ANNUAL GENERAL MEETING. London, 16 May 2018

Transcription

1 ANNUAL GENERAL MEETING London, 16 May 2018

2 OVERVIEW Independent E&P company focused on value creation London stock exchange listing, strong institutional shareholder base Ambition to deliver growth in core value alongside returns to shareholders Cash generating P&D portfolio Production base of 11,500 boepd generating c. $90 million of cash Recently announced acquisition of Asian asset package from Santos which will grow production to 25,000 boepd and double cash generation (subject to approvals) Asset base that is robust at low commodity prices LNG Assets to be monetised Over 900 MMboe of contingent resource Focused on unlocking value from LNG assets in Tanzania and Equatorial Guinea Exploration portfolio focused on proven basins/close to infrastructure Rationalised portfolio focused on Asia, West Africa and Mexico Quality partners Low level of work commitments Strong financial position Gross liquidity of $427 million as at year end 2017 Net cash position of $117 million Undrawn credit line of $204 million Slide 2

3 FORTUNA STATUS Progressed project in 2017, project financing remains key to FID A number of material milestones were completed in 2017 Frustrating not to have yet secured project financing and reached FID Project economics are excellent and FID will unlock material value Progressing project funding solution Slide 3

4 MMboe RESERVES AND RESOURCES 2P reserves growth, 1bn boe of 2C resource YE 2P Reserves Waterfall Increased 2P reserves 2P reserves up 13% year on year to 49.4 MMboe (y/e MMboe) Reserves replacement ratio of 228% Reserves/Production ratio of 12 underpins strong production and cash flow in the medium term YE 2017 Production Revisions 2017YE Slide 4

5 Million Million Million Million STRONG FINANCIAL CONTROL Moving closer to sustainability $120 $100 $80 $60 $40 Funds flow from production ($ million) $113m $90m $62m $250 $200 $150 $100 Capex ($ million) $206m $156m Exploration $101m $20 $50 $ $ $40 $35 $30 $25 $20 $15 $10 $5 $0 Net G&A costs ($ million) $31m $13m $11m $400 $350 $300 $250 $200 $150 $100 $50 $0 Net cash ($ million) $355m $160m $117m Slide 5

6 STRONG PRODUCTION GROWTH FROM OPERATED ASSETS Reinvestment opportunities in key assets Material Growth Potential for additional cash from monetisation of residual 20% interest in Tanzania 30,000 boepd Fortuna 2P Kerendan Phases 2 & 3 Bualuang Phase 5 Kerendan 2P Bualuang 2P Sinphuhorm 2P Key Milestones Fortuna FID Bualuang Phase IV Kerendan additional Gas Sales Agreement Slide 6

7 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Dec-17 Oil Production (STB) Water Production (STB) Reserves (Mmboe) BUALUANG: CASE STUDY OF VALUE CREATION Experience to be applied to assets acquired from Santos Bualuang Reserves Evolution (Gross) Probable P2 Proven P1 Cum Prod Value creation through phased development Start up in 2008 expected to be 15 MMbo field 20 Produced over 30 MMbo 10 0 Further 28.3 MMbo of 2P and 10.3 MMbo of 2C Step out exploration potential 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Bualuang Field: Average Oil and Water Production Bualuang 1 st Oil Drilling Phase 3 Drilling Phase 4 Drilling Phase 5 Drilling Phase 5.5 FPSO Anchor Mooring Failure BA-08i Start-up Asset Integrity Shutdown Debottlenecking Project Well intervention 3 infill wells start-up 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Further phases of production growth Infill drilling in 2018 to arrest production decline Installation of Charlie platform and exploitation of 12 additional well slots to increase production in 2019 and 2020 Oil Production BOPD Water Production BWPD Slide 7

8 SANTOS TRANSACTION RATIONALE Accelerates evolution to being free cashflow positive Acquiring Santos Southeast Asian assets for a cash consideration of $205 million (pre-working capital adjustment) Increased P&D focus 13+ years operating experience in region Doubling up on Asian asset base Vietnam Licence Map Insert map Asset upsides Cost/operating synergies Expected to bring forward Ophir s stated objective of being free cashflow positive Indonesian Licence Map Funded through existing balance sheet resources and new bridge loan facility Slide 8

