2009 Interim Results Presentation 23 rd March 2009 2 Interim - - PowerPoint PPT Presentation

2009 interim results presentation
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2009 Interim Results Presentation 23 rd March 2009 2 Interim - - PowerPoint PPT Presentation

2009 Interim Results Presentation 23 rd March 2009 2 Interim Results Analyst Presentation March 2009 Disclaimer Important Notice Nothing in this presentation or in any accompanying management discussion of this presentation (the "


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SLIDE 1

Interim Results Analyst Presentation – March 2009

2009 Interim Results Presentation

23rd March 2009

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SLIDE 2

Disclaimer

Important Notice Nothing in this presentation or in any accompanying management discussion of this presentation (the "Presentation") constitutes, nor is it intended to constitute: (i) an invitation or inducement to engage in any investment activity, whether in the United Kingdom or in any other jurisdiction; (ii) any recommendation or advice in respect of the ordinary shares (the "Shares") in Bowleven plc (the "Company"); or (iii) any offer for the sale, purchase or subscription of any Shares. The Shares are not registered under the US Securities Act of 1933 (as amended) (the "Securities Act") and may not be offered, sold or transferred except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any other applicable state securities laws. The Presentation may include statements that are, or may be deemed to be "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "seeks" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions These forward-looking statements include all matters that are not historical facts They include statements regarding the Company's intentions

Interim Results Analyst Presentation – March 2009

  • intentions. These forward looking statements include all matters that are not historical facts. They include statements regarding the Company s intentions,

beliefs or current expectations concerning, amongst other things, the results of operations, financial conditions, liquidity, prospects, growth and strategies of the Company and its direct and indirect subsidiaries (the ‘Group’) and the industry in which the Group operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Group’s actual results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In addition, even if the Group’s results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, are consistent with the forward-looking statements contained in the Presentation, those results or developments may not be indicative of results or developments in subsequent periods. Recipients of the Presentation are advised to read the admission document dated 1 December 2004 issued by the Group (as supplemented by subsequent prospectuses issued by the Company and subsequent announcements by the Company to Regulatory Information Services) for a more complete discussion of the factors that could affect future performance and the industry in which the Group operates. In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the Presentation may not occur. Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in the Presentation.

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Agenda

  • Introduction

Kevin Hart CEO

  • Exploration

Ed Willett & Development Exploration Director

Kevin Hart

Interim Results Analyst Presentation – March 2009

& Development Exploration Director

  • Financials

Peter Wilson Commercial Director

  • Outlook and Q&A

Kevin Hart

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Ed Willett Peter Wilson

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Highlights

Group highlights are as follows:

  • Receipt from third party of possible cash offer for

Company of 150p per ordinary share

  • Farm-out discussions ongoing
  • PSC for Etinde Permit signed on 22 December 2008
  • Acquisition of 2D seismic data over Epaemeno

P it l t d

Interim Results Analyst Presentation – March 2009

Permit completed

  • Appraisal drilling locations identified on IE, IF and IM

fields in Block MLHP-7

  • Etinde block-wide technical evaluation demonstrates

substantial low risk exploration portfolio in addition to discovered resource

  • Significant progress towards monetisation of

Cameroon gas reserves, including appointment of Gaz de France Suez to undertake feasibility study

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Exploration Update

Interim Results Analyst Presentation – March 2009

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Ed Willett, Exploration Director

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Cameroon Update

Bomono Permit 100%

  • OLHP 1 & 2
  • 2,328 km²
  • PSC signed 12 Dec 2007
  • First term ends 11 Dec 2012
  • 500km seismic & one well

commitment

Interim Results Analyst Presentation – March 2009

commitment Etinde Permit 100%

  • MLHP 5,6 & 7
  • 2,314 km²
  • Etinde PSC signed on 22 Dec

2008

  • Exploration period extended by

three years from date of signing

  • 200km² 3D seismic and one well

commitment

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MLHP-5 & 6 Prospect and Lead Inventory

