Spectrum at The Pareto Oil & Offshore Conference 4 th September 2013 Jan Schoolmeesters, COO
CAUTIONARY STATEMENT This presentation contains both statements of historical fact and forward looking information. Any forward looking information is based on management assumptions and analysis and are subject to risks and uncertainties that are difficult to predict as they relate to events and/or circumstances in the future. Actual results and events may differ materially from those expected or projected in the forward looking statements. Spectrum undertakes no responsibility or obligation to update or alter forward looking statements.
Spectrum in a Nutshell : Spectrum is a pure-play «Asset Light» Multi- Client Seismic provider to the Oil & Gas Industry 210 employees, including 80 experienced Geophysicists One of the largest Marine 2D Multi-Client library to the E&P industry: 1.3 mill kms MC2D marine seismic First MC3D acquired September 2012 2010 2012 : New Management team in place Market Cap NOK 1.6 billion (USD 260 million) Yellow areas indicate Spectrum seismic data coverage Offices Oslo London Houston Perth Cairo Beijing Singapore Jakarta Rio de Janeiro*
Spectrum s Focus and Strategy Grow the company through organic project development combined with acquisition of strategic data libraries.
Full Year 2012 Highlights Net Revenues MUSD 117, up 129% from MUSD 51 in 2011 Operational Cashflow (before MC-investments) MUSD 95 in 2012 MC Investments MUSD 79 in 2012; up 45% from MUSD 54 in 2011 Paid 2012 dividend of NOK 0.60 per share in May 2013 MUSD Gross Revenue MUSD Net Revenue
H1 2013 Financial Highlights H1 Net Revenues MUSD 89, up 95% from H1-12 H1 MC Investments MUSD 56, up 37% from H1-12 Strong operational cash flow MUSD Gross Revenue MUSD Net Revenue
Areas of High Interest
Focus Area South Atlantic Margin
Brazil Round 11 Summary ANP approved 64 companies to bid 39 of these submitted offers 30 of which successful 12 Brazilian and 18 foreign cos USD 1.3 bln in signing bonuses Min. USD 3.25 bln investment commitments
Brazil & Uruguay Pelotas basin Supported by industry Expecting regular rounds Phase I of 8,600 km acquired Uruguay Supported by industry High exploration activity 3,000 km grid & 1,600 km deepwater
Focus Area Southern Africa Namibia & South Africa Orange Basin High exploration activity 50,000 km available HRT drilling a well in the area
Focus Area South Africa South Africa Durban Basin (9,500 km) Potential analogues to Mozambique and Tanzania BroadSeis survey in partnership with CGG Phase I of 4,500 km completed High technology solution for a challenging imaging area
Focus Area Lebanon Lebanon 3D Supported by industry 3,100 sqkm completed in 2012 2,300 sqkm acquired in Q2 2013 Highly prospective area
Focus Area Lebanon Lebanon round update Round opened 2nd May 2013, but delays due to two Petroleum laws still to be passed: Block delineation Production Sharing terms Lebanon caretaker Government to meet and approve the Petroleum laws in September Q3 and Q4 Revenues from Lebanon dependent on political progress and stability
Focus Area - Croatia Assisting ministry of Economy for its planned license round GAS Mobilizing for a 12,000 km MC2D survey Contract with Ministry signed July 2013 Ties to Spectrum s Italian Adriatic grid Mainly over open, underexplored acreage OIL Prospectivity Significant gas discoveries in the northern Adriatic Proven oil discoveries in the Southern Italian Adriatic and large scale structures present
Focus Area Croatia Licensing round prerequisites New hydrocarbon law in effect on 30 July 2013 Formation of Hydrocarbon Agency to oversee 2014 bid round (in progress) MC2D data available for evaluation Licensing round time table Public announcement 30 August 2013 License round opening during Q2 2014 First concessions to be awarded in 2015 Minister Vrdoljak announcing plans for the Croatian licensing round
Increased focus on North West Europe North West Europe at a turning point for Spectrum Oslo/Stavanger Organization gaining momentum Seamless Seismic growing as new datasets are being released in Norway 3 projects launched in Norway and UK Barents Sea MC2D PH-I Southern Gas Basin UK
North West Europe (cont d) Airborne Multi-Client Survey in newly opened Barents Sea South East 27,700 km airborne gravity, magnetics, seep and experimental GRAVEX No seismic acquisition allowed in 2013, only NPD acquired data in this area. Targeting the 23rd. Licensing Round opening Spring 2014.
Other Rounds Gabon Recent pre-salt deep water discovery Indications for a license round H2 2013 16,856 km available Brazil Pre-salt round Limited to Libra area UK 28 th round Applications from Jan Mar 2014 Marathon s Diaman 1B discovery Norway 23 rd round Focus on Barents Sea South-east
Outlook Robust sales pipeline for H2 2013 with ongoing and upcoming license activity in Brazil, Croatia, Lebanon, and West Africa Lebanon sales influenced by political events Organic growth funded by operational cash flow Unchanged expected Multi Client investment of MUSD 100-120