Investor/Analyst Results Presentation. 28th March 2008

Transcription

1 Investor/Analyst Results Presentation 28th March 2008

2 Agenda Introduction - Kevin Hart, CEO Exploration - Ed Willett, Exploration Director Development - John Morrow, Chief Operating Officer Financials - John Brown, Finance Director Conclusions and Q&A - Kevin Hart, CEO 2

3 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 Company's results of operations, financial conditions, liquidity, prospects, growth, strategies and the industry in which the Company 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 Company's actual results of operations, financial conditions and liquidity, and the development of the industry in which the Company operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In addition, even if the Company's results of operations, financial conditions and liquidity, and the development of the industry in which the Company 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 Company (as supplemented by 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 Company 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, 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. The Presentation should be read in conjunction with the Company's interim financial results for the six month period ended 31 December 2007, copies of which are available on the Company's website ( 3

4 Placing Proposed placing of approximately 12 million shares announced today Funding flexibility provided for: Potential appraisal activity on block 7 Cameroon post IF-1r Further exploration and appraisal activity on our portfolio General working capital requirements 4

5 Vision & Objective Vision: It is our vision to build an African focussed, exploration and production company which becomes renowned for its ability to consistently create and realise material shareholder value through exploration led organic growth and niche acquisitions. Objective: Provide material capital growth over a 3-5 year period through high impact exploration and niche acquisitions and to realise value as appropriate 5

6 Strategy Cameroon Gabon Focus on Africa (with particular emphasis on Gulf of Guinea) Maintain significant exploration positions (including Operatorship) Leverage technical and commercial expertise Seek value adding partnerships Seek to monetise existing resource base as and when appropriate Be prepared to return value to shareholders to maintain significant equity gearing 6

7 Executive Summary Six 100% owned blocks 3 offshore Cameroon (Etinde Permit; MLHP 5,6,7) 2 onshore Cameroon (Bomono permit; OLHP 1,2) 1 offshore Gabon (EOV Permit) One non operated block (50%) Onshore Gabon (Epaemeno Permit) Extensive 3D & 2D seismic database over all blocks Substantial prospect inventory already developed across portfolio Progress made on monetisation of resource base in Cameroon Strong technical and management teams with successful track record 7

8 Highlights Successful three well drilling campaign completed on Cameroon acreage in Obtained an 18 month exploration extension to September 2009 for the Etinde Permit, Cameroon. Following success of recent drilling, preparation of an exploitation application for Block MLHP-7 now underway. Secured the Trident IV drilling rig for the IF-1r well; drilling expected to commence April/May Progress on development plan for EOV field in Gabon (including further subsurface evaluation) with sanction possible Q2/Q Signed the new Bomono PSC area in Cameroon covering approximately 2,328 km². Developing a substantial high quality prospect inventory across the Company s portfolio. 8

9 CAMEROON 9

10 Cameroon Overview Rio del Rey Basin 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% Douala Basin MLHP 5,6 & 7 2,314 km² Exploration period extended to Sept

11 MLHP-7 Overview Isongo Marine Field Discovered by Mobil in 1967 Isongo E Field Isongo C Isongo Marine IE-2/2Z tested 30mmscf/d bcpd Manyikebi Isongo D Isongo E IF-1 Isongo F drilled to 6355ft kick on IE-2Z gas gradient possible 1200 ft column IF-1r April/May 2008 spud Exploitation application in preparation 11

12 Block 7 IE/IF FORMATION PRESSURE Pressure(psia) ID IE IF Gas kick in IF ft tvdss (6355 ft MD). Projected pressure 5180 psi Depth(ft TVDSS) Sand 1 gas Sand 1 water Sand 2 Sand 3 Linear (Sand 1 gas) Linear (Sand 1 wat er ) Linear (Sand GWC 7504 ft tvdss (recorded as FWL from IE-2z M DT IF-1 drilled to 6355ft gas kick on IE-2Z gas gradient suggests same GWC and indicates full to spill structure Well abandoned prior to objective Pressure indicates potential connectivity between IF, IE and ID discoveries IF-1r location selected clear of any visible faulting spud expected April/May

13 IF-1r Well Location IF-1r location selected 300m NE from IF-1 Subsurface location chosen to Avoid extensional faulting in volcaniclastic interval Have well defined base volcaniclastic interval Maintain structural elevation at mapped top reservoir 13

