Investor presentation September 2014 0 Disclaimer THIS DOCUMENT - - PowerPoint PPT Presentation
Investor presentation September 2014 0 Disclaimer THIS DOCUMENT - - PowerPoint PPT Presentation
Investor presentation September 2014 0 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.
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
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Disclaimer
1
Leading African Deepwater Portfolio
Gabon
- Mbeli – 40%
- Ntsina - 40%
- Manga - 70%
- Gnondo - 70%
Kenya
- L9 - 90%
1. Terms agreed for divestment, subject to final negotiations
Equatorial Guinea
- Block R - 80%
2
Tanzania
- Blocks 1,3&4 -
20%
- Block 7 - 80%
- East Pande - 70%
Somaliland Tanzania Kenya Somaliland Tanzania Kenya Gabon EG
Somaliland
- SL12/SL9 - 25%
Seychelles
- PEC-5B/1,2&3 - 75%
Seychelles
Key Highlights
3
- 2C Contingent Resource of 830mmboe (post Tanzanian farm-down)
− >16 TCF (gross) discovered in Tanzania Blocks 1, 3 and 4 − c.2.3 TCF (gross) discovered in Equatorial Guinea Block R
- Successful sale of 20% of Tanzania Blocks 1, 3 and 4 to Pavilion Energy for cUS$1.3bn(1)
- EG FLNG project progressing
− Further exploration and appraisal drilling underway − Midstream solution being finalised
- High-impact drilling programme underway, key wells up and coming
− Silenus East oil (EG) − Tende (Tanzania)
- New licence acquisitions expanding the portfolio and refilling the exploration hopper
− Seychelles and Myanmar
- Net working capital end of June – c.US$1.3bn
- Share buyback underway up to US$100mn
1. US$38mn contingent and will be received on FID
Strategic focus
4
Focus on Africa
Currently Future
Focus on E&A Focus on Deepwater Basins
- Africa will remain core to the portfolio
- But looking at new opportunities elsewhere, primarily
Asia (Myanmar licence first acquisition)
- Key is geology rather than geography
- E&A will continue to be the company’s primary focus
- Not averse to holding producing assets to help provide
cashflow sustainability
- Offshore, deepwater basins are expected to be the
- ngoing primary source of portfolio upside
- Offer significant running room, well understood by our
technical team
- Strong in-house deepwater drilling capabilities
Focus on Capital Efficiency
- No change to strategy
- Pre-drill farm-outs sought to minimise capital at risk
- Monetisation of success at the optimum time to
maximise returns
Ophir Business Model
Somaliland Gabon Pre-salt and Ogooué Delta AGC EG Gas
3D seismic 1st Discovery Appraisal FID First Production
Value
Exploration and appraisal:
High-risk high-reward, rapid value accretion in the exploration and appraisal phase Pre-drill farm-out opportunities to manage risk
Tanzania Blocks 1,3,4 Tanzania E Pande, Block 7 Kenya
Ophir’s primary E&A Focus
Gabon Deeper Water
2014 Drilling Activity
5
Into Further Exploration and Appraisal Returns to Shareholders
Monetise and Recycle Cashflow
Cashflow from Production
EG Liquids
Focused on maximising Returns on Investment
Oil/Liquids Gas and/or Oil/Liquids Gas
Carried Interests
Seychelles Myanmar
Country Block Name Well Name Ophir WI Pmean CoS 2014 2015 (MMBOE) (%) Q1 Q2 Q3 Q4 H1 Gross Net
Gabon Ntsina Padouck Deep
x
Tanzania Block 1 Taachui
Gabon Gnondo Affanga Deep
x
