Credit Suisse Energy Summit February 2013 1 FEBRUARY 2013 Credit - - PowerPoint PPT Presentation

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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")


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FEBRUARY 2013 Credit Suisse Energy Summit

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Credit Suisse Energy Summit

February 2013

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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

  • r subscription of any Shares; or (iv) any directed selling effort in respect of any Shares.

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

  • perating conditions. The Company is not required to make filings with the SEC and this presentation includes information on "volumes initially in place",

"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

  • 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

  • f the industry in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation.

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

  • Strategy focused on creating and realising value through

material exploration success and development.

  • Seek value adding partnerships and niche acquisitions as

appropriate.

  • Fostering strong external partnerships and in-country

relationships.

  • Targeted approach to technical, commercial and political risk.
  • Resources to Reserves.

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

  • rganic growth and niche acquisitions.”
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Company Overview

  • 5 blocks in Cameroon covering 4,644km².
  • 3 offshore shallow water, 2 onshore; all operated.
  • Multiple hydrocarbon discoveries.
  • P50 contingent resource base 203 mmboe* (net).
  • Phased Hub & Spoke development planned.
  • Continued exploration of the Douala Basin.

Cameroon

  • Block 11B onshore Kenya covering ~14,000km².
  • Early stage exploration; Airborne geophysical survey and 2D

seismic acquisition.

  • Operated by Adamantine Energy, technical support provided by

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

  • Cash end December 2012 ~$90 million, no debt.
  • Petrofac: up to $500 million for Stage I development.
  • High equity positions provide farm-out flexibility.
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Progress Report

Resources to Reserves: The Path to FID*

  • Etinde: Ongoing evaluation of Douala Basin prospectivity.
  • Bomono: Drilling to commence in 2013 (timing subject to rig

availability).

  • Bomono: Farm-out discussions at advanced stage.
  • Kenya: Work programme commencing.

Exploration Strategy

Resources to Reserves

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:

  • EEAA approval.
  • Gas Sales Agreement.
  • Access to development capital secured.

    

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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

  • All processing onshore; unmanned offshore platforms.
  • Stage I - fields on MLHP-7.
  • Stage II - discoveries on MLHP-5 (Sapele).
  • Significant flexibility for future expansion.
  • Hub location to be optimised to maximise synergies with

fertiliser plant.

  • First production anticipated 2016; integrated with fertiliser

timetable

  • Offshore (wells and other infrastructure): ~$600 million.
  • Onshore (processing & NGLs plant): ~$300 million.
  • Development costs subject to phasing and cost
  • ptimisation. To be further refined during FEED.

Stage I Development Cost Target (Gross): ~$900 million Phased Approach

  • Oil, condensate and wet gas to hub.
  • Liquids stripping and NGL extraction onshore.
  • 70mmscfd dry gas to fertiliser plant.
  • Initial liquids production ~ 15k-20k boepd* (including LPG’s).
  • Initially IE/IM fields; level of IF contribution under evaluation.

Liquids Focussed

* Operator projections, currently excludes IF.

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Etinde Development – Key FID Requirements

  • Petrofac provides up to $500 million for Stage I development;

initial capital investment at FID. Funding

  • Formal EEAA submitted late November 2012.
  • EEAA covers a substantial part of Etinde Permit.

Etinde Exploitation Authorisation Application

  • Ferrostaal Fertiliser Plant:

− MOU: Supply 70mmscfd dry gas for min.10 years. − Term sheet nearing finalisation – pricing discussions

advancing.

  • Additional gas off take solutions also being considered.

Gas Sales Agreements

FID

EEAA

Fertiliser FID (Ferrostaal, SNH, Proman, Helm)

Finance Gas Sales

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Petrofac Strategic Alliance

  • Extensive development experience.
  • Provides access to expertise, purchasing power and personnel

(including engineering, design, project management, procurement and training).

  • Provides up to $500 million for Stage I development; initial

capital investment at FID.

  • Potential for up to $60 million of Bowleven’s IM-5 costs at FID.
  • Petrofac entitled to share of Bowleven cost and profit oil.
  • High level basis of development design agreed.
  • Extensive technical and commercial due diligence completed.

Highlights Timetable

  • Initial capital investment at FID; currently anticipated H2 2013.

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

  • Primary: determine

reservoir, fluid properties and gas composition of Middle Isongo.

  • Secondary: explore

potential of Intra Isongo.

  • Upper Isongo expected to

be water bearing.

  • Designed to be suspended

as a producer.

Objectives Results (to date)

  • Core Middle Isongo, drill to

TD and log (2-3 weeks).

  • Testing

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

  • pay. Below

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

  • Intra Isongo & Middle Isongo prospects and leads.
  • Geobody extraction.

Middle Isongo

IM-5

Intra Isongo

IM-5

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  • Hydrocarbons discovered at multiple stratigraphic levels.
  • Significant in-place volumes discovered across MLHP-5 by

the Sapele and D-1R wells.

  • Extensive stratigraphically trapped accumulations.
  • Sapele recoverable reserves ultimately determined by

number of wells, completion type and reservoir connectivity.

  • Stage II development anticipates unmanned offshore

platforms integrated with onshore hub facility constructed in Stage I.

  • Utilisation of Stage I hub facilitates sanction of future tie-ins.

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

  • Third party assessment carried out by Sproule.
  • Methodology:
  • Bowleven - fairway slab model.
  • Sproule - discrete geobodies.
  • Advanced 3D interpretation carried out, high graded future

drilling targets identified.

