Investor presentation

Transcription

1 oil & gas Investor presentation April 2016

2 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 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. Bowleven, EurOil and the Bowleven logo are trade marks of Bowleven plc and copyright in the content of this document is owned by Bowleven plc. They should not be used without permission. Private & Confidential 2

3 Overview Strategy Africa and Other Strategic Fits Build a sustainable E&P company with a production base and infrastructure-led exploration focus Convert current portfolio resources to reserves Create and realise value through material exploration success and development Seek value adding partnerships and niche acquisitions that offer a strategic fit Foster strong external partnerships and incountry relationships Highlights 2015 Interims Etinde farm-out significantly strengthened balance sheet with appraisal well carry and deferred cash receipts to follow Development planning post drilling/testing at Bomono Rationalisation of asset base aligning with strategy Strong foundation from which to critically assess new venture opportunities 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 organic growth and niche acquisitions. Private & Confidential 3

4 Togo Benin Near-term focus oil price downturn creates opportunities Etinde Appraisal locations agreed with well planning underway and tendering activity expected this year Aim to capitalise on low cost environment and high rig availability Ongoing operator led evaluation of development options including early LNG Bomono Progressing towards development with EA submission and ongoing planning and evaluation Other Rationalisation of portfolio in current environment Focus on near term production and infrastructure led exploration, rather then frontier acreage New ventures Rigorous evaluation of new venture opportunities for synergic fit and strategic alignment Protect balance sheet strength during downturn via disciplined screening approach Ghana Nigeria Bomono Douala 20km 20km Cameroon E.Guinea Gabon Congo Private & Confidential 4

5 Etinde development and monetisation Etinde exploitation JV focused on achieving earliest monetisation scheme Early LNG project (75 100mmscfd) offers the most viable cost and schedule efficient development scheme within the Exploitation Authorisation (EA) framework of: o Ferrostaal-led fertiliser scheme (70mmscfd) o Power o GDF-led Cameroon LNG (CLNG) project o Larger scale LNG development schemes Appraisal well locations agreed. Well design and planning being progressed and tendering will take place in 2016 to take advantage low cost and high rig availability Appraisal drilling programme planned in 2017 on Intra Isongo formations to prove up additional resource volumes for major field development Group s current net P50 contingent resources 58 mmboe Early Stage Development Full Field Development Private & Confidential 5

6 Etinde: additional resource through appraisal drilling IM-5 Well-1 Upper Isongo Volcanics Intra Isongo Middle Isongo Well-2 Greater Intra Isongo Intra Isongo potential IM-5 well opened the Intra- Isongo play Seismic amplitude response reveals the sandstone distribution at Intra Isongo main horizon and additional Intra Isongo targets above and below Intra Isongo IM-5 reservoir Appraisal drilling programme will target this additional resource potential with 2 wells aimed at 1-2 tcf of additional gas and associated liquids: o Well-1: Down-dip extension of Intra Isongo from IM-5 discovery within structural closure o Well-2: Continued downdip stratigraphic extension of Intra Isongo with additional stacked targets at the Intra Isongo level Seismic Amplitude Intra Isongo IM-5 Private & Confidential 6

7 Bomono Operational update Moambe and Zingana exploration wells completed and tested Prospect inventory work in progress to identify near-term resource potential for development scheme Exploitation Authorisation Application (EAA) submitted to Cameroon Authorities Project economics being benchmarked against in-country gas to power operations Identification of gas sales opportunities Ideally located adjacent to Douala City and local industry MOU signed with power provider Actis/Eneo under gas-to-power development scheme Development concept for early monetisation scheme based on packaged power units to create a scalable facility Near-term gas production targeted for gas to power to domestic and industrial users Phase 1 development scheme: early gas to power Bomono-2 Bomono-1 Power Generation Plant Gas Fuelled Engines Target > 10MW or Electricity to National Grid Electricity to Local Industry Inlet Manifold Separator Bomono-3 Bomono-4 Produced Water Disposal Trucked to Approved Disposal Facility Private & Confidential 7

8 Bomono: exploration targets extended well testing completed Results/forward plan programme Extended well testing programme completed (focus on shallower reservoirs) Results support initial supply of around 5 to 6 mmscfd for power generation Development planning and GSA discussions ongoing Evaluation of well data and results ongoing Additional prospectivity identified on acreage, including deeper reservoir potential at Zingana and Moambe B Sand twt Structure Map Zingana & Moambe fault blocks Additional prospective fault terraces Zingana Moambe Additional Prospects Private & Confidential 8

9 Interim results strong financial foundation Strong balance sheet with cash, no debt and no outstanding work programme commitments Circa $100m cash*, no debt as at 29 March 2016 Under Etinde farm-out transaction: o Further $15 million in cash to be received end Sept 2016 o Access to $40 million (net) carry; covers share of drilling/testing of two Etinde appraisal wells o $25 million at Etinde FID G&A reduced to circa $0.8 million net per month; further reduction initiatives being investigated Group will continue to assess available and optimal funding solutions on an ongoing basis (eg project debt or development bank finance) Protect balance sheet strength and ensure a capital-disciplined approach to opportunity consideration *prior to any recovery for hardware purchased or contractor claims related to the Bomono drilling operation. Private & Confidential 9

10 Conclusion Challenging macro-environment of prolonged lower oil prices impacting industry Strong balance sheet following completion of Etinde farm-out; access to $40 million appraisal well carry and further cash receipts Economic backdrop creates opportunities alongside challenges: o Etinde remains a robust and attractive project despite lower oil prices o Localised gas pricing less susceptible to oil price volatility o Ability to exploit lower costs and excess rig/services availability o Growth in new venture opportunities to evaluate to complement portfolio Disciplined approach to allocating capital, aligned with strategy: o Resources to reserves progression at both Etinde & Bomono o Rationalise existing portfolio o Rigorous screening of new opportunities o Maintain strong balance sheet Private & Confidential 10

11 Principal Contact: Katie Gammie (IR Manager) Tel: Kerry Crawford (CFO) Tel: Kevin Hart (CEO) Tel: oil & gas Bowleven Plc. The Cube 45 Leith Street Edinburgh EH1 3AT United Kingdom