Interim Results Analyst Presentation – March 2009

  • Prospect inventory significantly enhanced with detailed

subsurface review of Block 5 & 6

  • Exploration focus on Miocene channelised turbidites and

Cretaceous lower slope turbidite deposits

  • 18 Prospects & Leads identified across the two blocks
  • Miocene predominately gas-condensate play (D1-r)
  • Cretaceous oil play

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Wet GIIP (bcf)* CIIP (mmbbl)† STOIIP (mmbbl) Delta‡ 175 10 Kappa 75 Lambda 12 1 Qof 595 33 Phi-chi 451 25 Psi 158 9 Pi 44 2 B t W

MLHP-5 & 6 Prospect and Lead Inventory

(Unrisked Mean In Place volumes)

Interim Results Analyst Presentation – March 2009

Beta W 88 Beta E 117 Beta S 417 e-Epsilon 17 1 e-Alpha 30 sub-Epsilon 1793 99 supra Zeta 350 19 Zayin 113 6 Zeta 295 16 Tau 296 16 Sigma 248 14

TOTALS 4547 251 727

*includes NGLs, which comprise condensate and LPGs .

† Condensate estimated at 55bbl/mmscf ref D-1r. ‡D1r Discovery is 40bcf mean in place resources additional to Delta prospect volumes.

Well location Source: IHS Energy Noble Energy O5 ‘Carmen’ Oil Discovery .

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MLHP-7 Isongo and Biafra Inventory

Isongo Gas Condensate Fields - Isongo Marine, IC, ID and IE. IE successfully appraised by Bowleven in 2007. Characterised by Isongo Prospects - Multiple undrilled structural culminations associated with existing discoveries. Low risk and high potential.

Interim Results Analyst Presentation – March 2009

Characterised by rich condensate yield – CGR of 70 to ~140. Isongo Oil Discovery - IF – Bowleven 2008. Tertiary sourced 35°API oil transforms prospectivity and value of acreage. Biafra - Shallow dry gas accumulations at Manyikebi and IE plus additional prospectivity. Oil shows in IM-1. Isongo Leads - Significant additional emergent prospectivity.

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IE Field

Hydrocarbons encountered over a large part of the well – 800 feet from top Volcanics to OWC at 6548 feet MD. A A’ A

IF-1R Discovery Mean 137mmbbl STOIIP

MLHP-7 IF Discovery & Appraisal

UpsideVolume IF-1r Discovery

IF-Appraisal

(proposed) IE-2z IF-1 IF-1R

IF Field

Interim Results Analyst Presentation – March 2009

  • Approx. 1km

Cartoon section for illustration – scale approximate

~200 feet oil column confirmed by pressure data

  • IF structure is a SE continuation of the IE structural trend
  • IF-1 discovered gas with oil shows in Aug 2007
  • IF-1r cored and tested the Isongo Formation in May 2008
  • IF-1r DST 3371bopd 35°API oil, 1.6mmscf assoc. gas
  • IF discovered Mean STOIIP 137mmbbl
  • IF South Exploration upside STOIIP 142mmbbl

Proposed location allows multiple target selection depending on vertical well results.

IF South Prospect 142mmbbl STOIIP

A’

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MLHP-7 IE Field

A A A’ IE-2z MDT confirms column height of

  • 113m. Pressure data

defines two 2m sand bodies ~30m above the main Isongo Sand 1 are

IE Field

IE-2z IF-1 IF-1R

IF Field

Interim Results Analyst Presentation – March 2009

  • IE-1 drilled in 1981 encountered dry gas in the Biafra and Gas-

Condensate in the Isongo section

  • IE-2z appraisal drilled in Feb 2007 encountered 41m net pay
  • Gas-Condensate contact 2289m TVDSS
  • Test 31mmscfd gas, 3730bbld condensate (CGR 140bbl/mmscf)
  • Discovered Mean WGIIP* 463bcf, 105mmbbl NGL†

A’

  • Approx. 1km

Cartoon section for illustration – scale approximate

IE Field *includes NGLs †Natural Gas Liquids (NGL) include condensate & LPGs

Sa d a e condensate bearing and in pressure communication with the main reservoir. IE-2z core across GWC.

