Cairn in Senegal Creating an Emerging Oil Basin on the Frontier Eric - - PowerPoint PPT Presentation

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Cairn in Senegal Creating an Emerging Oil Basin on the Frontier Eric - - PowerPoint PPT Presentation

Cairn in Senegal Creating an Emerging Oil Basin on the Frontier Eric Hathon, Exploration Director 23 rd October, 2017 Disclaimer These materia ials ls contain in forw rward-lo lookin ing statements ts regardin ing Cair irn, our


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SLIDE 1

Creating an Emerging Oil Basin on the Frontier

Cairn in Senegal

Eric Hathon, Exploration Director – 23rd October, 2017

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SLIDE 2

These materia ials ls contain in forw rward-lo lookin ing statements ts regardin ing Cair irn, our corporate pla lans, future fin inancia ial conditio ion, futu ture results ts of

  • f operations,

s, futu ture busin iness pla lans and and str

  • trategies. All

ll such forw rward-lo lookin ing statements ts are based on

  • n our management's

's assumptio ions and and beliefs in in th the light of

  • f in

information availa lable to to them at at th this is tim ime. These forw rward-lo lookin ing statements ts are, by by th their ir nature, subject to to signif ific icant ris isks and and uncertainties and and actu tual results ts, performance and and achievements ts may be be materia ially ly different from th those expressed in in such statements ts. Factors th that may cause actu tual results ts, performance or

  • r achievements to

to differ from expectati tions in inclu lude, but but are not li limited to, regula latory ry changes, s, futu ture levels ls of

  • f in

industry ry product supply ly, demand and and pric icin ing, weath ther and and weath ther rela lated im impacts ts, wars rs and and acts ts of

  • f terroris

ism, develo lopment and and use use of

  • f technolo

logy, acts ts of

  • f competitors

and and ot

  • ther chan

changes to to bus busin iness con

  • nditio

ions. Cair irn undertakes no no oblig igati tion to to revis ise any such forw rward-lo lookin ing statements ts to to reflect any changes in in Cair irn's 's expectations wit ith reg regard thereto or

  • r an

any chan change in in ci circumstances or

  • r events aft

after the dat date here hereof.

Disclaimer

Cairn in Senegal, Cape Town, October 2017

2

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SLIDE 3

Barents Sea

SEN ENEGAL MOR MOROC OCCO UK UK IRE RELAND ME MEXI XICO NO NORWAY

Creating Growth Through Exploration

Cairn in Senegal, Cape Town, October 2017

3 Cairn Energy Focused on key value drivers in the Exploration Arena

  • Mature basins
  • UK and Norwegian North Sea
  • Emerging basins
  • Senegal, Barents Sea, Mexico
  • Frontier basins
  • Ireland, Morocco

Enhancing portfolio mix-critical success factors

  • Clear path to commerciality
  • Compelling commercial, subsurface and above

ground risk

  • Minimise cycle time to first production
  • Operatorship and outstanding strategic partners

Growing and diversifying the portfolio

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SLIDE 4

Moving a Frontier basin to an Emerging Oil Play

Cairn in Senegal, Cape Town, October 2017

4 Cairn in Senegal

  • Strong belief in the potential of offshore Senegal
  • Drilled first deep water wells offshore Senegal 2014
  • Two basin opening discoveries, FAN-1 and SNE-1
  • Eleven successful E&A wells drilled 2014-2017
  • Established a new hydrocarbon basin, attracting the

attention of the global industry

  • Three phase drilling programme generated an increasing

resource base of up to one billion barrels recoverable

  • Foundation for multi field, multi phase development plan
  • Progressing to first oil between 2021-2023

SENEGAL

Cairn (Operator) 40% Woodside 35% FAR 15% and Petrosen 10% Current Licences Oil Discovery Gas Cap Prospects and Leads

Block Area ~7,100 km2 Water Depth: 100 – 2,000m

30km Area

DAKAR

FAN-1 SNE-2 SNE-3 BEL-1 SNE-4 VR-1 SNE-1 SNE-6 FAN SOUTH-1 SNE NORTH-1 SNE-5

Senegal

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SLIDE 5

Sharing Benefits in Senegal

Cairn in Senegal, Cape Town, October 2017

5 Cairn in Senegal

  • Sustainable oil production will greatly benefit the

people of Senegal

  • Multi-million dollar investment since 2014
  • Opened an office and built a team in Dakar
  • Created major supply base in Dakar port
  • Maximizing local participation including employment

