DEA at a Glance

Established in Germany in 1899, DEA Deutsche Erdoel AG (“DEA”) is an international exploration and production company producing natural gas and crude oil, with a regional focus on Northwestern Europe and with selective investments in North Africa. Headquartered in Hamburg, Germany.

The company holds 2P reserves of 575mmboe as of 2015YE. DEA produced an average of 156kboe/d for LTM ended June-16, generated LTM June-16 revenues of EUR1,868m, EBITDAX of EUR1,015m and had net debt/EBITDAX of 1.6x.

DEA is wholly owned by LetterOne, a private Luxembourg-based investment vehicle and was acquired in March 2015 from RWE for a consideration of USD5.5 bn.

Recent Developments Since New Operatorship

During 2015 DEA refocused its portfolio towards Northwestern Europe:

  • Successfully farmed down its stake in both concessions of the West Nile Delta to 17.25% (from 40% of the North Alexandria Concession and 20% of the West Mediterranean Deep Water Concession)
  • Acquired E.ON E&P Norge AS, adding 94 mmboe of 2P reserves and 50 kboe/d to 2015 production, and concurrently completed the sale of its UK assets to INEOS (net increase of 31 mmboe net 2P reserves and 28 kboe/d of production)

In 2016, DEA continues to focus on executing its strategy and optimising its capital structure:

  • In June, DEA increased its available limit under the Reserve Based Lending (RBL) Facility
  • In September, DEA received its inaugural ratings of BB- by S&P and BB by Fitch and issued its debut €400m Senior Unsecured Notes due 2022
  • In October, DEA sanctioned its own-operated Dvalin development project in Norway

Looking Ahead

  • Production of key development projects, the West Nile Delta (Egypt) and the Reggane Nord (Algeria) is expected to commence in 2017
  • DEA will continue to manage its asset portfolio to achieve an optimal balance of growth and cash flow generation

DEA Strategy

  • Grow production and execute key projects
  • Increase company value through balanced organic & inorganic growth
  • Focus on costs and capital efficiency
  • Deliver high QHSE standards and sustainability of operations

Reserves (WI)

Germany/Denmark Norway Egypt/Algeria
144 mmboe 214 mmboe 217 mmboe

Production (WI):

Germany/Denmark Norway Egypt/Algeria
40 kboe/d 74 kboe/d 42 kboe/d

Germany & Denmark

Largest oil producer in Germany with total oil and gas production(1) of 38kboe/d. Key assets include: Mittelplate/Dieksand (50% WI) – largest oil field in Germany, Völkersen (100% WI) – second largest gas field in Germany

Norway

Over 40 years of track record with 74kboe/d of production(1). Key assets include: Skarv (28.1% WI), Snorre (8.57% WI), Dvalin (40% WI)

Egypt & Algeria

Presence of over 40 years in Egypt with 42kboe/d of production(1). Key assets include: West Nile Delta (17.25% WI), Disouq (100% WI), and Reggane (19.5% WI)

 

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(1) Average for last twelve months as of June 30th, 2016, pro forma of E.ON Acquisition and UK Disposal

All reserves are as at 31 December 2015, >99% were audited