Gabon Mbeli Okala
x
Tanzania Block 1 Taachui DST 20%
Tanzania Block 1 Mzia-3 DST 20%
-
EG Block R Tonel North 80%
- Tanzania
Block 4 Kamba/Pweza N 20% 91+34 18+7 35%/90% EG Block R Silenus East Gas and Oil 80% 70+85 56+68 69%/13% EG Block R Fortuna-2 and DST 80%
- Tanzania
East Pande Tende 70% 379 265 15% Kenya Block L9 TBD 90% 190 171 15%
2014 Drilling Programme(1)
1. Programme is subject to change (prospect, order and timing)
Several play opening wells being drilled
6
Oil / liquids Gas
- West Africa – Vantage Titanium Explorer
- East Africa – Deepsea Metro I
Rigs Contracted
Play opening well Contingent well TBD
Equatorial Guinea Block R Overview
2.5-3.0Mtpa FLNG development, added upside potential from a deeper liquids play
- Ophir Energy holds an 80% Interest in Block R,
which is 2,450km2 in water depths from 600m- 1,950m
- Located in south eastern Niger Delta, proximal to
significant oil and gas production
- Several biogenic gas discoveries to date totalling
2.3 TCF 2C contingent resource with potential for further upside and a deeper thermogenic liquids play
- Discovered resource enough to support an FLNG
development
- 2014 key objectives
- establish the value chain for the FLNG
development
- confirm and increase resource base with a 3 well
drilling programme
- test the deeper liquids play
- In exclusive discussions with midstream partner to
progress the LNG development
Gas Discovery Low Risk Prospect Legend Prospect 2014 Drill Prospect Appraisal Area 2014 Well
7
Schematic section EG – Block R
8
Proven gas accumulation Gas Prospect Oil Prospect
S S
Mature source rock (oil and gas) Gas migration pathway Oil migration pathway
Petroleum System Legend
- Seven biogenic gas
discoveries to date totalling 2.3 TCF 2C contingent resources
- An additional 2.0 TCF of low
risk prospective resources
- Evidence for deeper
thermogenic liquid potential, which will be tested in 2014
9
Tonel North-1 Tonel-1
2km 1 mile
Tonel 10.5Ma Top Reservoir Depth Map
Tonel North-1
Tonel North-1
2014 Appraisal: Tonel North-1
Increase 1C resource estimate
Tonel Discovery WD (m) 1,648 TD (mSS) 2,800 CoS N/A Recoverable Res Est (Primary Targets) 1C 2C 3C Gas (bcf) 700 814 976
10
scale
10.5Ma (Res 1) Amplitude Extraction
Fortuna 3D
2014 Exploration: Silenus East-1
Expected to increase discovered gas resource, test the deeper liquids play
Silenus East-1
16.5Ma (Res 4) Amplitude Extraction
Exxon 3D
Xline through Silenus East
Silenus East Prospect WD (m) 1,450 TD (mSS) 3,390 CoS (Gas Target/Oil Target) 69%/13% Recoverable Res Est (Primary Targets) P90 Mean P10 Oil (mmb) 54 85 120 Gas (bcf) 339 420 504
11
2014 Appraisal: Fortuna-2
Prove commercial flow rates & increase 1C resource estimate
Fortuna-2
Fortuna Complex Amplitude Fortuna Complex Depth Fortuna-2 Random line through Channel, F-2 & FE-1
Fortuna Discovery WD (m) 1,813 TD (mSS) 2,551 CoS N/A Recoverable Res Est (Primary Targets) 1C 2C 3C Gas (bcf) 769 941 1121
FLNG – Significantly boosts project NPV
- Faster route to market
- Lower cost of production compared to terrestrial LNG train, leased vessel
- Flexible field development, staged upstream capex
- Expandable vessel capacity
- Block R ideal for Floating LNG (FLNG) with dry gas and benign sea
conditions
Why FLNG?
