FEBRUARY 2013 Credit Suisse Energy Summit
1
Credit Suisse Energy Summit
February 2013
Credit Suisse Energy Summit February 2013 1 FEBRUARY 2013 Credit - - PowerPoint PPT Presentation
Credit Suisse Energy Summit February 2013 1 FEBRUARY 2013 Credit Suisse Energy Summit Disclaimer Important Notice Nothing in this presentation or in any accompanying management discussion of this presentation (the " Presentation")
FEBRUARY 2013 Credit Suisse Energy Summit
1
February 2013
FEBRUARY 2013 Credit Suisse Energy Summit
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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 USA, Canada, 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"); (iii) any offer for the sale, purchase
Cautionary note for US investors 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 United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or formation tests to be economically and legally producible under existing economic and
"STOIIP“, "resources" and other similar terms. Such terms do not refer to and are not reserves and US investors are cautioned accordingly. Cautionary note for Canadian investors No securities commission or similar authority in Canada has reviewed or in any way passed upon this presentation or the merits of the Shares, and any representation to the contrary is an offence. Forward-looking statements 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
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
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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Vision & Strategy
material exploration success and development.
appropriate.
relationships.
Vision Strategy – Focus on Africa “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 material shareholder value through exploration led
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Company Overview
Cameroon
seismic acquisition.
Bowleven under a TSA.
* Source: Preliminary Results Announcement 6 Nov 2012. Operator’s volumetrics.
Kenya
Kenya Ethiopia
State back-in rights: Etinde 20%, Bomono 10% (at grant of exploitation licence).
Acreage: 2,316km2 Shallow Offshore Equity Interest: 75% (Vitol 25%) Operator: Bowleven Group Etinde Permit Acreage: 2,328km2 Onshore Equity Interest: 100% Operator: Bowleven Group Bomono Permit
Nigeria Cameroon
Acreage: ~14,000km2 Onshore Equity Interest: 50% (Adamantine 50%) Operator: Adamantine Block 11B
South Sudan
Corporate
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Progress Report
†
Resources to Reserves: The Path to FID*
availability).
Exploration Strategy
Exploring the Douala Basin New Frontiers (Kenya)
* FID: Final Investment Decision ‡MOU: Memorandum of Understanding
Submission of Etinde Exploitation Authorisation Application (EEAA). Agreement of Fertiliser MOU‡. Gas sales term sheet nearing finalisation – pricing discussions advancing. Access potential development financing - Petrofac Strategic Alliance. Drilling programme commenced with appraisal/development drilling ongoing at IM-5. FID targeted for H2 2013 subject to:
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Etinde Existing Discoveries
Overview of Gross Unrisked Mean Volumes In place*
Deep Omicron fairway *Operator’s estimates. IC IF IE IM
Manyikebi
Sapele-3 Sapele-2 Sapele-1/ST SNA-1X D-Discovery
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Hub and Spoke Development
Flexibility for future expansion
fertiliser plant.
timetable
Stage I Development Cost Target (Gross): ~$900 million Phased Approach
Liquids Focussed
* Operator projections, currently excludes IF.
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Etinde Development – Key FID Requirements
initial capital investment at FID. Funding
†
Etinde Exploitation Authorisation Application
− MOU: Supply 70mmscfd dry gas for min.10 years. − Term sheet nearing finalisation – pricing discussions
advancing.
Gas Sales Agreements
EEAA
Fertiliser FID (Ferrostaal, SNH, Proman, Helm)
Finance Gas Sales
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Petrofac Strategic Alliance
(including engineering, design, project management, procurement and training).
capital investment at FID.
Highlights Timetable
Purchasing Power Project Management
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IM-5 Well - Pre-drill targets and results to date
Etinde Appraisal/Development Drilling
IM-5 (Currently drilling) IM-3
Middle Isongo Intra Isongo Upper Isongo
IM-3 (Gas Condensate Discovery) Middle Isongo Net Pay 37m
Upper Isongo (Sands below GWC). 32m (net) encountered and found wet as prognosed. Isongo volcanics Intra Isongo Provisional estimated net pay 52-56m (gross 80m). Initial indications liquids rich hydrocarbons – further evaluation required. Middle Isongo Coring point reached. Initial indications potentially hydrocarbon bearing.
Fig.1
Position 30 January 2013
reservoir, fluid properties and gas composition of Middle Isongo.
potential of Intra Isongo.
be water bearing.
as a producer.
Objectives Results (to date)
TD and log (2-3 weeks).
Forward Plan
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Upper Isongo Intra Isongo Middle Isongo
Seismic Correlation Panel Tying IM Wells
IM-3 IM-5 IM-2 IM-4
Provisional estimated net pay 52-56m Areally extensive Intra Isongo amplitude response implies gross reservoir thickness greater than 35m.
Upper Isongo Intra Isongo Middle Isongo
3m net
seismic resolution = no amplitude response
Fig.2 1 Km
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Top Intra Isongo Depth Contours Overlaid on Intra Isongo Amplitude Response
Green to Orange: Intra Isongo reservoir present above seismic resolution (i.e. implies gross reservoir thickness greater than 35m). Pale to Dark Blue: No reservoir or reservoir thinned below seismic resolution.
