HALF YEAR RESULTS
13 August 2015
HALF YEAR RESULTS 13 August 2015 DISCLAIMER THIS DOCUMENT IS - - PowerPoint PPT Presentation
HALF YEAR RESULTS 13 August 2015 DISCLAIMER THIS DOCUMENT IS CONFIDENTIAL This document has been prepared and issued by and is the sole responsibility of Ophir Energy plc (the Company ) and its subsidiaries for selected recipients. It
13 August 2015
THIS DOCUMENT IS CONFIDENTIAL This document has been prepared and issued by and is the sole responsibility of Ophir Energy plc (the “Company”) and its subsidiaries for selected recipients. It comprises the written materials for a presentation to investors and/or industry professionals concerning the Company’s business activities. By attending this presentation and/or accepting a copy of this document, you agree to be bound by the following conditions and will be taken to have represented, warranted and undertaken that you have agreed to the following conditions. This presentation is strictly confidential and may not be copied, published, distributed or transmitted. If you do not accept these conditions, you should immediately destroy, delete or return this document. The document is being supplied to you solely for your information and for use at the Company’s presentation to investors and/or industry professionals concerning the Company’s business activities. It is not an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment
Company in any jurisdiction 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 presentation is for informational purposes only and may not be used for any other purposes. The distribution of this presentation in jurisdictions other than the United Kingdom may be restricted by law and therefore persons into whose possession this presentation comes should inform themselves about and observe such restrictions. Any failure to comply with these restrictions may constitute a violation of securities laws of any such jurisdictions. This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements, beliefs or opinions, including, without limitation, statements with respect to the Company’s business, financial condition, results of operations, plans, objectives and estimates, including, among others, resource estimates. These statements, which contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning, reflect the Directors’ beliefs and expectations and involve a number of risks and uncertainties 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 known and unknown risks, uncertainties and other factors that could cause actual results, performance and developments of the Company or industry results to differ materially from those expressed or implied by such forward looking statements, therefore, undue reliance should not be placed on forward looking statements. 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, whether as a result of new information or future events. No statement in this presentation is intended to be a profit forecast or should be interpreted to mean that future earnings per share of the Company will necessarily match or exceed its historical published earnings per share. 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, no representation or warranty, express or implied, is made and no reliance should be placed, on the fairness, accuracy, correctness, completeness or reliability of that data, and such data involves risks and uncertainties and is subject to change based on various factors. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness. 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, whether as a result of new information or future events. 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, correctness, completeness or reliability 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 (in negligence or otherwise) 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. 2015 Half Year Results Slide 2
Positioned to thrive in uncertain times
VALUE CREATION THROUGH EXPLORATION FOCUS ON ROCE THROUGH CAPITAL ALLOCATION AND COST MANAGEMENT ACTIVE PORTFOLIO AND RISK MANAGEMENT
2015 Half Year Results Slide 3
Response to the current oil price
Well positioned to grow NAV per share:
reductions
retained financial strength
environment
2015 Half Year Results Slide 4
Ophir is BIG E and little p
creation of shareholder value
high graded portfolio due to strong balance sheet and minimal well commitments
development activity
will be deployed to developments
financing stream for E&A activity
and production growth are not key metrics
even at low oil price
EXPLORATION DEVELOPMENT
RETURN TO SHAREHOLDERS
PRODUCTION
CASH
A SELF-SUSTAINING EXPLORER DELIVERING SUPERIOR RETURNS TO SHAREHOLDERS
2015 Half Year Results Slide 5
STAGE 1: ENTRY STAGE 2: SEISMIC STAGE 3: DRILLING
High Signature Bonus Seismic Multiple Wells High costs High cost Mainly commitment Wells
Small/No Signature Bonus Seismic inherited Costs down c. 50% Rig costs down c. 30% Only drill top ranked prospects
TOP OF CYCLE BOTTOM OF CYCLE
DROP DROP DROP DROP
ALL THREE COST COMPONENTS DROPPED IN PRICE - RISK OF ROCKS IS UNCHANGED
2015 Half Year Results Slide 6
Minimal commitments, low cost entry
MATURING PLAYS FOR HIGH GRADING
Aru Trough (oil) EG (oil) G4/50 (oil) Gabon pre-salt (oil) Gabon post-salt (oil) Gabon conjugate margin (oil) Kenya (oil/gas) Kerendan (gas) Makassar Straights (oil/gas) Myanmar (gas) Seychelles (oil) Western Birds Head (oil)
preferred prospects
commercialisation
2 Established 3 New tests
FINAL WELLS IN IPO PORTFOLIO
to build IPO portfolio
DRILLING ON HIGH GRADED PLAYS
ONLY PROGRESS TOP RANKED PROSPECTS CAPITAL DISCIPLINE WALK AWAY FROM PROSPECTS THAT WON’T WORK
2015 Half Year Results Slide 7
SELF FUND
No fresh capital deployed to development
Slide 8
PRODUCTION
TOTAL VOLUME 2C: 950 MMboe
EQUATORIAL GUINEA
W.I. 80%
KERENDAN
W.I. 70%
BUALUANG
W.I. 100%
TANZANIA
W.I. 20% CASH FOR E&A
First gas 2022 First gas 2019 First gas 2016
2nd phase of dev.
