Aker BP — Investor Presentation 2010

Feb 19, 2010

Fourth Quarter and Preliminary Year-End Presentation

TICKER - DETNOR
-CEO Erik Haugane
-CFO Finn Øistein Nordam

DETNORSKE

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Agenda

• Operations
• Financials
• Development projects
• Exploration
• Outlook & Summary
• Appendix

DETNORSKE

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Highlights since third quarter

• Merger between Det norske and Aker Exploration completed
• Farmed into Dalsnuten in PL 392 from Shell with a 10 percent interest

Exploration

• Discovery on East Frigg Gamma Delta with large in place volumes
• Dry wells on Frusalen, Geitfjellet, Skardkollen and Pumbaa

Production

• Varg – Increased production
• Glitne – Extended production and new production well decided

Awarded 10 licenses and 6 operatorships in APA 2009

Financial key figures for Q4

• Revenues: 74 MNOK
• Exploration expenses: 393 MNOK
• Net profit: -379 MNOK

DETNORSKE

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Production

Producing fields

• Jotun
• Glitne
• Enoch
• Varg
• ~~Varg~~

Key factors

• New infill well A-10A doubled production from Varg
• Good performance from all fields during the quarter

DETNORSKE

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Extended production from Glitne

• New production well to be drilled
• Potential to extend life of field by two to three years
• Earliest shut down - February 2011

Photo: Kjellri Alavik - Statou

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DETNORSKE

Agenda

• Operations
• Financials
• Development projects
• Exploration
• Outlook & Summary
• Appendix

6

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Financial position as of year-end

NOK 19.4 in "net cash" per share

Elements

• Cash and tax receivables for refund in December 2010: 3 634 MNOK
• Interest bearing debt: Short term debt and convertible bond expiring in December 2011: 1 481 MNOK
• "Net cash" position: 2 153 MNOK

DETNORSKE

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Key issues in the Q4-09 accounts

• Merger between Det norske and Aker Exploration
• For accounting purposes Det norske is the surviving company
• Aker Exploration’s accounts included in P&L from 22.12 to 31.12
• Balance sheet as of 31.12.2009 reflects the combined company

• Net write down of NOIL licenses: 264 MNOK
• Reversal of previous write downs related to Glitne and Jotun fields: 99 MNOK
• Net write down in Q4: 213 MNOK

DETNORSKE

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Profit & Loss Q4 2009

MNOK	Q4 2009	Q4 2008	Comment
Operating revenues	73.7	363.9
Exploration expenses	393.0	238.6	See slide 10 for details
Change in inventories	-0.2	-1.3
Production cost	31.4	44.3
Payroll expenses	-4.1	2.2
Depreciation	16.6	32.8
Write downs	213.3	400.4	See slide 8 for details
Other expenses	49.9	8.3
Operating profit/EBIT	-626.2	-361.4
Net financial items	5.2	132.6
Pre-tax profit	-621.0	-228.8
Tax cost	-241.7	-464.4	Reduced tax cost, due to an after tax write down
Net profit	-379.3	235.6

Not audited

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Exploration Expenses Q4 2009

MNOK	Q4 2009	Q4 2008	Comment
Seismic, well data, field studies, etc.	0.9	18.8
Exploration expenses from license participation	58.0	85.8
Expensed capitalized exploration wells previous years	5.1	124.9
Expensed dry wells this quarter	304.8	0.2	Skardkollen, Geitfjellet, Trolla,
Share of salaries and other operating costs	10.7	8.2
Research and development expenses related to exploration activities	13.4	0.7
Exploration expenses	393.0	238.6

Not audited

DETNORSKE

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Balance Sheet 31.12.2009

Assets (MNOK)	Q4 2009	Q4 2008	Comment
Goodwill	697.9	864.3	Includes a 238.6 MNOK write down
Capitalized exploration expenditures	893.5	251.5
Other intangible assets	1 320.5	1 264.6	Includes a 286.6 MNOK net write down
Property, plant and equipment	413.9	298.1	Includes 50.2 MNOK in reversed write down
Other financial assets	18.0	48.4
Pre payments	240,4		Upgrade, intake and mobilization of Aker B.
Total Fixed Assets	3 584.2	2 727.0
Inventories	14.7	14.7
Trade receivables	30.4	583.5
Other short term receivables	393.7	200.4
Short-term deposits	22.0	17.4
Calculated tax receivable	2 060.1	206.8	For refund in December 2010
Cash / cash equivalents	1 574.3	1 468.3
Total Current Assets	4 095.1	2 491.1
Total assets	7 679.4	5 218.1

Not audited

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Balance Sheet 31.12.2009 (cont.)

