First quarter 2014 results

The development of the Ivar Aasen field is progressing according to plan. Det norske is the operator of the field and has a 35 percent ownership interest. The field will be developed with a fixed steel jacket, platform deck and living quarters. In March 2014, construction of the living quarters commenced at Stord. The Ivar Aasen field extends into the neighbouring licence 457, located due east of Ivar Aasen, resulting in a larger development. Negotiations related to the distribution of ownership interests in the field are ongoing; these are due to be completed in June.

The Johan Sverdrup field

A development concept for the Johan Sverdrup field was agreed in February. The field will be developed in several phases. The first phase includes process platform, drilling platform, riser platform and living quarters, and the field centre has been designed so as to facilitate capacity for future development. The first development phase has capacity for production of more than 70 percent of the field’s resources. The production capacity in the first phase will be between 315,000 and 380,000 barrels of oil equivalents per day. Statoil announced that the field contains between 1,800 and 2,900 million barrels. The total investment in the first phase is estimated at between NOK 100 and 120 billion.

The Johan Sverdrup field extends into three licences. Negotiations pertaining to the distribution of ownership interests are expected to be completed in the first quarter of next year, which is also when the Plan for development and operation of the field is to be submitted. Start-up of production from the Johan Sverdrup field is expected in the fourth quarter of 2019.

Discoveries

Det norske participated in two new discoveries in the first quarter; in the Trell and Langlitinden prospects. Langlitinden was the company’s first own-operated well in the Barents Sea. The Trell well was completed in licence 102F in February. A 21-metre gross oil column was encountered. Tests indicated good production properties. Det norske is a partner in the licence, with a 10 percent ownership interest. The licence partnership will evaluate the discovery further, together with other prospects in the licence.

The Langlitinden well in licence 659 in the Barents Sea encountered oil-bearing sand of Triassic age. Extensive testing has been carried out, indicating poor production properties. Det norske does not assess the volumes in the well to be commercially recoverable. Det norske holds a 20 percent ownership interest in production licence 659.

Production

Det norske produced 260,569 barrels of oil equivalents in the first quarter of 2014, averaging 2,895 barrels per day. More than half of the production, 1,458 barrels per day, originates from the own-operated Jette field, where Det norske has a 70 percent interest. The average realised oil price in the period was USD 107 per barrel.

Other events

Det norske was awarded six new licences in the APA round in January, of which two as operator. All licences are located in the North Sea. Gro G. Haatvedt will take up her position as Senior Vice President Exploration in Det norske during the second quarter.

Financials

Det norske reported NOK158 million (80) in revenues in the first quarter. Exploration expenses amounted to NOK 110 million (234), contributing to an operating loss of NOK 101 million (251). Net financial costs were NOK 60 million (32). The net result for the period was NOK 21 million (-20), after tax income of NOK 182 million (262).

The equity ratio as at end of Q1 2014 was 31 percent (42).

Summary of financial results and operating performance

MNOK= NOK million	Q1 14	Q4 13	Q3 13	Q2 13	Q1 13	2013
Jette (boepd), 70%	1 458	2 710	4 378	3 594	0	2 683
Atla (boepd), 10%	750	1 031	981	1 446	1 253	1 177
Varg   (boepd), 5%	500	412	377	398	425	403
Glitne (boepd), 10%	0	0	0	0	43	11
Enoch (boepd), 2%	0	0	0	0	0	0
Jotun Unit (boepd), 7%	188	175	204	175	209	191
Total production (boepd)	2 895	4 328	5 940	5 613	1 929	4 463
Oil and gas production (Kboe)	261	398	547	511	174	1 629
Oil price realised (USD/barrel)	107	109	112	103	112	107
Operating revenues (MNOK)	158	254	324	286	80	944
EBITDA (MNOK)	-12	-400	-348	-127	-216	-1 091
Cash flow from production (MNOK)	112	151	269	227	37	684
Exploration expenses (MNOK)	110	544	588	271	234	1 637
Total exploration expenditures (expensed and capitalised) (MNOK)	151	400	581	373	306	1 659
Operating loss (MNOK)	-101	-1 182	-518	-277	-251	-2 227
Net profit/loss(-) for the period (MNOK)	5	-329	-158	-41	-20	-548
No of licences (operatorships)	77 (27)	80 (33)	74 (30)	72 (30)	69 (28)	80 (33)

Investor contact: Jonas Gamre, Investor Relations Manager, tel.: +47 971 18 292

Press contact: Torgeir Anda, VP Communication, tel.: + 47 99 11 22 03

See a live webcast from the presentation from 08:15 a.m. at the company website – www.detnor.no/en. Find the report and presentation attached.