A world class asset base 2011 Full Year Results Presentation www.afren.com 27 March 2012 2011 Full Year Results Presentation
Agenda Delivering against strategy Page 4 2011 Finance review Page 7 Production growth Page 15 Organic reserves growth Page 29 Delivering against strategy Page 42 2011 Full Year Results Presentation Slide 3
Delivery against strategy Osman Shahenshah 2011 Full Year Results Presentation Slide 4
The Afren team continues to deliver Strategic foresight 995 Net 2P + 2C reserves & Nigeria successful indigenous resources (mmboe) partnership based model 0 End 2005 Present East Africa early position in 2010 (significant…
Delivering Against Strategy 2011 excellent progress against core strategic objectives Strategic Objective Progress Initial phases of Ebok fully onstream Ongoing development at Ebok and OML 26 Production Growth First oil at Barda…
2011 Finance review Darra Comyn 2011 Full Year Results Presentation Slide 7
A maturing capital structure The first UK listed independent E&P to successfully access the bond market Operational cashflows Diversified capital sources Financial discipline Okoro field Bond market Operating controls Ebok field…
2011 full year results summary Record financial results USmm 2011 2010 Change Sales 596.7 319.4 +87% Operating profit 268.2 89.0 +201% Net profit1 125.4 45.9 +173% Normalised profit after tax 125.1 62.4 +100% Basic earnings per…
Operational performance A profitable platform of producing assets Sales revenue Sales revenue US596.7 mm US319.4 mm Sales revenue - US596.7 mm sales volumes of 6.2 mmboe 600 - 19,154 boepd (2010: 14,333 boepd) realised oil price…
Profit after tax US125 million profit after tax reconciliation 200 50.1 31.2 180 160 2.6 45.5 140 91.3 15.8 120 125.4 3.6 US mm 100 80 60 40 45.9 20 0 End 2010 Price Volume Cost of sales G&A Finance…
Sources and uses of funds End 2011 cash balance of US292 million 1,600 1,400 934.5 378.1 1,200 1,000 499.9 US mm 800 600 439.9 102.3 193.8 400 50 1.2 291.7 200 140.2 0 Cash and cash Operating Working Net…
2012 capital expenditure Exploration is a growing and key component; flexibility and discretion over spend retained FY 2012 capex spend US450 to US500 million Majority of capex is discretionary 38% Development 21% E&A Drilling…
A capital structure in place to fully realise the portfolios potential A maturing capital structure... Afren net debt USmm Proforma* Coupon Significant cash generative portfolio 2016 senior secured notes 500 11.5% Existing…
Production growth Iain Wright & Adebayo Ayorinde 2011 Full Year Results Presentation Slide 15
Transforming the reserves base Significant increase in 2P reserves (+132%) Only 19% of total discovered resource potential is in production or under development 2011: 995 mmboe 81% 2P 2C 19% 7% 12% Developed Under…
Initial phases of Ebok fully onstream end 2011 2011 production 2011 production breakdown 2011 Production boepd Working Interest Average Gross Production Average Net Production Okoro 50%* 15,800 9,000 Ebok 100% 8,000 8,000…
Stable production platform in place Full year 2012E net production 42,000 boepd to 46,000 boepd Group net working interest production Map of 2012 production and development activities 50,000 OML 26 (FHN) 7 producing wells 40,000…
Visible production profile Portfolio of strong cash flow generation Production outlook Next major milestones 120,000 Ebok 1P 2P Contingent Drill and complete four production wells in 2012 Use production history to define future…
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:…
Barda Rash field on track for first oil by August 2012 Phase I key milestones Workover the three existing wells Check well integrity Proper H2S equipment and procedures Cased-hole logging program Further testing Completions…
Commercialising first oil at Barda Rash Domestic sales / exports KICE pipeline Option to sell initial crude production into the KICE pipeline route; domestic market 420,000 bopd initial capacity expected to Price realisations of…
Okoro field a stable platform of production Optimising production and maximising recovery 2011 gross production 15,800 bopd Infill drilling campaign completed Reservoir and production performance continuing above pre-start up…
