2009 Interim Results Presentation 23 rd March 2009

Transcription

1 2009 Interim Results Presentation 23 rd March

2 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 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 of the industry in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In addition, even if the Group s results of operations, financial conditions and liquidity, and the development of the industry in which the Group 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 Group (as supplemented by subsequent prospectuses issued by the Company and 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 Group 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 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. 3

3 Agenda Introduction Kevin Hart CEO Exploration Ed Willett & Development Exploration Director Financials Peter Wilson Commercial Director Kevin Hart Ed Willett Outlook and Q&A Kevin Hart Peter Wilson 4

4 Highlights Group highlights are as follows: Receipt from third party of possible cash offer for Company of 150p per ordinary share Farm-out discussions ongoing PSC for Etinde Permit signed on 22 December 2008 Acquisition of 2D seismic data over Epaemeno Permit completed Appraisal drilling locations identified on IE, IF and IM fields in Block MLHP-7 Etinde block-wide technical evaluation demonstrates substantial low risk exploration portfolio in addition to discovered resource Significant progress towards monetisation of Cameroon gas reserves, including appointment of Gaz de France Suez to undertake feasibility study 5

5 Exploration Update Ed Willett, Exploration Director 6 6 6

6 Cameroon Update Bomono Permit 100% OLHP 1 & 2 2,328 km² PSC signed 12 Dec 2007 First term ends 11 Dec km seismic & one well commitment Etinde Permit 100% MLHP 5,6 & 7 2,314 km² Etinde PSC signed on 22 Dec 2008 Exploration period extended by three years from date of signing 200km² 3D seismic and one well commitment 7

7 MLHP-5 & 6 Prospect and Lead Inventory Prospect inventory significantly enhanced with detailed subsurface review of Block 5 & 6 Exploration focus on Miocene channelised turbidites and Cretaceous lower slope turbidite deposits 18 Prospects & Leads identified across the two blocks Miocene predominately gas-condensate play (D1-r) Cretaceous oil play 8

8 MLHP-5 & 6 Prospect and Lead Inventory (Unrisked Mean In Place volumes) Wet GIIP (bcf)* CIIP (mmbbl) STOIIP (mmbbl) Delta Kappa 75 Lambda 12 1 Qof Phi-chi Psi Pi 44 2 Beta W 88 Beta E 117 Beta S 417 e-epsilon 17 1 e-alpha 30 sub-epsilon supra Zeta Zayin Zeta Tau Sigma TOTALS *includes NGLs, which comprise condensate and LPGs.. Noble Energy O5 Carmen Oil Discovery Condensate estimated at 55bbl/mmscf ref D-1r. Well location Source: IHS Energy D1r Discovery is 40bcf mean in place resources additional to Delta prospect volumes. 9

9 MLHP-7 Isongo and Biafra Inventory Isongo Prospects Multiple undrilled structural culminations associated with existing discoveries. Low risk and high potential. Isongo Leads Significant additional emergent prospectivity. Biafra Shallow dry gas accumulations at Manyikebi and IE plus additional prospectivity. Oil shows in IM-1. Isongo Gas Condensate Fields Isongo Marine, IC, ID and IE. IE successfully appraised by Bowleven in Characterised by rich condensate yield CGR of 70 to ~140. Isongo Oil Discovery IF Bowleven Tertiary sourced 35 API oil transforms prospectivity and value of acreage. 10

10 MLHP-7 IF Discovery & Appraisal 0 IE Field IE-2z IF Field IF-Appraisal IF-1 IF-1R A A (proposed) A IF-1R Discovery Mean 137mmbbl STOIIP Hydrocarbons encountered over a large part of the well 800 feet from top Volcanics to OWC at 6548 feet MD. ~200 feet oil column confirmed by pressure data IF-1r Discovery UpsideVolume Proposed location allows multiple target selection depending on vertical well results. Approx. 1km Cartoon section for illustration scale approximate IF South Prospect 142mmbbl STOIIP A IF structure is a SE continuation of the IE structural trend IF-1 discovered gas with oil shows in Aug 2007 IF-1r cored and tested the Isongo Formation in May 2008 IF-1r DST 3371bopd 35 API oil, 1.6mmscf assoc. gas IF discovered Mean STOIIP 137mmbbl IF South Exploration upside STOIIP 142mmbbl 11

