Investor/Analyst Results Presentation 28th March 2008 Agenda - - PowerPoint PPT Presentation

Investor/Analyst Results Presentation

28th March 2008

Interim Results Presentation, March 2008

2

Agenda

Introduction

• Kevin Hart, CEO

Exploration

• Ed Willett, Exploration Director

Development

• John Morrow, Chief Operating Officer

Financials

• John Brown, Finance Director

Conclusions and Q&A

• Kevin Hart, CEO

Interim Results Presentation, March 2008

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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 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"); or (iii) any offer for the sale, purchase or subscription of any Shares. 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 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 Company's results of operations, financial conditions, liquidity, prospects, growth, strategies and the industry in which the Company 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 Company's actual results of operations, financial conditions and liquidity, and the development of the industry in which the Company operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In addition, even if the Company's results of operations, financial conditions and liquidity, and the development of the industry in which the Company operates, are consistent with the forward-looking statements contained in the Presentation, those results or developments may not be indicative of results or developments in subsequent periods. Recipients of the Presentation are advised to read the admission document dated 1 December 2004 issued by the Company (as supplemented by subsequent announcements by the Company to Regulatory Information Services) for a more complete discussion of the factors that could affect future performance and the industry in which the Company operates. In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the Presentation may not occur. Other than in accordance with the Company's obligations under the AIM rules, the Company undertakes no obligation to update

• r 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. The Presentation should be read in conjunction with the Company's interim financial results for the six month period ended 31 December 2007, copies of which are available on the Company's website (www.bowleven.com).

Interim Results Presentation, March 2008

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Placing

• Proposed placing of approximately 12 million shares announced today
• Funding flexibility provided for:
• Potential appraisal activity on block 7 Cameroon post IF-1r
• Further exploration and appraisal activity on our portfolio
• General working capital requirements

Interim Results Presentation, March 2008

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Vision & Objective

Vision: “It is our vision to build an African focussed, exploration and production company which becomes renowned for its ability to consistently create and realise material shareholder value through exploration led organic growth and niche acquisitions.” Objective: Provide material capital growth over a 3-5 year period through high impact exploration and niche acquisitions and to realise value as appropriate

Interim Results Presentation, March 2008

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Strategy

• Focus on Africa (with particular

emphasis on Gulf of Guinea)

• Maintain significant exploration

positions (including Operatorship)

• Leverage technical and

commercial expertise

• Seek value adding partnerships
• Seek to monetise existing

resource base as and when appropriate

• Be prepared to return value to

shareholders to maintain significant equity gearing

Cameroon Gabon

Interim Results Presentation, March 2008

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Executive Summary

• Six 100% owned blocks
• 3 offshore Cameroon (Etinde Permit; MLHP

5,6,7)

• 2 onshore Cameroon (Bomono permit; OLHP

1,2)

• 1 offshore Gabon (EOV Permit)
• One non operated block (50%)
• Onshore Gabon (Epaemeno Permit)
• Extensive 3D & 2D seismic database
• ver all blocks
• Substantial prospect inventory already

developed across portfolio

• Progress made on monetisation of

resource base in Cameroon

• Strong technical and management

teams with successful track record

Interim Results Presentation, March 2008

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Highlights

• Successful three well drilling campaign completed
• n Cameroon acreage in 2007.
• Obtained an 18 month exploration extension to

September 2009 for the Etinde Permit, Cameroon.

• Following success of recent drilling, preparation of

an exploitation application for Block MLHP-7 now underway.

• Secured the Trident IV drilling rig for the IF-1r well;

drilling expected to commence April/May 2008.

• Progress on development plan for EOV field in

Gabon (including further subsurface evaluation) with sanction possible Q2/Q3 2008

• Signed the new Bomono PSC area in Cameroon

covering approximately 2,328 km² .

• Developing a substantial high quality prospect

inventory across the Company’s portfolio.

Interim Results Presentation, March 2008

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CAMEROON

Interim Results Presentation, March 2008

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Cameroon Overview

Rio del Rey Basin

Bomono Permit 100%

• OLHP 1 & 2
• 2,328 km²
• PSC signed 12 Dec 2007
• First term ends 11 Dec

2012

• 500km seismic & one

well commitment Etinde Permit 100%

• MLHP 5,6 & 7
• 2,314 km²
• Exploration period

extended to Sept 2009

Douala Basin

Interim Results Presentation, March 2008

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MLHP-7 Overview

Isongo Marine Field

• Discovered by Mobil in 1967

Isongo E Field

• IE-2/2Z – tested 30mmscf/d +

3800bcpd IF-1

• drilled to 6355ft – kick on IE-2Z

gas gradient – possible 1200 ft column

• IF-1r April/May 2008 spud

Exploitation application in preparation

Isongo Marine Isongo D Manyikebi Isongo C Isongo E Isongo F

Interim Results Presentation, March 2008

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Block 7 – IE/IF

FORMATION PRESSURE

6000 61 00 6200 6300 6400 6500 6600 6700 6800 6900 7000 71 00 7200 7300 7400 7500 7600 5000 51 00 5200 5300 5400 5500

