ROC OIL COMPANY LIMITED THE GOOD OIL CONFERENCE

Transcription

1 ROC OIL COMPANY LIMITED Presentation to THE GOOD OIL CONFERENCE Perth - September 2005 Slide 1

2 ROC OIL COMPANY LIMITED Financially sound - $154 million cash and receivables, no debt (1) Market Capitalisation - $450 million Developing four fields - 15 MMBO net 2P reserves Appraising four fields - >20 MMBO net 2P reserves Exploring aggressively - Up to 11 wells in next 5 months Strategically focused - Experienced team with track record (1) As of 30 June 2005 Slide 2

3 LAST YEAR S MESSAGE BUY ROC NOW Slide 3

4 SHARE PRICE DRIVEN BY EIGHT EVENTS September 2004 September 2005 Slide 4

5 ROC SHARE PRICE v OIL PRICE January 2004 September 2005 Slide 5

6 MARKET CAPITALISATION September September 2005 Slide 6

7 MARKET CAPITALISATION 1 January September 2005 Slide 7

8 ROC IN A UK CONTEXT ROC LISTED ON AIM IN LONDON IN SEPTEMBER About 14% of ROC is now owned by overseas shareholders, based mainly in London. Slide 8

9 AIM SHARE PRICE 6 September September 2005 Slide 9

10 A WELL ESTABLISHED PORTFOLIO September 2005 UK ONSHORE Generally 100% 1999 UK NORTH SEA 12% and 12.5% (1) 1999 CHINA 40% (2) 2000 AUSTRALIA Generally 37.5% 1999 MAURITANIA 2-5% 2000 EQUATORIAL GUINEA 18.75% (3) 2000 ANGOLA 60% 1998 (1) (2) (3) NEW ZEALAND 40% 2004 Operated / Managed Non-Operated Estimate post unitisation Pre-Government Back-In 15% Free carried through 2005 well Note: 1999 Date of first contact / entry Slide 10

11 FORWARD CURVES Slide 11

12 OIL PRICE HEDGING SWAP PUT OPTION Agreement with BP For March 2006 December 2007 production US$49.58 / BBL Brent 909,000 BBLS; < 25% of Cliff Head and Chinguetti production for the relevant period Agreement with BNP For March 2006 December 2006 production Put price US$40 / BBL Brent 200,000 BBLS; < 12% of Cliff Head and Chinguetti production for the relevant period Slide 12

13 ROC OIL COMPANY LIMITED DEVELOPMENT, PRE-DEVELOPMENT AND APPRAISAL PROJECTS OVERVIEW Slide 13

14 DEVELOPMENT, PRE-DEVELOPMENT AND APPRAISAL PROJECTS SEPTEMBER 2004 MAURITANIA 3.7% (1) Participant CHINA 40% (1) Operator Pre-Development and Appraisal studies Development AUSTRALIA 37.5% Operator (1) Pre-Government Back-In Slide 14

15 DEVELOPMENT, PRE-DEVELOPMENT AND APPRAISAL PROJECTS SEPTEMBER 2005 MAURITANIA 2-5 (3) Participant NORTH SEA 12 and 12.5% (1) Participant CHINA 40% (2) Operator (1) (2) (3) Pre-Development and Appraisal studies Development Estimate post unitisation Pre-Government Back-In 15% Free carried through 2005 well AUSTRALIA 37.5% Operator Slide 15

16 RESERVE AND PRODUCTION GROWTH DEVELOPMENT Four fields being developed - Cliff Head First production 1Q Chinguetti -Blane First production 4Q Enoch RESERVES 15 MMBO net ROC 2P reserves PRODUCTION Initial net ROC production rates: BOPD in 2006 Slide 16

17 PRE-DEVELOPMENT AND APPRAISAL PROJECTS PRE-DEVELOPMENT One field West, offshore China APPRAISAL 4 Fields -Tiof - Tevet offshore Mauritania -Banda - Wei 6-12-South, offshore China >20 MMBO Potential reserves net ROC Slide 17

18 TIMING OF FUTURE OIL PRODUCTION NOW Slide 18

19 FIELD DEVELOPMENT - DETAILS Cliff Head - Australia Chinguetti - Mauritania Blane - North Sea Enoch - North Sea Slide 19