- In exclusive discussions with preferred midstream partner
- Final discussions with EG Government on project fundamentals
- FEED: commences post well results
Status
- Current 2.3 TCF resource base commercial for FLNG. Additional gas
resource being targeted in 2014 enhances project economics
- 3 TCF supports a minimum 2.5mtpa FLNG train @ 400mmscfd – JV with
Build, Own, Operate, Terminate (“BOOT”) partner(s)
- Phased field development over field life, material amount of total
project capex to be funded out of cashflow. Phase 1 requires 7 wells
- First gas expected 2018 - before East Africa and US exports
- Full EG Government support
Project Scope Project Schematic Production Profile (3.0 TCF case) 12
- 1
2 3 4
- 100
200 300 400 500 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 Cumlative Gas Production (Tcf) Daily Gas Production (mmcf/d) Daily Gas Production Cumulative Gas Production
13
EG FLNG - Commercialisation Value Chain
Upstream
Midstream
Downstream
Near-Term Milestones Cost Ophir Expected Exposure
US$1.0-1.5bn (Pre-First Gas) c.US$1,000/mtpa N/A Tariff (leased FLNG vessel – no capital exposure to Ophir) N/A
- Book reserves and confirm volumes
Q4 2014
- Invite farm-ins to upstream
Q4 2014
- Vessel provider confirmed
- Sign MOU with midstream partner
Q3 2014
- FLNG FEED & Integrated FEED
2014-2015
- Ophir and Ministry to commence
- ff-take marketing discussions
H2 2014
- In principle SPAs 2015
Partial monetisation and carry through development
Partners
- Upstream partners
- Owner/Engineers
- Vessel owners
- Vessel construction
engineers/yards
- Midstream engineering
- Gas Offtakers
14
Blocks 1,3 & 4 Overview
- Over 16 TCF discovered to date, underpins 2 Train LNG project
- Fourteen out of fourteen successful exploration and appraisal wells
drilled by Ophir/BG JV since 2010
- Discovered resource now c.16.7 TCF (Including Taachui volumes)
- Several appraisal wells have been drilled and three DSTs undertaken
(Jodari, Mzia and Pweza) significantly derisking the commerciality of the resource base
- Planning underway for a 2x5mtpa Train LNG project from Blocks 1, 3
& 4. Further trains possible
- Preferred LNG site presented for approval to the Government
- Integrated project team with Block 2 setup to progress joint facility
- Ophir’s position partially monetised through farm-out to Pavilion
- Energy. Deal now completed and US$1.255bn received (pre-tax),
further US$38mn due on FID
- Significant unrisked upside remains in the prospect inventory >50
TCF although majority in higher risk new plays
- Further exploration and appraisal campaign ongoing
15
Remaining Prospectivity
Upside of >50 TCF remains in higher-risk plays
2014 drilling programme
- Discussions ongoing with BG over the forward exploration and appraisal programme,
now likely to be 3 wells in 2014
- Block 1 – Taachui successful c. 1TCF with upside
- Block 4 – Kamba (including test of Pweza North)
- Further testing of Mzia
Remaining Prospectivity
- Over 50 TCF of resource potential remains across the 3 Blocks
- The significant majority is in higher-risk plays including the Outboard and Terrace
areas of Block 1. Timing of drilling these prospects remains under discussion with BG
- Lower-risk incremental upside remains on Blocks 1 and 4, potentially enough to push
volumes above threshold for a 3rd Train
2014 drilling candidates
16
2014 Exploration: Kamba
Near Field Block 4 Exploration
- Kamba prospect is a Campanian target with a positive seismic
anomaly
- Well likely to appraise Chewa discovery and shallower Pweza
North Prospect derisked by Ngisi discovery in 2013
- Success would see Block 4 volumes approaching 6 TCF, confirming
resource potential to support a Train of LNG
Pweza North Chewa Kamba Chewa – 1