Fig.3 Orientation of Fig.2
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Etinde - Further Prospectivity
MLHP-7 IM-5
Middle Isongo
IM-5
Intra Isongo
IM-5
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the Sapele and D-1R wells.
number of wells, completion type and reservoir connectivity.
platforms integrated with onshore hub facility constructed in Stage I.
Sapele & D-1R
Hub and Spoke Development
Stage II (MLHP-5)
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Stage II (MLHP-5)
Sapele – Deep Omicron Oil Fairway
Independent Volume Assessment
drilling targets identified.
Independent Volume Assessment In-Place Volumes Mean Bowleven‡ Sproule* Total mmboe 1197 1208
‡ Operator’s volumetrics. *Aggregated discovered and undiscovered volumes.
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Cameroon Overview
Further Prospectivity
Douala Basin
acreage.
seeps.
leads.
phase on 2D dataset.
prospects portfolio on 3D dataset.
Rio del Rey Basin
acreage within a proven active hydrocarbon system.
condensate discoveries.
additional Tertiary prospects.
Cretaceous Turonian plays accessible in onshore area and shallow waters.
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Etinde - Further Prospectivity
MLHP-5 / MLHP-6
MLHP-6 MLHP-5
active hydrocarbon systems.
dataset.
licence.
*Operator’s volumetrics.
20km
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system.
defined in area.
defines a series of structural prospects.
Bomono Overview
Bowleven 2D Acquisition Vintage 2D
VOG: Gas and condensate production commenced Dec 2011.
Douala 10km Seeps
Historical
Plio-Pleistocene Miocene Eocene Cretaceous 2.5km
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Bomono Exploration
Well Operations Future
follow-up appraisal wells.
completion.
rig availability).
further discoveries.
Prospect Unrisked Mean HIIP Oil mmbbls Associated Gas bcf Gas bcf Condensate mmbbls Tertiary D & E Sands. 302 224 Tertiary B & C Sands. 197 4
Permit Status
now awaiting final government approval.
Zingana-1 (Proposed Well) B & C Sands D & E Sands
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Kenya
Upcoming Work Programme
− Airborne geophysical survey - Q1/Q2. − Acquisition of 500km 2D seismic - Q2-Q3.
Geology
(East African Rift and Cretaceous).
(Ngamia-1).
by Bowleven under a TSA. Block 11B
Block 11B
Ngamia-1 Twiga South-1 Paipai-1
■Cretaceous ■Tertiary
Sabisa
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Kenya Block 11B
and structural features closely analogous to successful discoveries to the south.
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Funding Overview
initial capital investment at FID.
introduce additional farm-in partners if appropriate.
cover intended work programme.
farm-down (up to 1/3).
Significant financing flexibility.
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Outlook
prospectivity.
Exploration
†
development, including pre FEED/FEED work.
Resources to Reserves: The Path to Development
Principal Contact: Kerry Crawford Tel: +44 131 524 5678 Kevin Hart Tel: +44 131 524 5678 www.bowleven.com Bowleven Plc. The Cube 45 Leith Street Edinburgh EH1 3AT United Kingdom info@bowleven.com
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Petrofac Commercial Structure
invested has been repaid.
money multiple of 2.125 of amount invested, subject to not less than 20% IRR.
X% set at 10% ($500 million case) or 6% ($300 million case).
X% set at 5% ($500 million case) or 3% ($300 million case).
Euroil’s project NPV.
Basis of Petrofac’s Remuneration Commercial Structure
capital.
project cashflows.
Onshore Hub Offshore Infrastructure
$300 / $500 million Share of cost & profit oil
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Cond.
MLHP-7 MLHP-5
Further Disc.
Maximising Liquids Value
currently imports from Equatorial Guinea).
IM IE IF
Omicron Deep & Lower
Epsilon
D-Discovery (D-1R) Other existing & Future Discoveries Oil, Condensate & up to 90mmscfd of wet gas Liquids Stripping (Primary Processing) NGL Plant Up to 80mmscfd Dry Gas Power (AES) Up to 10mmscfd Fertiliser (Ferrostaal) Up to 70mmscfd LNG Up to 80mmscfd Delivery Point Gas Options
C4’s
Butane
C3’s
Propane
Methanol c.60-70mmscfd Small Scale LNG c.60-70mmscfd Reinjection
Total Liquids Production 10-15% Shrinkage 3rd Party Led Alternative In-House Solutions
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Integrated Development Gantt Chart – Stage I
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Etinde Drilling History
2007 2008 2009 2010 2011
Track Record – Wells and Resources
IE-3 (August 2010) Tested 22,909boepd from 5 zones 40m Net Pay IE-2z (March 2007) Tested 8,800boepd 55m Net Pay IF-1R (August 2008) Tested 3,812boepd 61m oil column D-1R (July 2007) Tested 5,655boepd 11m Net Pay Sapele-1 (Feb 2011) 33-43m Net Pay Sapele-1ST (June 2011) Tested 3,101boepd 19m Net Pay Sapele-2 (Aug 2011) Tested 3,119boepd 35m Net Pay Sapele-3 (Oct 2011) 19m Net Pay 20km
IC IM Sapele-3 IE Manyikebi SNA-1X Sapele-1/1ST Sapele-2 D-1R IF
Vitol farm-in