Within easy reach of the Okoro main field WHP Two production wells planned in 2012 Okoro main field WHP Okoro Main field Upper and Lower producing reservoirs Main field production wells Okoro East 3 way dip closure…
Ebok field development a growth engine Initial development phases complete continuing ramp up in production First Oil delivered in 2011 in record time All wells associated with the initial development phases commissioned by…
Ebok field the next phase of development Ongoing drilling four wells planned in 2012 NW Drill Line SE Proposed CFB D1 Well D -1 OWC D-1 LD-1B LD-1E LD-1A D-1 LD-1F WFB Rig Proposed LD -1F WFB Locations 633…
Okwok Most likely field development solution FDP submission to follow 2012 appraisal drilling Not to scale 2011 Full Year Results Presentation Slide 27
OML 26 a substantial portfolio onshore Nigeria Large scale production and development opportunity Acquisition of 45% interest through First 940 mmboe total gross reserves and resources Hydrocarbon Nigeria (Afren a 45% shareholder)…
Organic reserves growth Iain Wright 2011 Full Year Results Presentation Slide 29
Organic reserves growth through exploration An attractive portfolio located across several highly prospective basins Balanced risk weighting Low risk, quick to monetise Proven play concepts, significant upside Frontier area, Low…
Low risk, quick to monetise A significant new oil discovery offshore south east Nigeria 2012 exploration campaign has started with a N-S seismic dip transect through Okoro East discovery significant discovery by the Okoro East…
Low risk, quick to monetise Volumetric range Summary STOIIP for Okoro East P90 Mean P10 Okoro Reservoirs 19 47 86 Deeper targets 38 110 243 Unrisked Total 57 157 329 30% - 40% recovery factor 2011 Full Year…
Low risk, quick to monetise Ebok/Okwok/OML 115 area Significant remaining upside potential Ebok 2P Okwok 507 mmbbls gross unrisked 105.3 Contingent 51.8 resource potential Large scale resource upside Only 21% of total area…
Low risk, quick to monetise Ebok/Okwok/OML 115 area Exploration and appraisal drilling plans low risk, amplitude supported upside potential Seismic survey Ocean bottom cable, four component 3D seismic survey across whole area…
Low risk, quick to monetise Ebok field North Fault Block prospect Seismic section along dip and planned well trajectory 2011 Full Year Results Presentation Slide 35
Low risk, quick to monetise OML 115 Several prospects and leads have been identified at the upper levels Recent high quality oil discoveries near Ufon complex Etisong N-1 (2011) Ufon prospect Three reservoirs found.…
Low risk, quick to monetise Ain Sifni Low risk opportunity to efficiently deliver large volume growth Exploration and appraisal highlights JS-2 exploration well testing the western extent of the Jebel Simrit structure Ain-Sifni…
Proven play concepts, significant upside Keta block - Ghana Focused exploration in a high potential basin ENI farmed in for a 35% working interest; Afren retains a 35% working interest - Full carry through exploration well…
Frontier area, play opening potential Afren East Africa exploration play based approach Exploring east Africas rift systems Kenya Ethiopia Block 1 8 7 EL KURAN-1 Passive Margin Play Ethiopia Kenya: Block 1 Ethiopia: Blocks 7…
Frontier area, play opening potential Exploring the Kenya Tanzania Coastal and Deepwater Plays Exploration drilling planned for 2012 testing the costal area play offshore Exploration well on each on L17/L18 3D planned for…
2012 work programme The most active work programme in Afrens history; multi-well exploration campaign underway Mean prospective Number of E&A 2012 Group activity summary Country WI (%) Work Programme resources mmboe wells planned…
Delivery against strategy Osman Shahenshah 2011 Full Year Results Presentation Slide 42
Delivering Against Strategy 2011 excellent progress against core strategic objectives Strategic Objective Progress Initial phases of Ebok fully onstream Ongoing development at Ebok and OML 26 Production Growth First oil at Barda…
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