On production
3rd phase of dev.
2P RESERVES
SELF FUND
2015 Half Year Results
Strong balance sheet augmented by cash generation from operations
Income Statement
Balance Sheet
balance sheet
Cash Flow Statement
$161 m
$50 m
$78 m
$184 m
HY’15 HY’14 INCOME STATEMENT
Revenue ($ millions) 86.50
60.48
7.36
(123.30) 589.4
BALANCE SHEET
Capital expenditure / investments: ($ millions) Acquisitions ($ millions) (1,128)
(51) (230) Production and development ($ millions) (12)
708 1,507
1,507NET CASH ($ millions) 392 1,507 CASH FLOW STATEMENTS
Cash generated from operations ($ millions) 69.4 (12.7) Share buy-back ($ millions) (56.1)
(266.5) 527.0
2015 Half Year Results Slide 10
Stripping cost out of the combined entities
London (ex-Salamander HQ), Singapore
Breakdown of Synergies
Salamander Niko Headcount/Costs Offices / Other
2015 Half Year Results Slide 11
Low level of commitment spend, robust production base
producing assets forecast at $110-$130 million
through end 2017
10 20 30 40 50 60 OCF OCF + Debt OCF + Debt + Capex
2015 breakeven oil price from current producing assets
2015 Half Year Results Slide 12
Seamless integration and efficiencies driving performance
Production guidance increased
shortfall due to lack of hydro-electric power
existing infrastructure
handling capacity
exploration drilling
2015 Half Year Results Slide 14 2 4 6 8 10 12 14
16 18 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16
Ophir Energy Net Production All Fields - Working Interest Basis - Mboe/d
YTD Actual
Target
Focus: Commercialising our gas resources
Slide 15
Significant 2P reserves base from Thai and Indonesian assets
Large 2C resources base from Thai, Indonesian and African LNG assets
infrastructure at Bualuang, Sinphuhorm and Kerendan
LARGE 2P + 2C BASE SKEWED TOWARD HIGH MARGIN GAS IN THE LONG TERM
Reserves (MMboe) 1P 2P 3P Bualuang 17.6 24.9 31.1 Sinphuhorm 5.1 17.9 17.9 Kerendan 16.5 16.8 16.8 Total Reserves (MMboe) 39.2 59.6 65.8 Resources (MMboe) 1C 2C 3C Bualuang 6.7 15.5 31.3 Sinphuhorm & Dong Mun 5.0 18.0 126.8 Kerendan 3.6 62.3 144.3 Equatorial Guinea 283.3 353.2 400.0 Tanzania 366.7 501.0 483.3 Total Resources (MMboe) 665.3 950.0 1185.7 Total Reserves and Resources (MMboe) 704.5 1009.6 1251.5
2P + 2C BY GEOGRAPHY 2P + 2C BY PRODUCT
Thailand 7% Indonesia 8% Equatorial Guinea 35% Tanzania 50% Oil 4% Gas 96% 2015 Half Year Results
Four key things required to make an LNG project work
MILESTONES LAND / MIDSTREAM JV PARTNER ALIGNMENT FISCAL TERMS RESOURCES
be formally awarded
to be finalised
Award of Land Bringing in Upstream partner
TANZANIA EQUATORIAL GUINEA
2015 Half Year Results Slide 16
Upstream component within Ophir’s ability to operate
Slide 17
Why FLNG appropriate solution
Why Ophir can be the Upstream operator
Third Party validation of FLNG solution:
Fortuna Gas Field DST
2015 Half Year Results
Simple solution, proven technology
Singapore)
to independent producers
Golar Gandria Golar FLNG Conversion
2015 Half Year Results Slide 18
Deliver into Asia for c. $7/mmbtu
0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 NPV 10% Break Even DES Japan
FOB Cost (Breakeven) (US$/mmBtu) Shipping Cost (US/$mmBtu) 2015 Half Year Results Slide 19
Slide 20
UPSTREAM PSC
Government
MIDSTREAM SHIPPERS LNG BUYERS
FOB DES
NETBACK $ CASHFLOW LNG (GAS) FLOW
$8.5/MMbtu $5.0/MMbtu $10.00/MMbtu $1.5/mmbtu $3.5/mmbtu
CASH Paid by LNG Buyer to OPHIR/SONAGAS for LNG Cargo at FOB Price Delivered LNG Cargo price LNG Buyer pays for Shipping CASH Paid for Liquefaction Tariff by Contractor (Ophir/GEPetrol) & Government to FLNG
Netback Price used in PSC for calculating and valuing Royalty, Cost Recovery and Profit Gas
Royalty 7%-17% GEPetrol Profit Share MMIE Profit Share Income Tax paid by Ophir Cost Recovery (Ophir/GEPetrol) Ophir Profit Share
2015 Half Year Results
Mechanical completion of facilities in August, material upside to be unlocked
Slide 21
Phase 1 mechanical completion
to > $7 per mcf post completion of facilities
Material upside to be unlocked
covered by GSA
report for regulator (SKKMigas) as a pre-cursor to further gas sales
MMscf/d)
Increased PLN Capacity
Existing GSA: 123 Bcf Kerendan 2C: 109 Bcf West Kerendan 2C: 146 Bcf
Total 2C resource in excess of power plant capacity Gas Engines arriving at PLN Power Plant
2015 Half Year Results
Low cost wells offering short term return on investment
Slide 23
Step outs from Bualuang oil field
development
Soy Siam
to charge from both the Bualuang and South western sub-basins
producing reservoirs in the Bualuang field
Parichat
stacked reservoir targets
Parichat Cluster Soy Siam
2015 Half Year Results
Maximum optionality at minimum cost
Aru Trough, Eastern Indonesia Rakhine Basin, Myanmar
2015 Half Year Results Slide 24
reserves and resources base
and predictable production growth
to sell assets to reduce capex and provide additional source of capital
2015 Half Year Results Slide 25
For further information contact: Head of IR and Corporate Communications Investor.relations@ophir-energy.com
Geoff Callow
Level 4 123 Victoria Street London SW1E 6DE UNITED KINGDOM Tel: +44 (0)29 7811 2400 Fax: +44 (0)20 7811 2421
Soy Siam Prospect
western sub-basins
Top N20 Depth Map
Potential Recoverable Oil (MMbls) P90 P50 P10 Mean
7.0 24.0 68.6 25.3
Soy Siam
COS: 21%
2015 Half Year Results Slide 27
Parichat SW
Top N20 Depth Map
2 Km Parichat NE Parichat NW Parichat SW Parichat SE
2015 Half Year Results Slide 28
Potential Recoverable Oil (MMbls) P90 P50 P10 Mean
1.7 6.5 19.1 8.9
Parichat SW
Potential Recoverable Oil (MMbls) P90 P50 P10 Mean
4.1 19.3 52.8 24.9
Full Parichat Cluster
POS: 32%