Statoil ASA to acquire North American Oil Sands Corporation - Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

LARS SORENSEN, SVP, STATOIL: Ladies and gentlemen, welcome to this conference call regarding Statoil's bid for North American Oil Sands Corporation. This morning at 8:30 CET, Statoil reported to its shares in Oslo that we made a bid for North American Oil Sands Corporation. I'd like to -- I'd like you to note the statement that we have in the presentation that we're using and then with me here in Oslo I have Statoil's President and Chief Executive Officer, Officer Helge Lund who will give a short presentation before we go to Q&A.

So if you go to page number three in the presentation, please, and then, Helge, please?

HELGE LUND, CEO, STATOIL: Thank you, Lars. Welcome and thank you for listening in. The acquisition of North American is an important strategic step for Statoil as it gives access to a large resource base, supports our growth post-2010 and I think also it's significant that it is within also the area. You've heard of develops that our heavy oil portfolio -- strengths our marketing position in North America as well. It allows us to develop a large resource base in a sustainable manner. I believe it will create value while enriching Statoil's core competencies made through more than 30 years experience from the Norwegian Gulf net and continental shelf and national.

The overview of the transaction you can see on page three. We made an offer to buy all the shares in North American Oil Sands Corporation for CAD 20 per share. The total value of the transaction provided all shareholders accept the offer means some acquisition talk to be about US $2 billion. The board of directors in the company has recommended to shareholders to accept the offer from Statoil and Statoil has also entered into an agreement with the three largest shareholders in North America how they're already -- get their acceptance to sell their holdings at the offered price. This means that presently 69% of the shares have already accepted the offer.

On the 15th of May, stockholders will receive the takeover bid circular later will be made the documents to all remaining shareholders in North American transaction. We expect to close the transaction just before the end of second quarter 2007. If you go to the next page, a quick overview of the company. North American is a private Calgary-based company formed in 2001. The company was formed to acquire off priced sands leases and to do their allotment integrated bitumen extraction and upgrading project. Currently North American employs around 90 people. North American operates all the leases. They are the holders over how strict close to 100% average equity interest in the leases. It is estimated that the leases in North American portfolio currently holds around 2.2 billion pounds of recordable resources. The given day application, they're not on new technology and given progress ratio alone there's potential for an upgrade of these estimates.

The licenser demonstration project is due to start producing late 2009 or a period in 2010 and this demonstration project will produce some 10,000 barrels per day and serve as the basis for the sanctioning of future development of the portfolio. Based on the present of natural project and production is estimated to reach a plateau of around 200,000 barrels per day at the end of the next decade. We continue on to page five, a quick look at Canadian extra heavy oil. Canada is the largest heavy oil province in the world and the second largest heavy oil province in the world on the surface of Arabia. The hit ratio in Canada is based on the combination of royalty and tax and we think it's significant also that the Canadian oil tax fees are in proximity to the largest oil consuming market in the world. And of course the price of extra heavy oil has increased its importance over the later years and is becoming an important part of the overall production.

Turning to page six, Statoil has been delivering crude oil and floaters from the (inaudible) to the US and Canada for more than 20 years. Currently they are delivering around 600,000 barrels per day into the US or the North American market. We have extended our presence in North America during the last five years with a position in the market and d terminal in Maryland and in 2005 we acquired the portfolio in the Gulf of Mexico from EnCom. We move into Canada by acquiring North American secure resources which we can start booking as our transaction from the portfolio. Statoil secures steel and national operating shifts are a considerable slice and we believe that the acquisition plays well into the capabilities of Statoil.

Turning to the next page, for more than 30 years operations we achieved class increased oil property results and competent in extracting from ten oil layers and advanced to their lot in using cutting edge grading and reservoir technology. Good more, Statoil has developed some of the largest and most complex projects in the industry, mostly offshore. But we have also developed gas incentives, pipelines, refineries, and the plant in the artic. We have done this in close concentration to the environment while creating an all sustainable operation. We are classified as the best oil and gas company that uses sustainable development in the Dow Jones sustainability index for the third year in a row. I would like to underline also that Statoil has operations in all parts of the value shay reservoir to the end customer and we operate some of the largest offshore and land based facilities in Europe.

Furthermore, this acquisition with the experience we have gained through decades of work with the [haviar] project in the (inaudible) that we're operating together with (inaudible) and Deceault. Moving on to the next page, portfolio of heavy oil leaves. First of all, they operate a large resource base with concrete development plants. Secondly, the serves are active and they're well used over - and thirdly they will get production from the first contact already in 2009, 2010. Now mid next decade we have the opportunity to producing 100,000 barrels per day at end of next decade production in the area of 200,000 per day. All the leases are reserves and debt …