A world class asset base Value creation through an acquisition led strategy Galib Virani, Associate Director M&A www.afren.com 10th Annual Value Acquisition creation through and Divestiture an acquisition Summit 25 April 2012…
Our strategy designed to deliver sustainable long term growth Acquisitions have been core to Afrens growth Value creation through an acquisition led strategy Slide 3
Afren today 29 assets in 12 countries A high quality portfolio in world class hydrocarbon plays Working Operated Asset Interest Partner by Afren KURDISTAN REGION OF IRAQ Okoro Setu 50.0%2 Amni TSP7 Equity Operated Asset Interest…
Transformational growth Fast growth via acquisition and development since IPO in 2005 Strategic foresight 995 Net 2P + 2C reserves & Nigeria successful indigenous resources (mmboe) partnership based model 0 End 2005 Present East…
The value proposition Afren has proven credentials of value creation through acquisitions 30.0 Total entry and appraisal cost per bbl Consensus PV per bbl(1) 25.4 25.0 22.0 20.0 US/bbl 15.0 11.9 9.6 10.0 7.4 5.0…
Nigeria - a world of opportunity Nigeria remains at the heart of Afrens future growth ambitions Licence interests Distribution of resource ownership (No. of blocks) (mmboe) Indigenous Indigenous independents well Major IOC E&P -…
Okoro field development Optimising production and maximising recovery Accretion at Okoro both volume and value Local partner: Amni International 30.0 40.0 Cost per bbl First oil achieved within two years of entry (2008) Consensus PV…
Okoro East Exploration success enhances value creation further 549 ft TVT of net oil pay in excellent Pre drill summary STOIIP for Okoro East quality reservoir sands P90 Mean P10 38o API crude oil Okoro 19 47 86 Reservoirs Pmean…
Ebok field development a growth engine Initial development phases complete Local Partner: Oriental Energy Resources 25.0 Accretion at Ebok both volume and value 120.0 Appraisal campaign more than quadrupled gross 2P Cost per bbl…
OML 26 a substantial portfolio onshore Nigeria Large scale production and development opportunity Acquisition of 45% interest through First Hydrocarbon 940 mmboe total gross reserves and resources Nigeria (Afren a 45% shareholder)…
Transferring a core production and development skill set developed in Nigeria Strategic entry to the Kurdistan region of Iraq Acquisition cost vs precedent regional transactions Leverage strong development track record 6.0 5.0…
Barda Rash field a large scale early production opportunity First oil expected August 2012 1,433 mmbbls total gross 2P + 2C reserves and resources Tawke field export pipeline entry point Phase 4+ Heavy Oil Phase 1 Development:…
Transforming the reserves base Only 19% of total discovered resource potential is in production or under development 2011: Significant increase in 2P reserves (+132%) 2011: 995 mmboe 81% 2P 2C 19% 7% 12% Developed…
Visible production profile Portfolio of strong cash flow generation delivered through effective acquisition strategy and follow-on appraisal Production outlook Next major milestones 120,000 Ebok 1P 2P Contingent Drill and complete…
Afrens exploration portfolio An attractive portfolio located across several highly prospective basins Ghana: 494 Nigeria: 530 Low risk, quick to monetise opportunities Proven play concepts, significant upside Kurdistan: 183 JDZ: 15…
Strategic entry into East Africa in context Filling the hopper EXPLORATION OML 26 (Nigeria) Block 10A (Kenya) OPL 310 (Nigeria) Block 1 (Kenya) OPL 907/917 (Nigeria) Blocks A,B,C (Seychelles) OML 115 (Nigeria) Block 7,8 (Ethiopia)…
Strategic entry into East Africa Acquisition of Black Marlin Energy Holdings Ltd Transaction completed October 2010 via share for share exchange Ethiopia - US104.8 million in Afren paper 7 8 - Acquired for US0.08/unrisked bbl…
East Africa Recent acquisitions well in excess of Afrens entry cost Recommended cash bid offer accepted for Cove of 220 pence per share or approximately US1.8 bln (2012) Ethiopia Sale of 33% stage in Uganda (Lake Albert block)…
Conclusions An unparalleled track record of accretive acquisitions Sub Saharan Africa 2P/2C Kurdistan region of Iraq 2P/2C 20.0 6.0 18.0 18.0 5.2 16.0 14.0 4.0 US/bbl US/bbl 12.0 10.0 8.0 2.0 6.0 4.0…
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