Kamba Location Map
Kamba/Pweza North WD (m) 1,350 TD (mSS) 4,000 CoS Kamba/Pweza N 34%/90% Recoverable Res Est (Primary Targets) P90 Mean P10 Kamba Gas (BCF) 62 544 1117 Pweza N Gas (BCF) 125 202 287
Possible Kamba – 1 Pweza
Tanzania LNG: Positioned for Success
World scale resource with partner alignment
17
Key Stakeholder Alignment World Class Resource Base
- Tanzanian Government agreement to LNG exports; commercial framework already established
- Fields located solely within block boundaries – unitisation not required
- Integrated Project Team setup with Block 2 partners – pre-FEED contracts awarded
- >16 TCF 2C recoverable resource discovered across Blocks 1, 3 and 4 – sufficient to underpin a two-
train LNG project
- Significant further exploration upside across Blocks 1, 3 and 4, East Pande and Block 7 (under
review post Mlinzi Mbali-1 well)
Strong JV Partners
- BG is a top 5 LNG player globally – proven LNG developer
- Pavilion Energy – emerging Asian LNG player backed by Temasek
Strategically Located
- Well positioned to serve Pacific Basin – c.70% of the world’s LNG demand
- Farm-ins by regional players validate resource appetite
Cost Competitive
- Upstream development costs reduced due to quality of reservoir deliverability
- Multiple Train LNG facility increases unit efficiencies
- Midstream infrastructure leveraged with Block 2 partners, Statoil and Exxon
18
East Pande Overview
Greatest potential for liquids offshore Tanzania
- Ophir has a 70% operated interest in the
East Pande PSA with Rak 30%
- Covers an area of 3,250km2 in water
depths up to 2,100m
- c.18 TCFe Gross mean unrisked resources
in current portfolio of identified leads and prospects
- Multiple play types identified,
stratigraphic continuation of plays in Blocks 1-4 – partially derisked with Taachui success
- Strategically located inboard of Blocks 1-4
- Expected to be gas prone but best
potential for liquids offshore Tanzania
- Tende first well planned in H2 2014 in the
south of the licence area
= 2013 East Pande outline
Block 7 Blocks 3&4 East Pande Block 1
Tende Pmean 379mmb/2.4 TCF Balungi Pmean 1.5 TCF Ndimu Pmean 0.9 TCF Viazi PMean 1.5 TCF Tikiti Pmean 0.9 TCF
2014 Exploration: Tende
Primarily prospective for gas, but could have liquids potential
- Transgressive sand – Canyon
backfill
- +ve AVO Expression
- Primarily prospective for gas
but has liquids potential
- Taachui discovery has helped
derisk the prospect
2D/3D Top Depth
Tende Prospect
XL 9254 35-45 Deg Opacity Stack – Looking NW
Proposed Tende -1 Well Location
W E W E
Tende Prospect WD (m) 680 TD (mSS) 4,200 CoS 15%(1) Recoverable Res Est (Phase Independent) P90 Mean P10 Oil (mmb) or 138 379 700 Gas (bcf) 957 2,383 4,298
19
1. Risking pre-success with Taachui-1
Tende to Jodari Tieline
Calibrated amplitude response to outboard discoveries
20
Jodari Discovery Mzia Discovery Taachui Discovery Tende Prospect
A B 35-45 Degree Far Offset Stack – Ndizi, Kusini Inboard, Kusini Mega Merge
Jodari North Discovery
A B
Expanded Gabonese position
21
- The permits are located in the North Gabon basin, proximal to
significant oil discoveries
- Mbeli and Ntsina: Ophir 40%, Petrobras 50%, OMV 10%
- Manga and Gnondo: Ophir 70%, OMV 30%
- A3-A6: Awarded Q4 2013, PSCs currently being negotiated
- Three exploration wells were drilled in 2014
- Padouck Deep and Okala targeted the pre-salt play in the Mbeli
and Ntsina permits, both uncommercial but derisked key play elements
- Affanga Deep targeted the Ogooué delta play in the Gnondo
permit, poor reservoir sands
- Padouck Deep and Okala costs largely carried by Petrobras and
OMV(1), Affanga Deep partially carried by OMV
- The new acreage under award (Blocks A3-A6, PSCs under