11 MLHP-7 IE Field 0 IE Field IF Field IE-2z IF-1 IF-1R A A IE Field IE-2z MDT confirms column height of 113m. Pressure data defines two 2m sand bodies ~30m above the main Isongo Sand 1 are condensate bearing and in pressure communication with the main reservoir. IE-2z core across GWC. A Approx. 1km Cartoon section for illustration scale approximate A IE-1 drilled in 1981 encountered dry gas in the Biafra and Gas- Condensate in the Isongo section IE-2z appraisal drilled in Feb 2007 encountered 41m net pay Gas-Condensate contact 2289m TVDSS Test 31mmscfd gas, 3730bbld condensate (CGR 140bbl/mmscf) Discovered Mean WGIIP* 463bcf, 105mmbbl NGL *includes NGLs Natural Gas Liquids (NGL) include condensate & LPGs 12

12 MLHP-7 Isongo Marine Field A IC-1 IM-1 IM-C Manyu-1 ETM-1 (Proposed) A Middle Isongo Depth Map IC-1 DST 3 confirms hydrocarbons in Middle Isongo. Test results 57 API at separator, 39 API at 10/64 choke. IM-3 is the only well in the field to test the Mid-Isongo reservoir encountering Gas- Condensate. Majority of the exploration upside for IM is associated with the Middle Isongo Formation A A IM-1 was the first well in the block (Oct 1967) discovered gas condensate, with Biafra oil shows 3 additional wells drilled from discovering and appraising GC in the Upper and Middle Isongo IM-4 DST 11.4mmscfd, 827bcpd (CGR 72.5bbl/mmscf) Discovered Mean WGIIP* 348bcf, 18mmbbl NGL Exploration upside WGIIP* 823bcf, 35mmbbl NGL *includes NGLs Natural Gas Liquids (NGL) include condensate & LPGs 13

13 Block MLHP-7 Oil/Gas Resource (Mean Volumes Initially In Place) Dry GIIP (bcf) Wet GIIP* (bcf) NGL (mmbbl) STOIIP (mmbbl) Isongo Marine Field* Isongo E Field* Isongo D Discovery* 8 1 Isongo C Discovery* 77 5 Isongo F Discovery 137 Manyikebi* 56 Total Discovered Resource Isongo F South 142 Isongo Marine Exploration Isongo D Exploration Isongo C Exploration Isongo E Exploration Isongo G Cluster Total Exploration Resource Total MLHP 7 Resource IF-1r DST Flare *includes NGLs, which comprise condensate and LPGs. NGLs include LPGs for ID & IE only 14

14 OLHP 1 & 2 (Bomono) Overview Bomono Permit 100% Blocks OLHP-1 and OLHP-2 Area : 2328 km² PSC signed 12 Dec 2007 First term ends 11 Dec km seismic & 1 well commitment Current activities iti Acquiring airborne gravity/magnetics survey Preliminary scouting for seismic acquisition late 2009/2010 Number of onshore oil seeps ( ) 15

15 OLHP 1 & 2 (Bomono) Overview Field work conducted to locate old wellheads and ascertain access routes into interior EIA for airborne operations approved by Ministry of Environment 29 th Jan 2009 Aero-gravity/magnetics operations now underway started 12 th Feb % complete at 16 th March 2009 Seismic planning (2D) with field scouting for 2010 acquisition program initiated 16

16 Development Update 17

17 MLHP-7 Contingent Resources IC IM Five gas/condensate fields and one oil discovery Manyikebi MLHP 7 ID IE IF Mean Contingent Resources: 628 bcf gas* MLHP 6 62 MMbbls condensate 41 MMbbls oil Total 208 mmboe *LPGs included, not separately assessed MLHP 5 18

18 MLHP-7 Current Development Potential IC IM Isongo Marine Potential future tieback to IE/ID Isongo E & Isongo D Gas Recycling Development One appraisal well Sanction anticipated 2010 Manyikebi ID IE 1 st Production targeted 2013 MLHP 7 IF MLHP 6 Isongo F Oil Development One appraisal well and sidetrack Sanction anticipated st production targeted 2013, with potential to be as early as 2011 MLHP 5 19

19 MLHP-7 Current Development Potential IF Standalone IC IM Manyikebi MLHP 7 ID IE IF Limbé Refinery and Power station Gas Pipeline New oil processing & export facilities Limbé Oil Export Field Oil mbbl/d IF WHP Platform 6-Slot Wellhead Gas Export mmscf/d Development wells IF Offshore WHP, onshore processing Mean STOIIP 137 mmbbls, RF 30%, 40 mmbbls recoverable reserves 1 appraisal well $25 to $30 million; $40 to $50 million including side track Plateau production 17 mbpd with First Oil 2H development wells $25 to $35 million each ( real 2009) Total Capex $350 to $400 million (real 2009) Annual Opex $15 to $20 million (real 2009) Etinde historic costs to end 2008 $235 million Oil Fiscal Terms 20

