Preliminary Results Presentation
For the year ended 30 June 2013
Annual General Meeting
20 December 2013
Annual General Meeting Preliminary Results Presentation 20 December - - PowerPoint PPT Presentation
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 "
For the year ended 30 June 2013
20 December 2013
20 December 2013 Annual General Meeting
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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
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
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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material exploration success and development.
appropriate.
relationships.
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
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(net). Cameroon
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
development including $60 million IM-5 costs reimbursed at FID.
finance providers to provide additional flexibility.
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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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
drilled 9 wells and made multiple discoveries on Etinde since joining in early 2007 (100% drilling success rate).
350mmboe* at an average finding cost of ~$2 per boe.
acreage previously considered gas prone.
simultaneously failed to confirm thick connected sands required for gas reinjection (as utilised by Noble).
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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‒ 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.
in contingent resources.
external review.
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‒ Unmanned offshore platforms, processing onshore.
Liquids focused - gas enabled
* Operator projections.
Stage I - Key Statistics
‒ 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
†
presented to Cameroon authorities. Approval pending.
sales gas underwritten at P90 level.
development finance (up to $500 million).
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
First Production Integrated offshore and onshore facilities development illustrative timeline – FID to first production.
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‒ Further Intra Isongo appraisal targets being evaluated. ‒ Prove up resources for LNG schemes.
Phased development
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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
properties and gas composition of Middle Isongo.
Intra Isongo.
water bearing.
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.
60mmscfd & 7,819 bcpd (Total >17,800 boepd).
Source: Operator
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Upper Isongo Intra Isongo Middle Isongo
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
seismic resolution = no amplitude response
1 Km
Log evaluated net pay approx. 25m.
Source: Operator
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Material Exploration/Appraisal Upside
sands.
same horizon as the Intra Isongo discovery.
above and below Intra Isongo horizon - “greater interval”.
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
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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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
sands.
same horizon as the Intra Isongo discovery.
above and below Intra Isongo horizon - “greater interval”.
equivalent to the Intra Isongo interval.
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MLHP-5 & MLHP-6
Sapele and D-1R wells.
(previously announced) validate Bowleven’s Deep Omicron in- place fairway volumes.
‒ Palaeocene Alpha-Epsilon system Mean GIIP 1819bcf*. ‒ Cretaceous Mean Dry GIIP 1029bcf*.
proven active hydrocarbon systems.
*Operator’s volumetrics. †Aggregated discovered and undiscovered volumes. Source: Operator
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sourced hydrocarbon system.
reprocessed by Bowleven.
Bowleven 2D Acquisition Vintage 2D
VOG: Gas and condensate production.
Douala Seeps
Historical
Source: Operator Source: Operator
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Cretaceous Tertiary
Well Operations
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
reservoirs.
1950’s penetration.
Source: Operator *Operator estimates.
D & E sands B & C sands
Zingana-1
2km
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Moambe-1
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
Lokichar oil Discoveries Sabisa Oil shows
Kenya Uganda South Sudan Ethiopia
Block 11B
underway e.g. Tullow Oil, Africa Oil. Overview
African Rift system.
nearing completion.
Source: Bowleven
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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
African Rift system.
nearing completion.
underway e.g. Tullow Oil, Africa Oil.
Source: Bowleven
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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).
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
Cameroon
New hydrocarbon province. FTG survey nearing completion. 2D seismic tendering underway.
Kenya
Cameroon
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activities.
providers of debt finance.
farm-down (up to 1/3).
project debt and mezzanine finance.
development including $60 million IM-5 costs reimbursed at FID.
exploration).
Seeking further flexibility Pre-FID
loans with industry/ finance providers.
Equity Placing
First Production
At FID $60m reimbursement for IM-5 well costs (Petrofac Strategic Alliance)
Significant cash flow generated Approaching FID opens additional range of options
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%
Gas 18% Liquids 82%
** 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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discussions ongoing.
tender commenced.
pending final approval. Exploration / Appraisal
‒ Successful IM-5 well; fertiliser sales gas requirements underpinned. ‒ Expanded EEAA presented – pending approval. ‒ Gas Sales Agreement discussions well advanced. ‒ Strategic Alliance with Petrofac.
fertiliser FID. Resources to Reserves: The Path to Development
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