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Annual General Meeting Preliminary Results Presentation 20 December 2013 For the year ended 30 June 2013 Disclaimer Important Notice Nothing in this presentation or in any accompanying management discussion of this presentation (the "


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Preliminary Results Presentation

For the year ended 30 June 2013

Annual General Meeting

20 December 2013

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20 December 2013 Annual General Meeting

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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 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. In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the Presentation may not

  • ccur. 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.

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  • il & gas

Opening Remarks

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Vision & Strategy

  • Strategy focused on creating and realising value through

material exploration success and development.

  • Seek value adding partnerships and niche acquisitions as

appropriate.

  • Fostering strong external partnerships and in-country

relationships.

  • Targeted approach to technical, commercial and political risk.
  • Resources to Reserves.

Vision Strategy – Focus on Africa “It is our vision to build an African focused exploration and production company which in time becomes renowned for its ability to consistently create and realise material shareholder value through exploration led

  • rganic growth and niche acquisitions.”
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Company Overview

  • 2 permits covering 4,644km².
  • 1 offshore shallow water, 1 onshore; both operated.
  • P50 contingent resource base increased 30% to 263 mmboe*

(net). Cameroon

  • Block 11B onshore Kenya covering ~14,000km².
  • Early stage exploration.

Kenya

Kenya Ethiopia

State back-in rights: Etinde 20%, Bomono 10% (at grant of exploitation licence).

Acreage: 2,328km2 Onshore Equity Interest: 100% Operator: Bowleven Group Bomono Permit

Nigeria Cameroon South Sudan

Corporate

Acreage: 2,316km2 Shallow Offshore Equity Interest: 75% (CAMOP 25%) Operator: Bowleven Group Etinde Permit

  • Cash end Oct 2013 ~$20 million**, no debt.
  • Equity placing Nov 2013 raised ~$21 million (gross).
  • Petrofac: provides access to up to $500 million for Etinde

development including $60 million IM-5 costs reimbursed at FID.

  • First Oil plc strategic partnership agreed (East African exploration).
  • High equity positions provide farm-out flexibility.
  • Active discussions underway with industry sources and debt

finance providers to provide additional flexibility.

  • Award of 3 exploration blocks in Zambia pending final approval.

Acreage: ~14,000km2 Onshore

Effective Equity Interest: 35% (Adamantine 50%)

Operator: Adamantine Block 11B

* Source: Preliminary results announcement 13 Nov 2013. Operator’s volumetrics. ** Includes a $5 million bank guarantee which will be released on completion of work programme on Block 11B, Kenya.

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Drilling History/Strategy

2007 2008 2010 2011 2012/13 Mar: IE-2z Tested 8,800 boepd 55m Net Pay Jul: D-1R Tested 5,655boepd 11m Net Pay Aug: IF-1R Tested 3,812boepd 61m oil column Aug: IE-3 Tested 22,909boepd from 5 zones 40m Net Pay Feb: Sapele-1 33-43m Net Pay Jun: Sapele-1ST Tested 3,101boepd 19m Net Pay Aug: Sapele-2 Tested 3,119boepd 35m Net Pay Oct: Sapele-3 19m Net Pay IM-5 95m Net Pay Middle Isongo Tested 7,000boepd From 14m Net Pay Intra Isongo Tested 10,800boepd From 29m Net Pay

  • The current technical/management team has

drilled 9 wells and made multiple discoveries on Etinde since joining in early 2007 (100% drilling success rate).

  • Total gross resources added since inception =

350mmboe* at an average finding cost of ~$2 per boe.

  • Wells were initially targeted to maximise value –
  • ils and liquids-rich gas.
  • Opened up Douala Basin and discovered oil on

acreage previously considered gas prone.

  • Sapele appraisal wells (1st and 2nd) drilled

simultaneously failed to confirm thick connected sands required for gas reinjection (as utilised by Noble).

