Ophir Energy plc Capital Markets Day October 23, 2012
Exceptions Unless expressly stated in the written materials for this presentation: - All resource estimates given in this presentation are gross; - Ophir Energys participating interests as described in this presentation are…
Introduction Nick Cooper: CEO
Portfolio Highlights 6 successes from 6 wells since last Capital Markets Day 2012 Exploration Record Net contingent (2C) resources increased 444% from 220mmboe1 to 1,197mmboe2 Historical finding cost of 0.87/boe3 since Ophirs…
Progress Since IPO Net Contingent Resource + Prospective Resource 4,000 3 new deepwater blocks totalling 12,000 km2 9 seismic programs in 2012, over 13,000 km2 3,000 100% drilling success in 2012 : 6 from 6 BBOE 2,000 Net 2C…
Continuing to beat our risked expectations Mix of oil and gas targets with multiple game changer wells 3,500 2008-11 Programme 2012 Programme 2013 Programme 1.0 BBOE added to net 2C resource 1.0 BBOE net risked resource targeted…
Ophir Business Model: Focussed on nearterm ROI Exploration and appraisal: Commercialisation: Start-up: High-risk high-reward, rapid value accretion in the exploration and appraisal phase Increased capital First production: project…
Q4 2012 & 2013 Drilling Programme 2013 programme targeting net unrisked recoverable resources of over 29 TCF and 1.4 BBBL Pmean (MMBOE)2 CoS Gas/ 2012 2013 Country Well Name Play Type Ophir Gross Net (%) Oil Q4 Q1 Q2 Q3 Q4 Q4 2012…
Finance Update Lisa Mitchell: CFO
2012: Capital Efficient Focus on Exploration Expenditure by Type Expenditure by Asset 1% 5% EQUATORIAL GUINEA 12% GABON NTH 6% 36% GABON STH 26% 5% Drilling TANZANIA 1,3,4 Seismic TANZANIA 7 G&A EAST PANDE 69% 38% KENYA…
2012: Ramp-up of Operations & Capex 600,000 Corporate G&A 500,000 Other Investment Asset G&A 400,000 Seismic Expenditure M Drilling 300,000 200,000 100,000 0 2010 2011 2012 12
Managing Portfolio to Maximise Capital Efficiency 1,000 Multiple farm-in offers (received but not accepted) 800 reduce forecasted capex 650MM Funding options: Capital Expenditure 600 Farm out (MM) Pace of portfolio…
Geological 101 Krista Atkinson: Senior Geologist
Geological Time: Periods of Interest Source: Geological Society of America in 2009. 15
Depositional Environments: Changes Through Time Deposition of reservoir / seal pairs is controlled by sea level and sediment supply Type of clastics being deposited at any one time varies spatially Shifts in sea level and sediment…
Depositional Model Evolution 17
Types of Turbidites Incised Slope Channel Intra Slope Ponding Channel Levee Complex Crevasse Splay Upper Fan Distal Fan Amalgamated channel complexes 18
Depositional Environments of Ophir Discoveries Pweza-1 Chewa-1 Jodari-1 Mzia-1/Papa-1 Chaza-1 Fortuna Viscata Tonel/Lykos Mozambique Shelf Discoveries Edge Mid to Upper Slope Lower Slope (Toe of Slope) Basin…
Depositional Environments of Planned Wells East Pande Gabon Kenya Block 7 Gabon EG EG Shelf Edge Outboard Block 1 Mid to Upper Slope Lower Slope (Toe of Slope) Basin Floor 20
Geophysics 101 Andy Oldham: Director - Exploration
Seismic Reflections Reflections echoes The seismic method is based on recording sound reflections Sound bounces/reflects/echoes from different boundaries in different ways The strength of the echo is related to the contrast in…
Seismic response to the earth Strong reflections are a response to strong contrasts Seismic wiggle traces Seismic colour traces Shale Hard Gas Sand Very Soft Water sand Soft Shale Hard 23
But it gets more complicated Water Wet Sand Hardness (Acoustic Impedance) Shale trendline Depth below mudline With increasing depth of burial, the contrast between shale and sand decreases (and eventually reverses) 24