20 DEVELOPMENT - AUSTRALIA OFFSHORE PERTH BASIN 6 permits, all but one operated by ROC Approximately 6 million gross acres / 24,000 sq km Cliff Head Development underway Exploration drilling programme imminent Slide 20

21 CLIFF HEAD DEVELOPMENT Slide 21

22 CLIFF HEAD DEVELOPMENT Offshore Perth Basin, Western Australia ROC 37.5% and Operator Final Investment Decision (March 2005) 2P Reserves $A227 million (1) 14 MMBO with upside potential (1) First Production 1Q 2006 Initial Production Rates >10,000 BOPD (1) (1) JV may choose to expand the scope of the project by drilling an additional development well with the intention of increasing reserves and production rates above forecast. Likely cost to JV; A$12.5 million. Slide 22

23 CLIFF HEAD DEVELOPMENT Two steel 273mm diameter pipelines, 14km long One for production fluids; one for water injection 14km power cable for general platform power; specifically for powering ESPs 14km chemical injection and control umbilical for corrosion and scale inhibition. ~14m bbls (2P) Initial Production Rate ~10,000 bpd Slide 23

24 CLIFF HEAD DEVELOPMENT Arrowsmith Plant Site Former Westlime Plant, 2004 Slide 24

25 CLIFF HEAD DEVELOPMENT Arrowsmith Plant Site Civil Preparation, May 2005 Slide 25

26 CLIFF HEAD DEVELOPMENT Construction of onshore facilities at Arrowsmith Slide 26

27 CLIFF HEAD DEVELOPMENT Arrowsmith Plant Site and Pipeline Easement Slide 27

28 CLIFF HEAD DEVELOPMENT Pipeline Easement Slide 28

29 CLIFF HEAD DEVELOPMENT CONCEPTUAL DESIGN, FEBRUARY 2005 Slide 29

30 CLIFF HEAD DEVELOPMENT Production pipeline being laid in trench Slide 30

31 CLIFF HEAD DEVELOPMENT Deploying the pipeline liner Slide 31

32 CLIFF HEAD DEVELOPMENT CONCEPTUAL DESIGN, FEBRUARY 2005 Slide 32

33 CLIFF HEAD DEVELOPMENT Jacket construction in Malaysia Slide 33

34 CLIFF HEAD DEVELOPMENT Jacket construction in Malaysia Slide 34

35 CLIFF HEAD DEVELOPMENT Jacket construction in Malaysia Slide 35

36 CLIFF HEAD DEVELOPMENT Topsides under construction in Malaysia Normally unmanned 6 production ESP well slots 2 water injection wells Slide 36

37 DEVELOPMENT - OFFSHORE MAURITANIA ROC s acreage offshore Mauritania includes: Chinguetti Oil Field: Development Tiof Oil Field Banda Gas Field Tevet Oil Field Pelican Gas Discovery Appraisal Slide 37

38 CHINGUETTI OIL FIELD DEVELOPMENT Final Investment Decision (2004) 2P Reserves Towards US$700 million * 123 MMBO First Production 1Q 2006 Early Production Rates Up to 75,000 BOPD ROC 3.25% * Due to industry-wide cost pressures, and based on the latest available information, ROC s corporate opinion is that the final budget figure is likely to be somewhat in excess of US$700 million, rather than the previously published estimate of US$625 million plus 10% contingency ($687.5 million) Slide 38

39 CHINGUETTI OIL FIELD DEVELOPMENT LESS THAN FIVE YEARS FROM DISCOVERY TO PRODUCTION May 2001: CHINGUETTI-1 RECOVERS FIRST OIL, OFFSHORE MAURITANIA Slide 39

40 CHINGUETTI OIL FIELD DEVELOPMENT LESS THAN FIVE YEARS FROM DISCOVERY TO PRODUCTION June 2005: THE BERGE HELENE BEING UPGRADED IN SINGAPORE FOR CHINGUETTI FPSO SERVICES. Slide 40

41 FIELD DEVELOPMENTS - UK NORTH SEA Two fields being developed: Blane and Enoch Slide 41

42 BLANE OIL FIELD Final Investment Decision Reserves 165 million 32 MMBL Ula Host Platform First Production Late 2006 Initial Gross Production Rates Project Concept ROC >14,000 BOPD Subsea tie-in to Ula Platform 12.5% unitised Slide 42