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MLHP-7 Isongo Marine Field

Middle Isongo Depth Map A’ A A A’ IM-3 is the only well in the field to test the

IC-1 IM-1 Manyu-1 ETM-1 IM-C

(Proposed)

Interim Results Analyst Presentation – March 2009

  • IM-1 was the first well in the block (Oct 1967) discovered gas

condensate, with Biafra oil shows

  • 3 additional wells drilled from 1971-1981 discovering and

appraising GC in the Upper and Middle Isongo

  • IM-4 DST 11.4mmscfd, 827bcpd (CGR 72.5bbl/mmscf)
  • Discovered Mean WGIIP* 348bcf, 18mmbbl NGL †
  • Exploration upside WGIIP* 823bcf, 35mmbbl NGL †

A in the field to test the Mid-Isongo reservoir encountering Gas- Condensate. Majority of the exploration upside for IM is associated with the Middle Isongo Formation IC-1 DST 3 confirms hydrocarbons in Middle Isongo. Test results 57°API at separator, 39°API at 10/64” choke.

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*includes NGLs †Natural Gas Liquids (NGL) include condensate & LPGs

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Block MLHP-7 Oil/Gas Resource

(Mean Volumes Initially In Place)

Dry GIIP (bcf) Wet GIIP* (bcf) NGL† (mmbbl) STOIIP (mmbbl) Isongo Marine Field* 348 18 Isongo E Field* 80 463 105 Isongo D Discovery* 8 1 Isongo C Discovery* 77 5 Isongo F Discovery 137 Manyikebi* 56 Total Discovered 136 896 129 137

Interim Results Analyst Presentation – March 2009

Resource 136 896 129 137

*includes NGLs, which comprise condensate and LPGs. †NGLs include LPGs for ID & IE only

Isongo F South 142 Isongo Marine Exploration 823 35 Isongo D Exploration 158 35 Isongo C Exploration 274 6 Isongo E Exploration 16 23 5 Isongo G Cluster 349 8 Total Exploration Resource 16 1627 89 142

Total MLHP 7 Resource

152 2523 218 279

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IF-1r DST Flare

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OLHP 1 & 2 (Bomono) Overview

Bomono Permit 100%

  • Blocks OLHP-1 and OLHP-2
  • Area : 2328 km²
  • PSC signed 12 Dec 2007
  • First term ends 11 Dec 2012
  • 500km seismic & 1 well

commitment C t ti iti

Interim Results Analyst Presentation – March 2009

  • Current activities
  • Acquiring airborne

gravity/magnetics survey

  • Preliminary scouting for

seismic acquisition late 2009/2010

  • Number of onshore oil seeps ( )

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OLHP 1 & 2 (Bomono) Overview

  • Field work conducted to locate old wellheads and

ascertain access routes into interior

  • EIA for airborne operations approved by Ministry of

Environment 29th Jan 2009

  • Aero-gravity/magnetics operations now underway

Interim Results Analyst Presentation – March 2009

  • started 12th Feb 2009
  • 53% complete at 16th March 2009
  • Seismic planning (2D) with field scouting for 2010

acquisition program initiated

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Development Update

Interim Results Analyst Presentation – March 2009

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MLHP 7

IM IE IC Manyikebi ID

  • Five gas/condensate fields

and one oil discovery

  • Mean Contingent Resources:

MLHP-7 Contingent Resources

Interim Results Analyst Presentation – March 2009

MLHP 7 MLHP 6 MLHP 5

IF

  • 628 bcf gas*
  • 62 MMbbls condensate
  • 41 MMbbls oil
  • Total 208 mmboe

*LPGs included, not separately assessed

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MLHP 7

IM IE IC Manyikebi ID

MLHP-7 Current Development Potential

Isongo Marine Isongo E & Isongo D

Gas Recycling Development

  • One appraisal well
  • Sanction anticipated 2010
  • 1st Production targeted 2013
  • Potential future

tieback to IE/ID

Interim Results Analyst Presentation – March 2009

MLHP 7 MLHP 6 MLHP 5

IF

Isongo F

Oil Development

  • One appraisal well and

sidetrack

  • Sanction anticipated 2010
  • 1st production targeted 2013,

with potential to be as early as 2011

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MLHP-7 Current Development Potential

IF Standalone

MLHP 7

IM IE IC Manyikebi ID

Limbé

Gas Pipeline

New oil processing & export facilities Limbé Refinery and Power station

Interim Results Analyst Presentation – March 2009

MLHP 7 Field Oil mbbl/d Gas Export mmscf/d Development wells IF 15-20 16-22 3-4 IF WHP Platform 6-Slot Wellhead

IF

20 Oil Export

  • Offshore WHP, onshore processing
  • Mean STOIIP 137 mmbbls, RF 30%, 40 mmbbls

recoverable reserves

  • 1 appraisal well $25 to $30 million; $40 to $50 million

including side track

  • Plateau production 17 mbpd with First Oil 2H 2011
  • 4 development wells $25 to $35 million each ( real 2009)
  • Total Capex $350 to $400 million (real 2009)
  • Annual Opex $15 to $20 million (real 2009)
  • Etinde historic costs to end 2008 $235 million
  • Oil Fiscal Terms
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MLHP-7 Current Development Potential

IF Oil with IM-ID-IE Gas Condensate Development – Possible Synergies

MLHP 7

IE ID IM IC Manyikebi

Gas Injection Pipeline

Potential tie-in of Isongo-Marine gas-condensate IE WHP Platform

Limbé

New oil processing & export facilities Limbé Refinery and Power station

Interim Results Analyst Presentation – March 2009

MLHP 7 IF WHP Platform 6-Slot Wellhead

IF

IE WHP Platform 9-Slot Wellhead Field Oil/NGLs Mbbl/d Gas Export MMscf/d Gas Production MMscf/d Development Wells

Producers Injectors

IF 15-20 (oil) 16-22

  • 3-4

ID-IE 15-25 (NGL)

  • 130-150

3-5 2-3 TOTAL 30-45 (liquids) 16-22 130-150 6-9 2-3 21 Multiphase pipelines from fields to FPSO for fluid separation, gas compression and living quarters MLHP 5

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Cameroon Gas Development

GdF Suez Feasibility Study / Bioko Island Train

  • SNH appointed GdF Suez in November 2008 to

undertake a feasibility study to advance their principal objectives of:

  • Securing supply for the Cameroon domestic

market

  • Developing a direct export LNG scheme to

maximise value to Cameroon and ensure LPG and NGL recovery

Interim Results Analyst Presentation – March 2009

  • Tentative schedule:

Scoping Q3 2008/Q1 2009 pre-FEED Q2 2009 to Q4 2009 FEED Q4 2009 to Q4 2010 FID by end 2010

  • GdF

Suez have held initial meetings with upstream operators and are scheduled to report back on initial scoping after Q1 2009

  • Further progress on the Train 2 LNG expansion

project, Bioko Island, Equatorial Guinea

View of Mt Cameroon from Etinde Permit IF-1r well DST Flare

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Gabon Update

Interim Results Analyst Presentation – March 2009

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Gabon Overview

Epaemeno Permit 50%

  • Block G4-211, 1340 km²
  • Second term ends August 2010

(50% relinquishment)

  • Third period expires Aug 2013
  • Addax (Operator); Bowleven

conducting G&G work through to

Interim Results Analyst Presentation – March 2009

well locations under TSA

  • $10m (net) exploration carry, $8m

(net) development carry East Orovinyare Permit 100%

  • Block G5-92, 105 km²
  • Exploitation permit over entire block

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Gabon - Epaemeno

Omko-1 (20MMbbl)