But it gets more complicated Gas saturated sand Hardness (Acoustic Impedance) Shale trendline Depth below mudline The contrast between gas sand and shale is greater than a water filled sand and a shale 25
But it gets more complicated Deeper Gas saturated sand Hardness (Acoustic Impedance) Shale trendline Depth below mudline Deeper gas sands are harder to see. It doesnt mean they are not there, they are just harder to see.…
Challenges imaging below strong reflectors like pre-salt Strong reflections at strong salt-shale Shale boundaries Not much energy Salt transmitted to deeper layers Shale and the rays are severely Pre-salt target bent at…
Complex salt de-focuses deep image Like looking through a frosted glass Complex ray tracing and velocity analysis required to Shale focus energy to its correct location and amplitude Salt Data are processed top-down, layer by…
Gabon Assets Helen Doran: Geologist
West Africa Exploration Focus 2010-Present Day 7 Key Focus areas Central Atlantic Margin Equatorial Margins Niger Delta Nigeria Ghana Cameroon Extending the limits of the prolific Building on the success of Jubilee, Anadarko…
Gabon: Pre and Post Salt Prospectivity A major new oil play. Ready for drilling in 2013 1000m 2000m 200m 500m Mbeli 4 Blocks covering an area of in the 12,712km2 ensuring Ophir has the largest offshore footprint in the…
LEGEND Gabon: Offshore Activity Pre Salt Activity Post Salt Activity West Africa Pre Salt Focus shifts north in 2013 1) Anadarko-Agall 1 exploration well pending Ophir holds the third largest net acreage position offshore…
Gabon: Pre and Post Salt Targets Play Diversity: Multiple Independent Tests Late 90s/ Early 00s pushing the Early 90s Total focus on shelf 1985 Rabi Kounga-1 Onshore Rift early 1000m 2000m 200m 500m play beyond the shelf,…
Twinned Basins Successful learnings from Petrobras on the conjugates Niger Delta Sergipe Alagoas Basin Douala Basin Gabon Basin Barra Gabon Basin Sergipe Alagoas Basin Reconcavo Basin Barra Almada-Camamu Basin Congo Basin…
South Atlantic Pre Salt Exploration Legend: 1950-2000 wells 2000-2007 Wells West Africa and Brazil 2011-2012 Wells Gabon 2013 Drilling in Gabon 1960 Gamba Espirito Santo Basin 1985 Rabi Kounga-1 Gabon Basin 1998 Etame…
Gabon: Leveraging seismic technology Improved sub-salt imaging; The Stenella 3D Tolo Xline 2103 Pre Salt exploration of the South Atlantic owes its 1998 success to advances in both seismic acquisition and processing developed within…
Gabon, Play 1: Pre Salt Large Pre Salt Structures Confirmed with new Stenella 3D Padouck Mega Structure A A Padouck Mega Structure Mbeli 8 BBbl Mean Recoverable1 Northern Mega Post Salt Structure 2 MBbl Mean Salt…
Gabon, Play 2: Ogoou Delta Play Play Diversity: Multiple Independent Tests Late 90s/ Early 00s pushing the Early 90s Total focus on shelf 1985 Rabi Kounga-1 Onshore Rift early 1000m 2000m 200m 500m play beyond the shelf,…
Gabon, Play 2: Ogoou Delta Play Oil Discoveries on shelf Extension of the prolific Ogoou Delta Play Affanga-1 Girelle Marine-1 Pageau Marine-1 Torpille Marine-1 Ntsina Projected Affanga Deep-1 Miocene Paleocene…
Gabon, Play 3: The Deep-water Play Play Diversity: Multiple Independent Tests Late 90s/ Early 00s pushing the Early 90s Total focus on shelf 1985 Rabi Kounga-1 Onshore Rift early 1000m 2000m 200m 500m play beyond the…
Working with Petrobras: Learnings from Barra Why is Barra such a game changer A A Farfan-1 (projected) Sergipe Alagoas Basin Prior to ocean spreading the North Gabon Basin Gabon basin was adjacent to COCB Barra B B Reconcavo…
Gabon: Cretaceous and Tertiary Targets Pushing the Frontiers: The Barra Analogue Possible Afo Marin Well Ntsina Potential Well A A Miocene A Afo 3D Paleocene Manga Turonian A Cenomanian Albian Basement Source…
