Capital Markets Presentation London 19 October 2011 1 Disclaimer - - PowerPoint PPT Presentation

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Capital Markets Presentation London 19 October 2011 1 Disclaimer - - PowerPoint PPT Presentation

Capital Markets Presentation London 19 October 2011 1 Disclaimer This document has been prepared and issued by and is the sole responsibility of Ophir Energy plc (Ophir or the Company) and its subsidiaries for selected recipients. It


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Capital Markets Presentation

London 19 October 2011

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This document has been prepared and issued by and is the sole responsibility of Ophir Energy plc (Ophir or the Company) and its subsidiaries for selected recipients. It comprises the written materials for a presentation to investors and analysts concerning the Company’s business activities (the Presentation). The document is being supplied to you solely for your information. It is an advertisement and not a prospectus or an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract commitment or investment decision in relation thereto nor does it constitute a recommendation regarding the securities of the Company. . This document and any materials distributed in connection with this presentation may include certain forward-looking statements, beliefs or opinions, including statements with respect to the Company’s business, financial condition and results of operations. These statements, which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect the directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. There are a number of risks, uncertainties and factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the Company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this presentation and the Company expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this

  • presentation. No statement in this presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking

statements. Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, the Company makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. The Company and its members, directors, officers and employees are under no obligation to update or keep current information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice. No representation or warranty, express or implied, is given by the Company or any of its subsidiaries undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy or completeness of the information or opinions contained in this presentation, nor have they independently verified such information, and any reliance you place thereon will be at your sole risk. Without prejudice to the foregoing, no liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise arising in connection therewith is accepted by any such person in relation to such information. By attending the presentation and/or accepting a copy of this document, you agree to be bound by the foregoing limitations and conditions and, in particular, will be taken to have represented, warranted and undertaken that (i) you have read and agree to comply with the contents of this notice including, without limitation, the obligation to keep this document and its contents confidential; and (ii) you will not at any time have any discussion, correspondence or contact concerning the information in this document with any of the directors or employees of the Company or its subsidiaries nor with any of their suppliers, or any governmental or regulatory body without the prior written consent of the Company.

Disclaimer

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Highlights

World class African oil and gas resource company

 5th largest deepwater acreage holder in Africa  Interests in 17 Blocks, 8 jurisdictions  Four of the five key emerging sub-Saharan exploration themes  Company estimates of c 2Bboe net risked resources

Diversified African exploration and appraisal portfolio Diversified African exploration and appraisal portfolio Proven technical, commercial and

  • perating

credentials Proven technical, commercial and

  • perating

credentials

 Portfolio actively managed to maximise value  Operator of majority of wells to date  Commercial discoveries: 3 from 3 in Tanzania; 2 from 2 in Equatorial Guinea gas play  Material equity positions (pre- and post-farm downs)  Clear monetisation plans for gas discoveries

High impact 2011-12 exploration campaign High impact 2011-12 exploration campaign

 9 to 13 well drilling campaign over next 14 months, mix of proven and frontier plays  Targeting 2.4Bboe net unrisked resources (>600MMboe net risked resources)  Tanzania and EG partially de-risked with >30Tcf and >10Tcf gross unrisked potential respectively  Gabon pre-salt is an oil play extension from recent major West African and Brazilian discoveries  Frontier oil exploration in Congo-B, AGC and Madagascar  Current cash position of US$410 million funded well into 2013

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Value Creation through the Exploration Lifecycle

Opportunity capture Commercialisation:

  • Increased capital

requirements

  • Pre-development debt

funding

  • Pre-development

monetisation opportunities Start-up:

  • First production: project

de-risked

  • Conventional RBL debt

funding; cash flow positive Exploration and appraisal:

  • High-risk high-reward, rapid value accretion in the exploration and

appraisal phase

  • Pre-appraisal monetisation opportunities via farm outs

Value Growth

Focus for use of proceeds

SADR Somaliland Gabon Madagascar Congo AGC East Pande Equatorial Guinea

3D seismic 1st Discovery Appraisal FID First Production

Tanzania Oil new ventures Gas new ventures

  • Ophir is focussed on the early part of the exploration lifecycle

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Dominion Transaction

Transaction rationale:

  • Create largest independent, net deepwater acreage

portfolio in the emerging hydrocarbon province of East Africa

  • Leverages our current technical, competitive

advantage in the play

  • Addition of three operated blocks, to complement

Ophir’s operated East Pande Block and joint activities with BG in Blocks 1, 3 and 4 in Tanzania

  • Expands 18 month exploration programme with the

potential to drill one or two additional wells on its

  • perated acreage
  • Utilise potential operational, commercial and

geological synergies to access full asset value

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Why sub-Saharan Africa? Emerging Exploration themes

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East Africa

Gas focus; Current African "hot spot" with activity in Tanzania, Mozambique Kenya and Madagascar

West Africa pre-salt

Oil focus; an underexplored play in Gabon, Congo-B and Angola rejuvenated by activity on the conjugate margin in South America

Transform margin

Oil focus; recent activity boosted by recent discoveries in Ghana, Liberia and Sierra Leone

Gulf of Guinea

Gas focus; the region is emerging as a gas hub with discoveries and new trains planned in EG, Nigeria and Cameroon

East Africa Rift

Oil focus; exploring rift- related lacustrine sections in Uganda, Tanzania, DRC

  • There are five key emerging themes in sub-Saharan African exploration at present

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Ophir Asset Base

SADR (4 blocks) AGC (1 block) Congo (1 block) Gabon (4 blocks)

Core value

Somaliland (1 block) Madagascar (1 block) Tanzania (4 blocks)

Near-term upside Medium-term upside

East Africa

  • Tanzania - 1, 3, and 4
  • Tanzania - East Pande
  • Madagascar - Marovoay

West Africa pre-salt

  • Gabon - Mbeli and Ntsina
  • Congo-B - Marine IX

Transform margin

Looking to further leverage existing position

Gulf of Guinea

  • Equatorial Guinea -

Block R

East Africa Rift

Maintain a watching brief

  • Ophir has material positions in four of the five themes

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Tanzania 835 Equatorial Guinea 297

Ophir’s African portfolio

Ophir Net risked prospective (MMboe) Diverse pan-African portfolio RPS Net contingent (Bcf)

SADR 4 blocks 50% WI) AGC 1 block, Profond 36.7%WI Congo (B) 1 block Marine IX 48.5% WI) Equatorial Guinea 1 block, Block R 80% WI Gabon 4 blocks Mbeli, Ntsina 50% WI, Manga, Gnondo 100% WI Somaliland 1 block, 75% WI Madagascar 1 block, Marovoay 80% WI Tanzania 4 blocks, Blocks 1,3,4 40% WI, East Pande 70% WI Countries with discoveries Near-term upside Medium-term upside 1.1Tcf (189MMboe) 100% gas Oil play Gas play Oil and gas play 1,797 MMboe

  • Ophir in-house estimates c 2.0Bboe net risked resources

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Comparison between RPS and Ophir Volume/Risk Estimates

  • RPS only assessed part of the overall portfolio
  • New acreage assessed and additional technical work since RPS report
  • Remapping has increased pre-salt volume

estimates in Mbeli and Ntsina

  • 5+ additional prospects now included in

Manga and Gnondo

  • 10+ new prospects in fore-thrust play system
  • East Pande not assessed as part of CPR
  • 25+ additional prospects now included
  • New 3D seismic interpreted and high-

graded prospects further de-risked

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Rigorous Approach to Portfolio Management

Geoscience interpretation Prospect mapping Trap geometry assessment Geological evaluation: reservoir Geological evaluation: charge Reservoir properties Stochastic prospect assessment Seismic data Well data Portfolio integration Business plan and strategy QI evaluation: charge QI evaluation: reservoir

