Africa Oil Week November 2014

Transcription

1 Africa Oil Week November

2 Disclaimer THIS DOCUMENT IS CONFIDENTIAL This document has been prepared and issued by and is the sole responsibility of Ophir Energy plc (the Company ) and its subsidiaries for selected recipients. It comprises the written materials for a presentation to investors and/or industry professionals concerning the Company s business activities. By attending this presentation and/or accepting a copy of this document, you agree to be bound by the following conditions and will be taken to have represented, warranted and undertaken that you have agreed to the following conditions. This presentation is strictly confidential and may not be copied, published, distributed or transmitted. If you do not accept these conditions, you should immediately destroy, delete or return this document. The document is being supplied to you solely for your information and for use at the Company s presentation to investors and/or industry professionals concerning the Company s business activities. 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3 Leading Deepwater Portfolio Myanmar AD-03-95% Equatorial Guinea Block R - 80% Kenya L9-90% Somaliland SL12/SL9-25% Seychelles PEC-5B/1,2&3-75% Gabon Mbeli - 40% Ntsina - 40% Manga - 70% Gnondo - 70% Nkouere - 100% Nkawa - 100% Tanzania Blocks 1,3&4-20% Block 7-80% East Pande - 70% Indonesia West Papua IV - 50% Aru - 60% N. Makassar Strait - 30% Obi - 42% Kofiau - 100% Halmahera-Kofiau - 80% (N.Ganal - ENI 18.5%) 2

4 Key Highlights 2C Contingent Resource of 830mmboe (post Tanzanian farm-down) 17.1 TCF (gross) discovered in Tanzania Blocks 1, 3 and TCF (gross) discovered in Equatorial Guinea Block R Successful sale of 20% of Tanzania Blocks 1, 3 and 4 to Pavilion Energy for c.us$1.3bn (1) EG FLNG project progressing Further exploration and appraisal drilling underway Midstream solution being finalised High-impact drilling programme undertaken, key wells up and coming Tende (Tanzania) New licence acquisitions expanding the portfolio and refilling the exploration hopper Seychelles, Myanmar and Indonesia Net working capital end of June c.us$1.3bn Share buyback underway up to US$100mn 1. US$38mn contingent and will be received on FID 3

5 Strategic focus Currently Focus on E&A Focus on Deepwater Basins Focus on Africa Focus on Capital Efficiency Future E&A will continue to be the company s primary focus Not averse to holding producing assets to help provide cashflow sustainability Offshore, deepwater basins are expected to be the ongoing primary source of portfolio upside Offer significant running room, well understood by our technical team Strong in-house deepwater drilling capabilities Africa will remain core to the portfolio But looking at new opportunities elsewhere, primarily Asia (Myanmar licence first acquisition) Key is geology rather than geography No change to strategy Pre-drill farm-outs sought to minimise capital at risk Monetisation of success at the optimum time to maximise returns 4

6 Carried Interests Value Ophir Business Model Focused on maximising Returns on Investment Exploration and appraisal: High-risk high-reward, rapid value accretion in the exploration and appraisal phase Pre-drill farm-out opportunities to manage risk Ophir s primary E&A Focus Appraisal FID First Production Tanzania Blocks 1,3,4 3D seismic Tanzania E Pande, Block 7 Kenya 1 st Discovery Gabon Pre-salt and Ogooué Delta AGC EG Liquids Indonesia Somaliland Myanmar Gabon Deeper Water Seychelles Gas 2014 Drilling Activity Oil/Liquids Gas and/or Oil/Liquids EG Gas Monetise and Recycle Cashflow Into Further Exploration and Appraisal Returns to Shareholders Cashflow from Production 5

7 2014 Drilling Programme (1) Country Block Name Well Name Ophir WI Gabon Ntsina Padouck Deep x Tanzania Block 1 Taachui Gabon Gnondo Affanga Deep x Gabon Mbeli Okala x Tanzania Block 1 Taachui DST 20% Tanzania Block 1 Mzia-3 DST 20% EG Block R Tonel North 80% - Tanzania Block 4 Kamba/Pweza N 20% EG EG Block R Block R Silenus East Gas and Oil Fortuna-2 and DST Pmean CoS (MMBOE) (%) Q1 Q2 Q3 Q4 H1 Gross Net 80% (gas) 80% Tanzania East Pande Tende 70% % Tanzania Block 7 Mkuki-1 80% % Rigs Contracted West Africa Vantage Titanium Explorer East Africa Deepsea Metro I Play opening well Oil / liquids Gas 1. Programme is subject to change (prospect, order and timing) 6

8 Ophir in Equatorial Guinea

9 Summary Ophir in EG Block R Overview and Resource summary Fortuna FLNG project progress and forward plan Why Floating Development Benchmarking Ophir further ambitions in EG 8

10 Equatorial Guinea: Ophir Today Ophir Energy holds an 80% interest in Block R. Partner GEPetrol 20% Located in Distal Niger Delta in water depths from 1,300m- 1,950m 8 Technical discoveries, 6 by Ophir 4 Ophir Appraisal wells (Fortuna East, West, 2 & Tonel North-1) Discovered+ Risked 2C: 3.4TCF Up to 7TCF of additional unrisked prospective resource, 2TCF of which are low risk prospective resources Sufficient discovered and prospective resource to support an FLNG train 9