43 ENOCH OIL AND GAS FIELD Final Investment Decision Potential Reserves 75 million 15 MMBOE Brae Host Platform First Production Late 2006 Initial Gross Production Rates Project Concept ROC >12,000 BOPD Subsea tie-in to Brae Platform 12% unitised Slide 43

44 PRE-DEVELOPMENT - CHINA WEI 12-8 WEST This field, in Block 22/12, Beibu Gulf, is currently subject to development discussions with the Government-owned CNOOC oil company. No guarantee of outcome. (1) CNOOC has rights to participate for up to 51% in developments Slide 44

45 12-8 WEST OIL FIELD ROC 19.6 % (1) and Operator Project Sanction 4Q 2006 Potential Reserves 5-10 MMBBL Possible First Production Project Concept Early 2007 Unmanned platform tied back to 12-1 Host Platform (1) Post CNOOC exercising its right to participate for up to 51% in the development Slide 45

46 WEIZHOU SAND DEPTH MAP: WEI 6-12 COMPLEX Slide 46

47 EXPLORATION AND APPRAISAL - OVERVIEW Up to 11 exploration and appraisal wells in the next 5 months some with big hit potential subject to rig availability All funded internally Slide 47

48 ROC S EXPLORATION AND APPRAISAL DRILLING PROGRAMME September 2005 January 2006 Slide 48

49 SUBSTANTIAL EXPLORATION POTENTIAL AUSTRALIA JACALA PROSPECT ROC 20% Largest undrilled structure in the offshore Carnarvon Basin A new venture with BHP Billiton and Tap Oil Big Potential / High Risk January 2006 Slide 49

50 SUBSTANTIAL EXPLORATION POTENTIAL, ONSHORE UK: WILLOWS PROSPECT: BCF TARGET, 100% ROC Slide 50

51 WILLOWS-1 EXPLORATION PROSPECT BCF TARGET, 100% ROC Slide 51

52 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA EQUATORIAL GUINEA Equatorial Guinea, Offshore Rio Muni Basin ROC 18.75% and Technical Manager ROC is free carried for 15% of the Aleta-1 deep water well, scheduled to be drilled ASAP, subject to rig availability, probably early Slide 52

53 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA EQUATORIAL GUINEA Aleta Prospect Channels/Overbank & Levee Reservoir fairway Cretaceous channel sands MMBO Truncation/onlap edge Success will upgrade other nearby prospects Low amplitude mounded lobes reservoir facies Aleta Closures H Blocks L Block Slide 53

54 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA EQUATORIAL GUINEA Aleta-1 is close to a number of undrilled prospects, which will be upgraded if the well is a discovery Slide 54

55 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA Cabinda South Block, onshore Angola ROC 60% and Operator Seismic acquisition commenced in June 2005 First on-ground exploration activity for more than 30 years Area is adjacent to 5 billion barrel oil province, currently producing >400,000 BOPD Slide 55

56 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA Offshore and to the north - ChevronTexaco currently produces towards 500,000 BOPD from fields immediately offshore with total initial recoverable reserves in excess of 5 billion barrels - The Malongo Terminal is located 15 km north of the Block and is accessed by a sealed road Onshore and to the south - Exploration and production operations are underway in the adjacent Perenco-operated acreage in the Democratic Republic of The Congo, immediately south of the Block Slide 56

57 ANGOLA S ESTABLISHED AND EMERGING OIL PROVINCES Slide 57

58 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA Angola is undergoing reconstruction following the end of the 30 year civil war. For several decades, offshore oil production platforms have pumped oil to shore-based facilities in Cabinda. ROC s current seismic survey marks the return of exploration activity to onshore Angola after an absence of more than 30 years. Slide 58

59 LUANDA, CAPITAL OF ANGOLA A bustling capital city Slide 59

60 CABINDA TOWN A quiet provincial town Slide 60

61 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA 560 km 2D and 165 sq km 3D Dynamite and Vibroseis seismic survey started 15 June 2005 Scheduled completion November 2005, subject to onset of rainy season 300km 2D and 50 sq km 3D seismic acquired to date Data quality good to excellent Structuring confirmed Interpretation due 1H 2006 Slide 61

62 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA Structural elements run from offshore to onshore Slide 62

63 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA Geological fairways run from offshore to onshore Slide 63

