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Building Trust Among Investors. Thank you Gunnar Eckbo and congratulation with introducing the price on Iceland. Rabbe Lund Chairman of a Swedish/ Norwegian oil company, board member world leading geosciences company and an Oil service company. Building Trust Among Investors.

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Building trust among investors
Building Trust Among Investors

  • Thank you Gunnar Eckbo and congratulation with introducing the price on Iceland.

  • Rabbe Lund Chairman of a Swedish/ Norwegian oil company, board member world leading geosciences company and an Oil service company.


Building trust among investors1
Building Trust Among Investors

Trust not an easy concept (eg shipowner story)

Trust: One in which confidence is placed (Webster)


Building trust among investors2
Building Trust Among Investors

  • Investors : Different types requires different treatment.

  • Examples: INC,TGS, PA


Building trust among investors3
Building Trust Among Investors

  • PA Resouces AB Oil and gas company founded 1994

  • Listed Norway and Stockholm, >8000 shareholders

  • Market cap. almost 1000 mill USD

  • Winner on Oslo Børs the last three years

  • Focused independant, innovative, international E&P company

  • Objective: Deliver Profit and Growth


Company assets and locations of operation
Company assets and locations of operation

Norway:

- 1 development project - 1 exploration and discovery

- 8 exploration licenses

Tunisia:

- 6 producing fields

- 2 discoveries

- 4 exploration assets

Equatorial Guinea:

- 2 exploration assets


Field development norway

Volve

Operator Statoil (49,6%), PAR (10,0%).

Production from 3 wells through a drilling& processing platform (jack-up rig) with a capacity of 80 000 bbls/d liquid. The processed oil is stored in a FSO .Expected peak production ca 50 000 bbls/d.

Production start Q2-2007

Recoverable reserves ca 70 MBOE as per PDO 2005.

Field development - Norway


Development of the company production history 1998 2005
Development of the company- Production history, 1998 - 2005


Production forecast
Production forecast

Avarage production per day, BOE/day


Strengths and opportunities
Strengths and opportunities

  • Strong Reserve Base - Not dependant on exploration success to grow production

  • As one of the largest oil producers in Tunisia, we have a solid platform for further expansion in the region

  • In-house knowledge and competence

  • Large industrial network - Strong deal flow

  • An increasingly strong cash flow

  • Access to capital markets


Building trust among investors4
Building Trust Among Investors

  • Experiences:

  • Create interest in the company

  • Be visible and invest a lot of time in road shows and IR, Let the president talk.

  • Get profiled investors and at least several finance houses to follow the stock.

  • Use the finance houses that serve you well

  • Get highly financially competent board members with power in the financial market


Building trust among investors5
Building Trust Among Investors

  • Get board members with serious investment in the company and willingness to invest in new issues

  • Board and managment must develop clear objectives and strategies together and communicate it.

  • Guide intelligently

  • Follow Corporate Governance

  • Face the brutal facts


Building trust among investors6
Building Trust Among Investors

  • Use the media, internet, shareholder presentations each quarter.

  • Make good presentations, quarterly and annual reports

  • Meet investors in person -trust is a feeling

  • Few investors buy and hold -you need to meet potential investors all the time. Professional investors/fund is short term driven. You have to feed them all the time.

  • Target the prefered investor composition as you move along

  • If you may grow out of your current corporate advisors capacity, target the next level in time so capital can be raised fast if a golden opportunity present itself.


Building trust among investors7
Building Trust Among Investors

  • Build brick on brick

  • Always make new issues at higher level than the previous

  • Have good capital structure and sufficient funds for a rainy day

  • Show that you follow your strategy, maintain financial control, have great ideas, act on it and create value

  • Your trust building is a key issue for the Board – develop an alert list.


Building trust among investors8
Building Trust Among Investors

  • Conclusion:

  • You can fool investors once, but to build a company you need their continuous support. Then you need to earn their trust by creating shareholder value as you move along

  • THE ONLY WAY TO DO THAT IS TO PERFORME AND DELIVER WHAT YOU PROMISE


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