PILOT Share Fair
Agenda EnQuest in 2014-15 and beyond Doing business with EnQuest 3
EnQuest values Safe Results with no harm to people and respect for the environment 4
EnQuest 2014 half year results Presentation Title Details as at the time of the publication of EnQuest s 2014 Half Year Results 5
EnQuest strategy Sustainable growth model continuing to deliver Production from 1 January to 30 June 2014 averaged 25,292 Boepd Business development in 2014 has added c.20 MMboe Alma/Galia sailaway in spring 2015, first oil mid-year Kraken on time and on budget Two exploration/appraisal successes: Cairngorm & Avalon Don NE ( Ythan ) FDP now approved Details as at the time of the publication of EnQuest s 2014 Half Year Results 6
Realising value through capability Technical leadership in integrated development Field life extensions Upgrading existing facilities Newer technology, new seismic Simplifying processes Infill drilling, subsurface skill in identifying well targets Thistle/Deveron Heather/Broom Greater Kittiwake Area PM8/Seligi Didon Maturing fields Ex majors Focused on hubs Marginal field solutions Agile, innovative and cost efficient solutions Redesigning and upgrading used facilities Using existing infrastructure; tie-backs Dons Alma/Galia Dormant fields Ex majors & licensing rounds New developments Deploying technical and financial capacity too stretching for some previous owners Integrated teams commercialising and developing discoveries Low risk, low cost near field development and appraisal Kraken Zarat Ex smaller companies Proven depth in subsurface, engineering, execution and operations 7
EnQuest s growing North Sea asset base, at 30 June 2014 Now four UK hubs with GKA, with Alma/Galia five UK hubs Details as at the time of the publication of EnQuest s 2014 Half Year Results 8 8
Virtuous circle of investment Thistle LLX Don Fields Heather Redevelopment Top quartile production efficiency Delivering Safe Results Minimising waste and controlling costs Asset integrity Healthy, profitable business for reinvestment Virtuous circle of investment leading to a prolonged production life for mature assets
Producing assets Heather/Broom The Broom field continues to perform well Highest production efficiency for over 5 years Heather life extension project; three year infill drilling campaign with nine targets, targeting 12 MMboe reserves which are included in net 2P reserves New 3D seismic has been delivered, which is being used to optimise well placement and define additional targets in both the Heather and Broom fields Thistle / Deveron The Don fields Delivering production levels not seen since the 90s Continuing investment in Thistle life extension: Including new control systems, process simplification leading to cost savings, jacket integrity improvements and topsides structural integrity improvements New drilling programme in 2016/17 Net resources c.4 Mmboe Continuing very strong production efficiency Two firm wells: producer/injector pair Details as at the time of the publication of EnQuest s 2014 Half Year Results 10
Greater Kittiwake Area 50 km tie-back radius and competitor infrastructure Evaluating potential of reinstating production from Gadwall in 2015 Preparation for Scolty/Crathes FDP progressing well Avalon post drill evaluation ongoing Further exploration opportunities are also being assessed Details as at the time of the publication of EnQuest s 2014 Half Year Results 11
Malaysia: PM8/Seligi acquisition now completed 5,000 Boepd net production, 11.0 MMboe net 2P reserves Seligi EnQuest s third Malaysian project: In June 2014, EnQuest completed the third acquisition of ExxonMobil s interest in the Seligi oil field and the PM8 PSC : Cash consideration of US$28 million With its strong relationship with PETRONAS, EnQuest and Petronas Carigali Sdn Bhd (50% each) negotiated an extension of PM8/Seligi to 2033 Preparing work programme and budget for 2015 and the medium term Evaluating further upside potential from infill drilling and workovers Details as at the time of the publication of EnQuest s 2014 Half Year Results 12
