„ Engineering has achieved more than
70% progress (as of end May)
„ Refurbishment of jacket completed and
unit ready for load out and
transportation
„ The deck fabrication and equipment
installation ongoing
„ Production expected to be on stream
through new solution in Q1 2006
„ Current budget of USD 43 million
(100%) includes one additional well
–
Post transaction Capex is estimated at
USD 16 million (100% share)
„ Two additional wells to be included in
the development
–
Assumed total cost USD 14 million
Didon 2006
Zarat Exploration concession
Key information
„ Operator PA Resources (45%) and ETAP
(55%)
„ Significant discoveries made in two fields
– Zarat
– Elyssa
2005 outlook
„ Complete the 3D seismic program
launched in 2004
– 3D seismic processing completed
– Interpretation of the 3D vintage
– Ranking of prospects
– Preparation for a commitment well
Didon
Elyssa
Zarat
The Elyssa discovery
„
„
„
Discovered in 1974
Successfully appraised in 1992
Structure fully covered by new 3D
seismic
– Processing almost completed
– Interpretation about to be started
„ Current oil and gas reserves 35,3
MBOE PA share (*)
– Split oil and gas, i.e. 50/50
„ Development solution not decided, but
floating solution an alternative
„ First oil in 2008 at the earliest
„ Indicative total production plateau level
20 -30,000 boe per day
(*) Assuming that the Tunisian state, according to the fiscal regime, exercises its option to increase its share of
the field to 55%, if not maximum 78 MBOE (100%).
The Zarat discovery
„
„
„
Discovered in 1992
Successfully appraised in 1995
Structure fully covered by 3D seismic
– Reprocessing almost finished
– Interpretation about to be started
„ Current oil and gas reserves 35 MBOE
PA share (*)
– Split oil and gas, i.e 45/55
„ Development solution not decided, but
floating solution or tie-back alternatives
„ Structure straddles the Tunisian/Libyan
median line
– No ongoing unitisation discussions
„ First oil in 2010 at the earliest
„ Indicative total production plateau level
20-30,000 boe per day
(*) Assuming that the Tunisian state, according
to the fiscal regime, exercises its option to
increase its share of the field to 55%, if not
78 MBOE (100%)
Tunisian concession terms
„ 20% of production to be sold domestically at 10% discount to normal
market price
„ Didon oil price approx. USD 1.5 below Brent Blend
„ Level of royalties and taxes are based on the so-called R-factor, which is
based on cumulative revenues (less profit taxes, royalties and other taxes
previous years) divided by cumulative costs
„ With oil prices in a range between 30 and 50 USD per bbl, royalty is in the
range 10 – 12 % and net profit tax rate in the range 50 – 55 %
The Volve transaction
„ PA has acquired from TOTAL a 10% ownership share in
the Volve field including adjacent oil prospects on the
Norwegian Continental Shelf
„ Volve is operated by Statoil and will be developed with
a jack-up rig and storage ship
–
The Government approved the Volve Plan for Development
and Operations (PDO) on 22 April 2005
„ Volve production is planned on stream in first quarter
2007, with plateau output estimated to be approx.
50,000 bbl/day, i.e. net 5,000 bbl/day to PA
„ The proven and probable reserves in the Volve field are
estimated in the PDO at 70 million barrels of oil, i.e. net
7 million barrels of oil to PA
„ The purchase price for the Volve field and adjacent oil
prospects is NOK 205 million
–
–
–
Anticipates bank financing of 50% of purchase price
Subject to approval from Norwegian authorities
Deal expected to be closed in Q4 2005
Summary
„ PA transformed into a 20,000 + bbl
per day company
„ Well positioned for further
production growth from existing
reserve base of approx. 118 MBOE
BOE/day
Expected Production Profile PA share
30 000
25 000
20 000
15 000
– Elyssa and Zarat may raise
production to above 30,000 bbl per
10 000
day from 2008
„ Entered Norwegian Continental
Shelf by the acquisition of Volve
5 000
– Large potential for value creation
for innovative companies
0
2004
2005e
2006e
Other Tunisian
2007e
Didon
2008e
2009e
Volve
„ Entered Equatorial Guinea in Q1 2005 by acquiring interests in two exploration
concessions
– An exploration well planned for Q3 2005
Appendices
„ Financial information
– Key figures
– P&L
– Balance Sheet
„ Shareholders/ shareprice
„ Historic production
„ Vision
„ Q105 highlights
„ Organisation
„ Assets
Financial comparison & key figures
1st Q05
Key figures from the profit and
loss account
•Operating revenue
•EBITDA
•EBIT
•EBT
•Net income after tax
MSEK
Key figures from the balance sheet
•Total assets
•Cash
•Interest bearing debt
•Other liabilities
•Equity
•Equity / Assets
MSEK
Other key figures
•Number of shares
•Operational margin
•Earnings pr share
•Oil & gas production
•Oil price exp.