  • Ophir employs "best in class" portfolio management using accumulated experience and targeted external consultants

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Dry well Discovery

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Exploration portfolio management

The "place to be" low risk and high volume:

Drill, appraise, develop…

"Gamechanger" volumes but high risk:

Focus of technical geoscience activity to "float the bubble"

Low risk but limited volumes:

Tie back or aggregate prospects to form commercial "cluster"

High risk, low reward:

Monitor prospects and re-assess as new data becomes available (better reservoir, additional plays, etc)

  • Balance of drill-ready and maturing prospects
  • Substantial new technical work performed since IPO

Work in progress Drill ready Derisked exploration and appraisal

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Activity Plan to end 2012

Firm well Contingent well Firm geophysical acquisition Contingent geophysical acquisition 2011 2012 Q3 Q4 Q1 Q2 Q3 Q4 Tanzania Blocks 1,3 & 4 Operator has secured a +300 day rig commitment on the Deepsea Metro-1 and the campaign is expected to commence during

  • November. c 2,000km2 3D is being considered in Block 1.

East Pande Equatorial Guinea Block R Gabon Mbeli Drilling contingent on completing farm out to reduce exposure to well costs. Ntsina Manga Gnondo PSC obligation of 3D seismic programme over high risk - high reward Pachg Liba structure which will underpin farm out campaign. AGC Profond Madagascar Marovoay Post-drilling review of prospectivity. Permit Country Comments A 2,100km2 3D survey is in the final stages of contracting and acquisition is expected to commence during November. 3 firm and 1 contingent well campaign and contingent CSEM acquisition currently being planned. 2,200km2 3D focused on pre-salt, in the final stages of contracting. Costs carried by Petrobras. PSC obligation of 3D swathe seismic programme but may be upgraded to a full 3D which will underpin farm out campaign. 2,200km2 3D focused on pre-salt, in the final stages of contracting. Costs carried by Petrobras. Marine IX Gravimetry programme planned Q4 2011. Congo

  • 9 to 13 wells:

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Drilling sequence

Firm well Contingent well

  • 9 to 13 wells targeting c 2.4Bboe net unrisked, c 600MMboe net risked

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Ophir Equity % Gas/oil Mean resources CoS 2011 2012 Bcf MMbbl Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tanzania Jodari 40% 1,316 91% EG Volturnas 80% 352 37% Tanzania 1W 40% 2,708 37% EG Fortuna West 80% 470 88% EG Silenus East 80% 367 80% Tanzania 3A 40% 1,837 46% EG Iambe 80% 566 22% Madagascar Anjohibe 80% 175 12% Tanzania Kamba 40% 544 34% East Pande Lead 1 70% 2,570 19% Ntsina Padouck Deep 50% 1,236 15% Gnondo Pachg Liba 100% 441 14% Tanzania 4J 40% 3,426 21%

Gas Oil

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Drilling lookahead

  • 2012 drilling programme expected to add 1.2Bboe gross risked

(c 600MMboe net risked) resources

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Finance Summary

Expenditure by type Expenditure by country

  • Expenditure focussed on key assets
  • Exposure managed through farm outs at an appropriate time
  • 85% of spend is on true "value adding" drilling and seismic activity

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Total spend US$348 million

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Key messages

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  • Focussed on 4 of 5 key emerging sub-Saharan exploration themes
  • Portfolio currently contains c 2Bboe net risked resources (Ophir estimates)
  • Upcoming 9 to 13 well drilling campaign
  • Tanzania drilling balance between Cretaceous and Tertiary
  • Targeting c 600MMboe net risked resources (2.4Bboe net un-risked)
  • Proven drilling and discovery track record to date
  • Additional major seismic programmes to mature additional prospects
  • Cash position US$410 million, net spend US$348 million, fully funded to 1H 2013