and working with local suppliers

  • Developing capacity through training and education

in key parts of operations

  • Supporting social investment – local

entrepreneurship, helping women in rural communities, supporting local business

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SLIDE 6

Social Investment in Senegal

Cairn in Senegal, Cape Town, October 2017

6 Cairn in Senegal

  • Supporting economic growth and good

governance

  • Training and development - HSE culture
  • Capacity building >200 institutional stakeholders

participating

  • Promoting local participation
  • Senegalese Petroleum Institute development
  • Local supply chain preparation
  • Social Investment
  • Education and community development over three years
  • The Hunger Project – working with 7 fishing communities

around Yenne

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SLIDE 7

Discovering a New Oil Frontier

Timeline Cairn in Senegal

Cairn in Senegal, Cape Town, October 2017

7

2013 Cairn farms in as operator with 65% WI from FAR Limited Cairn farms down 25% to ConocoPhillips 2014 Phase 1 exploration - FAN-1 and SNE-1 discovery wells Cairn opens offices in Dakar 2015 Joint venture submit 3 year evaluation plan to Government of Senegal 2016 Phase 2 E&A 4 well campaign- demonstrates scale of SNE Woodside acquire ConocoPhillips 35% working interest 2017 Phase 3 campaign with a further 5 E&A wells drilled Complete SNE Field appraisal, return to basinal play Extended well testing in S400 reservoir 2018 Submit Evaluation and Exploitation Plans to the Government FEED commencing with FID targeted before the end of 2018 Transfer of Operatorship for development phase to Woodside

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SLIDE 8

Geology of Cretaceous SNE and FAN plays

Cairn in Senegal

Cairn in Senegal, Cape Town, October 2017

8

FAN-1 SNE-1

  • SNE Field: Early Albian sandy pro-delta

turbidite apron and delta-fed ramp

  • FAN- Late Albian axially reworked

contourites and gravity deposits

  • FAN SOUTH: Albian base of slope

turbidite fans shed off the shelf

SNE Wells SNE NORTH-1 BEL-1 VR-1 FAN-1

R R R R R R R R R

Delta-front Delta-slope Prodelta Apron Carbonate Platform FAN SOUTH-1 Base of Slope Turbidite Fans Syn-rift section Contourite Drifts

S S S

FAN SNE- NORTH-1 SNE FAN SOUTH-1

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SLIDE 9
  • Excellent HSE/CR Performance
  • 0 Lost Work Days throughout the campaign
  • Five exploration and appraisal wells drilled
  • All five encountered hydrocarbons
  • Campaign schedule of 303 AFE days cut by 101 days
  • 20% under AFE Budget for the 5 wells
  • Average time to TD reduced to 10 days
  • Top quartile performance for West African wells
  • In top 10% for SNE Field appraisal wells
  • Per Rushmore West Africa data, deep water, vertical wells post-2013
  • Novel Extended Well Test Operation
  • 85,000 bbl Crude Storage capacity in rig
  • No interruptions to flow periods-outstanding data set
  • No environmental release to sea

Third Phase of Drilling 2017 – World Class Delivery

Cairn in Senegal, Cape Town, October 2017

9 Cairn in Senegal

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SLIDE 10

Third Phase of Drilling 2017-Exploration

Cairn in Senegal, Cape Town, October 2017

10 Cairn in Senegal

  • 3 appraisal targets and 3 exploration targets
  • Finished appraisal of SNE Field
  • VR-1 exploration ‘tail’ tested deeper

carbonate play

  • Oil shows in tight formation
  • FAN SOUTH-1 follow on to FAN-1 basin

discovery

  • Recovered 31° API oil from Cretaceous interval
  • Separate basinal accumulation
  • SNE NORTH-1 further test of SNE field play
  • Discovery separate accumulation to SNE Field
  • Gas and Condensate in S400 reservoir
  • Oil in S500 reservoir below oil-water contact at

SNE

  • Demonstrates potential for additional finds in

basin

Rufisque Offshore Sangomar Deep Offshore Sangomar Offshore

Capitaine Prospect FAN-1 SNE-2 SNE-3 BEL-1 SNE-4 VR-1 SNE-1 SNE-6 FAN SOUTH-1 SNE North Discovery SNE NORTH-1 SNE-5

Senegal DAKAR

Cairn (Operator) 40% Woodside 35% FAR 15% and Petrosen 10% Current Licences Oil Discovery Gas Cap Prospects and Leads 30km Area Block Area ~7,100 km2 Water Depth: 100 – 2,000m

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SLIDE 11

Remaining Exploration Potential Around SNE

Cairn in Senegal, Cape Town, October 2017

11 Cairn in Senegal Rufisque Offshore Block

  • Maturing leads on newly processed 3D seismic
  • Capitaine prospect most attractive to-date
  • Regional focus for hydrocarbons
  • Impact resource potential in shallow water
  • Would require standalone development