Gabon: Pre and Post Salt Prospectivity A major new oil play. Ready for drilling in 2013 Gabon gives Ophir access to high impact oil prospects, mature for drilling in 2013 Mbeli Northern Cluster-1 2013: 2-3 wells to be drilled by…
Block R, Equatorial Guinea Andy Oldham: Director - Exploration
Equatorial Guinea: Approaching Commercialisation Potential for a single LNG train, added upside potential for deeper liquids Ophir Energy holds an 80%1 Interest in Block R Located in south eastern Niger Delta, proximal to…
Depositional environment of discoveries Lykos Fortuna, Viscata OM & Belli Tonel-1 & EDM Shelf Edge Mid to Upper Slope Lower Slope (Toe of Slope) Basin Floor 46
EGLNG-R: Fortuna & Viscata 2012 drilling results Amplitude Map: Fortuna Fortuna Discovery Summary: Recoverable Resource Range Fortuna-1 Fortuna West-1 Discovery Name P 90 Mean P10 Fortuna East-1 (Bcf) (Bcf) (Bcf) Fortuna 8711…
EGLNG-R: Tonel 2012 drilling results 50% Higher Net:Gross than Predicted Discovery Summary: Recoverable Resource Range Discovery Name P 90 Mean P10 Tonel (Bcf) (Bcf) (Bcf) Tonel 6261 7961 9841 Tonel-1 Well Data Tonel-1…
Tonel-1 confirms a thermogenic system 2012 drilling results ESTRELLA DE MAR-1* TONEL-1 * Projected Isotope data from EM proved the presence of a Fluorescence from cores working thermogenic in Tonel-1 confirms a 1.3Ma Oil shows…
EGLNG-R: Gas Volumes Post 2012 drilling campaign resource summary Seven gas discoveries within Block R Four structural discoveries within the Thrust Belt Zone; Oreja Lykos, Tonel, Oreja Marina & Estrella de Mar Marina Exxon 3D…
EGLNG-R: Gas Exploration Potential Play I Thrust Belt Play I Thrust Belt Play III Forethrust Silenus East Nike Chronos Mean Rec: 419Bcf1 Mean Rec: 160Bcf1 Mean Rec:361Bcf1 PoS: 68% PoS:67% PoS: 22% Silenus West Rhodes Volturnas…
Block R: Oil Exploration Potential Silenus East DHI Supported gas cap 2nd flat spot 2 biogenic gas targets Aegaeon Silenus East will be tested in the 2013 drilling campaign Aegaeon and other North West oil prospects…
Indicative 2013 Programme A mix of exploration & appraisal with biogenic & thermogenic targets Biogenic Thermogenic Fore-thrust 1 Well Iambe-1 Iambe East 420Bcf, 22% Pos Thrust Belt Gas 4 Wells Juturna East Silenus East-1 529Bcf,…
EGLNG-R: Commercial Options Nick Cooper: CEO
2012 Campaign Increases Block R 2C Resource to 3TCF Successful 2012 three-well drilling programme Results from 2012 drilling yet to be integrated into revised POS Bubble size is proportional to net risked and volumes resources…
EGLNG-R: A clearer path to the Asian market Post 2012 drilling programme: Dedicated LNG project from Block R now a viable option Accelerated onshore development Fewer stakeholders = more control of pace by Ophir Plan A: EG LNG-R…
EG LNG Beating East African Gas to Market Government supportive and motivated to bring Block R gas onstream Premium market for West African gas Proven access to attractive Asian Current destination for LNG Train 1 output LNG…
Global LNG: EG has a competitive position on cost curve Current train materially lower cost than others; new train expected to be on-par Illustrative LNG Supply Cost Into Japan / Korea / China 15 Cost at Border Point (/mmBtu) 10…
Block R Gas in Context Alba Area Gas and condensate Production Zafiro Complex Mature oil production Significant gas flaring Punta Europa 3.7Mtpa liquefaction capacity Blocks O & I New oil production with associated gas…
Equatorial Guinea: Approaching Commercialisation Potential for a single LNG train, added upside potential for deeper liquids Seven gas discoveries on-block Over 3 TCF1 of 2C contingent resource discovered 7 TCF1 of unrisked…