Pressure(psia) Depth(ft TVDSS)

Sand 1 gas Sand 1 water Sand 2 Sand 3 Linear (Sand 1 gas) Linear (Sand 1 water) Linear (Sand

GWC 7504 ft tvdss (recorded as FWL from IE-2z M DT Gas kick in IF-1 6275 ft tvdss (6355 ft M D). Projected pressure 51 80 psi

• IF-1 drilled to 6355ft – gas kick on IE-2Z gas gradient –

suggests same GWC and indicates full to spill structure

• Well abandoned prior to objective
• Pressure indicates potential connectivity between IF, IE

and ID discoveries

• IF-1r location selected – clear of any visible faulting –

spud expected April/May 2008

ID IE IF

Interim Results Presentation, March 2008

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• IF-1r location selected

300m NE from IF-1

• Subsurface location

chosen to

• Avoid extensional

faulting in volcaniclastic interval

• Have well defined

base volcaniclastic interval

• Maintain structural

elevation at mapped top reservoir

IF-1r Well Location

Interim Results Presentation, March 2008

Block MLHP-7 Isongo Gas Resource

GIIP (bcf) CIP (mmbbl) Isongo Marine Field 363 18.0 Isongo E Field 337 47.2 Isongo C Discovery 154 10.5 Isongo D Discovery 20 2.8 Total Discovered Resource 874 78.5 IF structure (exploration)* 435 60.9 Isongo Marine (exploration) 153 10.7 Total Exploration Resource (unrisked) 588 71.6 Total MLHP 7 Resource (at March 2008) 1462 150.1

Mean In Place volumes *P10 – P90 range for IF structure is gas 224-686 (GIIP) and 32-96 condensate

Interim Results Presentation, March 2008

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Cameroon – Blocks 5 & 6

Prospect Inventory

Gas = 2.1Tcf Condensate = 120mmbbls Oil = 427mmbbls *Mean unrisked in place volumes

• Douala basin – numerous onshore oil

seeps and hydrocarbon occurrences in

• lder wells but no commercial

discoveries pre- 3D seismic

• D-1r drilled and successfully tested

25mmscf/d + 1454bcpd from Miocene aged turbidite reservoir

• Preliminary prospect inventory yields

total unrisked mean GIIP 2.1tcf + 427mmbo

• Detailed seismic interpretation

continuing –

• will refine existing

prospects/leads

• identified high potential late

Cretaceous basin floor fan complex – potentially oil prone

D1r

Interim Results Presentation, March 2008

Block 5 Emerging Upside – Late Cretaceous basin floor play

THICK

Play Elements

• Wedge/fan shaped depositional unit, thins to

N, NE and E

• Internal geometry indicative of high reservoir

probability

• Late Cretaceous age
• Sits above prolific Cenomanian-Turonian

source interval

• At ~4000m but in shallow water
• Trap geometry/charge history yet to be

defined

• Much greater volumetric potential than slope

prospects

possible analogue of the deepwater Ghana discoveries but in shallow water

Interim Results Presentation, March 2008

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Cameroon - Bomono

• PSC signed December 2007
• Attractive fiscal terms
• G&G operations team due in country April

’08

• Total commitment over 5 years - (8000km

aeromagnetics, 4000km aerogravity, 500km 2D seismic, 1 well)

• Aero-geophysics programme (gravity and

magnetics) to commence late 2008

• Geological sampling programme to

commence late 2008

• Seismic acquisition anticipated 2009 dry

season

• Drilling 2010 or later
• Principal play type – tilted fault blocks
• P90/P10 reserve range estimated as 10/100

mmbo per prospect

Interim Results Presentation, March 2008

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Cameroon – Next Steps

Bowleven Cameroon database = 2000 sq km 3D seismic & 4000 line km 2D seismic data MLHP-7 Gas Condensate Play

• Chase potential around IE

and IF area

• Drill IF-1r plus drill further

appraisal wells MLHP-5 & 6 Oil Play

• Mature interpretation and

understanding of Eocene- Cretaceous prospectivity and

• il distribution
• Drill highgraded prospects

MLHP-5 & 6 Gas Condensate Play

• Drill highgraded prospects as

appropriate

Interim Results Presentation, March 2008

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Cameroon – Commercialisation

