Bank of America Merrill Lynch 10 th Annual Oil & Gas Investor - - PowerPoint PPT Presentation

bank of america merrill lynch 10 th annual oil gas
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Bank of America Merrill Lynch 10 th Annual Oil & Gas Investor - - PowerPoint PPT Presentation

Bank of America Merrill Lynch 10 th Annual Oil & Gas Investor Forum 4-6 April 2011 p Disclaimer Important Notice Nothing in this presentation or in any accompanying management discussion of this presentation (the " Presentation ")


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SLIDE 1

Bank of America Merrill Lynch 10th Annual Oil & Gas Investor Forum 4-6 April 2011 p

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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 constit te (i) an in itation or ind cement to engage in an in estment acti it hether in the United Kingdom or in an other j risdiction (ii) an 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 y g gy, g , , p , p j , p , , y , , "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,

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 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. In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the Presentation may not

  • ccur. 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.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 2

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SLIDE 3
  • il & gas

Opening Remarks

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SLIDE 4

Vision & Strategy

Vision “It is our vision to build an African focused exploration and production company which in time becomes renowned for its ability to consistently create and realise y y material shareholder value through exploration led

  • rganic growth and niche acquisitions.”

Strategy – Regional Focus on West Africa

  • Strategy focused on creating and realising value through

material exploration success.

  • Seek value adding partnerships as appropriate.
  • Fostering strong external partnerships and in-country

relationships.

  • Strong technical and management teams with successful

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 4

track record.

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SLIDE 5

Company Overview

Two operating areas: Cameroon and Gabon

  • 7 Blocks (5 in Cameroon and 2 in Gabon).

Company Assets ( )

  • 4 offshore shallow water, 3 onshore.
  • 6 operated, 1 non operated.
  • Overall P50 contingent resource base 213 mmboe* (net).

g ( )

  • Extensive 3D & 2D seismic database; expanded significantly

during 2010 (Bomono & Etinde).

  • Substantial prospect inventory being developed across

portfolio portfolio.

  • Extensive multi-well drilling campaign ongoing on Etinde.

Corporate

  • Group cash balance $189m at 31 December 2010; additional

$35m pending on EOV disposal.

  • Bowleven (operator) 75% Etinde Permit

† (25% Vitol*).

W ll l d t f d 2011 k i ifi t fi i

  • Well placed to fund 2011 work programme; significant financing

flexibility.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 5

* Source: Interim Report – Six months to 31 December 2010. † Etinde Permit comprises MLHP 5,6 & 7. *Vitol option (10% of MLHP-7 only)

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SLIDE 6

Company Overview

Extensive multi-well drilling programme underway in Cameroon

Asset Strategy Asset Strategy

  • Exploring the Douala Basin in Cameroon.
  • Including Tertiary and Cretaceous-Turonian plays,
  • ffshore shallo

ater

  • ffshore shallow water.
  • To move resources to reserves on Etinde Permit.
  • Appraisal activity on IE and IF; targeting transfer of

>100mmboe (gross). (g ) Forward Plan

  • Exploration/Appraisal drilling of Tertiary fairways on MLHP-5*.

p pp g y y

  • High impact exploration drilling targeting the Douala Basin

Cretaceous prospectivity.

  • Exploration drilling on Bomono and MLHP-6*.
  • Appraisal activity, including drilling, on MLHP-7*.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 6

*Etinde Permit comprises MLHP-5, MLHP-6 and MLHP-7.

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SLIDE 7

2011 Etinde Forward Plan

  • Appraisal of Sapele-1 discoveries.
  • Sapele 1ST and Sapele 2 currently drilling (appraisal of Omicron

Sapele Forward Plan

  • Sapele-1ST and Sapele-2 currently drilling (appraisal of Omicron

fairways).

  • Preparing for testing at Sapele-1ST.
  • Extensive drilling programme planned on Etinde; additional rig

contracted*. Etinde Indicative 2011 Work Programme

2011 2011 Q1 Q2 Q3 Q4

Sapele-1 well , Sapele-1ST Drilling / Testing Drilling / Testing

(Noble Tommy Craighead rig)

MLHP-5 Tertiary wells (2) MLHP-5 Cretaceous well Sapele-2 Drilling MLHP-7 Appraisal well g

(Sapphire Driller rig)

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 7

*Sapphire Driller contracted on a 2+1+1 basis. Noble Tommy Craighead rig contract has 2 slots available post recertification (completion expected Q3 2011).

