An Exciting New Year

This article originates from the news archive of Det norske.

18. December 2008

2009 will be an exciting year for Det norske oljeselskap ASA. At the beginning of the year, the Company will have NOK two billion available in cash, after the sale of  license interests in Goliat and Yme. At the beginning of the year, the Company will have NOK two billion available in cash, after the sale of  license interests in Goliat and Yme.

During the year, Det norske will be the operator of nine wells, and in total participate in 12-14 exploration wells. The exploration programme is financed independently of the sales revenue from Goliat and Yme, with a budget of NOK 1,4 billion. The high level of activity consolidates Det norske’s position as the most competitive Company on the Norwegian Continental Shelf. Det norske also emerged as a winner in the Awards in Predefined Areas (APA) 2008 licensing round. Det norske were offered seven new licenses, with the role of operator in five of these.

Approaching 2009, Det norske has no long term interest-bearing debt, and NOK two billion in cash and cash equivalents. With revenue from production, the Company will have financial muscle to do business for many years to come.

Vidar_Bergo_LarsenVidar B. Larsen is Det norske´s VP Business Development. He is pleased that the sale of licenses in Goliat and Yme now is approved by the authorities.

– Even though we have sold off our licenses, it is not because we do not believe in these projects. According to our strategy, we have chosen to prioritize other projects and the search for new discoveries. We are concentrating our efforts in areas where we can create greatest value for society. This includes areas where the company is facing important tasks, as in Frøy, Jotun and Draupne, and further exploration in the Barents Sea and the Norwegian Sea.

Larsen points to the fact that the value of good licenses is not affected in a considerable way by the sharp decline in oil prices, nor from the financial crisis.

Vidar B. Larsen and Anton Tronstad look forward to an exciting year for Det norske in 2009. Larsen is VP Business Development and Tronstad is VP Drilling and Well Operations. Photo: Thor Nielsen

Vidar B. Larsen and Anton Tronstad look forward to an exciting year for Det norske in 2009. Larsen is VP Business Development and Tronstad is VP Drilling and Well Operations. Photo: Thor Nielsen

The oil industry is by nature a long-term business, and can therefore maintain high operational activity in a downward economic trend. This is at least our competitive attitude. At the same time, the sales also illustrate the assets in Det norske’s portfolio.

Frequent drilling
Det norske, in 2009, has an extensive exploration programme. The company will operate nine exploration wells, and in total participate in 12-14 exploration wells.

The cost of the exploration programme will be NOK 1,4 billion and is already fully financed.

The first well is Freke, in early January. The plan, as of today, is to follow with Eitri, Struten and Fongen. Later, in the autumn, Jetta is on the agenda. Bredford Dolphin and Deep Sea Delta are both drilling for Det norske. In summer Aker Barents will start with Geitfjellet as its first operation.

Anton Tronstad is VP Drilling and Well Operations.

– I look forward to a year with high drilling activity. We are experienced operators, and the activities in 2009 confirm our position as an efficient organization. It is important to confirm our worth and assets through discoveries. The extensive exploration programme may confirm this.

Det norske a winner in the Licensing Round
Det norske oljeselskap emerged as a winner in the Awards in Predefined Areas (APA) 2008 licensing round. Following this award, Det norske has ownership in 46 licenses and is operator for 26 licenses.

As many as 47 companies applied for acreage in the APA 2008 round. In total, Norwegian authorities have offered 34 licenses to 40 companies, with 19 companies being offered a role as operator. Det norske has been offered ownership in seven licenses, and the role as operator in five of these.

Vice President Exploration in Det norske, Tom Bugge, is very pleased with this result.

-The offer is in line with what we applied for. This will strengthen our position in the Jotun- area, the southern North Sea and in the Norwegian Sea. I see this as a declaration of confidence in the work we do. Based on this, we can further develop Det norske as the most aggressive explorer on the Norwegian shelf. Frankly, I am overwhelmed by the positive reaction we have received for our application.

The license offers include two commitment wells. In other licenses Det norske will perform initial work before any drilling decision is made.

About Det norske (DETNOR`):
Det norske is the second-largest operating company on the Norwegian Continental Shelf with 23 operatorships and interests in a total of 43 licenses (before the APA 2008). Det norske is the operator of the Frøy Field development and will also operate eight to nine exploration wells in the North Sea and Norwegian Sea during 2009. Det norske’s scope of activities is limited to the Norwegian Continental Shelf (NCS).

Det norske currently employs a staff of more than 130, and the strong growth rate continues. The company`s registered office is located in Trondheim. The company also has offices in Oslo, Harstad, and Stavanger.