9 GUIDANCE March 2018 Guidance Post Santos Proforma* 2P Reserves 49.4 MMboe 70.6 MMboe Average daily production 11,500 boepd 25,000 boepd Net funds from production $90 million $180 million Capital expenditure (excl. acquisition costs) $150 million $175million Net debt Nil $160 million Gross Liquidity $320 million $260 million *guidance on a 2018 full year, proforma basis assuming a completion date for Santos transaction of Slide 9

10 TRANSACTION TIMELINE Shareholder vote required Shareholder documentation issued mid-year EGM expected in 3Q 2018 Transaction close in 2H 2018 Integration and delivery of synergies: $13 million per annum of identified synergies Salamander acquisition saw $12 million per annum of identified synergies; now running two companies for the cost of one Slide 10

11 REFOCUSED EXPLORATION Focus on Infrastructure Led Exploration (ILEX) Near field exploration Infrastructure led on Bualuang and Kerendan Exploration acreage in EG-24 next to producing oil fields, farm-out to Kosmos Exploring proven basins Counter-cyclically built biggest acreage position in Mexican offshore of any listed independent player Slide 11

12 THAILAND B8/38 Bualuang North Lead Kerendan Gas Field B8/38 OPHIR 100% Bualuang North Prospect Bualuang Oil Field New seismic has uplifted both imaging and depth solutions Northern end of Bualuang Field potentially shallower OWCs spill northward into the North Bualuang closure Significant low risk upside resource potential if part of main field Evaluating merits of drilling in upcoming well campaign T2.6 Depth Map Original Velocity Solution T2.6 Depth Map Revised Velocity Solution Being evaluated at 2018 drilling option Potential addition to Phase IV development Revised depth solution has potential to bring T2.6 Reservoir Closure above OWC North Bualuang into main field closure above OWC T2.6 Reservoir Closure above OWC with revised velocity model Slide 12

13 MEXICO: LEADING POSITION IN A WORLD CLASS BASIN Three blocks Block 5, 10 and 12 Mexico open to foreign investment for first time in 75 years Ophir has non-operated positions in three licences, Blocks 5, 10 and 12 Opportunity to access a proven, underexplored hydrocarbon province Ophir s interest in Mexico is equivalent to over 300 US GOM blocks (average US GOM block is 25km 2 ) -- 2,000 4,000 6,000 8,000 10,000 Among independents, Ophir holds the second largest position and the largest of any international E&P Slide 13

14 EQUATORIAL GUINEA Block - 24 New PSC ratified and farm-out to Kosmos A Blk W Kosmos EG-21 Kosmos Fully carried on seismic, partial carry on first well (if decide to drill) 3 Year Initial Term with Seismic Acquisition Commitment EG-24 OPHIR 80% Blk S Kosmos Ceiba A Okume Both structural and stratigraphic traps within Upper Cretaceous fairway Proven oil up-dip in Okume/Ceiba complex (operated by Kosmos) A A EG-24 Block area 3500km 2 Water depth m Seismic acquisition commenced Prospectivity scale MMbo Option to drill in Second Term -2sec -4sec -6sec Upper Cretaceous Sand fairways form structural closures over Kribi High Updip stratigraphic trapping potential Position of Okume/Ceiba Complex Mature Oil Source Rocks Hyper-extended Continental Crust ~5km Slide 14

15 OUTLOOK Expanding production base with growth potential Delivering Fortuna FID is priority Focused on monetising c. 1 Bnboe of 2C resource Close and integrate Santos asset acquisition Strong liquidity position with moderate leverage Slide 15

16 Level Victoria Street London SW1E 6DE UNITED KINGDOM Tel: +44 (0) Fax: +44 (0) For further information contact: Geoff Callow Head of IR and Corporate Communications Geoff.callow@ophir-energy.com Slide 16