Norse Energy "Extraordinary General Meeting" Presentation - July 5, 2012

736 views

Published on

A presentation by oil and gas drilling company Norse Energy Corp. (Norwegian company). Norse's US operations are mostly located in New York State and the company has been holding on, by the skin of their teeth, waiting for New York to allow high volume hydraulic fracturing to begin so they can drill on their 130,000+ leased acres in NY. The July 5 presentation is an attempt to solicit new funds to keep the company solvent long enough to drill and make a profit.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
736
On SlideShare
0
From Embeds
0
Number of Embeds
190
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Norse Energy "Extraordinary General Meeting" Presentation - July 5, 2012

  1. 1. Corporate PresentationMark Dice, Chief Executive Officer 5 July 2012
  2. 2. Norse Energy’s VisionA leader in identifying and unlocking the fullpotential of under-valued oil and gas assets 2
  3. 3. Norse Energy Core Values EHS Protecting the environment, health, and safety is our top priority INTEGRITY Trustworthy in our approach to others EXCELLENCE Striving to be the best COLLABORATION Seeking out and valuing the input of others INGENUITY Leveraging creative thought 3
  4. 4. Norse EnergyRecent Achievements  Grew Resource Base  Delivered Asset Sales  Reduced Debt  Restructured Organization  Cut Costs 4
  5. 5. Norse Energy Recent Share PerformanceOn Par with 6 Month Oslo Benchmark Index (OSEBX) NEC OSEBX Conversion Sale of of Bond Debt Herkimer and to Equity Related Assets Reverse Positive 10/1 SGEIS Asset Sale of Bond Portfolio Repayment of Split News ~ 18,000 Refinancing Bonds and Acres in CNY Agreement Restructuring 6 Month NEC Share Price and OSEBX updated 27 June 2012 5
  6. 6. Key Business Risks
  7. 7. Key Business Risks and Mitigation SGEIS Delay Developing economic projects not dependent upon SGEIS regulations; Opportunities outside of New York Commodity Prices Balanced portfolio of long- term oil and gas projects; continuous application of industry-leading technology Funding Efficient operations; asset sales; capital markets SGEIS Legal Challenge Coordinated industry efforts to emphasize science and counter legal obstacles Shale Operating Capability Pursuing experienced shale partners, illuminating the value of projects 7
  8. 8. New York Regulatory Climate
  9. 9. New York Governor Cuomo’s Recent RemarksAlbany’s WGDJ-AM Radio Interview, 22 June 2012New York Governor Cuomo hasgiven every indication that passageof the SGEIS is imminent• “We don’t have a hard date, but it will be done shortly”• “I think it’s actually better that we do it when the Legislature is not here, because I don’t want a political discussion”• “I want to get the conversation back to facts and logic and science and information…” 9
  10. 10. New York Business ClimateNeighboring states (Ohio,Pennsylvania, West Virginia) aresafely developing and reapingtremendous economic rewards fromoil and gas development in theAppalachian BasinNew York contains large richdeposits of untapped oil and gas • State leadership recognizes the economic potential of development • Norse Energy has resources of ~ 900 MMBOE in New York Internally Estimated Resource Total 10
  11. 11. Asset Value
  12. 12. Norse EnergyBalanced Portfolio of Oil and Gas Projects Internally Estimated Resources 12
  13. 13. Oil Price ForecastUS Energy Information Administration High Price Forecast Base Price Forecast Low Price Forecast Oil Base Price Forecast (AEO2012 Reference), High Price Forecast and Low Price Forecast are based on the energy price forecasts included in the June 2012 Publication of the U.S. Energy Information Administration | Annual Energy Outlook 13
  14. 14. Gas Price ForecastUS Energy Information Administration High Price Forecast Base Price Forecast Low Price Forecast Natural Gas Base Price Forecast (AEO2012 Reference), High Price Forecast and Low Price Forecast are based on the energy price forecasts included in the June 2012 Publication of the U.S. Energy Information Administration | Annual Energy Outlook 14