14 Block MLHP-7 Isongo Gas Resource GIIP (bcf) CIP (mmbbl) Isongo Marine Field Isongo E Field Isongo C Discovery Isongo D Discovery Total Discovered Resource IF structure (exploration)* Isongo Marine (exploration) Total Exploration Resource (unrisked) Total MLHP 7 Resource (at March 2008) Mean In Place volumes *P10 P90 range for IF structure is gas (GIIP) and condensate

15 Cameroon Blocks 5 & 6 Douala basin numerous onshore oil seeps and hydrocarbon occurrences in older wells but no commercial discoveries pre- 3D seismic D-1r drilled and successfully tested 25mmscf/d bcpd from Miocene aged turbidite reservoir D1r Preliminary prospect inventory yields total unrisked mean GIIP 2.1tcf + 427mmbo Detailed seismic interpretation continuing will refine existing prospects/leads Prospect Inventory Gas = 2.1Tcf Condensate = 120mmbbls Oil = 427mmbbls *Mean unrisked in place volumes identified high potential late Cretaceous basin floor fan complex potentially oil prone 15

16 Block 5 Emerging Upside Late Cretaceous basin floor play possible analogue of the deepwater Ghana discoveries but in shallow water Play Elements Wedge/fan shaped depositional unit, thins to N, NE and E Internal geometry indicative of high reservoir probability Late Cretaceous age Sits above prolific Cenomanian-Turonian source interval At ~4000m but in shallow water Trap geometry/charge history yet to be defined Much greater volumetric potential than slope prospects THICK

17 Cameroon - Bomono PSC signed December 2007 Attractive fiscal terms G&G operations team due in country April 08 Total commitment over 5 years - (8000km aeromagnetics, 4000km aerogravity, 500km 2D seismic, 1 well) Aero-geophysics programme (gravity and magnetics) to commence late 2008 Geological sampling programme to commence late 2008 Seismic acquisition anticipated 2009 dry season Drilling 2010 or later Principal play type tilted fault blocks P90/P10 reserve range estimated as 10/100 mmbo per prospect 17

18 Cameroon Next Steps MLHP-7 Gas Condensate Play Chase potential around IE and IF area Drill IF-1r plus drill further appraisal wells MLHP-5 & 6 Oil Play Mature interpretation and understanding of Eocene- Cretaceous prospectivity and oil distribution Drill highgraded prospects Bowleven Cameroon database = 2000 sq km 3D seismic & 4000 line km 2D seismic data MLHP-5 & 6 Gas Condensate Play Drill highgraded prospects as appropriate 18

19 Cameroon Commercialisation I-E WHP-PUQ Platform 8-Slot Wellhead; Bridge-linked PUQ; Fluid Separation; Gas Compression; Living Quarters Etinde Block MLHP-7 Offshore Cameroon GAS RECYCLING OFFSHORE PROCESSING CONCEPT From I-E 90 MMscfd 11,700 bbl/d Shoreline Limbe Refinery To I-E ~90 MMscfd Gas Injection Liquid Export Pipeline to Shore (Limbe) 25.3 km 25.3 km From MLHP-7 35,100 bbl/d Development Options for MLHP-7 Gas Recycling and Condensate Recovery Feedstock for EGLNG Mini or floating LNG To IF-B ~90 MMscfd Gas Injection From IF-B 90 MMscfd 11,700 bbl/d Gas Injection Flowline IE to IF-B km km IF-B Platform Minimum NUI Facilities 8-Slot Wellhead Multiphase Pipeline IF-A to IE 7.1 km Gas Injection Flowline IE to IF-A Multiphase Pipeline IF-B to IE Gas Injection Flowline IE to IF-B 7.1 km To IF-A ~90 MMscfd Gas Injection From IF-A 90 MMscfd 11,700 bbl/d IF-A Platform Minimum NUI Facilities 8-Slot Wellhead 19

20 MLHP 7 Gas Recycling Concept (Gross Basis) Field P50 GIIP (Bscf) Peak Gas Production (MMscfd) Peak Condensate Production (bbl/d) Peak Water Production (bbl/d) Peak Gas Injection Rate (MMscfd) Isongo E , Isongo F , Total , Costs* Facilities: $650 million to $800 million Drilling: 6-9 producers and 4-6 injectors: $300 million to $450 million Assuming 70-80% recovery factors expect to produce million barrels Schedule Sanction targeted by end 2009 First condensate approximately 3 years after sanction * based on 2007 money 20