Development Options for MLHP-7

• Gas Recycling and Condensate

Recovery

• Feedstock for EGLNG
• Mini or floating LNG

I-E WHP-PUQ Platform 8-Slot Wellhead; Bridge-linked PUQ; Fluid Separation; Gas Compression; Living Quarters

25.3 km 7 . 1 k m

Limbe Refinery

L i q u i d E x p

• r

t P i p e l i n e t

• S

h

• r

e ( L i m b e )

Etinde Block MLHP-7 Offshore Cameroon

Shoreline Multiphase Pipeline IF-A to IE Gas Injection Flowline IE to IF-A

GAS RECYCLING OFFSHORE PROCESSING CONCEPT

From MLHP-7 35,100 bbl/d From I-E 90 MMscfd 11,700 bbl/d To I-E ~90 MMscfd Gas Injection IF-A Platform Minimum NUI Facilities 8-Slot Wellhead From IF-A 90 MMscfd 11,700 bbl/d To IF-A ~90 MMscfd Gas Injection IF-B Platform Minimum NUI Facilities 8-Slot Wellhead From IF-B 90 MMscfd 11,700 bbl/d To IF-B ~90 MMscfd Gas Injection

Multiphase Pipeline IF-B to IE G a s I n j e c t i

• n

F l

• w

l i n e I E t

• I

F

• B

7 . 1 k m

I-E WHP-PUQ Platform 8-Slot Wellhead; Bridge-linked PUQ; Fluid Separation; Gas Compression; Living Quarters

2 5 . 3 k m 7.1 km

Limbe Refinery

L i q u i d E x p

• r

t P i p e l i n e t

• S

h

• r

e ( L i m b e )

Etinde Block MLHP-7 Offshore Cameroon

Shoreline Multiphase Pipeline IF-A to IE Gas Injection Flowline IE to IF-A

GAS RECYCLING OFFSHORE PROCESSING CONCEPT

From MLHP-7 35,100 bbl/d From I-E 90 MMscfd 11,700 bbl/d To I-E ~90 MMscfd Gas Injection IF-A Platform Minimum NUI Facilities 8-Slot Wellhead From IF-A 90 MMscfd 11,700 bbl/d To IF-A ~90 MMscfd Gas Injection IF-B Platform Minimum NUI Facilities 8-Slot Wellhead From IF-B 90 MMscfd 11,700 bbl/d To IF-B ~90 MMscfd Gas Injection

Multiphase Pipeline IF-B to IE G a s I n j e c t i

• n

F l

• w

l i n e I E t

• I

F

• B

7 . 1 k m

Interim Results Presentation, March 2008

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MLHP 7 Gas Recycling Concept (Gross Basis)

• Costs*
• Facilities: $650 million to $800 million
• Drilling: 6-9 producers and 4-6 injectors: $300 million to $450 million
• Assuming 70-80% recovery factors expect to produce 70-80 million barrels
• Schedule
• Sanction targeted by end 2009
• First condensate approximately 3 years after sanction

* based on 2007 money Field P50 GIIP (Bscf) Peak Gas Production (MMscfd) Peak Condensate Production (bbl/d) Peak Water Production (bbl/d) Peak Gas Injection Rate (MMscfd)

Isongo E

290 90 11,700 500 80

Isongo F

500 180 23,400 1000 160

Total

790 270 35,100 1500 240

Interim Results Presentation, March 2008

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MLHP-7 Front End Studies 2008-2009

Mar Apr Jun Jul Aug Sep Nov Dec Feb Mar Apr May Jun Jul Aug Sep Nov Dec FDP REVISION CONCEPT DEFINITION (2)

MLHP-7: Front End Studies

CONCEPT DEFINITION (1) DRILL APPRAISAL WELLS IE/IF RE-INJECTION MODELLING LNG COMMERCIAL NEGS. 2009 Oct Oct DRILL IF-1r REVIEW FLOATING/MINI LNG May RE-INJECTION STUDIES SANCTION Jan

Year Month 2008

FEED

Well 1 Well 2

Interim Results Presentation, March 2008

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GABON

Interim Results Presentation, March 2008

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Epaemeno Permit

• Block G4-211
• 1340 sq km
• Second term ends August 2010
• One well commitment
• 50% relinquishment required at

end of second period

• Third period expires Aug 2013
• One commitment well
• Addax now approved as Operator

and conducting field operations, with Bowleven conducting G&G work through to well locations under TSA

• $10m (net) exploration carry, $8m

(net) development carry EOV Permit

• Block G5-92
• 105 sq km
• Exploitation permit over field

Gabon Overview

Interim Results Presentation, March 2008

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Gabon – EOV Field

• PSC signed for EOV Permit Area in

February 2004

• EOV Oil Field discovered by Marathon

in 1998.

