Proposed Spin Off of UK Business into EnQuest PLC

Transcription

1 1 Lundin Petroleum Proposed Spin Off of UK Business into EnQuest PLC WF10929 March 2010

2 2 Petrofac - Lundin Petroleum - EnQuest Petrofac UK Listed Market Cap 5.5 Billion USD Service Operations Worldwide Upstream Operations in UK Malaysia North Africa Swedish Listed Market Cap 2.5 Billion USD Upstream Operations in Europe Russia South East Asia Africa WF10933 p

3 3 Petrofac - Lundin Petroleum - EnQuest Petrofac UK ASSETS Producing Fields Don West SW Don Undeveloped Discoveries Elke Various Exploration Assets UK ASSETS Producing Fields Heather Broom Thistle Deveron Undeveloped Discoveries Peik Scolty SW Heather Various Exploration Assets WF10933 p

4 4 Petrofac - Lundin Petroleum - EnQuest Petrofac UK Assets UK Assets Assets transferred to EnQuest free of debt WF10933 p

5 5 Petrofac - Lundin Petroleum - EnQuest Petrofac Shareholders Lundin Petroleum Shareholders Petrofac 45% 55% UK Assets UK Assets EnQuest shares listed on main board of London Stock Exchange and secondary listing on NASDAQ OMX Stockholm WF10933 p

6 6 Deal Rationale Crystallise value for Lundin Petroleum shareholders BY Exposure to a new UK North Sea focused Company WITH Critical mass, strong balance sheet & proven management team TO Grow through exploitation of existing asset base and a proactive acquisition strategy WF10930 p

7 7 EnQuest Assets 2P Reserves as at 1 January 2010 of 80.5 MMbbl Contingent Resources as at 1 January 2010 of 67.5 MMbbl & 30.6 Bcf 16 Licences on the UKCS 6 Producing fields Strong balance sheet Undrawn borrowing facilities 2009 pro forma production 13,620 bbl/d b 28b 3 8 Petrofac Licence 19a 18 23a 24a EAST RINNES MELVILLE 29a 28a 29b 4b BROOM b 24c 24aF124b HUDSON 29c 20a 15a OTTER Lundin Petroleum Licence Oil fields UK20e 18c 18aF b 18a b 13aF1 18aF6 18aF bMERLIN 23a2F1 STATFJ 23a2 24a 24c 23a1 DUNLIN 22aSE 23d DUNLIN 23c SKYE 23a3 24b25b 21aS 27d 26b BARNACLE 29a 27g 30a 26aWCORMORANT 27f 26aF1 HUTTON NW BRENT OIL 30b 27a 28b 29b 29F1 HUTTON 30b 27b 28a 26a 27c PELICAN BRENT GAS 29c 27e 1aN 4aF1 5F1 20d 16c 20f 16a EIDER KESTREL 21a KERLOCH 25a 22aNW TERN 21b 21aF1 22b CORMORANT AREA 25b HEATHER 4a LYELL 1b 2F1 1a 5 HEATHER SW 10a MAGNUS SOUTH12b DON West THISTLE / DEVERON 13aF2 PENGUIN 18aF1 18aF2 18aF3 23a1F2 DON SW 9d 9f PLAYFAIR 19a 9bF1 9gDELTA 19aF3 19b 003/03 (Area 11) 3b 4a 4c 3a 4b 5 3F1 0 KM 4aF3 20 2F2 4aF2 WF10930 p

8 8 Experienced Board and Management Team Experienced Board and Management team Jim Buckee, Non-executive Chairman Amjad Bseisu, CEO Nigel Hares, COO Jonathan Swinney, CFO Alex Schneiter, Non-executive Director J. Buckee and N. Hares were core of team that built Talisman Energy over last twenty years A. Bseisu, currently CEO of Petrofac Energy Developments J. Swinney, Head of M&A at Petrofac A. Schneiter, Chief Operating Officer Lundin Petroleum WF10930 p

9 9 Secondary Offering The Lundin family will own ~17.5% of EnQuest pre secondary offering Petrofac s CEO (Asfari) and COO (Semaan) will own ~12% of EnQuest pre secondary offering To facilitate liquidity in EnQuest the Lundin family, Asfari and Semaan may sell a portion of their EnQuest share to institutional investors in a secondary offering The Lundin family will remain the largest individual shareholder in EnQuest even post secondary offering WF10932 p

10 10 Swedish Considerations Secondary listing on NASDAQ OMX Stockholm Tax efficient distribution of shares in EnQuest to Lundin Petroleum shareholders through application of Lex Asea rules EnQuest prospectus available through Lundin Petroleum website from 18 March 2010 Lundin Petroleum EGM on 22 March 2010 WF10932 p

11 11 Lundin Petroleum s UK History Acquired UK assets in 2004 Capital expenditure up to year end 2009 Post-tax operating cash flow up to year end 2009 USD MM USD 595 MM USD 945 MM 2P reserves increased by ~100% from 2004 to present date WF10932 p

12 12 Crystallisation of Value 55% of EnQuest Value above USD 285 million to be booked as profit Carrying value of UK assets USD 285 million WF10927 p

13 13 Value of Distribution to Lundin Petroleum Shareholders 31.1 Value of Distribution to LUPE shareholders SEK/share ,000 1,250 1,500 1,750 2,000 2,250 2,500 EnQuest Market Capitalisation USD Million Assumed: LUPE shares in issue million, SEK:USD 7.1 WF10927 p

14 14 Lundin Petroleum Strategy Continued organic reserves growth Production growth from Volund, Luno and Norwegian tie-back opportunities Exploration leverage Norway, Greater Luno Area, Barents Sea South East Asia Russia USD 290 million budget in 2010 with 11 exploration wells Continued strong balance sheet and operating cash flow WF10932 p

15 15 Lundin Petroleum Post Deal 2P Reserves, MMboe Contingent Resources, MMboe Unrisked Prospective Resources, MMboe 2010 Capex Budget, $ million 2010 E&A Budget, $ million 2010 Cost of Operations, $/bbl (10.35 from Q onwards) CMD 2010 including UK , excluding UK , (1) (1) Net Debt (as at end 2009) WF10927 p (1) Includes Q expenditure in UK

16 16 Lundin Petroleum 2010 Production Forecast 2010 production guidance 29,000-33,000 boepd Netherlands 6% France 11% Norway 50% Norway Volund onstream 1H 2010 Indonesia 10% Indonesia Singa onstream 1H 2010 incl. UK Q High Russia 13% Tunisia 3% UK (1) 7% 38,000 36,000 Low 34,000 excl. UK Q High 32,000 Low 30,000 28,000 Net boepd 26,000 24,000 WF10925 p Q1 Q2 Q3 Q4 22,000 (1) First three months only

17 17 Expected Timetable 4th March 8th March 22nd March 29th March Week of 6th April Week of 6th April 8th April Announcement EGM notice of information circular Lundin Petroleum EGM Decision on secondary offering Listing on main board of London Stock Exchange Secondary listing on NASDAQ OMX Stockholm Lundin Petroleum shares trade ex-dividend Record date for Lundin Petroleum distribution of EnQuest shares WF10932 p

18 18 Conditions UK government confirmation Shareholder approval of Lundin Petroleum and Petrofac Finalisation of third party consents WF10932 p

19 WF10932 p