Equity and Liabilities (MNOK)	Q4 2009	Q4 2008	Comment
Equity	3 850.5	3 691.2
Pension obligations	19.9	16.2
Deferred taxes	1 173.5	907.3	Includes a 261.7 MNOK write down
Abandonment provision	190.8	134.6
Deferred revenues	5.6	45.1
Total Provisions	1 389.8	1 103.2
Derivatives	21.8	0
Convertible bonds	390.6	0	Conversion price of NOK 79.3 per share
Short-term loan	1 090.3	0	Exploration facility in DnB NOR
Trade creditors	261.9	94.3
Taxes withheld and public duties payable	22.6	12.2
Deferred revenues	53.0	0
Other current liabilities	598.8	317.2
TOTAL LIABILITIES	3 828.8	1 526.9
Total equity and liabilities	7 679.4	5 218.1

Not audited

DETNORSKE

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DETNORSKE

Agenda

• Operations
• Financials
• Development projects
• Exploration
• Outlook & Summary
• Appendix

13

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Development projects in the pipeline

Projects

Project	Mill boe (Gross)	Net boepd to Det norske	Possible concept	First Oil/Gas	Det norske's work programme
Frøy	56	15,000	FPSO/jacket or jack-up	2013	Concept screening and pre-FEED ongoing. Revised PDO in 2010.
Draupne/Hanz	68-131	10,000	FPSO	2013/14	Result from appraisal well early Q2 2010.
East Frigg	60-190	5,000	To be decided	2014/15	Support fast track development.
Grevling	40-130	Too early	To be decided	2014/15	Talisman working on discovery report. Appraisal well in Q2 2010.
Fulla	60-105	Too early	Tie-back Heimdal		Await plan for development studies.

DETNORSKE

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Frøy: Jack-up or Geo stationary FPSO

Milestones	2010	2011	2012	2013
Tendering process	◆
Pre feed studies	◆
Contractor selection	◆
PDO approval		◆
First oil				◆

Exploration drilling

• Storklakken, ongoing
• David in PL 102 scheduled summer 2010
• Kalvklumpen in PL 414

Frøy – a 50/50 partnership between Det norske and Premier Oil

DETNORSKE

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Draupne/Hanz

Appraisal well

• Songa Delta at location next week
• Determine reservoir thickness/oil water contact
• Test production characteristics
• Productivity
• Flow barriers

Volume estimates (Mboe) pre appraisal well

Draupne/Hanz licensees

(PL 001B)

Det norske (O) 35 percent
Statoil 50 percent
Bayerngas 15 percent

DETNORSKE

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Øst Frigg Delta – Large in-place resources

• 60 to 190 MBOE in estimated recoverable reserves
• Similar size as the Luno discovery, but better reservoirs
• About 2/3 oil and 1/3 gas
• Relatively high viscosity oil

• High IOR potential

• Frøy (15 km) to the South, Heimdal (36 km)

License ownership	(PL 442)
Statoil (O)	40 percent
Det norske	20 percent
Svenska Petroleum	40 percent

DETNORSKE

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Agenda

• Operations
• Financials
• Development projects
• Exploration
• Outlook & Summary
• Appendix

DETNORSKE

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Det norske drilled 13 wildcats in 2009

Large unexplored areas

Operators of the 45 wildcats in 2009

DETNORSKE

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Exploration in 2009 – 6 discoveries in 13 wells

DETNORSKE

• Det norske has in 2009 used app. 440 MOK after tax to find more barrels than its share in Goliat
• Significant value creation despite a relatively disappointing exploration year

Indication of exploration margin

*USD/NOK 6,0 & 440 MNOK in after tax exploration expenditures

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The Dual Exploration Strategy

DETNORSKE

A dual exploration strategy
- Det norske aims at discovering up to 50 million barrels in mature areas annually
- In addition to this – Det norske will participate in larger and more risky plays

A majority of Det norske's exploration drilling in 2010 will take place in the North Sea

Two exploration plays in the Norwegian Sea
- In deepwater areas Det norske will hunt for large discoveries. This play is characterised by prospects with classic traps and three prospects are ready to drill (green label)
- Shallow water exploration is characterised by more sophisticated exploration models, stratigraphic traps etc. Det norske is performing a review after five dry wells in these areas (yellow label) and the remaining prospects (orange label) are put on hold

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Storklakken – Potential tie-in to Frøy

• To be drilled by Aker Barents in Q1-10
• Potential volumes P90/P10
• 9-27 mboe
• Key risk
• Reservoir properties
• Area information
• Water depth 115 meter
• Frøy 20 km
• Heimdal 20 km

License ownership (PL 460)
Det norske 100.0 percent

DETNORSKE

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Targeting the most prolific acreage