20 MLHP-7 Current Development Potential IF Oil with IM-ID-IE Gas Condensate Development Possible Synergies IM IC Potential tie-in of Isongo-Marine gas-condensate Manyikebi IE WHP MLHP Platform 7 9-Slot Wellhead ID IE IF Gas Injection Pipeline Limbé Refinery and Power station New oil processing & export facilities Limbé IF WHP Platform 6-Slot Wellhead Multiphase pipelines from fields to FPSO for fluid separation, gas compression and living quarters Field Oil/NGLs Mbbl/d Gas Export MMscf/d Gas Production MMscf/d Development Wells Producers Injectors IF (oil) ID-IE (NGL) TOTAL (liquids) MLHP 5 21

21 Cameroon Gas Development GdF Suez Feasibility Study / Bioko Island Train SNH appointed GdF Suez in November 2008 to undertake a feasibility study to advance their principal objectives of: Securing supply for the Cameroon domestic market Developing a direct export LNG scheme to maximise value to Cameroon and ensure LPG and NGL recovery Tentative schedule: Scoping Q3 2008/Q pre-feed Q to Q FEED Q to Q FID by end 2010 GdF Suez have held initial meetings with upstream operators and are scheduled to report back on initial scoping after Q View of Mt Cameroon from Etinde Permit IF-1r well DST Flare Further progress on the Train 2 LNG expansion project, Bioko Island, Equatorial Guinea

22 Gabon Update 23

23 Gabon Overview Epaemeno Permit 50% Block G4-211, 1340 km² Second term ends August 2010 (50% relinquishment) Third period expires Aug 2013 Addax (Operator); Bowleven conducting G&G work through to well locations under TSA $10m (net) exploration carry, $8m (net) development carry East Orovinyare Permit 100% Block G5-92, 105 km² Exploitation permit over entire block 24

24 Gabon - Epaemeno A A Omko-1 (20MMbbl) Rembo Kotto (60MMbbl) A A Onal (180MMbbl) Assewe (18MMbbl) Riviere Perdue-1 Multiple potential reservoir targets: Gamba/Dentale Sandstones (Traditional play) Basal Sandstone (Evolving play) Kissenda Sandstones (New play) Post-Salt play Tsiengui (145MMbbl) Koula (75MMbbl) Obangue (55MMbbl) Avocette (265MMbbl) 2P STOIIP source: IHS Energy New seismic program exploring pre-salt plays 25

25 Gabon - Epaemeno Seismic Survey Seismic operations commenced July 2008 Seismic programme completed Jan 2009 Total 747km 2D seismic acquired First pass seismic processing underway Initial observations show marked improvement of existing data Interpretation due to be completed mid Drilling during 2010 dry season Airborne Survey Airborne gravity-gradiometry survey undertaken in dryseason 2008 Integrated and quantitative interpretation study to be completed end Q Sec TWT 1.5 New Epaemeno 2D seismic line (first pass processing) Pre-Salt structure readily identifiable. 26

26 Gabon EOV Field PSC signed for EOV Permit Area in February 2004 Field located 6 miles offshore in 65ft of water Four development wells already drilled though a central template The jacket is complete. The Topsides are approx 80% complete. Both in Louisiana. During 2008: Conducted thorough sub-surface review Finalised development concept Agreed an option for the use of FPSO Knock Taggart for a fee of $2.5 mln EOV development now on-hold due to small size of development and current oil market conditions. 10km 30km Focus on North West Kowe prospect to add block resources 27

27 Gabon EOV Permit NW Kowe A A Azile Depth Map A A Simple tilted fault block structure Multiple stacked reservoir targets with robust closures Targets include the Batanga, Pt. Clairette, Anguille, Azile, and Cap Lopez turbidite sands of the Upper Cretaceous Closure areas ranges from 2km 2 to 15km 2 + Largest undrilled prospect in block Possible synergy development with EOV Mean STOIIP 190mmbbl (in penetrated targets) 28

28 Finance Peter Wilson, Commercial Director 29

29 Interim Results Summary for the 6 months ending 31 December 2008 Profit of $82.7 million in period (2007: loss of $6.6 million) Loss of approximately $5.5 million after excluding finance income (primarily foreign exchange differences on intra-group funding under IFRS) Net assets of $364 million at period end $49 million cash invested in fixed assets Net cash resources of $38 million at 31 December 2008 Current cash position of approximately $29 million Funded for committed work programme Trident IV on IF-1r well summer

30 Outlook 31

31 Outlook 2009 OBJECTIVES Drill further appraisal wells on IE and IF structures Progress IE/ID, IF & EOV development projects towards sanction Build on our new technical work with further high impact exploration drilling in both Cameroon and Gabon Investigate exploration potential of onshore acreage in Cameroon and Gabon Secure funding flexibility to pursue opportunity rich portfolio Farm-out discussions ongoing 32

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