East African Gas: Potential Markets Nick Cooper: CEO
East African Gas: Beyond expectations An untapped resource with potential to capture Global LNG markets Global LNG: A Dynamic Market Kenya LNG: East Africa well located to supply new & growing markets in Mbawa proof of concept Ophir,…
LNG Market: Multiple options for East African LNG India, Southeast Asia, Middle East 4-5 days to Mumbai Developing Market Massive Potential 4-5 days to Abu Dhabi Avoiding reliance on Qatar & Iran 10-12 days to Tokyo…
Competitive Economics: The East African advantage East Africa: lowest forecasted greenfield development costs Illustrative LNG Supply Cost Into Japan / Korea / China East African greenfield development cost expected to 15 be…
Kenya Operated Assets Helen Doran: Geologist
East Africa Basin Overview Coastal to Offshore Tanzania and Kenya Somalia 4 Primary offshore Basins along the East African margin Ophir holds acreage in 3 of the 4 basins. (Lamu Basin of Kenya, Tanzania Coastal Basin and the Ruvuma…
Understanding the oil potential of East Africa: Source Presence and Maturation are Key A proven world class Jurassic source rock exists on the margins of East Africa Kofia-1: Oil Shows The same source is Maridaadi 1 Oil Inclusions…
East Africa; a Decade of Activity in the Deepwater Migration patterns of the majors 2000-2012: Chasing Big Rivers Early Movers Key Players Established The Golden Years 2000-2005 2006-2010 2010-onwards Somalia 2012: moves by Eni,…
Enviable footprint in a rapidly emerging play The industry migrates north in 2012/2013 Somalia Aggressive acreage Kilometers acquisition: The majors 0 30 60 compete for Land Grabs L21 as the Kenyan Kenya Government announces…
Unlocking potential through aggressive data acquisition 2 Basins, 2 Blocks, 2 3D Surveys in 2012 2 3D seismic surveys acquired between September- November 2012. Block L-15 Ndoto 3D Survey, designed to target 2 Plays: Kenya 1) The…
Depositional Environments of Kenya Simba L15 Graben 71
Block 15 Play Concepts Tertiary and Cretaceous tilted Lamu Toe Thrusts Kofia-1 fault blocks Top Paleogene Source Rocks Mid Jurassic Davy Walu High Davy Walu High Play Lamu Toe Thrust Play Primary Reservoirs:…
Kenya Multiple Play Opportunities The Block with 2 Basins: L-9 Area covered by 3D seismic Source Rocks Inverted Cretaceous Cret and Tertiary Anticline tilted fault onlap plays blocks Tertiary Stratigraphic channel plays…
Testing the oil potential: 2013 1st Well in Kenya Simba Graben Well 20% Ophir Resource Estimates Kenya Bubble size is proportional to net risked resources Individual Prospect POS (%) L15 0% 10 100 1,000 Unrisked Gross…
Tanzania- Operated Combined Krista Atkinson: Senior Geologist
Tanzania: Offshore Activity Exploration activity continues to increase Ophir holds the largest net acreage position offshore Tanzania (18,000km) Material position in the emerging East Africa deepwater play Blocks 7: Q3 exploration…
Building Better Models Ophirs competitive advantage across the margin has resulted in us bringing together all of our knowledge to create a better understanding of East Africa Core Samples Biostrat Petrology Seismic Stratal Log…
New Understanding of Reservoir Input Cretaceous (Aptian) Tertiary (Late Miocene) Tana & Galana River Basins Our database and studies have enabled us to better unravel the Umba, Pangani & Msangasi River Basins reservoir input patterns…
New Understanding of Reservoir Input Cretaceous (Aptian) Tertiary (Late Miocene) Tana & Galana River Basins Our database and studies have enabled us to better unravel the Umba, Pangani & Msangasi River Basins reservoir input patterns…
Depositional Environments of Planned Wells East Pande Block 7 80
Tanzania Block 7
