Value Creation through Successful Exploration and Selective Development

Transcription

1 NYSE: CIE Lontra #1 Value Creation through Successful Exploration and Selective Development January 2014 Investor Presentation 1

2 Forward Looking Statements Neither the United States Securities and Exchange Commission nor any other state securities regulator nor any securities regulatory authority elsewhere has reviewed or made any determination as to the truthfulness or completeness of the disclosure in this document. Any representation to the contrary is an offense. Recipients of this summary are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard. Certain statements, estimates and financial information contained in this summary ("Estimates") constitute forwardlooking statements or information. Such forward-looking statements or information involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from the Estimates or results implied or expressed in such forward-looking statements. While presented with numerical specificity, the Estimates are based (1) on certain assumptions that are inherently subject to significant business, economic, regulatory, environmental, seasonal, competitive uncertainties, contingencies and risks including, without limitation, ability to obtain debt and equity financings, capital costs, construction costs, well production performance, operating costs, commodity pricing, differentials, royalty structures, field upgrading technology, and other known and unknown risks, all of which are difficult to predict and many of which are beyond 's control, and (2) upon assumptions with respect to future business decisions that are subject to change. There can be no assurance that the Estimates or the underlying assumptions will be realized and that actual results of operations or future events will not be materially different from the Estimates. Under no circumstances should the inclusion of the Estimates be regarded as a representation, undertaking, warranty or prediction by, or any other person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that will achieve or is likely to achieve any particular results. The Estimates are made as of the date hereof and disclaims any intent or obligation to update publicly or to revise any of the Estimates, whether as a result of new information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on forward-looking statements or information due to the inherent uncertainty therein. 2

3 Founding Vision Based on Exploration Led Value Delivery 2005 Today Solid Foundation: Unique Deepwater Exploration Portfolio, Technology and Skills Proven Success: Selective Development of World-Scale Discoveries Continual Growth: A Leading Exploration and Production Company Private equity capital World class: Expertise and capability Data and technology Oil-focused exploration strategy Early access to best emerging exploration plays Pre-eminent industry partnerships 7 material discoveries prove three new emerging basins Deep follow-on prospect Inventory Operating control and pace Select non-operated opportunities Demonstrated deepwater geologic and drilling capabilities Developer of selected discovered barrels Access to public capital; potential to high-grade portfolio Cameia First Development Cash flow from operations provides multiple capital alternatives Exploration led portfolio renewal Repeatable and scalable value creation 3

4 Dominant Positions in Proven Exploration Regions Deepwater West Africa 4 discoveries : Lontra, Cameia, Mavinga, Diaman Pre-salt Play major new trend; discoveries prove regional geology ~1,360,000 net acres covering 3 Angola blocks ~467,000 net acres covering 1 Gabon block 3 operated Angola blocks with 40% working interest; 1 Gabon block with 21.25% working interest Deepwater Gulf of Mexico 3 discoveries: North Platte, Shenandoah, Heidelberg Inboard Lower Tertiary Play major new trend; discoveries prove regional geology ~695,000 net acres covering ~250 blocks ~80% operated blocks with average 50% working interest is realizing unique competitive benefits by being the focused early-mover 4

5 2013: A Year of Exceptional Operational Results Shenandoah Appraisal Success North Platte Discovery Rowan Reliance Rig Contract Heidelberg Project Sanction Lontra Discovery Mavinga Discovery Cameia Development Diaman Discovery Operational Performance Confirms significant discovery; 1,000 ft oil column Very large discovery with high working interest Provides superior long term GOM drilling capability First oil expected 2016 Significant oil, condensate and gas Pre-salt discovery Confirms B21 Pre-salt trend; expected tie-back to Cameia Project moving to sanction, currently in FEED with 3 potential FPSO providers; first oil expected 2017; MBOD (gross) production Confirms active petroleum system in Gabon deepwater Pre-salt Improved drilling efficiency across basins has provided lower well costs and more barrels accessed per rig year 5

6 Robust Near Term Exploration and Development Activity Heading into 2014 Shenandoah North Platte & Offset Prospects Anchor, Rum Ramsey, Goodfellow Bicuar #1A Orca #1 Lontra Golfinho Cameia Gabon Operator plans further appraisal activity first half 2014 Processing of new Full Azimuth 3D seismic and appraisal / exploration well permitting Potential participation in partner operated GOM exploration Large Pre-salt structure; results in Q Large Pre-salt structure with 1996 oil discovery; results in Q Potential appraisal well Cameia look-alike; potential exploration well Project sanction expected; 2017 first oil Actively pursuing new licenses; acquiring new 3D seismic in Diaba block 6