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  • il & gas

Cameroon Overview Cameroon Overview

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Cameroon Overview

Relatively underexplored - an emerging oil story

Douala Basin

MLHP 5 & 6 OLHP 1 & 2

Rio del Rey Basin

MLHP 7

  • MLHP 5 & 6, OLHP 1 & 2.
  • Onshore and shallow
  • ffshore areas.
  • Highly prospective
  • MLHP 7.
  • Shallow offshore area.
  • Highly prospective

acreage within a proven

  • Highly prospective

acreage.

  • Number of onshore oil

seeps. acreage within a proven active hydrocarbon system.

  • Tertiary oil and gas-

condensate discoveries.

  • Tertiary and Cretaceous

leads.

  • Onshore early exploration

phase on 2D dataset.

  • Established portfolio of

additional Tertiary prospects.

  • Offshore mature

prospects portfolio on 3D dataset. Multi well drilling

  • Maturing exploration with

transition into an appraisal/development phase.

  • Multi-well drilling

campaign underway - successful Sapele-1 exploration well.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 9

Cretaceous Turonian plays accessible in onshore area and shallow waters.

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SLIDE 10

Recent Douala Basin E&P Activity

  • Bowleven acquired ~500km 2D in OLHP-2

(Bomono) during 2010/11

Bomono 2D Acq.

Seismic (Bomono) during 2010/11.

  • Bowleven 658km² 3D acquired in Etinde

(MLHP-5, 6, and 7) during 2010.

  • Glencore acquired 2D & 3D in Matanda (2010).

Matanda (Glencore) seismic acquired

  • 2010. Drilling

anticipated 2011.

  • Noble Energy 3D acquired across Yoyo & EG

blocks to the south of MLHP-5 (2010).

VOG

Exploration Drilling

Marine 3D Acq.

  • Bowleven Sapele-1 operations complete.
  • Perenco Mombe-1 operations complete.
  • Perenco Ngata well, expected spud Q2/3 2011.
  • Glencore Matanda wells planned for 2011/12

Sapele-1 Sapele-1ST(Feb 2011)

(Sept 2010)

  • Glencore Matanda wells planned for 2011/12.

Perenco Mombe-1 P&A (2010)

  • Bowleven Sapele-1ST operations commenced.

Development/Appraisal Activity

Alen (Belinda 2005). 915Bcf & 94mmbbl Sapele-2(March 2011)

  • Bowleven Sapele-2 operations commenced
  • Noble Energy Aseng oil project sanctioned;

development drilling commenced.

  • Victoria Oil & Gas Logbaba gas field

resources*. Expected start-up end 2013. Aseng (Benita 2007). 552Bcf & 128mmbbl resource*. Estimated

Perenco Ngata Spud Q2/3 2011

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 10

*Gross oil and gas volumes interpolated from Noble Energy August presentation of net volumes (Block O 45%, Block I 40%).

development activity underway.

start-up mid-2012.

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SLIDE 11

Regional Geology and Play Fairways

D-1r (2007), 25mmscfd, 1400bcpd from 75ft gross Miocene deep-water sands Onshore and offshore mixed Tertiary and Cretaceous sourced

  • il seeps

Cretaceous rocks outcrop at surface within the Bomono Permit. (Sandstone lithologies) Sapele-1 (2010), multiple hydrocarbon columns of gas-condensate oil and Miocene deep-water sands 56bbl/mmscf condensate.

  • il seeps.

(Sandstone lithologies). gas-condensate, oil and dry gas.

50m

SW NE

100m

Tertiary play fairway Cretaceous f

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 11

play fairway

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SLIDE 12

Tertiary Omicron Play

Calibration of Sapele-1 seismic highlights fairway potential

Lower Omicron

SE

Sapele-1

Shales NW

The Omicron Fairway

(as defined by Sapele-1)

Upper Omicron Sapele-1ST

Shales

Omicron Deep

  • The Omicron Play recognised across MLHP-5.
  • Successful drilling by Noble on the Belinda target (downdip D-1r equivalent) resulted in a c.20km long gas-condensate field.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 12

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SLIDE 13

Omicron Play Fairway Mapping

MLHP-6 MLHP-5

Upper Omicron Gas Condensate

MLHP 5

Souellaba Lower Omicron Gas Condensate

  • MLHP-5 = c.778km².
  • Area of 3D = 577km² (74% of block).

Omicron Deep Oil Sapele-1ST Sapele-2

  • Tertiary fairways cover majority of MLHP-5.

p Sapele-2

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 13

Alen

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SLIDE 14

Sapele-1 & Sapele-1ST

Appraisal of Sapele-1 Tertiary Omicron discoveries

Sapele-1 Update

  • 2 potentially significant discoveries made (Lower and Deep

Omicron).

  • Log MDT and sample data confirm hydrocarbon columns of

Sapele-1 Sapele-2

  • Log, MDT and sample data confirm hydrocarbon columns of

gas, wet gas and oil in high quality sandstone reservoirs.

  • Initial volumetrics (appraisal drilling required and ongoing):

Sapele-1† P90 P50 P10 Mean

Sapele-1ST Update

Sapele 1 P90 P50 P10 Mean WGIIP bscf* 75 211 595 290 STOIIP mmbbls 65 167 430 217

Sapele-1ST

Sapele 1ST Update

  • Sidetrack commenced 26th February 2011.
  • Principal objectives to appraise and test the Deep Omicron

discovery interval in Sapele-1 (2km SE of the original well).

  • Planned TD 3682mTVDSS (4761mMD).

Sapele-2 Update

  • Sapele-2 well spudded 17th March 2011.
  • Principal objective is to appraise the Lower and Deep

Omicron fairways (5km SW of Sapele-1).

  • Planned TD 3724mTVDSS.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 14

a ed 3 SS

†Volumes presented as gross figures. *includes NGLs, which comprise condensate and LPGs.

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SLIDE 15

Cretaceous Play

Sapele-1 confirms presence of oil, condensate & gas in the Cretaceous

SE

Sapele-1

NW

The Cretaceous Play

(as defined by Sapele-1)

Sapele-1

Cretaceous Amplitude Map (kick interval).

N

Cretaceous

Gas Condensate

Epsilon Complex Gas Kick

Oil Dry Gas

  • Sapele-1 located to target a variety of Cretaceous seismic responses and open the

Cretacous play in the offshore Douala Basin.

  • Sapele-1 encountered good quality reservoir sands, with oil and gas shows.
  • Significant gas kick at 4733m suggests an extensive hydrocarbon column.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 15

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SLIDE 16

Cretaceous Play Fairway

Sapele-1 (2010), multiple hydrocarbon columns reservoired in the Cretaceous stratigraphy.

N’Kapa-1

Gas-condensate, oil and dry gas.

North Matanda Logbaba Field

(Logbaba-101 (1955))

p

(1958)

  • Previous Cretaceous exploration on margins of the Douala

Basin Regional Cretaceous Discoveries to date

(North Matanda-1X (1980))

Basin.

  • Closest Cretaceous reservoired field to Sapele-1 is North

Matanda (gas-condensate, non-producing) at c.40km.

  • Closest Cretaceous reservoired oil shows to Sapele-1 is

N’K d ( 80k )

N’Koudou-1

Shows (1982)

M’Via

(M’Via-1 (1982))

N’Koudou (c.80km).

  • Closest producing Cretaceous reservoired oil & gas fields to

Sapele-1 are on the Kribi High c.105km to the SE.

Sanaga Sud

(SSA-1 (1979))

  • Gas condensate encountered at Epsilon Complex validates

Cretaceous prospectivity; extends play fairway significantly

  • ffshore.

Bowleven Cretaceous Exploration 2011

Kribi High fields

(KA-1 (1980)) Oil Oil & Gas Gas & Oil shows Gas

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 16

Gas

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SLIDE 17

MLHP-6

Initial potential on MLHP-6 revealed

Onshore and offshore mixed Tertiary and Cretaceous sourced

  • il seeps

IF-1R (2008), oil discovery.

  • il seeps.

Sapele-1 (2010), multiple hydrocarbon columns of IF 1R (2008), oil discovery. IM-1 (Total, 1970). gas-condensate, volatile oil,

  • il and dry gas.

Isongo gas-condensate discovery. Sapele-1ST (March 2011), to appraise Sapele-1 discoveries IE-3 (2010), multiple hydrocarbon columns of gas-condensate and oil. discoveries N S MLHP-6. Migration focus for hydrocarbons

V.E. 7:1 500m 4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 17 V 5 5km

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SLIDE 18

Bomono Overview

Bomono

  • 100% Bowleven.
  • Comprising two blocks covering an area of 2 328km²

Bomono Geochemical Anomaly Mapping

Existing 2D

  • Comprising two blocks covering an area of 2,328km².
  • 5 year first term, expiring December 2012.
  • 285km 2D acquired in Q1 2010 dry season. Further 215km 2D

acquired by end January 2011.

Line acquisition 2010

Commitments

  • 500km 2D seismic data (commitment met).
  • 1 well (drilling anticipated in 2012).

Asset Overview 1 well (drilling anticipated in 2012).

  • Highly prospective acreage within a proven active hydrocarbon

system. y

  • Unique situation to access the prolific West African Turonian play
  • nshore in a combination of structural and stratigraphic traps.
  • Technical evaluation ongoing with initial evaluation highlighting

multiple prospects with individual sizes ranging from 10 to

Log.105 (VOG) March 2010 test rates 55mmscfd and 20bbl/mmscf

Douala 10km

multiple prospects with individual sizes ranging from 10 to 250mmbbls Mean STOIIP.

  • 500km 2D seismic processing ongoing; Phase 1 completed Q4

2010.

  • Up to 2 wells planned for H1 2012

2011 2012 Q1 Q2 Q3 Q4 Q1

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 18

  • Up to 2 wells planned for H1 2012.

Bomono Activity

Exploration Drilling 2D Seismic processing and

  • ngoing interpretation

Drilling Preparation

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  • il & gas

Resources to Reserves Resources to Reserves

Cameroon – Etinde

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SLIDE 20

Etinde Resource (Mean Unrisked Gross Volumes In Place)†

Resources to Reserves

MHLP-7 Mean Unrisked Resource (IE & IF Only) Dry GIIP Wet GIIP* NGL‡ STOIIP

MLHP 7

Dry GIIP (bcf) Wet GIIP (bcf) NGL (mmbbl) (mmbbl) Isongo E Field* 80 408 95 7 Isongo F Discovery 225

MLHP 7 MLHP 6

MLHP-5 Mean Unrisked Discovered Resource Total Discovered Resource† 80 408 95 232

MLHP 6 MLHP 5

Dry GIIP (bcf) Wet GIIP* (bcf) STOIIP (mmbbl) Sapele-1 Discovery 290 217 D-1R Discovery 72 y Total Discovered Resource† 362 217

  • Updates are anticipated as planned appraisal activity is completed.
  • MLHP-5 resource based on initial Sapele-1 volumes.
  • A significant contingent resource upside remains for Etinde and

Bomono.

†Volumes presented as gross figures. *includes NGLs, which comprise condensate and LPGs.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 20

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MLHP 7 Appraisal Plan Update

Resources to Reserves

Initial Post IE-3 Reservoir Modelling

  • IE-3 appraisal drilled mid July 2010 encountered 7 hydrocarbon

bearing zones; tested (5 zones) August 2010 with a cumulative ma im m flo rate of 22 909 boepd* IE Activity

IE-3

maximum flow rate of 22,909 boepd*.

  • High quality gas-condensate (CGR 262 bbl/mmscf) and oil (36

to 43°API) encountered on IE-3 test; discovery of oil highlights additional potential of the IE Field area and acreage.

ID-1 IE-2z IE-1

  • IE static reservoir model built; dynamic model in progress.

IF-1R

IF Activity

  • 3D marine seismic has been acquired over IF field (IF Multi-

Azimuthal 3D 131km²) to support appraisal and development activities; processing complete with results received Q1 2011 activities; processing complete with results received Q1 2011.

  • Drilling planning will consider the new 3D seismic data

interpretation.

  • Development 3D (4C OBC) seismic acquisition planned April

2011 ** 2011.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 21

*Measured flow rates per interval ranged from 845 to 11,778 boepd with a cumulative maximum rate of 14,576 bpd of liquids and >50 mmscfd of gas (total 22,909 boepd). **Funding 50:50, Bowleven:Vitol.

