Delivering against strategy Osman Shahenshah SHAREHOLDER VALUE 2013 Half-yearly Results Slide 4
Continued delivery Strong operational performance Production above top end of guidance Continued exploration success and track record Strong pipeline of appraisal and development opportunities Continuing to deliver on…
translating into strong operational performance Net 2P reserves Net working interest production 300 50000 47,653 250 269(1) 40000 43,059 200 210 30000 mmboe boepd 185 150 20000 100 19,284 80 10000 14,333 50 0 0 2010…
underpinned by a successful strategy Materially accretive acquisitions Exploration Appraisal and Development Production Access early stage Early mover advantage High return projects Add value Proving up resources for Low cost,…
Normalised profit after tax 1H 2013 v 1H 2012 reconciliation 140 120 3 14 7 13 20 100 2 2 80 USm 60 119 112 40 20 0 1H 2012 Price variance Volume Non recurring Cost of sales G&A and Finance costs Realised…
Sources and uses of funds 1H 2013 reconciliation 1,200 72 1 65 1,000 564 380 800 USm 57 1 600 400 599 591 200 0 Cash and cash Operating cash Working capital Net proceeds Acquisition Investment Interest and…
Capital expenditure 2013 capex approximately US650 million 1H 2013 capex spend(1) FY 2013E capex spend(2) US329 million US650 million 15% 13% 21% 24% 62% 66% Development E&A Drilling (2) Previous guidance of…
Financial flexibility A robust and flexible capital structure 1H 2013 Afren net debt USm Coupon Significantly cash 11.5% generative portfolio 2016 senior secured notes 500 2019 senior secured notes 300 10.25% Ebok facility1…
Financing the business Balancing our capital allocation Cash flow reinvestment Farm-in/monetisation High Impact Exploration (net prospective resources 7,487 mmboe)* Active Portfolio Management Appraisal & Development…
Production growth SHAREHOLDER VALUE 2013 Half-yearly Results Slide 16
Production Record production in 1H 2013, increasing production profile Production and Development activities map Group net working interest production 50,000 Barda Rash Starting up first sales 40,000 Ongoing development…
Okoro Increasing production and reserves 100 Production in period 17,815 boepd (y-o-y increase 90 +16%) 80 Reservoir and production performance continuing above pre-start up expectation 70 60 Recovery to date (c.30 mmbbls)…
Okoro Planned new infrastructure Okoro Further Field Development Platform Okoro Okoro Main MOPU Platform Ima Terminal (Ailsa Craig 1 FSO) 2013 Half-yearly Results Slide 19
Ebok Moving towards the next phase of growth Production in period 33,884 boepd (y-o-y increase +16%) Well performance and rates in line with prognosis Production processing systems and crude offtake operations running…
Okwok Successful appraisal of all reservoirs across three separate fault blocks FDP submission to follow OKW-10 OKW-11ST Cored Interval FB2 FB1 95 Net Oil Pay 72 Net Oil Pay FB3 OKW-10ST Cored Interval Management…
A major production hub offshore south east Nigeria Planned new infrastructure at Ebok CFB and Okwok Offtake Tanker Floating Storage Offloading Vessel Planned Okwok West Fault Block Mobile Offshore Wellhead Platform -…
Barda Rash field development First Kurdistan crude sales Preliminary sales of 1,300 bopd from BR-1 Ramp up in production to 5,000 bopd as surface facilities and well performance are stabilised Work ongoing to increase production…
Commercialising production at Barda Rash Line of sight on export infrastructure Botas refurbishing second leg of ITC pipeline in anticipation of ramp up in Kurdistan region Phase 1: production and export Taq Taq to Khurmala…
Consolidation of OML 26, Onshore Nigeria SHAREHOLDER VALUE 2013 Half-yearly Results Slide 25
Onshore Nigeria - OML 26 Full cycle E&P opportunity Full cycle E&P exposure 2 developed fields (Ogini producing and Isoko) 0 5km 3 undeveloped fields (Aboh, Ovo and Ozoro) Crude export is via the Forcados terminal through a…
Recent operational progress Significant momentum A new 5.2 MMscf/d gaslift compressor installed in October 2012, a second awaits installation Flow lines/Gaslift lines replacement for 5 Strings in July 2013; expecting 2,000 bopd…
Ogini FDP in place FDP summary 37 new production wells, mostly horizontal, from existing well pads, using a single rig 13 work-overs with a dedicated rig Replacement of existing 10 Ogini-Eriemu oil export pipeline with new 18…
Significant appraisal upside yet to be exploited Discovered Undeveloped Aboh, Ovo and Ozoro field OZORO-2 Gross 2C 100% Remaining Hydrocarbons* 10 Oil (mmbbls) 0 Condensate (mmbbls) 0 5km 19 Natural Gas (bcf) 13 Total…
Low risk exploration upside Identified prospects and leads Niger Delta exploration traditionally focused on large, structural traps in the Agbada formation, identified on 2D - Ogini discovered in 1964, Isoko discovered in 1959 OML…
Organic reserves growth SHAREHOLDER SHAREHOLDER VALUE VALUE 2013 Half-yearly Results Slide 31
Material exploration portfolio An attractive portfolio located in highly prospective basins Gross prospective Net prospective Low risk, quick to monetise Country resources resources (Pmean mmboe) (Pmean mmboe) Proven play concepts,…
Excellent exploration success Significant oil discovery at OPL 310 Proven play concepts, significant upside Significant light oil accumulation encountered at Ogo-1 well targeting the Turonian-Albian four-way dip- closed…
OML 115 Several prospects and leads have already been identified at the upper levels Low risk, quick to monetise High quality analogues Drilling on similar amplitude responses producing/discovered on Ebok, Okwok…
A major hub offshore Nigeria Significant remaining upside potential Low risk, quick to monetise 517 mmbbls gross unrisked Ebok 2P 116.1 resource potential OML 115 resources upside 205.5 Large scale resource upside Only 22% of…
Ain Sifni Simrit discovery World class acreage located within a prolific and proven oil trend Low risk, quick to monetise Shaikan-1 Shaikan-2 Shaikan-3 Simrit-2 exploration well Simrit-2 Simrit-3 Simrit-1 AIN SIFNI PSC Drilled to…
Afren East Africa Exploration Significant upgrade to prospectivity and high equity positions Kenya Blocks L17 & L18 1,207 km 2D marine Block 1 (80% & 10,696 km Blocks 10A (20%) 794 km 2D (100% & operator) seismic and 474 km…
Ethiopia Blocks 7 and 8 (Ogaden Basin) Frontier area, play opening potential N-S seismic line through El Kuran area El Kuran-1 well with gas shows in Adigrat and potential oil zone identified in Hamanlei El Kuran-3 expected to spud…
Tanga block, Tanzania A unique opportunity to explore a high potential oil prone basin Frontier area, play opening potential Southerly extension of same coastal and deeper water plays as at Kenya Blocks L17 & L18 Unique…
2013 E&A work programme West Africa and the Kurdistan region of Iraq 2013 ASSET W.I. COUNTRY ACTIVITY Q1 Q2 Q3 Q4 Ain Sifni 20% Kurdistan region of Iraq Exploration drilling OPL 310 40%(2) Nigeria Exploration drilling OML 115…
Conclusions Osman Shahenshah SHAREHOLDER VALUE 2013 Half-yearly Results Slide 41
1H 2013 - Delivering on milestones Q1 Q2 Simrit-2 tests at 19,641 bopd Ogo-1 play opener at OPL 310 Exploration Simrit-3 discovery Ebok NFB early production well Two additional producers on-stream at Ebok Okwok successfully…
Conclusions Well placed for further growth Strong operational performance Production above top end of guidance Continued exploration success and track record Strong pipeline of appraisal and development opportunities…
Appendix East Africa Exploration Pages 45-51 2013 Half-yearly Results Slide 44
Afren East Africa exploration play based approach Exploring East Africas petroleum systems W El Kuran-1 gas/oil E discovery Passive Margin Play Kenya: Block 1 Ethiopia: Blocks 7 & 8 ETHIOPIA Madagascar: Block 1101 Seychelles:…
Kenya Block 1 Large under-explored sub-basin of the proven Ogaden Basin to the north Large under explored sub-basin El Kuran Oil & Gas Discovery (1972) of the Ogaden Basin, N continuous with the Calub, Hilala and El Kuran…
Kenya blocks L17/L18 Prospectivity substantially upgraded as a result of new seismic data acquisition Oil dominated systems charged from L8 APACHE Jurassic/Eocene source marine rocks Block L18 in particular ideally positioned to have…
Tanzania Tanga Block Prospectivity substantially upgraded as a result of new seismic data acquisition 2013 3D L8 APACHE AFREN L9 OPHIR Mombasa L10A BG TEMBO TROUGH SIMBA L10B BG PEMBA RIDGE 12 SHELL Oil dominated…
Kenya Block 10A Oil shows throughout the Cretaceous provide evidence of a working petroleum system Frontier area, play opening potential Paipai Paipai-1 well drilled to 13,959 ft with light hydrocarbon shows encountered Well…
Madagascar Block 1101 Frontier area, play opening Block 1101 (90%) potential Sterling EXXON EXXON Afren EAX Block 1101 EXXON AGIP 1970/71 Bemolanga oil sands 1-3 tcf gas 20 bn bbls OOIP Antso and Mantaly Tsimororo heavy…
Madagascar and the Seychelles Rift Play: Karoo 3D seismic successfully completed over Bonit Lead Bonit Lead Frontier area, play opening potential 3.0 TWT (Seconds) Calub 4.0 Tarbaj Hill Seychelles la 5km…
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