  • Results validate Bowleven’s in-place fairway volumes.
  • Sproule report available on website - www.bowleven.com

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

  • MLHP-5 & 6, OLHP 1 & 2.
  • Onshore and shallow
  • ffshore areas.
  • Highly prospective

acreage.

  • Number of onshore oil

seeps.

  • Tertiary and Cretaceous

leads.

  • Onshore early exploration

phase on 2D dataset.

  • Offshore mature

prospects portfolio on 3D dataset.

Rio del Rey Basin

  • MLHP-7.
  • Shallow offshore area.
  • Highly prospective

acreage within a proven active hydrocarbon system.

  • Tertiary oil and gas-

condensate discoveries.

  • Established portfolio of

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

  • EEAA envisages additional exploration in exploitation area.
  • Extensive deeper prospectivity at Paleocene and Cretaceous
  • levels. Hydrocarbons encountered with Sapele-1 and Sapele-3.
  • Palaeocene Alpha-Epsilon system Mean GIIP 1819bcf*.
  • Cretaceous Mean Dry GIIP 1029bcf*.
  • Evaluation of prospectivity ongoing.
  • Highly prospective acreage given its position between proven

active hydrocarbon systems.

  • Variety of play types to explore for, Bowleven has 3D seismic

dataset.

  • Acreage will be considered under separate exploration

licence.

*Operator’s volumetrics.

20km

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  • 6 deep wells and c.10 shallow wells drilled in the 1950’s.
  • Wells and onshore oil seeps proved active hydrocarbon

system.

  • Tertiary and Cretaceous structural and stratigraphic traps

defined in area.

  • Total 500km 2D seismic acquired by Bowleven.
  • New 2D data integrated into existing vintage dataset and now

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

  • Exploration well location selected, planning for immediate

follow-up appraisal wells.

  • Zingana-1 Prospect - site preparation/civils nearing

completion.

  • Drilling (up to 2 wells) to commence in 2013 (timing subject to

rig availability).

  • Etinde hub facilities provide additional flexibility in event of

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

  • Entry into next 2 year exploration phase approved at OCM,

now awaiting final government approval.

  • Farm-out discussions at an advanced stage.

Zingana-1 (Proposed Well) B & C Sands D & E Sands

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Kenya

Upcoming Work Programme

  • Anticipated 2013 activity:

− Airborne geophysical survey - Q1/Q2. − Acquisition of 500km 2D seismic - Q2-Q3.

Geology

  • In region of Tertiary and Cretaceous rift basin intersection

(East African Rift and Cretaceous).

  • 4 basins identified in block.
  • Existing data suggests basins similar form to Lockichar Basin

(Ngamia-1).

  • Significant acreage ~14,000km2.
  • Bowleven 50% equity interest.
  • Initial 2 year exploration period work programme.
  • Operated by Adamantine Energy, technical support provided

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

  • Existing vintage seismic and gravity data confirm presence of multiple basins

and structural features closely analogous to successful discoveries to the south.

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Funding Overview

  • Cash end December 2012 ~$90 million, no debt.
  • Petrofac provides up to $500 million for Stage I development;

initial capital investment at FID.

  • Potential for up to $60 million of Bowleven’s IM-5 costs at FID.
  • High equity interest in Etinde & Bomono provides opportunity to

introduce additional farm-in partners if appropriate.

  • Bomono farm-out discussions at an advanced stage, expect to

cover intended work programme.

  • Strategic alliance agreement with Petrofac allows further Etinde

farm-down (up to 1/3).

Significant financing flexibility.

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Outlook

  • Ongoing evaluation of the Douala Basin prospectivity.
  • Bomono drilling targeting both Tertiary and Cretaceous

prospectivity.

  • Commencing exploration activities over new Kenya acreage.

Exploration

  • Progressing development activities for hub and spoke

development, including pre FEED/FEED work.

  • Etinde FID targeted for H2 2013 ensuring:
  • EEAA approval.
  • Gas Sales Agreement finalisation.
  • Access to finance for the development.
  • Appraisal/development drilling on MLHP-7.

Resources to Reserves: The Path to Development

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  • il & gas

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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  • il & gas

Appendix

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Petrofac Commercial Structure

  • 80% of Euroil’s entitlement to cost oil until 130% of amount

invested has been repaid.

  • X% of Euroil’s entitlement to profit oil (set at FID) to provide a

money multiple of 2.125 of amount invested, subject to not less than 20% IRR.

  • On Petrofac achieving money multiple of 2.125 and IRR 20%:

X% set at 10% ($500 million case) or 6% ($300 million case).

  • On Petrofac achieving money multiple of 2.3 and IRR 20%:

X% set at 5% ($500 million case) or 3% ($300 million case).

  • Petrofac’s remuneration ultimately capped at maximum of 50% of

Euroil’s project NPV.

Basis of Petrofac’s Remuneration Commercial Structure

  • Structure provides potential for $300 million or $500 million of

capital.

  • Petrofac to be remunerated from Euroil’s share of the Etinde

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

  • All liquid offtake is marketable internationally i.e. free marketing rights for oil.
  • Strong local and pan-African market for Propane & Butane (Cameroon

currently imports from Equatorial Guinea).

  • Current concept is phased development.
  • Flexibility in gas disposal options maintained.

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

  • 100% Drilling success rate.
  • Focus on liquids.

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