  • First viable gas offtake and liquids stripping
  • pportunity provided by fertiliser plant.
  • IM-5 well result underpinned fertiliser gas

requirement and highlights extensive exploration/appraisal potential. Etinde Permit, Cameroon

*P50 gross contingent resources (excludes IF volumes pending external review). All operator estimates. Source: Operator

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Etinde Development

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Etinde Resource Base

  • Oil, condensate and wet gas.
  • P50 contingent resources increased 30%* this year.
  • EEAA presented to Cameroon authorities:

‒ Phased development approach. ‒ Initial gas offtake: Ferrostaal fertiliser plant. ‒ Full field development concepts - LNG schemes.

Net Contingent Resources† P90 P50 P10 Mean Gas (bscf) 378 831 2,649 1,177 Condensate (mmbbls) 33 80 230 104 LPGs (mmbbls) 11 21 32 22 Oil (mmbbls) 5 24 113 49 Total BOE (mmboe) 112 263 816 372

Significant Hydrocarbon Volumes

* Source: Preliminary results announcement 13 Nov 2013. †Operator’s volumetrics.

  • Results of IM-5 well have resulted in a substantial increase

in contingent resources.

  • IF field volumes removed from contingent resources pending

external review.

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Field Development Plan

Flexibility for future expansion

  • ‘Hub and Spoke’ wells – facilities system.

‒ Unmanned offshore platforms, processing onshore.

  • Oil, condensate and wet gas to onshore hub.
  • Liquids stripping and NGL extraction at hub.
  • Supply dry gas to fertiliser plant.
  • Liquids marketable internationally.
  • Full field development concept – LNG schemes.

Liquids focused - gas enabled

* Operator projections.

Stage I - Key Statistics

  • Sufficient P90 gas volumes to support fertiliser plant.
  • Dry gas to fertiliser plant: 70mmscfd.
  • Initial liquids production: ~ 14k-16k boepd* (inc LPGs).
  • First production integrated with fertiliser timetable.
  • Initially IM (Intra Isongo).
  • Gross development capex†:

‒ Pre first production: estimated $650 million - $700 million (EEAA case). ‒ To be further refined during FEED.

† Operator estimates. Class III & Class IV estimates.

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Resources to Reserves: The Path to Stage I FID* Fertiliser FID

* FID: Final Investment Decision

Group Objectives

Resources to Reserves

  • Banking consortium led by KfW (German quasi federal bank).
  • Timing subject to financial close of banking consortium.
  • Equity provided by Ferrostaal, Proman, Helm and SNH.
  • Same structure used on previous deals (Oman, Trinidad).
  • Key component - environmental certificates and permitting.
  • Etinde Exploitation Authorisation Application (EEAA)

presented to Cameroon authorities. Approval pending.

  • Gas sales agreement for fertiliser plant well advanced –

sales gas underwritten at P90 level.

  • Strategic alliance with Petrofac provides access to potential

development finance (up to $500 million).

  • Bowleven final investment decision integrated with Fertiliser

FID – joint FID targeted by mid-2014.

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Detailed Engineering Platform Fabrication Installation, Pipelines & Hook-up Production Drilling Well Planning & Support Procurement Fertiliser Plant

(Ferrostaal & Partners)

6mths 12mths 18mths 24mths 30mths 6mths 12mths 18mths 24mths 30mths

FID

First Production Integrated offshore and onshore facilities development illustrative timeline – FID to first production.

Hub and Spoke Development

Stage I – Illustrative Timeline

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Full Cycle Development

  • Flexible cost-effective ‘spoke’ approach.
  • Stage I: Supply to fertiliser plant.
  • Significant potential upside remaining:

‒ Further Intra Isongo appraisal targets being evaluated. ‒ Prove up resources for LNG schemes.

Phased development

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Appraisal & Exploration

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IM-5 Well: Pre-drill targets and results

Etinde Appraisal/Development Drilling

IM-3

Middle Isongo Intra Isongo Upper Isongo

IM-3 (Gas Condensate Discovery) Middle Isongo Net Pay 37m

Upper Isongo 32m (net) encountered; wet as prognosed. Intra Isongo Log evaluated net pay of approximately 70m. Intra Isongo DST Tested >10,800 boepd from 29m net pay. (37mmscfd & 4,664 bcpd); CGR inferred 125bbls/mmscf (peak 133).

IM-5

  • Primary: determine reservoir, fluid

properties and gas composition of Middle Isongo.

