Annual Statements of Reserves 2017 1
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Point Resources AS Annual Statements of Reserves 2017 1 Annual Statements of Reserves 2017 Point Resources AS 2 Point Resources AS Annual Statements of Reserves 2017 Content 1 Classification of Reserves and Resources 3 2 Reserves, Developed and Non-Developed 4 3 Description of Reserves 6 3.1 Producing Assets 6 3.1.1 Balder 6 3.1.2 Ringhorne 8 3.1.3 Ringhorne East 9 3.1.4 Brage 10 3.1.5 Snorre 11 3.1.6 Bøyla 12 3.1.7 Hyme 13 3.2 Development Projects 14 3.2.1 Bauge 14 3.2.2 Fenja 15 4 Contingent Resources 16 5 Management’s Discussion and Analysis 17 Point Resources AS Annual Statements of Reserves 2017 3 1 Classification of Reserves and Resources Point Resources reserve and contingent resource volumes have been classified in accordance with the Society of Petroleum Engineer’s (SPE) Petroleum Resources Management System (PRMS). This classification system is consistent with Oslo Stock Exchange’s require- ments for the disclosure of hydrocarbon reserves and contingent resources. An overview of the classification system is illustrated in the figure below. SPE reserves and classification system (PRMS) Prouction L A I REReSEsReVrvEeSs C R E M M 11P 2P 3P ) O C P I IIP I P P y ( Proved Probable Possible t D li E a i CE R E c A r V L e P - CO L COCNoTnINtinGEeNntT N S I A I - I D Y RESOURCEresourcesS L RC Comm E L A f M I o T M I O 11CC 22C 33C e N I C c - B M an U U h S E C L UNRECOVERABLE O R ng i T s a P PROPrSoPsEpCTIVEectie PE L PII A RESreOsURCESources cre D T n I E O R T VE LLooww BBeesstt HHiigghh O EEssttiimaattee EEssttiimaattee EEssttiimaattee UNDISC UNRECOVERABLE Not to scale Range of Uncertainty 4 Point Resources AS Annual Statements of Reserves 2017 2 Reserves, Developed and Non-Developed The reserves estimates produced by Point Resources with a valuation date of 31.12.2017 have been certified by an independent reserves auditor, AGR Reservoir Services. Point Resources has a working interest in eight assets containing reserves. Within the reserves category, there are six producing assets, one of which is shut-in awaiting an upgrade on the Njord facility, and three development projects. These assets are listed in the table below. Overview of assets containing reserves FIELD/PROJECT INTEREST (%) OPERATOR RESOURCE CLASS COMMENT Developed Reserves Balder 100.00 % Point Resources Producing New – Acquisition from Exxon Ringhorne 100.00 % Point Resources Producing New – Acquisition from Exxon Ringhorne East 77.38 % Point Resources Producing New – Acquisition from Exxon Brage 12.26 % Wintershall Producing Snorre 1.11 % Statoil Producing Bøyla 20.00 % Aker BP Producing Hyme 17.50 % Statoil Non-producing Shut in awaiting Njord upgrade Undeveloped Reserves Bauge 17.50 % Statoil Approved for development Snorre exp. project 1.11 % Statoil Approved for development Ringhorne 100.00 % Point Resources Approved for development Ringhorne East 77.38 % Point Resources Approved for development Fenja 45.00 % VNG Justified for development FID taken end of year 2017 Point Resources AS Annual Statements of Reserves 2017 5 Total net proven and probable reserves (2P/P50) for Point Resources as of 31.12.2017 is estimated at 193.5 million barrels of oil equivalents. The corresponding estimate for net proven reserves (1P/P90) is 148.4 million barrels of oil equivalents. The split between oil, gas and NGL is given in the table below. 1P and 2P reserves, gross and net, by asset 1P 2P GROSS GROSS GROSS GROSS GROSS GROSS OIL GAS NGL GROSS OE NET OE OIL GAS NGL GROSS OE NET OE AS OF 31.12.2017 INTEREST (%) MMBOE MMBOE MMBOE MMBOE MMBOE MMBOE MMBOE MMBOE MMBOE MMBOE On Production Balder 100.00 % 38.5 0.5 0.0 39.1 39.1 48.2 0.7 0.0 48.8 48.8 Ringhorne 100.00 % 19.3 0.0 0.0 19.3 19.3 24.1 0.0 0.0 24.1 24.1 Ringhorne East 77.38 % 18.3 0.0 0.0 18.3 14.1 22.8 0.0 0.0 22.8 17.7 Brage 12.26 % 20.9 4.4 2.8 28.1 3.4 26.1 5.5 3.5 35.1 4.3 Snorre 1.11 % 275.9 0.0 0.0 275.9 3.1 392.0 0.0 0.0 392.0 4.3 Hyme 17.50 % 4.5 1.9 1.3 7.7 1.3 8.2 3.5 2.4 14.0 2.5 Bøyla 20.00 % 5.8 0.2 0.0 6.0 1.2 8.1 0.3 0.0 8.4 1.7 Total 383.3 7.0 4.0 394.3 81.6 529.5 9.9 5.8 545.3 103.4 Approved for Development Brage 12.26 % 34.4 8.3 8.1 50.8 8.9 49.6 11.6 11.8 73.0 12.8 Snorre Expansion 1.11 % 152.3 0.0 0.0 152.3 1.7 175.7 0.0 