negotiation) is key to Ophir testing the potential of the deepwater play which has similarities to conjugate margin
- ffshore Brazil
Deepwater Lead
Legend
Ogoueé Prospect Pre salt Prospect 2014 Well Play 1: Pre-Salt Play 2: Deep-water Play 3:Ogooué Delta
Multiple play potential
Albian - Aptian sands in tilted fault block and subcrop traps sealed by over-lying salt and/or shales Maastrichtian – Cenomanian sands in combined stratigraphic- structural traps
S S S S S S S S S S S S S S S S S
Schematic section Gabon – Ntsina & Mbeli, A3-A4
22
Pre Salt Play Deepwater Play
Oil Prospect Potential hydrocarbon reservoir
S
Mature source rock (oil) Oil migration pathway
Petroleum System Legend
L15 L9
Kenya Tanzania Somalia
L21 L23 L24 L25 L26 L27 L28 L5 L7 L10B L11B L8 L6 L11A L12 L22
Mbawa 1 Kiboko Pomboo-1 Kubwa Simba-1 Kofia-1
Kenya overview
Increasing industry activity, but mixed results to date
23
Statoil left Kenya (L25 and L26) following failure to resolve licence negotiations
2012 Licence Area 2012 Licence Area 2012 Licence Area 2012 Licence Area 2012 Licence Area 2012 Licence Area
BG drilled the Sunbird prospect on a Miocene reef/carbonate play (Mar 2014) Kiboko P&A (Sept 2013) Oil Shows at Kubwa (May 2013)
- First offshore discovery in Mbawa-1
by Apache, small (53m net) but proves play although Apache have now exited the Block
- Anadarko failed to deliver technical
- r commercial success with the
Kubwa and Kiboko wells in 2013
- BG Group drilled the Sunbird
Miocene oil play which encountered hydrocarbons but was uncommercial
- Ophir has exited from Block L15
First offshore discovery Apache have exited Block despite Mbawa “success”
Schematic section Kenya – Block L9
S S S S S S
Miocene carbonate build-ups in structural and stratigraphic traps Albian sands in tilted faults blocks forming structural closures Campanian Sands in stratigraphic traps on Mbawa High Simba Graben Cretaceous sands in combined stratigraphic-structural traps
24
S S S
Potential Inboard Oil Play
BG’s Sunbird-1 well first key test of the play
Miocene Build-up: Tana Lead
- Sunbird-1 (BG Group) tested the Miocene build-up play to
the south, encountered hydrocarbons, phase uncertain
- Play fairway extends into L9
- Number of leads identified on 2D seismic including Tana
feature with potential of c.190mmb
N S
Miocene Build-up Miocene Build-up Fairway and Portfolio Miocene Build-up Trends
Sunbird-1
Outboard gas trend Miocene build-up oil prone leads
Tertiary Grabens
25
New licence acquisitions
Myanmar
- Awarded a 95% interest in Block AD-03
- Located in the Rakhine Basin on trend with the 9+TCF Shwe gas field
- Initial exploration period c.2 ½ years. Re-processing 2D seismic and new 3D survey
- Competitive licensing round with awards to several Major oil companies
Seychelles
- Acquired a 75% interest in 3 Blocks from WHL Energy – PEC-5B/1 and PEC-5B/2 & PEC
5B/3 (previously 1 Block, PEC-5B/2)
- Frontier basin with large number of potential structural oil targets
- 3D survey to be acquired – potential low-cost drilling, Jackup water depths
26 Myanmar offshore licensing round Seychelles licences
PEC-5B/1 PEC-5B/2 PEC-5B/3 Seychelles Islands
Myanmar License Round
27
- Awarded a 95% interest in Block AD-03
- Partnership with Myanmar company, Parami
- Located in the Rakhine Basin on trend with the
Shwe gas field
- Initial exploration period, re-process 2D
seismic and new 3D survey
- Yangon office identified; planned to open Q4
2014
- Asset Manager employed
- Ophir’s first footprint in Asia
Ophir in Myanmar
Shell AD-09, AD11, MD-05 BG & Woodside AD-02, AD-05, A-4, A-7 Chevron A-5 Total YWB Statoil & CoP AD-10 ENI MD-02, MD-04
28 Contact: Investor Relations Ophir Energy plc Tel: +44 (0)20 7811 2400 Email: investor.relations@ophir-energy.com