11 Block R Regional Setting Block R lies at the frontal toe-thrust zone and frontal deformation zone between the main Niger Delta and NW-SW trending Cameroon volcanic line Stratigraphy is dominated by three lithostratigraphic units which form the daichronos Tertiary seaward prograding delta Fortuna sediment input Alternate sediment input 10

12 Block R Schematic Cross Section 11

13 Block R : Seven Commercial Gas Discoveries Oreja Marina Seven commercial gas discoveries have been made within Block R 2002 Exxon: Oreja Marina (not currently in FLNG project) & Estrella de Mar 2008 Ophir: (Bythos dry), Fortuna, Lykos 2012 Ophir: Tonel, Viscata 2014 Ophir : Silenus East, (Tonel North) A further 7TCF prospectivity still to be explored Estrella De Mar Silenus East Lykos Viscata Fortuna Complex Tonel 12

14 Fortuna-2 DST 21 October 2014 DST conducted safely: Zero Lost Time Incident Sustained flow rate of 60MMscfd with drawdown <20psi Expected flow rate at FLNG facility operating conditions 180MMscfd via 5 tubing Reduced development well requirements in pre-feed/feed Subsurface de-risking complete for Miocene turbidite play 13

15 Fortuna FLNG Project

16 Fortuna Overview Development: 3.0 Mtpa 440MMscfd FID 2016 First Gas 2019 CAPEX: Upstream: c.us$3.0 FLNG Vessel c.us$3.25 Initial phase Fortuna (blue) up to 7 production wells Subsequent phases discovered resources Tonel (green), Viscata (purple) and remaining (red) from Thrust Belt Gas (TBG) 13 additional development wells over 15 years Combination of 12 dual and 16 single flowlines Additional notional development well locations (~1.2TCF unrisked) to be matured Fortuna DST results will reduce well count 15

17 Midstream Proposed Layout Length: 357m, breadth: 60m New-build hull Turret moored Vessel classification as Floating Offshore LNG Liquefaction Terminal LNG storage capacity 230,000m 3 Side by side off-loading Safety in design drives layout 16

18 EG Block R: Timeline & Milestones (5 Yr Plan) Government Agreements Midstream Upstream LNG Marketing Project Financing PSC Gas terms Gas Terms Host Government Agreement First Gas FEED Contract Award FDP FID Development Charter Agmt Heads of Terms Charter Agreement Farm-down Farm-down Resource certification Initial Market approach LNG SPA Heads of Terms Fully Termed LNG SPA Arrange Debt Financing 17

19 Why FLNG for Block R FLNG is gaining momentum Four under construction Prelude, PFLNG1, PFLNG2, Pacific Rubiales Six in FEED, 17 prospects being studied Presence is going global SE Asia, USA, Africa, South America Existing technology, but installed in a different place Construction is in a state-of-the-art shipyard with every available facility and resource NOT in a hostile, remote location at the end of a several thousand mile-long logistical chain Benign metocean conditions: Gas is 99.7% Methane, no inerts, no sulphur, no water better than pipeline quality Minimal pre-treatment Simple process, less equipment, no exotic materials Routine subsea infrastructure No technical innovation, everything tried and tested Reliable, efficient, high uptime 18

20 GLNG QCLNG PETRONAS FLNG 1 Wheatstone LNG Australia Pacific LNG Gorgon Pluto Browse Yamal LNG Prelude FLNG Kitimat LNG Sabine Pass Ph 2 Sabine Pass Ph 1 LNG Canada Sakhalin 2 Tanzania LNG Mozambique LNG DS LNG Vladivostok LNG Leviathan FLNG Angola LNG Ichthys PNG LNG EG FLNG Tangguh Phase 2 Abadi MLNG Train 9 Snohvit NLNG Seven Plus Damietta Kenai ELNG 1 ELNG 2 Peru LNG Brass LNG (mmtpa) NPV10 Breakeven Price ($/mcf) Equatorial Guinea - Benchmarking EG FLNG Globally EG FLNG is highly cost competitive and will come on-stream before majority of East Africa/North American volumes Overview EG FLNG is cost competitive on a global scale - Lower DES break-even price than the majority of constructed and planned Pacific & Atlantic volumes Project will commence production in Well placed to take advantage of ongoing LNG market tightness prior to planned East African and North American volumes coming on-stream LNG Prices (Japan) Required for NPV10 Breakeven ($/mcf) 8 Shipping Costs Ophir Project FOB Pacific FOB Atlantic FOB Supply / Demand Curve (mmtpa) EG FLNG onstream Speculative Possible Under Construction Existing Demand 19

21 Summary Financially viable FLNG project: Fortuna Project Potential to be first FLNG in West Africa: First Gas 2019 Agreed Fiscal Gas Terms with Equatorial Government Resources of 3.4TCF de-risked through successful DST Metocean favourable for simple development Gas composition (99+% Methane) favourable for simple processing Midstream Partner selected Upside exploration through licence extension from 1st Jan 2015 Industry leading edge Project Future replication for stranded scalable gas New partnerships with Industry leading companies for Ophir Energy 20

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23 Contact: Investor Relations Ophir Energy plc Tel: +44 (0)