Alma/Galia Sailaway in spring 2015, first oil mid-year The FPSO is now substantially complete and commissioning has begun Three wells have been completed and a fourth is in the process of being completed for production Subsea work has been completed with the exception of mooring and riser pull-ins to the FPSO Details as at the time of the publication of EnQuest s 2014 Half Year Results 13
Kraken proceeding on time and on budget A conventional development programme High level of capex confidence Good progress on evaluation of drilling rig options The Kraken FPSO host vessel is at the yard in Singapore (c110th such FPSO in that yard); hull conversion and marine system refurbishment is progressing. Pipeline route surveys have been undertaken on the Kraken site, boulders removed and preparatory pipeline initiation facilities installed. The Kraken West appraisal well Tyrone will be drilled in H2 2014 Kraken FPSO host vessel Details as at the time of the publication of EnQuest s 2014 Half Year Results 14
Delivering strong compound annual growth rates 25% for reserves & 15% for production Net 2P reserves (MMboe) 194.8 80.5 88.5 115.2 128.5 2009 2010 2011 2012 2013 Average net production (Boepd) 5,000 25,000 Guidance Range 21,074 23,698 22,800 24,222 13,613 2009 2010 2011 2012 2013 2014 15
Delivering sustainable growth On course for six hubs and 50,000 Boepd in UKCS Exploiting our existing reserves Making selective acquisitions Dons, Thistle/Deveron, Heather/Broom, Alba Commercialising & developing discoveries Greater Kittiwake Area, Didon/Zarat, PM8/Seligi Alma/Galia Converting contingent resources into reserves 16
Doing business with EnQuest
Doing business with EnQuest Complimenting our strategy Registration We use FPAL Database for sourcing Pre Qualification in selective tenders Key messages HSE Focus Safe Results Cost rationalisation Service quality Long term strategic alliances Quantified and measureable KPIs Regular performance reviews Periodic reporting 18
Top quartile results for production efficiency UK North Sea production efficiency task force (O&G UK), 2013 operator rankings EnQuest Top quartile UKCS task force target of 80% production efficiency Production Efficiency 19
Doing business with EnQuest Forward work plan Description Estimated Tender Date Area Slickline Services Q4, 2014 Wells Liner Hangers Q1, 2015 Wells Subsea Test Tree Q4, 2014 Wells ROV Services (Kraken) Q4, 2014 Wells Mud Logging (Kraken) Q4, 2014 Wells Cementing (Kraken) Q4, 2014 Wells Coiled Tubing Q1, 2015 Wells Fabric Maintenance Q4, 2014 Operations SAT Dive Q4, 2014 Brownfield Thermal Tunnels Q4, 2014 Brownfield Platform Based Diving Q4, 2014 Brownfield 20
Doing business with EnQuest Forward work plan Description Estimated Tender Date Area Valve Management Services TBA Forming Strategy Operations Pigging Services TBA Forming Strategy Operations HVAC Services TBA Forming Strategy Operations Metering Services TBA Forming Strategy Operations Fire & Gas Protection Services TBA Forming Strategy Operations Hoses & Small Bore Tubing TBA Forming Strategy Operations Cathodic Protection - system installation Q4, 2014 ICCP Material Q4, 2014 Subsea IRM - SAT dive 2014 Q4, 2014 Subsea IRM - ROV 2014 Q4, 2014 Fabrication of minor structures Q4, 2014 2015+ Sat Dive Services Q4, 2014 Brownfield Brownfield Brownfield Brownfield Brownfield Brownfield 21
Doing business with EnQuest Forward work plan Description Estimated Tender Date Area Subsea Installation (Scolty Crathes) Q4 2014 New Developments Mooring Piles & Shackles Q4 2014 New Developments Well Clean-Up Filtration Unit Q4 2014 New Developments 22
Doing business with EnQuest Supply Chain Code of Practice Committed to full compliance with the Supply Chain Code of Practice to:- Improve performance Eliminate unnecessary costs Add value and boost competitiveness In support of the Code, our preferred suppliers are registered with FPAL. For more information or to register your company go to www.fpal.com 23 23
Doing business with EnQuest Pick up a Supply Chain contacts flyer 24
New Aberdeen headquarters Annan House Expected move in date Summer 2015 25
Q & A