Play Opening in Northern Tanzania Tanzania Block 7 80km East of Dar Es Salaam Strong domestic gas market and growing Future Northern LNG Hub Block 7 Geological synergies with Blocks 1,3,4 Potential game changer volumes…
Block 7: Similar Play Types to Southern Tanzania 83
Outboard Mozambique to Tanzania: Geological Synergies Feeder Deltas: Rovuma Lukuledi Rufiji Pangani S N Mozambique Tanzania Blocks 1/4 Block 7 Block 1 Block 2 Block 3 Block 4 Block 5 Block 6 Anadarko/Eni 3Ds Anadarko 3D Kusini…
Block 7 Shares Similar Geology to Blocks 3&4 Outboard Blocks 3 & 4 Outboard Blocks 5 & 6 Block 7 S N Bright sands encased in Poor shale shales Bright sands development encased in for trapping shales Syn-rift Syn-rift…
Building Better Models Ophirs competitive advantage across the margin has resulted in us bringing together all of our knowledge to create a better understanding of East Africa Core Samples Biostrat Petrology Seismic Stratal Log…
Developing Predictive Capability Highgrade Play Intervals Second Order Lateral Seal Vertical Seal Hydrocarbon Stratigraphic Play Sequence Age Systems Tract Reservoir Potential Potential Potential Source Potential Potential…
Mlinzi Prospect Proposed Upanga 3D Survey Area Depth Conversion Flatspot Spill Point Mean Resource: 20+ TCF1 Closure above spill POS: 11% point 400 sq km 88 1. Ophir Energy management estimates as of October 2012
Asset Highlights Tanzania Block 7 Ophir Resource Estimates Bubble size is proportional 80km East of Dar Es Salaam to net risked resources Strong domestic gas market and growing 20% Future Northern LNG Hub Individual…
Tanzania East Pande
Strategic Position in Southern Tanzania Songo Songo Block 4 Discovery Tanzania East Pande Pweza & Chewa Discoveries Papa Discovery Strategic location Likely landfall of Blocks 1, 3 & 4 Block 3 LNG development Lavani &…
East Pande Diverse Play Portfolio Strategically positioned for likely landfall of Blocks 1, 3 & 4 LNG development Differing source maturity for East Pande meaning the offshore Masasi spur has the best potential for an oil play 92
Stratigraphic Continuation of Blocks 3 & 4 East Pande Blocks 3 4 Reservoir Low Risk Low Risk Seal Moderate Risk Low Risk Charge Low Risk Low Risk Trap Moderate Risk Low to Moderate Risk Oil Potential Moderate Risk High Risk Viazi…
Targeting the Oil Play Nyuni Oil Nyuni Oil Seep Seep Modelling suggests good potential for oil in southwest Proven source rock mature for oil Oil staining in Cretaceous reservoirs outboard supports modelling Kilwa Kivinje…
Maembe Prospect N Isopach thinning associated Late Cretaceous canyon fill with pinchout edge Maembe Prospect WD (m) 1,200 B TD (mSS) 4,500 Maembe CoS (Primary Target) 16% B MSV (Phase Lead 1 P90 Mean P10 independent) Oil…
Tikiti Prospect Late Cretaceous channel complex Tikiti Prospect Located in a oil mature, oil prone area N WD (m) 1,100 DHIs flatspot indications TD (mSS) 4,500 Excellent interpreted top seal and reservoir development CoS (Primary 12%…
Viazi Prospect S Viazi Shallow N Stratigraphically Equivalent to Pweza Pmean 288Bcf Viazi Prospect Limit of Viazi prospect WD (m) 700 TD (mSS) 3,200 CoS (Primary Target) 16% MSV (Primary Target) P90 Mean P10 Oil (mmbbl) - -…
Potential East Pande Drilling Viazi 1Maembe 1 Tikiti 1 Viazi 1 Gas Discovery Prospect Drilling planned for Q2 2013 Channel test on trend with Three drilling locations high-graded Tikiti Viazi Shallow Maembe 1 (oil / gas…
Strategic Position in Southern Tanzania Tanzania East Pande 20% 1 Strategic location Individual Prospect POS (%) Stratigraphic continuation of Blocks 1, 3 & 4 Early Tertiary Oil potential identified in Channel Complexes…
Tanzania Non-Operated Assets Richard Higgins: Exploration Manager - East Africa
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