Sangomar Offshore Block

  • Multiple leads being matured
  • Within 30 km tie back distance of SNE
  • Lower commercial threshold

Sangomar Deep Offshore Block

  • SNE NORTH-1 40 – 80 mmboe (mean – P10) Gross

Mean Contingent Resource*

  • Additional potential 65 – 130 mmboe (mean – P10)

Gross Mean Prospective Resource*

  • Requires stratigraphic trap element to north
  • Target for future appraisal

Rufisque Offshore Sangomar Deep Offshore Sangomar Offshore

Capitaine Prospect FAN-1 SNE-2 SNE-3 BEL-1 SNE-4 VR-1 SNE-1 SNE-6 FAN SOUTH-1 SNE North Discovery SNE NORTH-1 SNE-5

Senegal DAKAR

Cairn (Operator) 40% Woodside 35% FAR 15% and Petrosen 10% Current Licences Oil Discovery Gas Cap Prospects and Leads 30km Area

* Cairn estimate

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SLIDE 12

SNE Field Characterisation

SNE Development

Development and Production – Senegal

Cairn in Senegal, Cape Town, October 2017

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BEL-1 VR-1 SNE-1 SNE-2 SNE-4 SNE-5 SNE-6 SNE-3

S400 Upper Reservoirs

S500 Lower Reservoirs

4 2 Km BEL-1 SNE-1 SNE-2 VR-1 SNE-3 SNE-4 SNE-6 SNE-5 Scale at 2D

* Including interference test

  • Water depth (WD) 650 - 1,400 metres
  • Eight well penetrations through field
  • Eight DSTs* completed in four separate wells

(SNE-2, SNE-3, SNE-5 and SNE-6)

  • Field covers up to 350km2
  • 100m oil column, 31°API oil
  • Up to 1.3 TCF gas

(associated and non-associated)

  • Two distinct reservoir horizons
  • S400 Upper reservoirs
  • Flow rates up to 5,400 bopd
  • S500 Lower reservoirs
  • Flow rates ~8,000 bopd

SNE Reservoir Schematic

Contingent Oil Resource (mmbbls)

August 2017 1C 346 2C 563 3C 998

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SLIDE 13

Production Gas Lift Gas Injection EHC Umbilical Gas Export Water Injection

SHUTTLE TANKER FPSO

WATER INJECTION MANIFOLD WATER INJECTION MANIFOLD WATER INJECTION MANIFOLD WATER INJECTION MANIFOLD WATER INJECTION MANIFOLD WATER INJECTION MANIFOLD PRODUCTION TREE PRODUCTION MANIFOLD PRODUCTION MANIFOLD PRODUCTION MANIFOLD PRODUCTION MANIFOLD PRODUCTION MANIFOLD PRODUCTION MANIFOLD PRODUCTION MANIFOLD PRODUCTION MANIFOLD TREE (Typical)

NORTHERN BRANCH CENTRAL BRANCH SOUTHERN BRANCH

BEL-1 SNE-2 SNE-1 SNE-3 SNE-6 SNE-5 SNE-4

GAS INJECTION MANIFOLD

SNE Development

Cairn in Senegal

Cairn in Senegal, Cape Town, October 2017

13 Development Phases

  • Initial target plateau: 75,000 – 125,000 bopd;

1 – 2 mmbbls FPSO oil storage

  • Initial well count: up to 25 wells (oil

producers, water and gas injectors)

A Phased Approach SNE Full Field Development Schematic

Oil Resources

First Phase up to 240 mmbbls Subsequent Phases Phase 1 Development S500 Lower Reservoirs + S400 Upper Reservoirs Core area Additional Wells S400 Upper Reservoirs Expansion S400 Additional Areas Further Subsea infrastructure + Wells

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SLIDE 14

Timeline

  • Targeting Final Investment Decision (FID) by end

2018:

  • Complete Front End Engineering and Design (FEED)
  • Evaluation Report and Exploitation Plan to be

submitted and approved by Government of Senegal

  • Transfer of Operatorship for development phase

SNE Development

Cairn in Senegal

Cairn in Senegal, Cape Town, October 2017

14 First Oil 2021 - 2023 Production

2014 2 – 4 Years 3 – 5 Years

Concept Select FEED

Detailed Design & Fabrication Evaluation Plan Exploitation Plan Submission

Discovery

Appraisal Drilling

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SLIDE 15

Contacts

www.cairnenergy.com

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