  • Secondary: explore potential of

Intra Isongo.

  • Upper Isongo expected to be

water bearing.

  • Suspended as a

development/production well as planned.

Objectives

Middle Isongo DST

Results*

Middle Isongo Log evaluated net pay of approximately 25m. Middle Isongo DST Tested >7,000 boepd from 14m net pay. (23mmscfd & 3,155 bcpd); CGR inferred 136bbls/mmscf

*Operator’s estimates.

  • Condensate-rich gas flowed
  • n test.
  • Combined max. flow rates:

60mmscfd & 7,819 bcpd (Total >17,800 boepd).

Source: Operator

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Upper Isongo Intra Isongo Middle Isongo

Seismic Correlation Panel Tying IM Wells

IM-3 IM-5 IM-2 IM-4

Log evaluated net pay approx. 70m. Areally extensive Intra Isongo amplitude response implies gross reservoir thickness greater than 35m.

Upper Isongo Intra Isongo Middle Isongo

3m net

  • pay. Below

seismic resolution = no amplitude response

1 Km

Log evaluated net pay approx. 25m.

Source: Operator

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Intra Isongo Exploration/Appraisal

Material Exploration/Appraisal Upside

  • IM-5 well has considerably de-risked the Isongo play.
  • Seismic response correlates with thick, reservoir quality

sands.

  • A number of amplitude based prospects are defined at the

same horizon as the Intra Isongo discovery.

  • Further prospects also defined in the intervals immediately

above and below Intra Isongo horizon - “greater interval”.

  • IE-3 well tested gas condensate and oil from 4 intervals

equivalent to the Intra Isongo interval.

IE-3

5 Km

*Operator’s estimates. Volumes are presented as gross figures. The WGIIP figures include NGLs, which comprise condensate and LPGs. Volumes have been derived on a probabilistic basis but totals have been arithmetically summed. Totalling anything other than mean is statistically incorrect and is provided for illustrative purposes only. IE block

  • n trend

Unrisked In-Place Prospect Volumes* WGIIP (bcf) P90 P50 P10 Mean Intra Isongo discovery horizon 303 678 1,530 822 CIIP (mmbbl) P90 P50 P10 Mean Intra Isongo discovery horizon 48 114 269 141

Source: Operator

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Intra Isongo Exploration/Appraisal

Material Exploration/Appraisal Upside

*Operator’s estimates. Volumes are presented as gross figures. The WGIIP figures include NGLs, which comprise condensate and LPGs. Volumes have been derived on a probabilistic basis but totals have been arithmetically summed. Totalling anything other than mean is statistically incorrect and is provided for illustrative purposes only.

Greater Interval Sand Greater Interval Sand Intra Isongo Horizon

IM-5

1 Km

Unrisked In-Place Prospect Volumes* WGIIP (bcf) P90 P50 P10 Mean Intra Isongo discovery horizon 303 678 1,530 822 Greater interval 296 630 1,413 769 TOTAL (bcf) 599 1,308 2,943 1,591 CIIP (mmbbl) P90 P50 P10 Mean Intra Isongo discovery horizon 48 114 269 141 Greater interval 47 107 248 132 TOTAL (mmbbl) 95 221 517 273

Source: Operator

  • IM-5 well has considerably de-risked the Isongo play.
  • Seismic response correlates with thick, reservoir quality

sands.

  • A number of amplitude based prospects are defined at the

same horizon as the Intra Isongo discovery.

  • Further prospects also defined in the intervals immediately

above and below Intra Isongo horizon - “greater interval”.

  • IE-3 well tested gas condensate and oil from 4 intervals

equivalent to the Intra Isongo interval.

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Etinde – Significant Upside Potential

MLHP-5 & MLHP-6

  • Significant in-place volumes discovered across MLHP-5 by the

Sapele and D-1R wells.

  • Deep Omicron discovery Mean HIIP 1,197 mmboe*.
  • Deep Omicron test yields 313-329 bbls/mmscf*.
  • Third party assessment carried out by Sproule in H2 2012

(previously announced) validate Bowleven’s Deep Omicron in- place fairway volumes.