0.0 175.7 1.9 Ringhorne 100.00 % 18.7 0.1 0.0 18.8 18.8 26.7 0.2 0.0 26.9 26.9 Ringhorne East 77.38 % 5.2 0.0 0.0 5.2 4.0 7.4 0.0 0.0 7.4 5.7 Fenja 45.00 % 55.4 14.4 4.6 74.4 33.5 69.1 19.7 6.3 95.1 42.8 Total 266.0 22.8 12.8 301.5 66.8 328.4 31.5 18.1 378.0 90.1 Total Reserves 649.3 29.7 16.8 695.8 148.4 857.9 41.4 23.9 923.3 193.5 The table below shows the reconciliation of reserves between the current reporting and the previous year’s reporting at an aggregated level. Reconciliations for 1P and 2P reserves NET MILLION BARRELS OF OIL EQUIVALENTS 1P/P90 2P/P50 Balance as of 31.12.2016 9.6 14.0 Year 2017 Production -17.5 -17.5 Acquisitions/Sales of reserves 107.5 134.3 Discoveries, additions and extensions 42.5 55.7 Revisions of previous estimates 6.3 6.9 Balance as of 31.12.2017 148.4 193.5 6 Point Resources AS Annual Statements of Reserves 2017 3 Description of Reserves 3.1 Producing Assets This section gives a short summary of the producing fields in the Point Resources portfolio. 3.1.1 Balder Asset overview 1°40'E 2°E 2°20'E 2°40'E Balder field is an oil field located in the North Sea in blocks 25/10 59°30'N Alvheim and 25/11 within production licenses PL 001 and PL 028. The Jotun A water depth in the area is 125 m and the reservoir depth is around FPSO 1700 m TVD MSL. Discovery Bøyla Ring- The Balder field was the first discovery in the Norwegian North Sea horne in 1967 by well 25/11-1. This was the second well drilled on the East Norwegian Continental Shelf (NCS). This field has a long explora- Ringhorne 59°15'N tion and production history and consists of a complex petroleum system with hydrocarbons in Paleocene and Eocene reservoirs Balder Fields & Discoveries Point Licenses Reservoir 0 5 10Km The Balder field is a low-relief structural/stratigraphic trap with complex remobilized/injected Paleocene/Eocene deep water sands (mounds) with a common OWC across the field. There is strong aquifer support and a gas cap in the main part of the field. extension program has been initiated extending the lifetime of The field shows excellent reservoir quality and a relatively viscous Balder from 2025 to 2030. oil at 3 cP (23°API). Gas is reinjected if the gas export system is inoperative and gas lift is essential. Status Development 20 wells are on production, where nine of them are cyclic produc- ers due to a high water cut. The main drilling has been performed The Balder field is produced from five subsea sites tied back to the in three phases. The last of these campaigns drilled ten wells in Balder FPSO, where the oil and gas is processed. Gas from Balder the period of 2013 to 2016, eight of which are currently active is routed to the Jotun FPSO for final processing and sales, while producers. the oil is offloaded from the Balder FPSO to shuttle tankers. The illustration on the next page shows an illustration of the Balder The Balder oil has an imposed penalty due to the salt and water infrastructure complex. content above specifications and a project with an objective to optimize and improve the processing facility is ongoing. The Jotun FPSO is assumed to be removed from site in March 2020 and from this date gas sales will be terminated, and all The Balder FPSO processes and services Ringhorne and Ringhorne gas will be used for injection, gas lift and fuel/flare. Ringhorne East through a highly integrated area comprising Balder, Ringhorne production will be rerouted to the Balder FPSO where the gas and Jotun production facilities. The further utilization of the Jotun handling/compression capacity at Balder will be a bottleneck FPSO beyond abandonment of the Jotun Field is now in the (42 MMScf/d) and therefore constrain oil production. A lifetime planning phase. License shares for the Balder field Licences Point Resources PL 001 & PL 028 100.00 % Point Resources AS Annual Statements of Reserves 2017 7 Jotun A Jotun B r as 12 l ort elne elne 2m m Ringhorne R as assle elne 2m 10 est 12 l State as lft Grane Pipeline Balder Site as lft lne m 12 l lnes m Fer ot ale 2A as A1AH elne 2m SS aler to otun A-8H 1 A21AH2 SS A-5BH 22 10 A2 2AH2 2A A-4CH Site D Site A m 10 R A22AH2 SS as lne AA A27AH 12 A20 C-3FH 12 17A 1AH Site 11 2 7A Site 1 l Water Susea l ells Susea as ells as ft Rear as ut of Serve Susea ater ells A Susea ells The Balder infrastructure complex.