Investor Update July 2011

Transcription

1 Investor Update July 2011

2 Largest independent oil & gas company in Brazil based on boe daily production One of the largest conglomerates in Brazil Over 30 years of experience in the oil & gas industry Consolidated Group Net Revenues of R$6,873 mm in 2010 Queiroz Galvão Group Balanced Portfolio Producing field (Manati) 6 discoveries 6 exploratory blocks Total area of 1,274 thousand acres (5,156 km 2 ) Strong Historical COS: 41% Largest shareholder in the Manati Field (45% stake) Production capacity of 8 MMm 3 /d of gas High EBITDAX margins of around ~80% Producing Asset Type A Operator Only independent Brazilian company Ability to explore from shallow to ultra- deep water 2

3 Portfolio of Assets with High Growth Potential Field/Block Volume (MM boe) Classification Manati 73.3 Reserves Camarão Norte 4.5 Contingent Resources BM-CAL Contingent Resources CAL-M Risked Prosp. Resources BM-J Risked Prosp. Resources BM-S Risked Prosp. Resources BM-S-8 * Volume (mmboe) : (Blended Case) Asset Maturity Basin Reserves 19% Prospectives 70% Contingents 11% Santos 41% Camamu 35% Jequitinhonha 24% * Disclosure under discussion with partners 3

4 QGEP s Assets Close to Brazil s Hot Spots Offshore Sudeste Offshore Bahia Guará Carioca Tupi (Lula) Júpiter Pre-salt discoveries trend 4

5 Recent Farm-in Agreement 5

6 Low Risk Prospects with High Volume Potential Santos Basin: BM-S-8 Promising area with several discoveries nearby 2 Discoveries: Bem-te-vi and Abaré W 4 Prospects Santos 01 Fluid: Oil Working Interest: 10% Petrobras Operator Santos 03 Partners: Petrobras (66%); Petrogal (14%); Barra Energia (10%); QGEP (10%) Source: ANP/Wood Mackenzie 6

7 Low Risk Prospects with High Volume Potential Santos Basin: BM-S-8 Short-Term Schedule Transaction Value: US$ 175 MM CAPEX (1) related to 10% of the block: 2011: US$ 25 MM 2012: US$ 20MM (2) started in June (SPS-71A) 5-6 months drilling Sevan Driller Rig (SS-74) (1) Preliminary Figures (2) QGEP estimates Water depth: 2,177m Total depth: 6,400m 7

8 BM-S-8: Boosting our Portfolio Low risk & high volumes Close to future infrastructure facilities Portfolio Diversification Partnership with Petrobras Strategic Positioning Short-Term Catalyst 8

9 Significant Exploration Prospects with Solid Short-Term Potential 9

10 Short-Term Catalysts: BM-S-8 ends at the Biguá prospect JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER begins at Block BM-S- 8 10

11 Short-Term Catalysts : BM-J-2 begins at Block BM- J-2 ends at the Biguá prospect JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER begins at Block BM-S- 8 ends at the JEQ#1 prospect 11

12 Pre-salt Targets Highlights: 2 Prospects Lithology Forecast JEQ #1: 29% of GCOS JEQ #2: 24% of GCOS Working Interest: 100% QGEP Operator Risked Prospective Resources 99 mm boe 89 mm boe Caso Gás Caso Óleo Short-Term Schedule Spud in JEQ#1: June 3-4 months drilling Offshore Mischief Rig 12

13 JEQ #1 & #2: Well-Defined Structures with High HC Potential

14 Short-Term Catalysts : BM-S-12 begins at Block BM- J-2 begins at Block BM-S-12 Crossing Prospect Santos#1 in Block BM-S-12 Crossing Prospect Santos#2 in Block BM-S-12 Crossing Prospect Santos#3 in Block BM-S-12 ends at the Biguá prospect JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER begins at Block BM-S- 8 ends at the JEQ#1 prospect Crossing Prospect Santos#4 in Block BM-S-12 14

15 Low Risk Prospects with High Volume Potential Santos Basin: BM-S Discovery 4 Prospects Santos #1: 30% of GCOS Santos #2: 39% of GCOS Santos #3: 19% of GCOS Santos #4: 40% of GCOS Working Interest: 30% Short-Term Schedule Location expected to begin by the end of July/August 5-6 months drilling Ocean Baroness Rig Petrobras Operator Risked Prospective Resources 186 mm boe 128 mm boe Is Gas prone If Oil prone Guará Carioca Júpiter Tupi (Lula) Pre-salt discoverie s trend 15