• Discovered volumes indicates
• Vintage acreage is more prolific than TFO acreage
• Frontier acreage better than TFO acreage, but higher risk
• Det norske actively pursues farm-in opportunities in vintage acreage and 21st round

Awarded exploration acreage

Discoveries last year

DETNORSKE

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21st licensing round

• We will actively pursue Norwegian Sea and Barents Sea opportunities

DETNORSKE

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Drilling schedule

• The drilling schedule is dynamic and frequent changes may occur

DETNORSKE

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Balder Triassic

• Balder Triassic
• Key risk: Reservoir trap
• To be drilled by Aker Barents
• Spud scheduled in April 2010
• Oil is proven in two previous exploration wells related to the prospect

New well and possible side track

License ownership (PL 028)

• ExxonMobil (O)
• 60 percent
• Det norske
• 40 percent

DETNORSKE

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Det norske farms into Dalsnuten (PL 392)

• 10% to Det norske by carrying parts of Shell's exploration costs

• PL 392 – Many prospects with DHI

• Main prospect Dalsnuten
• Unrisked resources estimated at 600 Mboe
• Main risk is presence of reservoir
• 3D seismic completed
• To be drilled by Aker Barents
• Spudding in May 2010
• Located northwest of Gro-discovery
• Water depth 1 350 to 1 500 meters

License ownership	(PL 392)
Shell (O)	30 percent
ConocoPhillips	20 percent
BG	20 percent
Statoil	20 percent
Det norske	10 percent

DETNORSKE

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DETNORSKE

Agenda

• Operations
• Financials
• Development projects
• Exploration
• Outlook & Summary
• Appendix

28

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Outlook & Summary

Dual exploration strategy

• 2010 will be dominated by North Sea exploration and appraisal wells
• Evaluate 2009 Norwegian Sea campaign -> More focus on deepwater prospects

Field developments

• Projects running in parallel; Frøy, Draupne/Hanz
• Development scenarios being considered for Gamma-Delta, Fulla and Grevling

Financials

• Current exploration program is fully funded through 2012
• New 4,500 MNOK exploration facility in place

Rig

• Aker Barents and Songa Delta enables substantial exploration programme in 2011 and 2012

2010: Det norske will continue to discover new petroleum resources and start our first field development

DETNORSKE

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DETNORSKE

NEST STØRST PÅ NORSK SOKKEL

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Disclaimer

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DETNORSKE

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Agenda

• Operations
• Financials
• Development projects
• Exploration
• Outlook & Summary
• Appendix

DETNORSKE

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2010 Prospect overview

| 2010 | Interest % | Gross unrisked potential
MBOE (P50) | Operator |
| --- | --- | --- | --- |
| PL 460 Storklakken | 100% | 25 | Det norske |
| PL 028 Balder_trias | 40% | 65 | ExxonMobil |
| PL 337 Storkollen | 45% | 65 | Det norske |
| PL 102 David | 10% | 25 | Total |
| PL 341 Stirby Upper Base Case | 30% | 150 | Det norske |
| PL 332 Optimus | 40% | 25 | Talisman |
| PL 392 Dalsnuten | 10% | 600 | Shell |
| PL 408 Storkinn | 100% | 20 | Det norske |
| PL 468 Dovregubben | 100% | 200 | Det norske |

DETNORSKE

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Largest shareholders

Rank	Name	Shareholding	Percentage
1	AKER CAPITAL AS	44,944,180	40.4
2	DNO INTERNATIONAL AS	12,95,4478	11.7
3	ODIN NORGE	2,793,112	2.5
4	DNB NOR SMB VPF	1,830,000	1.6
5	ODIN NORDEN	1,669,727	1.5
6	HOLBERG NORGE	1,566,857	1.4
7	SPAREBANKEN MIDT-NORGE	1,360,762	1.2
8	KØRVEN AS	1,076,370	1.0
9	KLP LK AKSJER	1,032,884	0.9
10	DEUTSCHE BANK AG LONDON	1,028,414	0.9
11	VILJE 2M AS	961,041	0.9
12	KOTENG HOLDING AS	949,867	0.9
13	SJÆKERHATTEN AS	923,939	0.8
14	VINN INVEST AS	922,288	0.8
15	ODIN OFFSHORE	904,585	0.8
16	MORGAN STANLEY & CO	796,843	0.7
17	JP MORGAN CHASE BANK	662,237	0.6
18	VPF NORDEA KAPITAL	618,297	0.6
19	HOLBERG NORDEN	610,790	0.5
20	PACTUM AS	561,331	0.5
1-20	TOTAL	78,168,002	70.35

DETNORSKE