  • Utilisation of Stage I hub facilitates sanction of future tie-ins.
  • Sapele recoverable reserves ultimately determined by number
  • f wells, completion type and reservoir connectivity.
  • Extensive deeper prospectivity at Paleocene and Cretaceous
  • levels. Hydrocarbons encountered with Sapele-1 and Sapele-3.

‒ Palaeocene Alpha-Epsilon system Mean GIIP 1819bcf*. ‒ Cretaceous Mean Dry GIIP 1029bcf*.

  • MLHP-6: Highly prospective acreage given its position between

proven active hydrocarbon systems.

*Operator’s volumetrics. †Aggregated discovered and undiscovered volumes. Source: Operator

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  • 6 deep wells and c.10 shallow wells drilled in the 1950’s.
  • Wells and onshore oil seeps prove active, Upper Cretaceous

sourced hydrocarbon system.

  • Total 500km 2D seismic acquired and legacy 2D data

reprocessed by Bowleven.

  • Tertiary structural traps matured to drill-ready status.
  • High potential Cretaceous stratigraphic leads recognised.

Bomono Overview

Bowleven 2D Acquisition Vintage 2D

VOG: Gas and condensate production.

Douala Seeps

Historical

Source: Operator Source: Operator

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Cretaceous Tertiary

Bomono Exploration

Well Operations

  • 2 wells planned for 2014 – Zingana-1 & Moambe-1.
  • Timing of drilling campaign influenced by farm-out

discussions.

Zingana Prospect Unrisked Mean HIIP* Oil mmbbls Associated Gas bcf Gas bcf Condensate mmbbls Tertiary D & E Sands.

302 224

Tertiary B & C Sands.

196 7

Zingana-1

  • Drill ready prospect – site prepared.
  • Well to target large Tertiary three-way dip closed fault block.
  • 1950’s wells flowed hydrocarbons to surface from shallow

reservoirs.

  • Well to test deeper reservoirs, significantly updip from

1950’s penetration.

Source: Operator *Operator estimates.

D & E sands B & C sands

Zingana-1

2km

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Bomono Exploration

Moambe-1

  • Structure 2km North-East of Zingana-1 prospect.
  • Large, Tertiary three-way dip closed fault block.
  • Previously undrilled, potentially significant high value

exploration opportunity.

Moambe Prospect Unrisked Mean HIIP* Oil mmbbls Associated Gas bcf Gas bcf Condensate mmbbls Tertiary D & E Sands.

176 80

Tertiary B & C Sands.

153 4

*Operator estimates. Source: Operator

Zingana Prospect Moambe Prospect

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Block 11B

■Cretaceous ■Tertiary

Kenya

Lokichar oil Discoveries Sabisa Oil shows

Kenya Uganda South Sudan Ethiopia

Block 11B

  • New hydrocarbon province.
  • Recent oil discoveries to the south (Lokichar Basin).
  • High level of industry activity – multi-well drilling campaigns

underway e.g. Tullow Oil, Africa Oil. Overview

  • Significant acreage ~14,000km2 in highly prospective East

African Rift system.

  • Intersection of Tertiary and Cretaceous rift systems.
  • A number of basins identified in or fringing the block.
  • Existing data suggests basins similar form to Lokichar Basin.
  • Block-wide high density airborne gravity gradient survey

nearing completion.

  • Tendering for 500km 2D seismic underway.

Source: Bowleven

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Kenya

Block 11B Overview

Lokichar Basin 4 oil discoveries inc. Ngamia-1 & Twiga South, both tested ~3k bopd (Tullow Oil/Africa Oil)

Uganda South Sudan Ethiopia Kenya Block 11B

Potential pipeline routes ■Cretaceous ■Tertiary

  • Significant acreage ~14,000km2 in highly prospective East

African Rift system.

  • Intersection of Tertiary and Cretaceous rift systems.
  • A number of basins identified in or fringing the block.
  • Existing data suggests basins similar form to Lokichar Basin.
  • Block-wide high density airborne gravity gradient survey

nearing completion.

  • Tendering for 500km 2D seismic underway.
  • New hydrocarbon province.
  • Recent oil discoveries to the south (Lokichar Basin).
  • High level of industry activity – multi-well drilling campaigns

underway e.g. Tullow Oil, Africa Oil.

