OIL SEARCH LIMITED UBS Conference Sydney, June 2006 1
Managing the New World Order Business in a New Environment Sustained oil prices US50/bbl and above Unprecedented demand for gas (especially in Asia Pacific) delivering a new price environment Increasing disconnect with East Coast…
Four Years of Strong Performance Strategic Review in 2002 Four year plan to double market capitalisation, and to generate top quartile returns All key objectives have been achieved Delivered : operating control of core business…
Achievements - Production Growth 40,000 Kutubu Moran Gobe Main SE Gobe +17% Pre AGL Hides Nabrajah SEM 35,000 +10% -8% Post +6% AGL 30,000 +25% sale 25,000 +23% stb/d 20,000 15,000 10,000 5,000 0 2000 2001 2002…
Achievements Growth in Net Profit After Tax 240 20 17.9 220 Net Profit 18 200 EPS 16 180 14 160 140 12 US cents USm 9.6 120 10 7.7 100 8 80 4.5 6 60 4 40 1.8 20 2 0 0 2001 2002 2003 2004 2005 102% CAGR…
Achievements - Top Quartile Total Shareholder Returns Four fold increase in Market Capitalisation since 2003 2nd out of ASX 100 % 120 3rd out of 100 ASX 100 4th out of 80 ASX 100 5th out of 60 ASX 100 40 20 0 2003…
Growth - The Next Phase New Strategic Review underway Objective to more than double market capitalisation by 2010 Starting from a position of strength Excellent asset base, with large discovered gas resource and quality…
Growth - The Next Phase Oil Search positioning itself to take advantage of opportunities created by new fundamentals: Key part of new Strategic Review Targeted value extraction in producing fields Commercialisation of discovered…
Growth - The Next Phase Control of the main value drivers and operational levers: Equipment ownership Drilling equipment Procurement and services alliancing Operations optimisation with tight cost controls People development and…
Growth - The Next Phase Focus for Growth Deliver Value Substantial remaining potential in PNG oil fields Further Yemen developments Cost controls and improved profitability Extract Value Commercialise our 1.1 billion boe gas and…
Vision for 2010+ Market capitalisation above US7 billion Continuation of world class health, safety and environment performance Oil production growth through PNG and Middle East optimisation and new developments Development of…
DELIVER VALUE 12
PNG Oil Production Outlook 80,000 STB/D Summary PNG Gross Production History 2000-2005 Programmes post- and Forecast 2006 operatorship change 70,000 have been successful Current gross PNG 60,000 production At 2001 levels…
SE Mananda Bridge Innovative engineering opens up new exploration/development trend 14
EXTRACT VALUE 15
Gas Commercialisation Oil Search has over 1 billion boe of proven and probable uncontracted gas and associated liquids Resource is of considerable potential value, as world prices continue to climb Approximately 40% of resource…
Gas Resources (Gross PNG) Recoverable Gas (bcf) Elevala 30,000 Ketu Pandora Recoverable Gas (bcf) 25,000 Uramu Kimu 20,000 Barikewa P'nyang Yet to Find Angore 15,000 Juha Hides 10,000 SE Gobe Gobe Main 5,000…
PNG Gas Project Sale of gas from PNG Highlands to Australia through over 4,000 km of pipeline Conditional & firm contracts signed for total gas sales of 155- 229 PJ pa Pipeline in Australia to be constructed by APC (JV between…
PNG Gas Project Status Markets are largely underwritten. Likely to be close to/at initial build plant capacity. Not actively seeking additional markets Government/landowner agreements - substantial activities in PNG to finalise…
Australian East Coast Gas Supply / Demand 1200 1000 800 PNG OPPORTUNITY PJ VOLUME 600 CSG OTWAY 400 COOPER BASIN 200 GIPPSLAND 0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The market…
Gas Commercialisation Phase 2 PNG Gas Project commercialises significant volume of reserves and delivers major infrastructure spine Opens way for further gas development in PNG, for in-country projects and LNG New initiative…
Phase 2 Gas Strategy Aiming for 150 PJ pa initial market load in Port Moresby, growing to over 300 PJ pa FEED on pipeline from Kopi to Port Moresby Flexible gas supply options but to include potential development of: Juha (OSH…
Current Oil Production and PNG Gas Project 23
Juha Angore Pnyang Honinabi Current Oil Production Mogulu North Mogulu South and PNG Gas Iehi Project Kimu Uramu Including Barikewa Phase 2 Gas Pandora 24
CREATE VALUE 25
2006 PNG Exploration PNG up to 5 Mananda Attic Drilling exploration wells Juha Seismic planned for NW Paua 2006/early 2007 Arakubi Damami Mix of low risk, near River seismic (Mogulu) field opportunities Foldbelt seismic and…
Yemen 2006 Appraisal/Exploration Up to six exploration wells planned for second half 2006 /early 2007, including: 2 Block 15 wells, offshore: 150 NABRAJAH mmbbl prospect size Proposed Shaibah-1 1-2 Block 3 wells: 20-70…
Egypt & Libya Egypt - East Ras Qattara 2 wells commencing 3Q06 Egypt - Area A Two Wells 15 well over 3 years committed development /exploration programme Exploration commences early 2007 Focus on prolific Nubian play Umm El…
Production Outlook (Net) 24 20 16 mmboe PNG Gas Project gas 12 Nabrajah Yemen Hides Area 'A', Egypt 8 Moran PNG Gas Gobe + SEG Project liquids SEM 4 Kutubu 0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Base…
Summary Capturing latent value in existing portfolio will deliver material growth Strategic review will set the scene for growth over the next five years Continue to optimise existing producing assets, recognising challenges and…
OIL SEARCH LIMITED Well positioned to continue to grow 31
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