7 Selective Development of Discovered Barrels Provides Roadmap to First Oil Selective Development Approach Control the pace and approach of development Maximize commercial and economic flexibility Heidelberg Development First Oil Cameia Development First Oil Shenandoah Appraisal & Development First Oil Standardized repeatable design Use readily available technology Explore monetization alternatives North Platte Lontra Mavinga Diaman Appraisal & Development Appraisal & Development Evaluating tie-back to Cameia Appraisal & Development 7

8 Maintaining a Strong Balance Sheet to Pursue Exploration and Development 2014 Estimated Cash Balance $1.6 $1.7 B $0.75 $0.85 B Expenditures Shifting Towards Appraisal & Development $ B $ MM $ MM 12/31/2013 Estimated Restricted and Unrestricted Cash (1)(2) Potential 2014 financing opportunities Portfolio high grading Estimated 2014 Cash Expenditures 12/31/2014 Estimated Restricted and Unrestricted Cash (1)(3) Opportunistic capital markets issuance Exploration Appraisal & Development Financing principles have not changed Minimize shareholder dilution Maximize flexibility Limit cash requirements until generating operational cash flow Development program to be funded through the lowest cost of capital (1) Unrestricted cash includes cash, cash equivalents, short-term investments and long-term investments. Restricted cash includes Cash Collateralized Angola LOCs (2) Includes an estimate of 4Q cash expenditures prepared by management in good faith based upon internal reporting and expectations for the three months ended December 31, This estimate is preliminary, unaudited, and may be revised. We and our auditors have not completed our normal quarterly review procedures as of and for the three months ended December 31, 2013, and there can be no assurance that our financial results for this quarterly period will not materially differ from this estimate. (3) Also includes interest payments, Angola contractual obligations and other items 8

9 : Exploration Led Long Term Value Delivery Performance continues to validate our strategy 7 material discoveries moving forward Selective developer of discovered barrels Numerous future exploration catalysts Deep inventory of follow-on opportunities Identifying renewal opportunities in existing and new plays/basins Expanded shareholder base Balance sheet in place to deliver 9

10 Prospect and Project Summary 10

11 : Leading West Africa Pre-salt Exploration and Development Diaba GABON CONGO BRAZZAVILLE DEM REP OF CONGO First mover in proving and developing Pre-salt play potential in the deepwater offshore West Africa (Angola and Gabon) 4 for 4 in frontier basins: Cameia, Lontra, Mavinga and Diaman Pre-salt discoveries offshore Angola and Gabon Large acreage position; ~1.8 mm net acres 2014 activities: ANGOLA Improved drilling efficiency 3 wells /rig year First Pre-salt development project (Cameia) expected sanction in 2014 B20 B21 B9 Evaluate Lontra, Mavinga and Diaman results Plan and drill next Pre-salt exploration and appraisal wells Acquire additional license areas Licenses 11

12 Stellar Success Rate as Opens Kwanza Basin Discoveries are proving Kwanza basin analog to Brazil Pre-salt and establishing a potential giant trend MMBO liquids (gross) discovered between three prospects (1) Lontra: MMBO Cameia: MMBO Mavinga: <100 MMBO Currently drilling Orca and Bicuar prospects potential of 250+ MMBO each (1) Significant inventory of future wells: Exploration wells (200+ MMBO Prospects) (1) Loengo #1: Block 9 Mupa #1: Block 21 Golfinho #1: Block 20 Appraisal wells: Lontra Cameia Up to six other international oil companies expected to pursue Presalt exploration in the basin in 2014 (1) International Energy estimates as of January 2014 Mavinga #1 Discovery Cameia #1 Discovery Cameia #2 Appraisal Lontra #1 Discovery License Discovery Prospect Successful Well Currently Drilling Industry Discovery Orca #1 20 Blocks 9, 20, 21 40% (Operator) Baleia #1A Bicuar #1A 21 Azul 0 16 mi 25 km Angola Denden 9 12

13 Pre-salt Structures on Trend with Cameia, Mavinga, Lontra Discoveries Catarina Rig Ocean Confidence Rig N Baleia #1A (1996) Orca #1 DRILLING Lontra #1 DISCOVERY Lontra West PROSPECT Golfinho #1 PROSPECT Mavinga #1 DISCOVERY Cameia #1 DISCOVERY Cameia #2 APPRAISAL Bicuar #1A DRILLING S Post-Salt Salt Post-Salt Salt Basement Basement Basement 94 km from Baleia to Bicuar Block 20 Block 21 Discovery Prospect Successful Well Currently Drilling Industry Discovery Results for Bicuar and Orca expected in Q

