Merrill Lynch Investor Presentation

Transcription

Bank of America Merrill Lynch
10th Annual Oil & Gas
Investor Forum
4-6 April
p 2011
Disclaimer
Important Notice
Nothing in this presentation or in any accompanying management discussion of this presentation (the "Presentation") constitutes, nor is it intended to
constit te (i) an in
constitute:
invitation
itation or inducement
ind cement to engage in any
an in
investment
estment acti
activity,
it whether
hether in the United Kingdom or in an
any other jjurisdiction;
risdiction (ii) an
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
y the use of forward-looking
g terminology,
gy, including
g the terms "believes",, "estimates",, "anticipates",
p
, "projects",
p j
, "expects",
p
, "intends",, "may",
y , "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
future. Forward
Forward-looking
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
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.
4-6 April 2011
BOA MERRILL LYNCH O&G INVESTOR FORUM
2
oil & gas
Opening Remarks
Vision & Strategy
Vision
“It is our vision to build an African focused exploration
and production company which in time becomes
renowned for its ability
y to consistently
y create and realise
material shareholder value through exploration led
organic growth and niche acquisitions.”
Strategy – Regional Focus on West Africa
• Strategy focused on creating and realising value through
material exploration success.
• Seek value adding partnerships as appropriate.
• Fostering strong external partnerships and in-country
relationships.
• Strong technical and management teams with successful
track record.
4-6 April 2011
4
Company Overview
Two operating areas: Cameroon and Gabon
Company Assets
• 7 Blocks ((5 in Cameroon and 2 in Gabon).
)
†
• 4 offshore shallow water, 3 onshore.
• 6 operated, 1 non operated.
• Overall P50 contingent
g
resource base 213 mmboe* ((net).
)
• Extensive 3D & 2D seismic database; expanded significantly
during 2010 (Bomono & Etinde).
• Substantial prospect inventory being developed across
portfolio.
portfolio
• Extensive multi-well drilling campaign ongoing on Etinde.
Corporate
• Group cash balance $189m at 31 December 2010; additional
$35m pending on EOV disposal.
†
• Bowleven (operator) 75% Etinde Permit (25% Vitol*).
• W
Wellll placed
l
d to
t fund
f d 2011 workk programme; significant
i ifi
t financing
fi
i
flexibility.
* Source: Interim Report – Six months to 31 December 2010.
4-6 April 2011
† Etinde Permit comprises MLHP 5,6 & 7. *Vitol option (10% of MLHP-7 only)
5
Company Overview
Extensive multi-well drilling programme underway in Cameroon
Asset Strategy
•
Exploring the Douala Basin in Cameroon.
• Including Tertiary and Cretaceous-Turonian plays,
offshore shallo
shallow water.
ater
•
To move resources to reserves on Etinde Permit.
• Appraisal activity on IE and IF; targeting transfer of
>100mmboe (gross).
(g
)
Forward Plan
• Exploration/Appraisal
p
pp
drilling
g of Tertiary
y fairways
y on MLHP-5*.
• High impact exploration drilling targeting the Douala Basin
Cretaceous prospectivity.
• Exploration drilling on Bomono and MLHP-6*.
• Appraisal activity, including drilling, on MLHP-7*.
*Etinde Permit comprises MLHP-5, MLHP-6 and MLHP-7.
4-6 April 2011
6
2011 Etinde Forward Plan
Sapele Forward Plan
• Appraisal of Sapele-1 discoveries.
• Sapele
Sapele-1ST
1ST and Sapele
Sapele-2
2 currently drilling (appraisal of Omicron
fairways).
• Preparing for testing at Sapele-1ST.
Etinde Indicative 2011 Work Programme
• Extensive drilling programme planned on Etinde; additional rig
contracted*.
2011
Q1
Q2
Q3
Q4
Sapele-1 well , Sapele-1ST
Drilling / Testing
(Noble Tommy Craighead rig)
MLHP-5 Tertiary wells (2)
Sapele-2
Drilling
g
MLHP-5 Cretaceous well
(Sapphire Driller rig)
MLHP-7 Appraisal well
*Sapphire Driller contracted on a 2+1+1 basis. Noble Tommy Craighead rig contract has 2 slots
available post recertification (completion expected Q3 2011).
