Third Quarter Earnings Announcement
November 16th 2005
A focused E&P company - with game changing technology
Agenda
1. Q3-2005 in a nutshell => Rocksource on track!
Activities
Financials
2. General Update
3. Technology Update
4. Closing Remarks
Activities
Activities Q3On the positive side:• Successful fund raising => 260 MNOK
• Jaguar – rig contracted, drilling start Q1-2006– EM postponed, but may be decided later depending on drilling results
• Ghana – a reinforced Joint Venture– SunTera – operator and 50% participating interest– Rocksource – up from 20 to 30% participating interest
• Colombia – 2D seismic survey according to plan– Organizing a competitive Joint Venture in progress
• Recruitment– High potential core team in place
• Technology– In good progress
Activities Q3 - continued
On the negative side:
• Delayed production build up from New Ace
– Shut down due to maintenance of gas pipeline
– Production restart problems
– Delayed – not lost production
Financials
Profit & Loss
All figures are stated in NOK 1,000
30.09.2005 Q3 2005 Q2 2005
Total operating income
Total operating cost
Operating result
Net financials
4 108
25 990-21 883-1 741
2 325
10 910-8 585-1 218
1 743
10 093-8 350
-580
Result -23 623 -9 803 - 8 930
EPS diluted (NOK) -0,073 -0,026 -0,030
Balance Statement - key figures
All figures are stated in
NOK 1,000
30.09.2005
(IFRS)
2004
(IFRS)
Intangible assets
Goodwill
Oil and gas properties
Furniture and office machines
Fixed assets
Total receivables
Bank deposits
Current assets
110
154 563
10 104
228
165 005
251 905
49 857
301 762
41
117 534
947
85
118 607
1 009
25 544
26 553
TOTAL ASSETS 466 767 145 160
Total equity
Total liabilities
441 694
25 073
142 342
2 818
TOTAL EQUITY AND LIABILITIES 466 767 145 160
Cash Flow - key figures
All figures are stated in NOK 1,000 30.09.2005
(IFRS)
Q3 2005
(IFRS)
Q2 2005
(IFRS)
Net cash flow from:
operating activities
investing activities
financing activities
exchange rate changes (cash)
-25 117-10 220
59 588
63
-11 150-286
0
-4
-7 135-10 215
59 588
50
Net change in cash 24 313 -11 440 42 288
Cash at start of period
Cash at end of period
25 544
49 857
61 297
49 857
19 009
61 297
Production and Revenue
Production and Revenue 30.9.2005 Q3 2005 Q2 2005
Quantity:
Oil, barrels
Gas, million cubic feet
Revenue [1,000 USD]:
Oil
Gas
1,962
60.5
103.7
527.9
854
31.1
49.8
309.7
1,108
29.0
53.9
216.0
Total Revenue 631.6 359.6 269.9
Average prices:
Per barrel of oil
Per 1,000 cubic feet of gas 52.87
8.73
58.37
9.96
48.6
7.44
General Update
Rocksource shareholders – top twenty 15.11.05
Name of shareholderNumber of
shares %DNO ASA 66 569 014 12,7 %DEXIA BANQUE INTERNA SEC.DEPT. 38 264 317 7,3 %DAG DVERGSTEN AS 32 153 421 6,1 %STIFTELSEN UNIVERSITETSFORSKNING BERGEN 29 500 000 5,6 %JONNY HESTHAMMER AS 21 200 519 4,0 %BALANCED ROCK AS 21 200 519 4,0 %SKEIE GROUP AS 18 425 428 3,5 %THOMAS A. COLLINS 16 474 504 3,1 %ARVE JOHNSEN 12 542 758 2,4 %FIDELITY FUNDS-EUR. SM. 12 508 400 2,4 %JAN SJØLIE 9 683 054 1,8 %GOLDMAN SACHS INTERN EQUITY 9 316 922 1,8 %THE C.R.BEARDEN FAM. 9 299 966 1,8 %MARTIN BEKKEHEIEN 8 850 000 1,7 %ARVE JOHNSEN AS 8 850 000 1,7 %SEB LONDON A/C CLIENTS ACCOUNT 6 698 000 1,3 %DANSKE BANK SETTLEMENTS 6 698 000 1,3 %FAMHOLD AS 5 220 398 1,0 %SEB NOMINEE 4 865 000 0,9 %FIDELITY FUNDS-NORDIC 3 963 800 0,8 %Top 20 shareholders 342 284 020 65,1 %Others 183 873 714 34,9 %Total 526 157 734 100,0 %
Rocksource Team
• Management – CEO Martin Bekkeheien– Deputy CEO Jan Sjølie– CFO Tommy Sundt– CTO Exploration Jonny Hesthammer – CTO Production John Howell– Vice President Business Dev. Trygve Pedersen– Vice President E&P Projects Gregor Maxwell
• Board of Directors– Chairman Arve Johnsen– Vice Chairman Mimi K. Berdal – Board member Dag Dvergsten– Board member Berge Gerdt Larsen– Board member Anne-Grete Ellingsen
Business Structure
Rocksource ASA
Oil and Gas Technology Minerals and Metals
Rocksource Energy CorporationTexas, 100%
Rocksource Energy CorporationTexas, 100%
Rocksource Geotech AS100%
Mesaloma SAEcuador
100%
Rocksource Vision and Strategy
Rocksource is an E&P company – not a service company. This strategy ensures that our technology and know how is leveraged in the best interest of our shareholders.
By utilizing advanced EM technology and know how as leverage, the Rocksource team is committed to build an attractive portfolio of E&P assets and generate future cash flow.
We shall deliver significant risk reduction and increased success rates in exploration through the use our EM tool box and know how.
Value proposition to other E&P companies
A value adding partner – contributing with:
• Risk and cost reducing EM technology and know how
• Own deal flow in frontier areas
• Capital
Business model - E&P portfolio development
• Farm ins in E&P licenses
• Application for new exploration licenses in frontier areas
• Tail end production – EOR and reopenings
• Cooperation with seismic companies
What makes Rocksource a different player?
1. Significant risk reduction in exploration
2. State of the art integrated processing and interpretation of– Geology– Seismic and ElectroMagnetic data
3. EOR – Enhanced Oil Recovery– Reservoir modelling– EM into production– Long term collaboration with CIPR
Milestones
• Rocksource Geotech core-team in place in new offices 15.11
• Restructuring of Ghana consortium 27.10
• Private Placement of NOK 260 mill 06.09
• Deal with DNO ASA on Jaguar field, UKCS 16.08
• Application for E&P licenses offshore Ghana 16.08
• Seismic data acquisition offshore Colombia – InSeis 22.06
• Private placement of 29,6 million shares – Fidelity 15.06
• JIP / Statoil, Interaction – Technology Development 02.06
• New CEO 01.06
• Acquisition of Rocksource Geotech 31.05
• New Ace field – farm in deal with Sandhawk 13.04
Technology Update
Closing Remarks
Future Success Indicators
Partnerships with E&P companies
Partnerships with seismic companies
Early access to data in frontier areas
Revisiting mature areas: Existing seismic + EM
High performing core teams
Bringing EM onshore and into production
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