No
%
SEK
BOE/D
USD/bbl
Note: * Weighted average, Didon from 1.7.04
1st Q04
2004
Y 2003
43,9
26,1
24,7
22,5
14,3
19,9
12,4
11,6
11,3
5,0
113,6
113,6
71 ,2
68 ,4
65,0
65,0
43 ,8
55 ,9
31 ,5
25,1
23,7
19,6
719,0
358,2
366,0
29,6
323,5
45%
157,6
25,5
31,6
10,6
115,3
73%
377,5
377,5
43,9
43,9
35,2
35,2
71,5
71,5
270,8
270,8
72%
158,4
23,6
29,2
18,6
110,7
70%
15 902 334
58%
0,94
1500
47,1
9 920 231
58%
0,50
1200
29,5
14 902 334
60%
2,94
2657*
37,8
9 920 231
60%
1,96
1,96
821
27,4
Key financial figures - Yr 2004
(SEK'000)
2004
2003
Operating revenue
EBITDA
Depreciation
EBIT
Net finance
EBT
Net income after tax
113 622
71 167
2 807
68 360
3 348
65 011
43 778
55 922
31 491
6 419
25 072
869
23 681
19 620
Total assets
Cash
Interest bearing debt
Other liabilities
Equity
Equity / Assets
377 525
43 868
35 212
71 470
270 844
72%
158 441
23 565
29 179
18 579
110 683
70%
Key financial figures - 1Q05
(MSEK)
1Q05
1Q04
Operating revenue
EBITDA
Depreciation
EBIT
Net financials
EBT
Net income after tax
43,9
26,1
1,4
24,7
- 2,2
22,5
14,3
19,9
12,4
0,8
11,6
-0,3
11,3
5,0
Total assets
Cash & cash equiv.
Interest bearing debt
Other liabilities
Equity
Equity / Assets
719,0
358,2
366,0
29,6
323,5
45%
157,6
25,5
31,6
10,6
115,3
73%
Cash flow statement
(MSEK)
Cash flow from operations
Operating profit
Depreciations
Deferred tax liabilities
Paid/ received interest and similar income statement items
Paid royalty
Paid tax
Total cash flow from operations before change in working capital
Change in working capital
Total cash flow from operations
Total cash flow used for investments
Total cash flow from financial activities, new share issue
Change in cash and bank
Cash and bank at the beginning of the period
Currency exchange difference
Cash and bank at the end of period
Q1 2005
Q1 2004
24,7
1,4
-2,2
-2,3
5,9
15,7
11,6
0,8
-1,1
-0,3
-1,4
-3,9
5,9
27,1
-22,7
34,0
1,4
-0,2
-
38,4
43,9
1,5
83,8
1,2
23,6
0,7
25,5
PA Resources AB
Shareholder structure
#
of shares
%
-ownership
Datum AS, including companies
5,798,710
16,6
Bertil Lindquist
4,416,000
12,7
Ulrik Jansson, incl. companies
2,835,504
8,1
964,300
2,8
Tore Aksel Volberg
Norus AS
648,000
1,9
Adrian AS
528,000
1,7
19,614,154
56,2
34,804,668
100
Other shareholders
Total
Number of shareholders
> 1700
Share price development (NOK)
89,50
27,50 44,35%
PAR&OS.Last
90
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
24.03.2004
22.06.2004
20.09.2004
19.12.2004
19.03.2005
17.06.2005
Production development - 2004
Annually production development
800 000
Barrels of oil Didon 01.07 -03.12
700 000
Barrels of oil per year
Barrels of oil equivalent gas per year
685 000
600 000
490 000
500 000
376 000
400 000
300 000
260 000
255 000
1998
1999
327 000
329 000
2001
2002
427 000
312 000
277 000
200 000
100 000
-
Oil Production, PARE BOE Yearly
2000
2003
2004
PA Resources AB
Vision & Mission
„ The Company’s vision is to be:
– Focused, Independent, Innovative, International, Nordic based, E&P
Company
– To deliver Growth and Profit.
„ The Company’s mission is to:
– “Acquire, develop and produce oil and gas reserves to the benefit of
PAR's shareholders, the host countries, its employees and other
stakeholders”.
– Primarily seek opportunities in fields were major and larger oil and gas
producing companies are withdrawing, i.e. “tail-end” production.
– Supplemented with exploration activities in order to secure new resources
Operating highlights 1Q05
„ The company entered a new region in the period by the acquisition of
2 interest in the exploration concessions Block H and Block I offshore
Equatorial Guinea, West Africa.Preparation for a well in Block H, 3Q
2005 is ongoing.
„ The production from the Didon field has been adversely affected by
technical problems with the FPSO operating on this field. As
previously announced this has caused a reduction in the overall
production level for Q1 2005.
„ Didon complementary development project progress according to set
schedule.
Engineering has achieved more than 50% progress and fabrication
work on the jacket and the deck has started.
„ A total of 136 000 BOE produced in Q105.