• Field located 6 miles offshore in 65ft of

water

• 7.4 mmbbls best estimate contingent

resource from CPR

Interim Results Presentation, March 2008

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Gabon – EOV Development

• Reservoir development study due for completion in April 2008
• Depending on the outcome of this study we may conduct further appraisal/development

drilling in 2008. Possible sanction Q2/Q3 2008.

• The preferred option remains development with an FPSO. The Knock Taggart (Fred

Olsen) remains available.

• Four development wells have already been drilled though a central template
• The jacket is complete. The Topsides are approx 80% complete. Both now at Bay

Offshore yards in Louisiana.

• If sanction in Q3 2008, then first oil in Q3 2009

Interim Results Presentation, March 2008

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EOV Development Management Summary Schedule

Jan Feb Mar Apr

Jun Jul Aug Nov Dec Feb Mar Apr May Jun Sep

Pre-sanction Studies

2009

Oct

GENERAL

Project Sanction

May

EOV DEVELOPMENT SUMMARY SCHEDULE FPSO OPTION

Offshore HUC

FPSO

LLI Order & Delivery Reservoir Studies

Jul Aug Jan Sep

Geotechnical Survey Final Test & First Oil

PLATFORM DRILLING

Facilities Engineering Sail to Gabon Drilling Window EOV 8 FPSO Modifications Hook-up & Commission

2008

Facilities Procurement Drilling Window EOV 9 Well Completions Complete Platform Transport & Install

Interim Results Presentation, March 2008

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EOV Topsides

Interim Results Presentation, March 2008

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NW Kowe lead

• Large rotated fault block straddling block boundary
• Additional seismic data required to confirm closure

and mature drilling location

• Data trade agreed with Perenco

Gabon – EOV Permit - NW Kowe

Interim Results Presentation, March 2008

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Gabon - Epaemeno

N’Komi Fracture Zone

• 307km 2D seismic programme to be acquired late

June-late August 2008.

• Focus on northern Terrace margin play and central

Davo cluster

• Additional 300km 2D seismic possible follow on
• Drilling programme during 2009 or 2010 dry season

depending on seismic

Dentale Basin South Gabon Sub-basin

Nymbe High

Interim Results Presentation, March 2008

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FINANCE

Interim Results Presentation, March 2008

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Placing

• Proposed placing of approximately 12 million shares announced today
• Funding flexibility provided for:
• Potential appraisal activity on block 7 Cameroon post IF-1r
• Further exploration and appraisal activity on our portfolio
• General working capital requirements

Interim Results Presentation, March 2008

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Interim Results Summary

• First report under IFRS and US$ presentational currency (conversion document

issued in November 2007)

• Loss of $6.6 million in period
• Net assets of $304 million at period end, $35m invested in fixed assets
• Net cash resources $55 million at 31 December 2007

Interim Results Presentation, March 2008

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Interim Results – Funds Summary

Net cash at 31 December 2007- $55 million

Cash usage $51m

N e t i n t e r e s t r e c e i v e d E x p e n d i t u r e

• n

c a p e x / l e a s e s $2m Share issues $1m ($49m) ($5m) Outflow from Operating activities

Interim Results Presentation, March 2008

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Financial Overview

• Healthy balance sheet
• Placing provides near-term optionality
• Funded for committed work programme
• Cash generation route by Q2/Q3 2009
• Debt finance capability
• Farm-out potential

FINANCIAL & OPERATIONAL FLEXIBILITY

Interim Results Presentation, March 2008

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OVERVIEW

Interim Results Presentation, March 2008

Highlights/ Overview

• Encouraging exploration progress – following completion of successful three well

drilling campaign in Cameroon during 2007, preparation of an exploitation application for MLHP-7 is underway.

• Near term drilling programme - IF-1r well drilling expected to commence April/May

2008 with likely appraisal wells to follow.

• Further asset base evaluation – substantial high quality prospect inventory being

developed across the Company’s portfolio.

• Portfolio expansion – doubled acreage in Cameroon with signing of new Bomono

PSC.

• Financial flexibility - proposed placing of up to approximately 12 million shares

announced today strengthens the Group enabling the timely pursuit of the

• pportunities in its portfolio.