  15. 15. Attractive Project EconomicsAt Base Case Prices Diverse Portfolio of Resources: CNY Marcellus Shale significant value already illuminated by industry activity 4 511 72 Yet Unproven by MMBOE MMBOE MMBOE Industry Activity: • WNY Bradford Sands • CNY & WNY Utica • WNY Marcellus Oil Shale Oil and Natural Gas Price Forecasts are based on the energy price forecasts included in the June 2012 Publication of the U.S. Energy Information Administration | Annual Energy Outlook’s Base Price Forecast (AEO2012 Reference), also depicted on “Oil Price Forecast” and “Gas Price Forecast” slides. 15 WNY Marcellus Oil Shale contains liquids-rich gas.
  16. 16. Highly Attractive Portfolio Economics 114% Oil GasOil and Natural Gas Price Forecasts are based on the energy price forecasts included in the June 2012 Publication of the U.S. Energy Information Administration | AnnualEnergy Outlook’s Base (AEO2012 Reference), High and Low Price Forecasts also depicted on “Oil Price Forecast” and “Gas Price Forecast” slides. 16WNY Marcellus Oil Shale contains liquids-rich gas.
  17. 17. 2012-13 Business Plan• SGEIS is expected imminently• Pursue partners for the Bradford Sands (4 MMBOE), WNY Marcellus Oil Shale (117 MMBOE), and WNY & CNY Utica (511 MMBOE)• Secure funding via asset sales, partnerships, and capital markets• Generate positive EBITDA within a few months of commencing a drilling program 2012 2013 3Q 4Q 1Q 2Q 3Q 4Q Secure Strategic Partner Test & Develop Bradford Sands SGEIS Approval Shale Vertical Core Tests Initial HVHF Flow Tests Test & Develop Marcellus Oil Shale Test & Develop Utica Shale 17
  18. 18. Post-Restructuring Cash RequirementsLiquidity and Capital ExpendituresMonthly Expense: ~USD 1 Million /month Capital Requirements: Bradford Sands wells: – ~USD 1 Million Shale Vertical Cores: – ~USD 2 Million General & Administrative includes Legal, Consulting & Contract Labor, Audit Fees, Office Rents, Travel, Computer & Communication Shale horizontal test well with Salaries & Benefits include Employee Salaries & Benefits and Directors Fees HVHF Exploration Expense includes Delay Rentals & Lease – ~USD 6-7 Million Extensions Interest Expense Restructuring activities already completed or currently underway include debt refinancing and restructuring, reduction in headcount and office consolidations. The effects of these activities will be visible in the third quarter of 2012. 18
  19. 19. Current Context for Norse• ~USD 10-15 Million needed to recapitalize the business• Seeking partner(s) to carry the initial phase of a shale drilling program• ~USD 65 Million current enterprise value• ~900 MMBOE net resource position• Less than USD 0.10 enterprise value per BOE of resources• SGEIS issuance will unlock the values, and is expected imminently• Positive EBITDA is expected within a few months of commencing shale drilling Enterprise value ~USD 65 Million updated 27 June 2012 19
  20. 20. Summary of Funding AlternativesPursuing transactionsoffering the lowest cost ofcapital and shareholderdilution – Convertible Loan – Asset Sales – Partnerships – Debt – Equity Issuance 20
  21. 21. EGM Agenda• Reduction in share capital – to facilitate issuance of new shares, warrants, or convertible loans• Authorization to issue convertible loan – 12 Million NOK to provide short-term liquidity• Authorization to issue additional convertible loans – To provide additional short-term liquidity if needed• Authorization to issue new shares – Valid until the 2013 Annual General Meeting – Up to 50% Increase – Provides flexibility to the Board of Directors• Employee option program – To align goals and incentives of employees and shareholders – To be awarded 2012-2014 – Strike price equal to volume-weighted average trading price for the 5 days preceding the grant date• EGM 14 day notice period – Valid until the 2013 Annual General Meeting – Provides flexibility to the Board of Directors• Election of new Board member 21
  22. 22. End of Presentation

×