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SLIDE 22

Concept: Combined Phased IE & IF FPSO Synergised Development

IE

Minimum Facilities Platform FPSO S d M d

Limbe

Dynamic Flexible Production Riser and FPSO Spread Moored

Riser Base

Shuttle Tanker Flexible Multiphase Production Flowlines

IF

“Tarpon” type Wellhead Umbilical

  • Concept optimisation post IE-3

appraisal well

Concept Assumptions (gross) Total Liquids Recovery >100 mmbbls Total Liquids >40 b d

Potential synergy with MLHP-5.

Wellhead structure

appraisal well.

  • Single FPSO for both IE and IF fields.
  • Potential phased development.
  • Cost reductions achieved through

q Production >40 mbpd Capex $300-600 million FPSO day rate ~$100-200,000

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 22

g development synergies.

Total Opex p.a. $50-90 million

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  • il & gas

Asset Overview Asset Overview

Gabon - Epaemeno

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Epaemeno Overview

Licence Summary

  • 50% Bowleven, 50% Addax (operator).
  • Second exploration term expiry February 2012

Dentale Prospects

Dentale Basin

  • Second exploration term expiry February 2012.
  • 1 well with 50% relinquishment at the end of the second term.
  • Optional third exploration term of three years.

Omko-1 (20MMbbl) Rembo Kotto (60MMbbl)

Technical Overview

  • Sub-salt fields and discoveries to the east and south of the block.
  • Technical evaluation and prospect inventory complete and

Onal (180MMbbl) Assewe (18MMbbl)

Topo Graben

Technical evaluation and prospect inventory complete and highlights a number of significant prospects on the margins of the Dentale Sub-basin.

  • Prospect volumetric range 10 to 350mmbbls mean STOIIP

consistent with field sizes in the region.

Tsiengui (145MMbbl) Koula (75MMbbl) Obangue (55MMbbl)

2P STOIIP source: IHS Energy

  • Operator planning for drilling early 2012.

2011 2012 Q1 Q2 Q3 Q4 Q1

2P STOIIP source: IHS Energy

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 24

Epaemeno Activity

Technical preparation ahead of 2011 dry season. Site Prep EPA Well

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  • il & gas

Financial Overview Financial Overview

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SLIDE 26

Funding Overview

  • Cash $189 million at 31 December 2010.
  • Vitol option over MLHP-7, for $50 million carry (gross).
  • Farm-out opportunities when appropriate.
  • Moving from resources to reserves; access to debt finance.
  • Proceeds pending from EOV disposal (~$35m).

Significant financing flexibility.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 26

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SLIDE 27

Principal 2011 Work Programme Expenditure

  • Cash resources of approx $175m following Sapele-1.

Cash Resources

  • Pending proceeds from EOV circa $35m.
  • Total cash resources of $210m.

2011 indicative Etinde drilling costs*

  • Tertiary side track: $20m - $22m; net cost ($15m - $17m).

T ti ll $31 $34 t t ($23 $26 )

  • Tertiary well: $31m - $34m; net cost ($23m - $26m).
  • Cretaceous well: $43m - $46m; net cost ($32m - $35m).
  • Overall costs dependent on specific well programme.

Funded for current drilling programme

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 27

*Well costs inclusive of drilling costs, drilling team, site surveys and well insurance, but exclude testing.

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  • il & gas

Closing Remarks Closing Remarks

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SLIDE 29

Closing Remarks

  • Further test exploration potential of Douala Basin, Cameroon.

Objectives

  • Move discovered hydrocarbons from resources to reserves.
  • Completion of Sapele-1ST and Sapele-2 wells.

2011 Outlook

  • Further exploration/appraisal wells targeting Douala Basin

prospectivity (Tertiary and Cretaceous).

  • Identification of leads and prospects on MLHP-6 and Bomono

post recent seismic (2012 drilling).

  • Further appraisal activity on block MLHP-7.
  • Forward programme will evolve as drilling activity progresses.

4-6 April 2011 BOA MERRILL LYNCH O&G INVESTOR FORUM 29

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SLIDE 30
  • il & gas

Principal Contact: Kerry Crawford Tel: +44 131 524 5678 Kevin Hart – Tel: +44 131 524 5678 John Brown – Tel: +44 131 524 5678 kerry.crawford@bowleven.com www.bowleven.com Bowleven Plc. 1 North St Andrew Lane, Edinburgh, EH2 1HX, United Kingdom. y @