The changing face of the North Sea – Be in a position to profit

With more than half the region’s reserves still under the North Sea seabed, many challenges and opportunities remain!

- Get updated on current North Sea reserves and geological potential in UKCS and NCS
- Identify how you as a stakeholder can prepare for the future:

1. M&A strategy
2. Decommissioning consolidations

- How are enhanced recovery methods changing the economics of North Sea operations?
- Learn how future investment, infrastructure and taxation changes are revive industry interest
- Challenges and differences for Norwegian and UK operators

Professor Alex Kemp, Professor of Petroleum Economics

University of Aberdeen

Tom Einar Rysst-Jensen, Head of Commercial Analysis, Business Development Oil & Energy, Norsk Hydro ASA

Norwegian and UK regulatory perspectives on North Sea E&P

Learn about the ongoing efforts made by regulatory bodies from the UK (DTI) and Norway (NPD) to ensure maximisation of E&P activity in the region.

- Discover the various governmental actions taken to improve investment conditions
- Understand the differences between available licenses and their application processes

- Hear about the rise of new entrants from abroad and how to overcome barriers to entry

- Differing regulatory environments in UKCS and NCS:

                        Tax, decommissioning and HSE

- Benefit from a complete picture of how to access infrastructure on Norwegian and UK sectors

Simon Toole, Director of Licensing, Exploration and Development Department, DTI

Kjell Agnar Dragvik, Director, NPD

In May – June 2004 Intrepid Energy completed the sale of several subsidiary packages of North Sea properties, including its interest in the Buzzard Field.   This auction sale attracted great interest on the part of industry participants from around the world and yielded great returns to the U.S. institutional investors.  

Christine Wheeler, architect of the original Intrepid structure, joins Keith Hughes, Intrepid's principal outside counsel, in discussing the structuring and particular challenges of the divestment process.

Christine Wheeler O.B.E., Christine Wheeler & Associates Limited 

L. Keith Hughes, Partner, LeBoeuf, Lamb, Greene & MacRae

North Sea finance - "A view from the City"

As the North Sea matures and the Majors reduce their presence, the need for exploration, development and acquisition finance is growing. New entrants need to raise their proposal "above the pack". To do so they must understand:

- Who is likely to provide finance?

- What types of finance are available: entry capital, "mezzanine" finance and bank debt

- What finance providers look for: The "deal-screening checklist"

- What challenges do smaller companies in particular face?

Steve Mills, Head of Oil & Gas, The Royal Bank of Scotland

STRATEGIC INVESTMENT:
MAXIMISING YOUR BUSINESS OPPORTUNITIES

Changing ownership through Mergers, Acquisitions and Disposals

Discover the impact of changing ownership in the North Sea:

- Find out the current distribution of asset ownership and how to acquire assets

- Profit from portfolio growth opportunities - Which fields are available or will soon be?
- Hear about the emergence of the Independents and future opportunities for expansions
- Explore your disposal options as a Major

Michael Tholen, Economics & Commercial Director, UKOOA

Case Study: Making your North Sea investment decision

What challenges do new entrants from abroad face when beginning a North Sea project:

- Learn how Newfield managed and overcame barriers to entry

- Get fully updated on investment opportunities available and learn how best to prepare and execute your business plan

- Find out how you can best define your investment strategy

- Discover the pros and cons of different national economic and operating environments

William Schneider, Vice President, International

Newfield Exploration Company

Case Study:  Innovation in financing to increase North Sea portfolio worth

Reach Exploration's short term objective is to rapidly build a portfolio of carried equity interests without recourse to external debt or equity funding. Miles will focus on the Reach strategy of building value by acquiring acreage, applying geoscience skills and subsequently farming out attractive drilling opportunities to third party oil and gas companies whilst retaining significant upside potential through carried interests.  

Case Study: Growth opportunity through acquisitions in the North Sea

Discover a new business model for the North Sea that creates new development opportunities by investing both technical expertise and venture capital to prolong producing life and unlock the value of brown-field fallow and stranded assets. Hear how key stakeholders benefit from this model:

•  Government,

•  Asset owner partners

•  Service industry

•  Investors

Tom Reynolds, Partner, Energy Development Partners

BOOSTING PROFITS THROUGH SMART COMPLIANCE

North Sea project finance – The tax implications

Before securing project finance for either corporate or asset acquisitions, ongoing capital expenditure or for abandonment obligations it is important the related tax implications are considered and understood. Ensure you consider and plan for the following issues:

- Thin capitalisation

- Transfer pricing (new UK to UK rules)

- Tax rate at which related project finance will be relievable

- Requirements to maintain individually agreed Oil Taxation Office ratios

- Specific tax anti-avoidance rules

Derek Leith, Head of Oil & Gas Taxation, Ernst & Young

Case Study: Small field decommissioning issues  - Lessons learnt from North Sea experience

Although decommissioning has been active for many years, the facilities removed have been small.