Source: Bowleven

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Block 11B

  • Initial airborne survey (FTG) results very encouraging.
  • Tendering underway for 2D seismic acquisition.

Pre FTG Interim Gravity Product Gravity Gradient Data

Source: Bowleven

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Onshore extension of Douala Basin. Series of structural prospects. 2 exploration wells planned for 2014. Drill ready location (Zingana-1).

Pipeline of Maturity

Development Early Stage Exploration

Multiple liquids-rich hydrocarbon discoveries. Advancing commercially and technically robust development. First production targeted H2 2016. Substantial low risk prospective resource (Intra Isongo). Additional gas offtake schemes being advanced.

Development Early Stage Exploration Creating and realising value through material exploration success and development

Bomono

Cameroon

New hydrocarbon province. FTG survey nearing completion. 2D seismic tendering underway.

Block 11B

Kenya

Etinde

Cameroon

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Finance & Economics

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Funding Overview

  • Cash at end Oct 2013 ~$20 million*, no debt.
  • G&A spend approx. $1.5 - $1.7 million (gross) per month.
  • Equity placing Nov 2013 raised ~$21m (gross) to finance FEED

activities.

  • Currently in active negotiations with industry sources and

providers of debt finance.

  • High equity interests in Etinde, Bomono and Kenya provide
  • pportunity to introduce additional farm-in partners if appropriate
  • Strategic alliance agreement with Petrofac allows further Etinde

farm-down (up to 1/3).

  • Development funding options anticipated available by FID include

project debt and mezzanine finance.

  • Petrofac provides access to up to $500 million for Stage I

development including $60 million IM-5 costs reimbursed at FID.

  • First Oil plc strategic partnership agreed (East African

exploration).

Seeking further flexibility Pre-FID

  • Bridging/convertible

loans with industry/ finance providers.

  • Potential farm-outs

Equity Placing

FID

First Production

At FID $60m reimbursement for IM-5 well costs (Petrofac Strategic Alliance)

Significant Financing Flexibility

Significant cash flow generated Approaching FID opens additional range of options

  • Conventional project debt
  • Mezzanine finance
  • Potential farm-outs

Development Funding Petrofac up to $500m (inc. initial $60m)

* Includes a $5 million bank guarantee which will be released on completion of work programme on Block 11B, Kenya.

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28 20 40 60 80 100 5 10 15 Wet Gas mmcfd Liquids - kboepd Ave Liquids Production (kboepd) Wet Gas Production (mmcfd) Petrofac 16% Bowleven net 84%

Bowleven NPV10 Split**

Gas 18% Liquids 82%

Total Project Revenue*

Stage I Etinde Development

Indicative project revenue, Bowleven NPV10split and production profile Robust and attractive project Simplified 20 year Production Profile‡

** Share of Bowleven NPV at $90/bbl * Total project revenue at $90/bbl Total Liquids 92mmboe Total Wet Gas 683 bcf

‡Operator’s illustrative projections for supply to fertiliser plant, assuming 20 year production profile.

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Closing Remarks

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Outlook & Conclusion

  • Bomono drilling (two wells planned for 2014). Farm out

discussions ongoing.

  • Ongoing evaluation of extensive Intra Isongo upside potential.
  • Exploration activities over Kenya acreage. FTG promising – 2D

tender commenced.

  • Early stage exploration activities in Zambia – licence award

pending final approval. Exploration / Appraisal

  • Considerable progress made:

‒ Successful IM-5 well; fertiliser sales gas requirements underpinned. ‒ Expanded EEAA presented – pending approval. ‒ Gas Sales Agreement discussions well advanced. ‒ Strategic Alliance with Petrofac.

  • First gas targeted H2 2016. Final project sanction integrated with

fertiliser FID. Resources to Reserves: The Path to Development

Resources to Reserves

African Exploration

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Principal Contact: Kerry Crawford Tel: +44 131 524 5678 Kevin Hart Tel: +44 131 524 5678 www.bowleven.com Bowleven Plc. The Cube 45 Leith Street Edinburgh EH1 3AT United Kingdom info@bowleven.com