64 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA Multiple plays & objectives along regional Strike. Pre-salt structural and stratigraphic plays in terrace areas around palaeo highs. Post-salt plays in rotated fault blocks immediately above mature oil and gas generating source rocks. Slide 64

65 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA Multiple plays & objectives along regional Dip. Well on the left end of line penetrated second thickest source section in basin: 800m with an average Total Organic Carbon Content of 10%. Slide 65

66 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA KEY PLAY TYPES m reservoir sand deposited around Cabinda Horst and Lele High, absent over crest due to onlap and erosion Structural and stratigraphic traps on flanks / terraces A A OILSHOWS IN LUCULA FM A A Slide 66

67 ROC OIL COMPANY LIMITED STRATEGICALLY FOCUSED Slide 67

68 GEOGRAPHIC FOCUS AND DISTANCE ROC s strategy is focused, but we don t define focus in geographic terms. Distance is no longer a strategic factor in today s international Oil and Gas business. Slide 68

69 STRATEGIC FOCUS Cost efficient acquisition of overlooked, unfashionable, under-valued assets, the merits of which may not be immediately obvious to other industry participants Generally little/no reference to current industry - market trends or data room auctions Slide 69

70 APPROXIMATE COMPOSITION OF SHARE REGISTER Slide 70

71 SIGNIFICANT INTERESTS Slide 71

72 A LIMITED NUMBER OF PUBLICLY-LISTED, MID-CAP, ENTRY POINTS UK ROC Paladin Dana Bow Valley MAURITANA ROC Hardman Premier Fusion CHINA ROC FAR Horizon PSA AUSTRALIA ROC Arc AWE Tap NEW ZEALAND ROC EQUATORIAL GUINEA ROC ANGOLA ROC Slide 72

73 STRATEGIC FOCUS Low cost entry, often via option arrangement UK CHINA AUSTRALIA MAURITANIA ANGOLA Slide 73

74 SENSIBLY CONTRARY STRATEGY IN ACTION UK 1999 $US500,000 Option Fee over onshore and North Sea assets led to A$115 million purchase of portfolio that generated value in excess of A$500 million MAURITANIA 2000 $US200,000 Option Fee over entire deep water Mauritania prior to first discovery led to ca US$3 million cash and ca US$3 million share purchase of a portfolio that can now be valued at US$100 million or more CHINA 2002 Ground floor entry option to drill exploration with well, with no ongoing commitment, led to the discovery of a small oil field in a complex, that is scheduled to be appraised in late 2005 AUSTRALIA 1999 Seismic option led to acquisition of offshore Perth Basin acreage and subsequent discovery and development of 14 MMBO Cliff Head Oil Field in an area where there were no previous oil discoveries. ANGOLA 2001 For no initial up-front consideration, 45% interest and Operatorship of Cabinda South Block acquired five months before 30 year civil war ended Slide 74

75 STRATEGIC FOCUS Exploring near infrastructure UK CHINA AUSTRALIA* MAURITANIA* NEW ZEALAND ANGOLA * Infrastructure being constructed as a result of early exploration success Slide 75

76 STRATEGIC FOCUS Onshore gas plays near infrastructure, requiring liaison with environmentally sensitive rural communities in developed countries UK ONSHORE NEW ZEALAND Slide 76

77 STRATEGIC FOCUS Viscous oil plays at moderate depth, in shallow water, near infrastructure CHINA AUSTRALIA Slide 77

78 STRATEGIC FOCUS Deep water Cretaceous Tertiary channel sand plays, defined by high resolution 3D seismic MAURITANIA EQUATORIAL GUINEA Slide 78

79 ROC S CONVEYOR BELT APPROACH TO ORGANIC GROWTH AND RISK MANAGEMENT SEPTEMBER 2004 Slide 79

80 ROC S CONVEYOR BELT APPROACH TO ORGANIC GROWTH AND RISK MANAGEMENT AUGUST 2005 Slide 80

81 ROC S CONVEYOR BELT APPROACH TO ORGANIC GROWTH AND RISK MANAGEMENT AUGUST 2006 Slide 81

82 THE REALITY OF TODAY S OIL AND GAS INDUSTRY We live today in a world completely dominated by energy. It is the bedrock of our wealth Paul Roberts The End of Oil Slide 82

83 THIS YEAR S MESSAGE BUY ROC NOW Slide 83

84 ROC OIL UK NORTH SEA Slide 84