- Gain valuable tips on how to minimise the financial and environmental impact of your decommissioning

- Estimate the cost of decommissioning and overcome the challenge of financial security

- Understand the obligations of decommissioning; What are the hidden factors?

- Challenges facing new owners entering the North Sea in the short- and long-term

Trevor Jones, Subsea Project Engineer, Shell Exploration & Production

Bob will describe how new entrants and their financial backers are influencing the ownership of the UKCS, what they contribute to the industry, why the major players are vitally important to the long term and why the old and new must work in harmony

Chairman’s Welcome & Opening Remarks

Chairman: Christopher J.Prior, Partner

LeBoeuf, Lamb, Greene & MacRae

Case Study: Finance checklist - A North Sea operator's perspective

Accurately forecast your capital needs to best serve the appropriate finance structure for your projects.

- Learn ho to estimate your various costs:

Exploration, production and decommissioning

- Hear what type of finance is available and which best fits your company profile
- Best practices in relationship building with investors in order to be regarded as a viable business

- Acquire and assign different types of finance to shareholders' expectations

Gordon Stein, Finance Director, Acorn Oil & Gas

Case Study: Securing Funds - What matters most?

Learn what it takes to succeed in the competitive market of raising project finance for the North Sea:

- What investors look for

• credit history
• the right project
• a good business plan
• a highly professional management

- Establish a good relationship with your finance provider

- Use more than one source of funding to negotiate better deals

- How to overcome barriersof raising finance

Andrew Amour, Chairman, Revus Energy

Gunnar Halvorsen, Partner, HitecVision

Private Equity in the region - How accessible is it?

There have been a limited number of private equity investments made in the sector - why is that?

Understand the criteria that a private equity house will look for in an investment proposal and the issues faced when raising private equity in the North Sea.

- Find out how private equity has shaped the North Sea's future

- Discover how you can secure private equity funding

- Understand how the provider will help you develop and structure your business

Simon Munro, Principal, Lime Rock

Case Study: North Sea asset debt finance - the options available

- Discover the nature of funding available

- Ensure you get the right debt / equity balance

- Understand the importance of the funding mix

- Hear about the typical loan & security structures

- Explore the funding strategies for upstream producers

James Pope, Director, Project & Structured Finance, Calyon

Panel Discussion: Accurately evaluate your financing options - How do you get where you want to be?

Delegates are actively encouraged to participate in this discussion. Please submit questions for the panellists to christine@eyeforenergy.com: a randomly-selected questioner will receive a free ticket to a future EyeforEnergy Conference.

Andy Hirsch, Finance Director, Gaz de France Britain

Andrew Amour, Chairman, Revus Energy

Morton Kreuz, Senior VP, Head of Energy Finance, DnB NOR

Simon Munro, Principal, Lime Rock

FORECAST AND MANAGE YOUR RISK FOR LONG-TERM STABILITY

Case Study: Protect your profit margin through precise asset valuation

Investors, lenders and industry participants must be able to properly identify, assess, and value opportunities to enhance their competitive advantage.

- Learn about the different valuation techniques to accurately and quickly value assets

- Maximise your profits by bidding the right price for your asset

- Understand all aspects that could impact the value of your asset

- Find out how concessions, pricing and decommissioning influence asset worth

Andy Crouch, CEO, Gaffney, Cline & Associates

The benefits and drawbacks of energy price risk management

Oil producers are divided over the value of hedging oil prices - Are investors looking for high returns and high risk, or more stable revenues?

- Find out how much hedging can actually boost an oil producer's value

- Hear how futures can manage your oil price risk

- Discover who is hedging and at what cost

- Listen to the arguments for and against hedging in light of your company type, size and production locations either on UKCS, NCS or globally

Alexandra Merz, Vice President, Commodities,

Deutsche Bank AG London

Nicolas Tjandramaga, Director, Commodities,

Deutsche Bank AG London