A A’

Interim Results Analyst Presentation – March 2009

  • Multiple potential reservoir targets:
  • Gamba/Dentale Sandstones (Traditional play)
  • Basal Sandstone (Evolving play)
  • Kissenda Sandstones (New play)
  • Post-Salt play
  • New seismic program exploring pre-salt plays

Tsiengui (145MMbbl) Obangue (55MMbbl) Koula (75MMbbl) Avocette (265MMbbl) Onal (180MMbbl)

2P STOIIP source: IHS Energy

Riviere Perdue-1

A A’

Rembo Kotto (60MMbbl) Assewe (18MMbbl)

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Gabon - Epaemeno

Seismic Survey

  • Seismic operations commenced July 2008
  • Seismic programme completed Jan 2009
  • Total 747km 2D seismic acquired
  • First pass seismic processing underway
  • Initial observations show marked

improvement of existing data

Interim Results Analyst Presentation – March 2009

1.5 Sec TWT

  • Interpretation due to be completed mid 2009.
  • Drilling during 2010 dry season

Airborne Survey

  • Airborne gravity-gradiometry survey undertaken in dry-

season 2008

  • Integrated and quantitative interpretation study to be

completed end Q2 2009 New Epaemeno 2D seismic line (first pass processing) Pre-Salt structure readily identifiable.

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Gabon – EOV Field

  • PSC signed for EOV Permit Area in February 2004
  • Field located 6 miles offshore in 65ft of water
  • Four development wells already drilled though a

central template

  • The jacket is complete. The Topsides are approx

80% complete. Both in Louisiana.

Interim Results Analyst Presentation – March 2009

30km 10km

27 p

  • During 2008:
  • Conducted thorough sub-surface review
  • Finalised development concept
  • Agreed an option for the use of FPSO “Knock

Taggart” for a fee of $2.5 mln

  • EOV development now on-hold due to small size of

development and current oil market conditions.

  • Focus on North West Kowe prospect to add block

resources

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A A A’ Azile Depth Map

Gabon – EOV Permit – NW Kowe

Interim Results Analyst Presentation – March 2009

  • Simple tilted fault block structure
  • Multiple stacked reservoir targets with robust closures
  • Targets include the Batanga, Pt. Clairette, Anguille, Azile, and

Cap Lopez turbidite sands of the Upper Cretaceous

  • Closure areas ranges from 2km2 to 15km2+
  • Largest undrilled prospect in block
  • Possible synergy development with EOV
  • Mean STOIIP 190mmbbl (in penetrated targets)

A’

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Finance

Interim Results Analyst Presentation – March 2009

Peter Wilson, Commercial Director

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Interim Results Summary

for the 6 months ending 31 December 2008

  • Profit of $82.7 million in period (2007: loss of $6.6 million)
  • Loss of approximately $5.5 million after excluding finance income (primarily foreign exchange differences on

intra-group funding under IFRS)

  • Net assets of $364 million at period end
  • $49 million cash invested in fixed assets

Interim Results Analyst Presentation – March 2009

Trident IV on IF-1r well summer 2008

30 $49 million cash invested in fixed assets

  • Net cash resources of $38 million at 31 December 2008
  • Current cash position of approximately $29 million
  • Funded for committed work programme
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Outlook

Interim Results Analyst Presentation – March 2009

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Outlook

2009 OBJECTIVES

  • Drill further appraisal wells on IE and IF structures
  • Progress IE/ID, IF & EOV development projects towards sanction

Interim Results Analyst Presentation – March 2009

  • Build on our new technical work with further high impact exploration drilling in both Cameroon and Gabon
  • Investigate exploration potential of onshore acreage in Cameroon and Gabon
  • Secure funding flexibility to pursue opportunity rich portfolio
  • Farm-out discussions ongoing

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Interim Results Analyst Presentation – March 2009