Organisation and management
PA Resources AB
Board of Directors
Rabbe Lund (Chairman)
Niklas Adler,
Jan Haudemann-Andersen,
Harald Arnet and Ulrik Jansson
Ulrik Jansson
Managing Director &
President
Gunilla Olson
Chief Accountant &
Administration Officer
Hydrocarbures Tunisia
Corporation
Jean Louis Remondin
Managing Director HTC
Ali Gaaya
Exploration Manager
Hedi Ayadi
CFO HTC
PA Resources Norway AS
Trond Bjerkan / Ole
Wiborg
Vice President / CFO
Naceur Souisse
Operation & Reservoir
Manager
Company assets & location
of operations by June 2005
Norway:
1 developing project
Tunisia
Equatorial Guinea
2 exploration assets
6 producing fields
4 exploration assets
Current assets and operation
PA Resources AB
Equatorial
Guinea
NCS
Exploration
Exploration
Production
3 concessions
2 concessions
1 concession
Tunisia
Production
6 concessions
Tamesmida (95%)
11 KM 2
Douleb (70%)
34 KM 2
34 KM
Semmama (70%)
34 KM
2
El Biban (25%)
228 KM 2
Ezzaouia (13,5%)
40 KM 2
40 KM
Didon (100,0%)
Infrastructure
Onshore export
pipeline (75%)
Drilling rig
(Microdrill)
Microdrill)
Offloading
and
storage facilities
Jelma
(35%)
7200 KM 2
Makthar (45%)
2900 KM 2
2900 KM
Zarat
Block I
(6%)
806 KM2
Block H (3,125%)
1652 KM 2
(45%)*
(45%)*
724 KM 2
(*) Assuming Tunisian state oil company ETAP fully exercise their right to increase ownership to 55%
Volve
KM
(10%)
2
Makthar exploration permit
Key information
„ Operator PA Resources (45%), ETAP
(55%)
2005 outlook
„ Complete G&G work, prepare play maps
and prospectivity reports, possibly
additional seismic acquisition.
„ Drill 1 commitment well and 1
exploration well within one of 3
selected prospects.
Jelma exploration permit
Key information
j
Ser
.
b
J
hia
Ro
„ Operator PA
Resources (35%),
ETAP (50%) & Topic
(15%)
Gr
en
ab
Ti
b
ule
o
D
a
am
m
Se m
Sbiba Graben
hila
„ Complete G&G work,
prepare play maps
and prospectivity
reports, possibly
additional seismic
acquisition.
cha
oua
Mr
2005 outlook
a
oui
a
z
Ez
Douleb, Semmama &
Tamesmida fields
Key Information
„ Operator PA Resources (70% &
95%), Serept (30% & 5%)
„ Production from 12 onshore wells
„ Remaining recoverable reserves
4,5 MBOE
2005 outlook
„ Continue DST development project
with an all inclusive maintenance
program to increase production
further.
Ezzaouia field
Key information
„ Operator MARETAP (Candex),
ETAP (55%), Candex (31,4%) & PA
Resources (13,5%)
„ Production from 7 onshore wells
„ Remaining recoverable reserves 0,7
MBOE
2005 outlook
„ Interpretation of Ezz 14 seismic to be
completed. Based on these results a
sidetrack may be executed.
„ Seismic interpretation work of deep
Triassic structure to be completed.
Possible recoverable reserves in the
range of 3.3- 4.8 TCF gross (eq. to
500 – 800mill.BOE).
El Bibane field
Key information
„ Operator Candex (75%), PA Resources
(25%)
„ Production from 1 horizontal well
offshore
„ Remaining recoverable reserves 2,8
MBOE
2005 outlook
„ Evaluation for a new well to be
completed.
Pending results from external and
internal studies a new well can be
drilled late 2005.
Block I & H exploration concessions
Key information
„ Block I
– Operator Nobel Energy (40%), Atlas
Petroleum (54%) & PA Resources (6%)
„ Block H
– Operator Pioneer (50%), Atlas
Petroleum (28,1%), ROC Oil (18,8%) &
PA Resources (3,1%)
2005 outlook
„ Block I
– Complete the 3D seismic processing
(Western Geophysical).
– Complete a detailed regional well and
seismic database for 3D.
„ Block H
– Reprocessing of 3D seismic
– Drill 1 well in Q3, target the Paloma
prospect in the Creataceous formation
Block I expl.
expl. permit
Block H expl.
expl. permit
Summary
9 Build on existing business in Tunisia and Equatorial Guinea
and continue acquisition of fields and exploration projects in
Africa.
9 Increased exploration activity in company core areas.
9 Increase production from existing fields and exploit company
interest in infrastructure.
9 Capitalise on the improved financial position.
Contacts
PA Resources AB
www.paresources.se
[email protected]
Ticket: OSE; PAR , NGM; PARE
PA Resources AB
Stockholm
Office:
Fax:
Contact person:
+46 8 218382
+46 8 209899
Ulrik Jansson
PA Resources AB
HTC
Office:
Fax:
Contact person:
Tunisia
+216 71 963 625
+216 71 962 851
Jean Louis Remondin
PA Resources
Norway AS
Office:
Fax:
Contact person:
Oslo
+47 22838125
+47 24134101
Trond Bjerkan