14 Significant Oil Discovery at Lontra Lontra #1 Discovery Baleia #1A (1996) Lontra liquids discovery estimated MMBO Total field estimated resource 700 MMBOE to 1.1+ BBOE W License Discovery Prospect Successful Well Currently Drilling Industry Discovery Salt Post-Salt Lontra #1 Discovery Basement Condensate/Gas Oil 0 16 mi 25 km Salt Orca #1 Block 20 40% (Operator) E ~250 ft. of net pay in very high quality reservoir with excellent permeability Currently assessing optimal location of initial appraisal well Due to scale of structure more drilling will be required to assess the full potential and resource splits Beginning to staff for development project execution No need for gas commercialization agreement to move forward with liquids development 14

15 Orca #1: Up-dip Test from 1996 Baleia Discovery Lontra #1 Discovery 0 16 mi 25 km Baleia #1A (1996) Orca #1 Block 20 40% (Operator) License Discovery Prospect Successful Well Currently Drilling Industry Discovery Catarina Rig Orca #1 tests the Pre-salt section up-dip of Baleia #1A well; second Pre-salt test on Block 20 New 3D suggests a larger structure with thicker reservoir potential up-dip Gross resource potential of 250+ MMBO Potential for additional deeper intervals SW Lontra #1 DISCOVERY Orca #1 DRILLING Baleia #1A (1996) NE Reservoir quality is key risk Spud December 2013; well results expected Q Ahead of schedule versus day expectation Post-Salt 87m oil Salt Basement Basement 25km 16 mi. 15

16 Bicuar Prospect on Trend with Cameia and Mavinga Pre-salt Discoveries Mavinga # 1 Discovery Cameia #1 Discovery Cameia #2 Appraisal Bicuar #1A Block 21 40% (Operator) License Discovery Prospect Successful Well Currently Drilling Bicuar #1A objective: evaluate potential mound facies and deeper stratigraphic intervals, including syn-rift Gross resource potential of 250+ MMBO Reservoir quality is key risk 0 16 mi 25 km Spud October 2013; well results expected Q W Bicuar #1A DRILLING E Ahead of schedule versus day expectation Post-Salt Salt Basement 16

17 Diaman Discovery: Gabon s First Deepwater Pre-salt Play Opener Gabon Discovery confirmed high quality sandstone reservoirs, salt seal, working mature source rocks Angola Diaba 21.25% Operator: Total Diaman #1 Discovery Elf Maruba # discovery 1,250 BOPD in Pre-salt Diaba Rabi-Kounga 940 MMBOE GABON Elf Moubenga # discovery 3,000 BOPD in Pre-salt Partners approved additional 3D seismic in 2014 to high grade prospects Expect further exploration drilling in 2015 Actively pursuing acquisition of operated acreage in Gabon licensing round W Post-Salt Salt Diaman #1 Discovery Salt E 0 30 mi 50 km Licenses Discovery Prospects Successful Well Industry Discovery Basement 17

18 s Proven Inboard Lower Tertiary Geologic Model in the Gulf of Mexico Paleo Delta System Geologic Model Potential for thick ponded reservoirs located up-dip closer to the Paleo Delta System Optimally positioned for improved reservoir and fluid quality Utilized advances in sub-salt imaging technology to unlock access to deep reservoirs Geologic model proven by outstanding results at North Platte and Shenandoah North Platte >550 net pay, high quality reservoir and fluids Shenandoah >1000 net pay, high quality reservoir and fluids Tiber INBOARD SYSTEM Rum Ramsey (Miocene) Anchor Coronado Leases Successful Well Upcoming Well Industry Discovery Gila Kaskida Goodfellow OUTBOARD SYSTEM St Malo 13,000 BOPD DST Jack 6,000 BOPD DST Cascade Chinook 18

19 2014 Inboard Lower Tertiary Program Williams Fork North Platte Discovery 60% (Operator) Latvian Rum Ramsey* Anchor Acquire and process new Full Azimuth 3D seismic over North Platte and surrounding prospects Fraser Select North Platte appraisal well location Baffin Bay South Platte Goodfellow Shenandoah Discovery 20% Prioritize North Platte offset prospects including applying learnings from recent wells Potential participation in several partner operated ILT and Miocene prospects Anchor Leases Discovery Prospects Successful Well Upcoming Well 0 12 mi 20 km Rum Ramsey Goodfellow *Miocene Objective 19

20 NYSE: CIE Investor Relations Contact: International Energy, Inc. Center 920 Memorial City Way, Suite 100 Houston, TX Main: