INVESTOR PRESENTATION

Transcription

1 ROC OIL UK NORTH SEA INVESTOR PRESENTATION January 2006 Slide 1

2 POINTS OF DIFFERENTIATION Balanced exploration, appraisal and development portfolios International focus Substantial operating capacity Management Team with established track record Candid communication Slide 2

3 CORPORATE SNAPSHOT Listed on AIM and ASX 187 million shares on issue plus 5 million employee options Market capitalisation > 200 million A$68 / 29 million cash and receivables at 31/12/05 No debt. US$30 million bridging loan due to be executed in January 2006; to be replaced by a US$60 million corporate facility in March 2006 Core workforce of approximately 100 people, representing 23 nationalities, located in five different countries and collectively fluent in 14 languages and 13 regional dialects Slide 3

4 ROC IN A UK CONTEXT ROC listed on AIM in London at 0.72 / share in September At that time it did not seek to raise any new funds. Currently trading around 1.20 / share. Estimated 10-15% of ROC is now owned by overseas shareholders, mainly based in UK (preplacement). Slide 4

5 ROC S GOAL & STRATEGY GOAL To make a lot of money for all shareholders by establishing a substantial reserve base and sustainable production revenue STRATEGY Cost efficiently acquire Preferably in Africa, Australia and parts of Asia, Meaningful interests, generally with operatorship, In areas containing, or adjacent to, proven hydrocarbons with considerable exploration upside In countries with attractive fiscal regimes Create and realise maximum value. Slide 5

6 SIGNIFICANT GROWTH IN 2006 Developing 15 MMBOE 2P reserves, net ROC, almost all oil, in four fields in three countries: Chinguetti (Mauritania), Cliff Head (Australia) and Blane and Enoch (UK). Producing >5,000 BOPD, net ROC. First production due 1Q 2006 for Chinguetti and Cliff Head and in late 2006 for Blane and Enoch. Appraising a potential further 20 MMBOE 2P unbooked reserves net ROC, in five fields in two countries: Tiof, Tevet and Banda (Mauritania), Wei 12-8 West and Wei 6-12 Complex (China). Drilling up to 21 exploration and appraisal wells in six countries (UK, Mauritania, Equatorial Guinea, Angola, China and Australia). Slide 6

7 FORWARD GLANCE INTO 2006 Q1 Q2 Q3 Q4 Cliff Head and Chinguetti production start-up, respectively, offshore Australia and Mauritania. ROC production goes from essentially zero to 5,000 BOPD and beyond. Jacala and Willows, potential big hit wells, offshore Australia and onshore UK, respectively. Exploration well offshore China. Completion of Mauritania exploration drilling programme. Development drilling starts at Blane Second phase of seismic acquisition commences in Angola. 3 5 exploration wells offshore Perth Basin, Australia. Exploration drilling resumes offshore Mauritania. 3 well exploration drilling programme starts onshore Angola stretch target. Aleta-1 deep water well to drill offshore Equatorial Guinea, subject to rig contract. Development drilling starts at Enoch. Blane and Enoch production start up, North Sea. Exploration drilling continues onshore Angola. Exploration drilling continues offshore Mauritania. Slide 7

8 PORTFOLIO OF FOUR CORE REGIONS JANUARY 2006 UK ONSHORE 100% 1999 UK NORTH SEA 12% and 12.5% (1) 1999 CHINA 40% (2) 1998 AUSTRALIA Generally 37.5% 1999 MAURITANIA 2-5% (2) 2000 EQUATORIAL GUINEA 18.75% (3) 2000 NEW ZEALAND 40% 2004 Operated / Managed Non-Operated ANGOLA 60% 1998 (1) Estimate post unitisation (2) Pre-Government Back-In (3) 15% Free carried through 2006/07 well 1998 Date of first contact Slide 8

9 ROC S DEVELOPMENT PORTFOLIO Developing 15 MMBOE net 2P reserves, almost all oil, in four fields in three countries. All fields due on stream in Total net ROC production >5000 BOPD from March Slide 9

10 TIMING OF FUTURE OIL PRODUCTION NOW Slide 10

11 ROC DEVELOPMENT: OFFSHORE PERTH BASIN, WESTERN AUSTRALIA Location: Cliff Head Oil Field, Offshore Perth Basin, Western Australia ROC Equity: 37.5% Discovery: December 2001 Final Investment Decision: March 2005 First oil production: March 2006 Development Concept: Development Cost: Gross Initial Production Rate: Gross 2P reserves: Operator: Unmanned platform, pipelines to onshore plant. Oil trucked to refinery. A$265 million / US$198 million >10,000 BOPD 14 MMBO ROC Slide 11

12 CLIFF HEAD DEVELOPMENT BASIC DESIGN FOUR MAIN COMPONENTS Offshore unmanned platform Two steel 273mm diameter pipelines, 14km long - one for production fluids and one for water injection; 14km power cable for general platform power; specifically for powering down hole pumps; 14km chemical injection and control umbilical for corrosion and scale inhibition. Onshore processing facility Oil trucked to refinery south of Perth ~14m bbls (2P) Initial Production Rate ~10,000 bpd Slide 12

13 CLIFF HEAD DEVELOPMENT Arrowsmith processing plant and pipeline easement Slide 13

14 CLIFF HEAD DEVELOPMENT The jacket in Geraldton Harbour: November ) 1) Jacket now installed at Cliff Head oil field Slide 14

15 OFFSHORE MAURITANIA: DISCOVERIES AND FIELDS ROC s acreage offshore Mauritania includes: Chinguetti Oil Field: Development Tiof Oil Field Banda Gas Field Appraisal Tevet Oil Field Pelican Gas Faucon Oil/Gas 1) Labeidna Oil Regionally Significant 1) Subject to analysis of samples, which are expected to confirm either light oil or gas & condensate Slide 15

16 CHINGUETTI OIL FIELD DEVELOPMENT Slide 16

17 ROC DEVELOPMENT: OFFSHORE MAURITANIA Location: Chinguetti Oil Field, offshore Mauritania ROC Equity: 3.25% Discovery: May 2001 Final Investment Decision: May 2004 First oil production: February 2006 Development Concept: Development Cost: Gross Initial Production Rate: Gross 2P reserves: Operator: Deepwater FPSO US$730 million Up to 75,000 BOPD 123 MMBO Woodside Photo: FPSO on route to Mauritania Slide 17

18 ROC DEVELOPMENT: NORTH SEA NORTH SEA Two fields being developed, Blane and Enoch, both due on stream by end Slide 18

19 ROC DEVELOPMENT: UK NORTH SEA Location: Blane Oil Field, UK North Sea ROC Equity: 12.5% * Discovery: May 1989 Final Investment Decision: July 2005 First oil production: 4Q 2006 Development Concept: Development Cost: Gross Initial Production Rate: Gross 2P reserves: Operator: Subsea tie back 165 million >14,000 BOPD 32 MMBO Talisman * Unitised Slide 19

20 ROC DEVELOPMENT: UK NORTH SEA Location: Enoch Oil and Gas Field, UK North Sea ROC Equity: 12.0% * Discovery: 1985 Final Investment Decision: July 2005 First oil production: 4Q 2006 Development Concept: Development Cost: Gross Initial Production Rate: Gross 2P reserves: Operator: Subsea tie back 75 million >12,000 BOPD 15 MMBO Talisman * Unitised Slide 20

21 ROC S EXPLORATION PORTFOLIO UK ONSHORE 100% 1999 CHINA 40% (2) 1998 AUSTRALIA Generally 37.5% 1999 MAURITANIA 2-5% (2) 2000 EQUATORIAL GUINEA 18.75% (3) 2000 NEW ZEALAND 40% 2004 Operated / Managed Non-Operated ANGOLA 60% 1998 (1) Estimate post unitisation (2) Pre-Government Back-In (3) 15% Free carried through 2006/07 well 1999 Date of first contact Slide 21

22 2006 ANTICIPATED DRILLING PROGRAMME STRONG EXPLORATION FOCUS Please note Target Volumes are Gross, Unrisked Slide 22

23 ONSHORE UK: GAS EXPLORATION WILLOWS PROSPECT ROC 100% Large structural-stratigraphic trap Big Potential / High Risk: BCF potential ROC to start drilling in March 2006 Slide 23

24 OFFSHORE AUSTRALIA: VERY LARGE OIL PROSPECT JACALA PROSPECT ROC 20% Largest undrilled structure in the offshore Carnarvon Basin: Very Big Potential / High Risk: many hundreds of millions of barrels BHP-operated well due to drill February 2006 Slide 24

25 WA-286-P ROC 37.5% & Operator TP/15 ROC 20% & Operator OFFSHORE AUSTRALIA: MULTIPLE SMALL-MODEST OIL PROSPECTS More than a dozen prospects and leads have been identified in the Perth Basin in general vicinity of the Cliff Head Oil Field. The collective gross reserve potential is >250 MMBO. Many of the drill targets are relatively close to shore and it may be possible to test some of them by drilling long reach horizontal wells from onshore drill sites. Slide 25

26 PRE-DEVELOPMENT CHINA: Block 22/12 WEI 12-8 WEST This field, in the 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 26

27 OFFSHORE CHINA MULTIPLE SMALL-MODEST OIL PROSPECTS 2002 February: ROC farmed in to Beibu Gulf Block 22/12 March: Wei oil discovery April: ROC appointed operator July: 3D seismic survey Three wells drilled mixed results 2006 One exploration well Slide 27

28 OFFSHORE MAURITANIA: DISCOVERIES AND FIELDS ROC s acreage offshore Mauritania includes: Chinguetti Oil Field: Development Tiof Oil Field Banda Gas Field Appraisal Tevet Oil Field Pelican Gas Faucon Oil/Gas 1) Labeidna Oil Regionally Significant 1) Subject to analysis of samples, which are expected to confirm either light oil or gas & condensate Slide 28

29 OFFSHORE EQUATORIAL GUINEA LARGE DEEPWATER OIL PROSPECT Equatorial Guinea, Offshore Rio Muni Basin ROC 18.75% and Technical Manager In 2004 ROC operated the Bravo-1 exploration well in 1500m of water on budget and on schedule. ROC is free carried for 15% of the Aleta-1 deep water well, scheduled to be drilled as soon as a suitable rig is available, probably during 2006 / early Slide 29

30 OFFSHORE EQUATORIAL GUINEA LARGE DEEPWATER OIL PROSPECT Aleta Prospect Cretaceous channel sands identified by high resolution 3D seismic MMBO potential Success will upgrade other nearby prospects with collective reserve potential of : P10: >1 billion bbls P50: ~500 MMBO P90: >50MMBO Low amplitude mounded lobes reservoir facies Aleta Closures Channels/Overbank & Levee Reservoir fairway Truncation/onlap edge H Blocks L Block Slide 30

31 ROC IN CABINDA, ONSHORE ANGOLA Slide 31

32 ONSHORE ANGOLA: CABINDA SOUTH BLOCK - ROC 60% & OPERATOR 1998: First attempt to acquire equity 2001: First equity (45%) acquired. 2002: Civil war ended. 2003: More equity (15%) acquired. 2004: Contract activated 2005: Major seismic acquisition 2006: More seismic plus drilling Area is adjacent to 5 billion barrel offshore oil province, currently producing >400,000 BOPD Chevron recently paid a US$290 million signature bonus (including community commitment) to renew the adjacent offshore area and is now embarking on a multi-billion dollar redevelopment of offshore Cabinda. Slide 32

33 LOWER CONGO BASIN OIL PRODUCING AREAS M BOUNDI FIELD (Congo-Brazzaville) Including one of Africa s larger recent onshore discoveries with 2P reserves ~ 250 MMBO, plus upside. First production: 2002 Current production : 45,000 BOPD Facilities expansion : to 60,000 BOPD Pre-salt play ~1,800 mss >50 wells during OFFSHORE CABINDA ca 5 billion barrels discovered since 1960s. Currently producing ~400,000 BOPD. Operator, Chevron, has just renewed original permit via a US$290 million signature bonus including community commitment and multi-billion dollar work commitment. Structural and depositional trends run from/to on/offshore. 10 km west to nearest production 2 km west to nearest oil discovery CABINDA SOUTH BLOCK 1,070 sq km 4 North Sea Blocks 110 km north to M Boundi 6 km south to nearest production DEMOCRATIC REPUBLIC OF CONGO Established production from several onshore fields Post-salt production at shallow depth Effectively no exploration between 1972 and 2005, when ROC acquired a very significant seismic survey Slide 33

34 HOW THE CABINDA JOINT VENTURE EVOLVED Late 80s - early 90s 1996 Late 90s SONANGOL 20% FIRST SONANGOL 20% SONANGOL 20% SONANGOL 20% FINA 20% ELF 20% ANGLO SUISSE 20% DEEP WATER EXPLORATION SUCCESS TOTAL FINA ELF 65% BAKER HUGHES LACULA 15% FORCE 20% FORCE 20% ROC 45% and Op. BAKER HUGHES LACULA 15% ROC 60% and Op. Slide 34

35 ANGOLA: LARGE AND GROWING OIL PRODUCER Angola is undergoing reconstruction following the end of the 30 year civil war in For several decades, offshore oil production platforms have pumped oil to shore-based facilities in Cabinda 15 km north of ROC s Block. ROC s recent seismic survey effectively marked the return of exploration activity to onshore Angola after an absence of more than 30 years. Current active operators : Sonangol, ExxonMobil, BP, Total, Chevron, Devon and ROC. Slide 35

36 ANGOLA: FIRST ONSHORE SEISMIC SURVEY FOR MORE THAN 30 YEARS Seventh largest country in Africa and the continent s third largest oil producer. For decades, offshore Angola has been a focus area for some of the largest oil companies in the world; but never more than now. For all practical purposes, onshore Angola had not been actively explored since 1972, until ROC acquired 505 km 2D and 162 sq km 3D seismic in Preliminary interpretation of recent seismic confirms numerous prospects and leads Slide 36

37 SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA 505 km 2D and 162 sq km 3D Dynamite and Vibroseis seismic survey June - November 2005 Data quality is good to excellent Structuring confirmed numerous prospects and leads identified. Interpretation due to be completed 1H 2006 Slide 37

38 CABINDA SOUTH BLOCK, ONSHORE ANGOLA D AND 3D SEISMIC SURVEY Preliminary results of ROC s 2005 seismic programme suggest that the Cabinda South Block will be a prime exploration focus for ROC in 2006 and beyond. Slide 38

39 PRE-1972 WELL RESULTS IN RELATION TO PRELIMINARY 2005 SEISMIC INTERPRETATION Shallow TARGET VALID / OPTIMAL TESTS Discoveries Dry INVALID / SUB-OPTIMAL TESTS With shows No shows TOTAL PENETRATIONS Post Salt Post Vermelha Vermelha 1 Oil and Gas (98 1) 1* Oil (121 5) 1 (123 4) 2 (123 5) (111 2) (30 in block) Deep Pre Salt Chela Pre-Chela 1 Gas (123 5) 1 Oil (123 1) * Well is 2km offshore, outside block 600 BOPD discovery, trap type unknown Slide 39

40 WELLS IN AND ADJACENT TO SOUTH CABINDA BLOCK Chevron testing one of its offshore wells as seen from within ROC s Cabinda South Block during September Second well drilled in the Block (1964) recovered 400 BBLS of oil plus some gas and water Slide 40

41 THE PETROLEUM GEOLOGY OF THE LOWER CONGO BASIN One of the world s most prolific petroleum provinces. Production offshore and immediately to the west, immediately onshore to the south both on trend and ca 100 km to the north. Multiple reservoir, source and cap intervals, collectively hundreds of metres thick, in a heavily structured setting with additional potential for stratigraphic traps. Pre-1972 drilling viewed as encouraging in light of new (2005) seismic. Slide 41

42 CABINDA SOUTH BLOCK EXPLORATION PLAY CONCEPTS Oil flow 2km offshore Slide 42

43 SOURCE ROCK: A KEY INGREDIENT World class source rock - TOCs 3% to 25% (Avg 9%) - HIs 250 to metres of good to excellent source rocks intersected in wells pre 1972 Proven oil & gas generating kitchen in western region of the block Proven migration pathways into pre- and post-salt reservoirs Slide 43

44 ONSHORE ANGOLA An established oil production facility to the south of ROC s Cabinda acreage illustrates the type of development that could occur in the Cabinda South Block- if exploration is successful Slide 44

45 SUMMARY Balanced and diverse exploration, appraisal and development portfolios Four new production streams in 2006 Aggressive, international exploration drilling programme Equity raised to fund a much accelerated Angolan exploration programme Slide 45