4-6 April 2011
7
oil & gas
Cameroon Overview
Cameroon Overview
Relatively underexplored - an emerging oil story
Rio del Rey Basin
Douala Basin
• MLHP 7
7.
• MLHP 5 & 6
6, OLHP 1 & 2
2.
• Shallow offshore area.
• Onshore and shallow
offshore areas.
• Highly prospective
acreage within a proven
active hydrocarbon
system.
• Highly prospective
acreage.
• Number of onshore oil
seeps.
• Tertiary oil and gascondensate discoveries.
• Tertiary and Cretaceous
leads.
• Established portfolio of
additional Tertiary
prospects.
• Onshore early exploration
phase on 2D dataset.
• Maturing exploration with
transition into an
appraisal/development
phase.
• Offshore mature
prospects portfolio on 3D
dataset.
• Multi-well
Multi well drilling
campaign underway successful Sapele-1
exploration well.
Cretaceous Turonian plays accessible in onshore area and
shallow waters.
4-6 April 2011
9
Recent Douala Basin E&P Activity
Seismic
• Bowleven acquired ~500km 2D in OLHP-2
(Bomono) during 2010/11
2010/11.
• Bowleven 658km² 3D acquired in Etinde
(MLHP-5, 6, and 7) during 2010.
• Glencore acquired 2D & 3D in Matanda (2010).
Bomono 2D Acq.
Matanda
(Glencore)
seismic acquired
2010. Drilling
anticipated 2011.
• Noble Energy 3D acquired across Yoyo & EG
blocks to the south of MLHP-5 (2010).
Marine 3D Acq.
Exploration Drilling
VOG
• Bowleven Sapele-1 operations complete.
• Perenco Mombe-1 operations complete.
Sapele-1 (Sept 2010)
Sapele-1ST(Feb 2011)
• Perenco Ngata well, expected spud Q2/3 2011.
• Glencore Matanda wells planned for 2011/12
2011/12.
Development/Appraisal Activity
Sapele-2 (March 2011)
Perenco Mombe-1
P&A (2010)
• Bowleven Sapele-1ST operations commenced. Alen (Belinda 2005).
• Bowleven Sapele-2 operations commenced
• Noble Energy Aseng oil project sanctioned;
development drilling commenced.
• Victoria Oil & Gas Logbaba gas field
development activity underway.
915Bcf & 94mmbbl
resources*. Expected
start-up end 2013.
Aseng (Benita 2007).
552Bcf & 128mmbbl
resource*. Estimated
start-up mid-2012.
Perenco Ngata
Spud Q2/3 2011
*Gross oil and gas volumes interpolated from Noble Energy August presentation of net volumes (Block O 45%,
Block I 40%).
4-6 April 2011
10
Regional Geology and Play Fairways
D-1r (2007), 25mmscfd,
1400bcpd from 75ft gross
Miocene deep-water sands
56bbl/mmscf condensate.
Sapele-1 (2010), multiple
hydrocarbon columns of
gas-condensate oil and
gas-condensate,
dry gas.
Onshore and offshore
mixed Tertiary and
Cretaceous sourced
oil seeps
seeps.
Cretaceous rocks outcrop
at surface within the
Bomono Permit.
(Sandstone lithologies).
lithologies)
50m
100m
NE
SW
Tertiary
play fairway
Cretaceous
play fairway
f
4-6 April 2011
11
Tertiary Omicron Play
Calibration of Sapele-1 seismic highlights fairway potential
NW
Sapele-1
The Omicron Fairway
SE
Sapele-1ST
(as defined by Sapele-1)
Lower Omicron
Shales
Upper Omicron
Omicron Deep
Shales
• The Omicron Play recognised across MLHP-5.
• Successful drilling by Noble on the Belinda target (downdip D-1r equivalent) resulted in a c.20km long gas-condensate field.
4-6 April 2011
12
Omicron Play Fairway Mapping
MLHP-6
Upper Omicron Gas
Condensate
MLHP-5
MLHP
5
Souellaba
Lower Omicron Gas
Condensate
Sapele-1ST
Omicron Deep
p Oil
Sapele-2
• MLHP-5 = c.778km².
• Area of 3D = 577km² (74% of block).
• Tertiary fairways cover majority of MLHP-5.
Alen
4-6 April 2011
13
Sapele-1 & Sapele-1ST
Appraisal of Sapele-1 Tertiary Omicron discoveries
Sapele-1 Update
Sapele-2
• 2 potentially significant discoveries made (Lower and Deep
Omicron).
Sapele-1
• Log
Log, MDT and sample data confirm hydrocarbon columns of
gas, wet gas and oil in high quality sandstone reservoirs.
• Initial volumetrics (appraisal drilling required and ongoing):
Sapele-1
Sapele
1†
P90
P50
P10
Mean
WGIIP bscf*
75
211
595
290
STOIIP mmbbls
65
167
430
217
Sapele-1ST
Sapele-1ST
Sapele
1ST Update
• Sidetrack commenced 26th February 2011.
• Principal objectives to appraise and test the Deep Omicron
discovery interval in Sapele-1 (2km SE of the original well).
• Planned TD 3682mTVDSS (4761mMD).
Sapele-2 Update
• Sapele-2 well spudded 17th March 2011.
• Principal objective is to appraise the Lower and Deep
Omicron fairways (5km SW of Sapele-1).
a ed TD 3
3724mTVDSS.
SS
• Planned
†Volumes
4-6 April 2011
presented as gross figures. *includes NGLs, which comprise condensate and LPGs.
14
Cretaceous Play
Sapele-1 confirms presence of oil, condensate & gas in the Cretaceous
NW
SE
Sapele-1
The Cretaceous Play
(as defined by Sapele-1)
Cretaceous Amplitude Map (kick interval).
Sapele-1
N
Epsilon
Complex
Gas Condensate
Cretaceous
Oil
Dry Gas
Gas Kick
• Sapele-1 located to target a variety of Cretaceous seismic responses and open the
Cretacous play in the offshore Douala Basin.
• Sapele-1 encountered good quality reservoir sands, with oil and gas shows.
• Significant gas kick at 4733m suggests an extensive hydrocarbon column.
4-6 April 2011
15
Cretaceous Play Fairway
hydrocarbon columns reservoired
in the Cretaceous stratigraphy.
Gas-condensate, oil and dry gas.
Regional Cretaceous Discoveries to date
N’Kapa-1
p
(1958)
Logbaba Field
(Logbaba-101 (1955))
• Previous Cretaceous exploration on margins of the Douala
Basin
Basin.
North Matanda
(North Matanda-1X
(1980))
• Closest Cretaceous reservoired field to Sapele-1 is North
Matanda (gas-condensate, non-producing) at c.40km.
• Closest Cretaceous reservoired oil shows to Sapele-1 is
N’K d (c.80km).
N’Koudou
( 80k )
M’Via
(M’Via-1 (1982))
• Closest producing Cretaceous reservoired oil & gas fields to
Sapele-1 are on the Kribi High c.105km to the SE.
N’Koudou-1
Shows (1982)
Bowleven Cretaceous Exploration 2011
• Gas condensate encountered at Epsilon Complex validates
Cretaceous prospectivity; extends play fairway significantly
offshore.
Sanaga Sud
(SSA-1 (1979))
Oil
Kribi High fields
(KA-1 (1980))
Oil & Gas
Gas & Oil shows
Gas
4-6 April 2011
16
MLHP-6
Initial potential on MLHP-6 revealed
Onshore and offshore
mixed Tertiary and
Cretaceous sourced
oil seeps
seeps.
IF-1R
IF
1R (2008), oil discovery.
gas-condensate, volatile oil,
oil and dry gas.
IM-1 (Total, 1970).
Isongo gas-condensate
discovery.
IE-3 (2010), multiple
gas-condensate and oil.
Sapele-1ST (March 2011),
to appraise Sapele-1
discoveries
S
V
V.E. 7:1
MLHP-6. Migration
focus for hydrocarbons
5
500m
N
5km
4-6 April 2011
17
Bomono Overview
Bomono
Bomono Geochemical Anomaly Mapping
• 100% Bowleven.
• Comprising two blocks covering an area of 2
2,328km².
328km²
• 5 year first term, expiring December 2012.
Existing 2D
• 285km 2D acquired in Q1 2010 dry season. Further 215km 2D
acquired by end January 2011.
Commitments
Line
acquisition
2010
• 500km 2D seismic data (commitment met).
• 1 well (drilling anticipated in 2012).
Asset Overview
• Highly prospective acreage within a proven active hydrocarbon
system.
y
• Unique situation to access the prolific West African Turonian play
onshore in a combination of structural and stratigraphic traps.
• Technical evaluation ongoing with initial evaluation highlighting
multiple prospects with individual sizes ranging from 10 to
250mmbbls Mean STOIIP.
Douala
10km
2011
• 500km 2D seismic processing ongoing; Phase 1 completed Q4
2010.
• Up to 2 wells planned for H1 2012
2012.
4-6 April 2011
Log.105 (VOG)
March 2010 test
rates 55mmscfd and
20bbl/mmscf
Q1
Bomono
Activity
Q2
2012
Q3
2D Seismic processing and
ongoing interpretation
Q4
Drilling
Preparation
Q1
Exploration
Drilling
18
oil & gas
Resources to Reserves
Cameroon – Etinde
Etinde Resource (Mean Unrisked Gross Volumes In Place)†
MHLP-7 Mean Unrisked Resource (IE & IF Only)
Isongo E Field*
Dry GIIP
(bcf)
Wet GIIP
GIIP*
(bcf)
NGL‡
(mmbbl)
STOIIP
(mmbbl)
80
408
95
7
Isongo F Discovery
MLHP 7
225
Total Discovered Resource†
80
408
95
MLHP 6
232
MLHP-5 Mean Unrisked Discovered Resource
MLHP 5
Wet GIIP*
(bcf)
STOIIP
(mmbbl)
Sapele-1 Discovery
290
217
D-1R Discoveryy
72
Total Discovered Resource†
362
Dry GIIP
(bcf)
217
• Updates are anticipated as planned appraisal activity is completed.
†Volumes
presented as gross figures. *includes NGLs, which comprise condensate and LPGs.
• MLHP-5 resource based on initial Sapele-1 volumes.
• A significant contingent resource upside remains for Etinde and
Bomono.
4-6 April 2011
20
MLHP 7 Appraisal Plan Update
IE Activity
Initial Post IE-3 Reservoir Modelling
• IE-3 appraisal drilled mid July 2010 encountered 7 hydrocarbon
bearing zones; tested (5 zones) August 2010 with a cumulative
ma im m flo
maximum
flow rate of 22
22,909
909 boepd*.
boepd*
IE-3
ID-1
IE-2z
IE-1
• High quality gas-condensate (CGR 262 bbl/mmscf) and oil (36
to 43°API) encountered on IE-3 test; discovery of oil
highlights additional potential of the IE Field area and acreage.
• IE static reservoir model built; dynamic model in progress.
IF-1R
IF Activity
• 3D marine seismic has been acquired over IF field (IF MultiAzimuthal 3D 131km²) to support appraisal and development
activities; processing complete with results received Q1 2011
2011.
• Drilling planning will consider the new 3D seismic data
interpretation.
• Development 3D (4C OBC) seismic acquisition planned April
2011 **
2011.
*Measured flow rates per interval ranged from 845 to 11,778 boepd with a cumulative
maximum rate of 14,576 bpd of liquids and >50 mmscfd of gas (total 22,909 boepd).
**Funding 50:50, Bowleven:Vitol.
4-6 April 2011
21
Concept: Combined Phased IE & IF FPSO Synergised Development
IE
Minimum Facilities
Platform
FPSO Spread
S
d Moored
M
d
Dynamic
Flexible
Production
Riser and
Umbilical
Flexible Multiphase
Production Flowlines
IF
Riser Base
Shuttle Tanker
“Tarpon” type
Wellhead
structure
Concept Assumptions (gross)
Total Liquids Recovery
Limbe
Potential synergy with MLHP-5.
>100 mmbbls
• Concept optimisation post IE-3
appraisal well
well.
Total Liquids
q
Production
>40 mbpd
b d
Capex
$300-600 million
FPSO day rate
~$100-200,000
Total Opex p.a.
$50-90 million
• Single FPSO for both IE and IF fields.
• Potential phased development.
4-6 April 2011
• Cost reductions achieved through
g
development synergies.
22
oil & gas
Asset Overview
Gabon - Epaemeno
Epaemeno Overview
Licence Summary
Dentale Basin
• 50% Bowleven, 50% Addax (operator).
Dentale Prospects
• Second exploration term expiry February 2012
2012.
• 1 well with 50% relinquishment at the end of the second term.
• Optional third exploration term of three years.
Omko-1 (20MMbbl)
Rembo Kotto (60MMbbl)
Technical Overview
Onal (180MMbbl)
• Sub-salt fields and discoveries to the east and south of the block.
• Technical evaluation and prospect inventory complete and
highlights a number of significant prospects on the margins of the
Dentale Sub-basin.
Assewe (18MMbbl)
Topo Graben
Tsiengui (145MMbbl)
Koula (75MMbbl)
• Prospect volumetric range 10 to 350mmbbls mean STOIIP
consistent with field sizes in the region.
Obangue (55MMbbl)
2P STOIIP source: IHS Energy
• Operator planning for drilling early 2012.
2011
Q1
Epaemeno
Activity
4-6 April 2011
Q2
2012
Q3
Technical preparation ahead of 2011 dry
season.
Q4
Q1
Site Prep
EPA Well
24
oil & gas
Financial Overview
Funding Overview
• Cash $189 million at 31 December 2010.
• Vitol option over MLHP-7, for $50 million carry (gross).
• Farm-out opportunities when appropriate.
• Moving from resources to reserves; access to debt finance.
• Proceeds pending from EOV disposal (~$35m).
Significant financing flexibility.
4-6 April 2011
26
Principal 2011 Work Programme Expenditure
Cash Resources
• Cash resources of approx $175m following Sapele-1.
• Pending proceeds from EOV circa $35m.
• Total cash resources of $210m.
2011 indicative Etinde drilling costs*
• Tertiary side track: $20m - $22m; net cost ($15m - $17m).
• Tertiary
T ti
well:
ll $31
$31m - $34m;
$34 nett costt ($23m
($23 - $26m).
$26 )
• Cretaceous well: $43m - $46m; net cost ($32m - $35m).
• Overall costs dependent on specific well programme.
Funded for current drilling programme
*Well costs inclusive of drilling costs, drilling team, site surveys and well insurance,
but exclude testing.
4-6 April 2011
27
oil & gas
Closing Remarks
Closing Remarks
Objectives
• Further test exploration potential of Douala Basin, Cameroon.
• Move discovered hydrocarbons from resources to reserves.
2011 Outlook
• Completion of Sapele-1ST and Sapele-2 wells.
• Further exploration/appraisal wells targeting Douala Basin
prospectivity (Tertiary and Cretaceous).
• Identification of leads and prospects on MLHP-6 and Bomono
post recent seismic (2012 drilling).
• Further appraisal activity on block MLHP-7.
• Forward programme will evolve as drilling activity progresses.
4-6 April 2011
29
Principal Contact:
Kerry Crawford
Tel: +44 131 524 5678
oil & gas
Kevin Hart
– Tel: +44 131 524 5678
John Brown – Tel: +44 131 524 5678
kerry.crawford@bowleven.com
y
@
www.bowleven.com
Bowleven Plc.
1 North St Andrew Lane,
Edinburgh,
EH2 1HX,
United Kingdom.

Merrill Lynch Investor Presentation

Transcription

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