21 MLHP-7 Front End Studies Year Month MLHP-7: Front End Studies Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DRILL IF-1r REVIEW FLOATING/MINI LNG RE-INJECTION STUDIES CONCEPT DEFINITION (1) DRILL APPRAISAL WELLS Well 1 Well 2 IE/IF RE-INJECTION MODELLING LNG COMMERCIAL NEGS. FDP REVISION CONCEPT DEFINITION (2) FEED SANCTION 21

22 GABON 22

23 Gabon Overview Epaemeno Permit Block G sq km Second term ends August 2010 One well commitment 50% relinquishment required at end of second period Third period expires Aug 2013 One commitment well Addax now approved as Operator and conducting field operations, with Bowleven conducting G&G work through to well locations under TSA $10m (net) exploration carry, $8m (net) development carry EOV Permit Block G sq km Exploitation permit over field 23

24 Gabon EOV Field PSC signed for EOV Permit Area in February 2004 EOV Oil Field discovered by Marathon in Field located 6 miles offshore in 65ft of water 7.4 mmbbls best estimate contingent resource from CPR 24

25 Gabon EOV Development Reservoir development study due for completion in April 2008 Depending on the outcome of this study we may conduct further appraisal/development drilling in Possible sanction Q2/Q The preferred option remains development with an FPSO. The Knock Taggart (Fred Olsen) remains available. Four development wells have already been drilled though a central template The jacket is complete. The Topsides are approx 80% complete. Both now at Bay Offshore yards in Louisiana. If sanction in Q3 2008, then first oil in Q

26 EOV Development Management Summary Schedule GENERAL Project Sanction Reservoir Studies Geotechnical Survey Final Test & First Oil PLATFORM Pre-sanction Studies LLI Order & Delivery Complete Platform Transport & Install Offshore HUC FPSO Facilities Engineering Facilities Procurement FPSO Modifications Sail to Gabon Hook-up & Commission DRILLING Drilling Window EOV 8 Drilling Window EOV 9 Well Completions EOV DEVELOPMENT SUMMARY SCHEDULE FPSO OPTION Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 26

27 EOV Topsides 27

28 Gabon EOV Permit - NW Kowe NW Kowe lead Large rotated fault block straddling block boundary Additional seismic data required to confirm closure and mature drilling location Data trade agreed with Perenco 28

29 Gabon - Epaemeno 307km 2D seismic programme to be acquired late June-late August Focus on northern Terrace margin play and central Davo cluster Additional 300km 2D seismic possible follow on Drilling programme during 2009 or 2010 dry season depending on seismic Dentale Basin N Komi Fracture Zone Nymbe High South Gabon Sub-basin 29

30 FINANCE 30

31 Placing Proposed placing of approximately 12 million shares announced today Funding flexibility provided for: Potential appraisal activity on block 7 Cameroon post IF-1r Further exploration and appraisal activity on our portfolio General working capital requirements 31

32 Interim Results Summary First report under IFRS and US$ presentational currency (conversion document issued in November 2007) Loss of $6.6 million in period Net assets of $304 million at period end, $35m invested in fixed assets Net cash resources $55 million at 31 December

33 Interim Results Funds Summary Cash usage $51m Net cash at 31 December $55 million 33 Expenditure on capex / leases $2m $1m ($49m) Share issues Net interest received Outflow from Operating activities ($5m)

34 Financial Overview Healthy balance sheet Placing provides near-term optionality Funded for committed work programme Cash generation route by Q2/Q Debt finance capability Farm-out potential FINANCIAL & OPERATIONAL FLEXIBILITY 34

35 OVERVIEW 35

36 Highlights/ Overview Encouraging exploration progress following completion of successful three well drilling campaign in Cameroon during 2007, preparation of an exploitation application for MLHP-7 is underway. Near term drilling programme - IF-1r well drilling expected to commence April/May 2008 with likely appraisal wells to follow. Further asset base evaluation substantial high quality prospect inventory being developed across the Company s portfolio. Portfolio expansion doubled acreage in Cameroon with signing of new Bomono PSC. Financial flexibility - proposed placing of up to approximately 12 million shares announced today strengthens the Group enabling the timely pursuit of the opportunities in its portfolio.