16 Short-Term Catalysts: Manati begins at Block BM- J-2 begins at Block BM-S-12 Crossing Prospect Santos#1 in the Block BM- S-12 Crossing Prospect Santos#2 in the Block BM- S-12 Crossing Prospect Santos#3 in the Block BM- S-12 ends at the Biguá prospect JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER Return of a 4 th well at Manati (Capacity: 5.3 MM m 3 /day) begins at Block BM- S-8 Return to Full Capacity at Manati Field ends at the JEQ#1 prospect Crossing Prospect Santos#4 in the Block BM- S-12 16

17 Manati: Brazil s Largest Producing Non- Associated Gas Field Long-term take-or-pay contract with Petrobras, providing strong and predictable cash flow Highlights Working interest : 45% Partners: PBR-35% (Operator); Panoro-10%; Brasoil-10% 3P Reserves : 73.3 million boe Location Return of the wells Gas Treatment Plant CURRENT 4 producing wells Capacity of 5.3 MM m 3 /day AUGUST 6 producing wells Full Capacity 7.8 MM m 3 /day

18 Thousand boe/day Production Outlook Net Risked Mean Reserves and Resources 121 (Not including BM-S-8) Manati Copaíba + Jequitibá CAL12 Jequitinhonha Santos Investment Strategy: - Explore and develop our current asset portfolio - Expand our asset base through participation in: Farm-ins New ANP bidding rounds 18

19 Active H2 Program begins at Block BM- J-2 begins at Block BM-S- 12 Crossing Prospect Santos #1 in Block BM-S- 12 Crossing Prospect Santos#2 in the Block BM-S-12 Crossing Prospect Santos #3 in Block BM-S- 12 ends at the Biguá prospect JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER Return of a 4 th well at Manati Filed (Capacity: 5.3 MM m 3 /day) begins at Block BM- S-8 Return to Full Capacity at Manati Field ends at the JEQ#1 prospect 11 th ANP Bidding Round Crossing Prospect Santos #4 in Block BM-S

20 Financial Review 20

21 1Q2011 Financial Highlights 934,7 Gas Production (Millions of m 3 ) CAGR: 4.3% 846,5 1017,5 238,1-29.9% 167,0 Net Revenue (R$ million) CAGR: 2.7% % Q10 1Q Q10 1Q EBITDAX (R$ million) % 81% 78% 82% % Q10 1Q11 EBITDAX EBITDAX Margin 150.0% 100.0% 50.0% 0.0% % 20% Net Income (R$ million) % 49% % Q10 1Q11 Net Income Net Margin 150.0% 100.0% 50.0% 0.0% 21

22 Strong Cash Position to Leverage Future Growth (R$ million) December 31, 2010 March 31, 2011 Cash R$1,743.0 Net Cash* R$1,501.9 Cash R$243.7 February 11,2011 IPO Proceeds: R$1.5 billion Net Debt R$21.3 Debt R$265.0 Debt R$241.1 Investments Exclusive funds and fixed income assets Daily liquidity Average yield of the portfolio: 100.4% of the CDI rate in 1Q11 Votorantin 2% BNB 8%Outros 2% BTG Pactual 2% HSBC 4% Bradesco 5% Itaú 5% Government Securities 58% Farm-ins 18% Santander 15% * Including marketable securities 22

23 Leveraging Our Strengths to Accelerate Future Growth High quality and balanced portfolio Experienced management team Type A 1 operator status in deep and ultra deep waters Support from Queiroz Galvão Group Unique relationship with Petrobras Strong financial position Note: (1) ANP classification permitting operations in deep and ultradeep waters. Only QGEP and Petrobras have this classification in Brazil 23

24 For additional information: Investor Relations QGEP Participações S.A. Av. Almirante Barroso, nº 52, sala 1301, Centro Rio de Janeiro, RJ CEP: Phone - IR: Fax: ri@qgep.com.br 24

25 Disclaimer This document contains some statements and information about the Company that reflect the current views and/or expectations of the Company and its managers with regard to its activities. These include all statements containing forecasts and projections or that indicate or imply future results, performance or achievements, which may include such words as "believe", "predict", "expect", "contemplate", "will probably result", or any other words or expressions of similar meaning. Such statements are subject to a series of expressive risks, uncertainties and assumptions. Readers are warned that several important factors may lead actual results to significantly diverge from the plans, targets, expectations, estimates and intentions expressed herein, there can be no assurance that the Company will achieve or is likely to achieve the future results or projections contained herein. Under no circumstances shall the Company or its directors, officers, representatives or employees be liable to any third parties (including investors) should they make decisions, investments or business acts based on information and statements presented herein, nor shall the Company be liable for any indirect damages, loss of profit, or similar consequences thereof. The Company does not intend to provide shareholders with any revised versions of the statements or analysis of differences between the statements and actual results. This presentation does not contain all the necessary information for a complete investment assessment on the Company. Investors must produce their own assessments, including the associated risks, before making an investment decision. 25