Corporate presentation Global Natural Resources Conference, Goldman Sachs, London, UK 7 November 2013
Introduction
Dragon Oil Today Dragon Oil is a leading independent international oil and gas exploration, development and production company Headquartered in Dubai, UAE, with offices in Turkmenistan and the UK Listed on the London and Irish Stock…
Dragon Oil Today (cont.) 13 years of production growth at 800 2P oil and condensate reserves, an average of 21% since the million barrels 700 commencement of the PSA in 2000 Organic 2P oil and condensate 600 reserves replacement…
Future Development Production target of 100,000 bopd 110,000 Gross average daily crude oil in 2015 and plateau at this level for production, bopd 100,000 at least five years thereafter 90,000 Commensurate onshore and 80,000…
Corporate and Operational Results in 2013
Key Operational Highlights To-Date The average gross production rate: 1H 2013: 15% growth to 73,600 bopd vs 64,200 bopd in 1H 2012 3Q 2013: 7% growth to 74,300 bopd vs 69,600 in 3Q 2012 Eight development wells, including one…
Gross Production Growth To-Date Eight wells completed 1H 2013 gross production Solid performance from existing wells 73,600 bopd Growth between 9 and 10% 3Q 2013 gross production 6.2 Increase in the 74,300 bopd 6.1 total…
Drilling Results To-Date 2013 drilling programme consists of 10 wells, including one sidetrack Platform-based drilling rig. Platform-based drilling rig. Well Completion date Depth (metres) Type of completion Initial test rate…
Infrastructure Highlights Dzhygalybeg (Zhdanov) A platform: drilling to commence in 4Q 2013 Tendering to select contractors to construct a number of platforms in the Dzheitune (Lam) Offshore platform. field is ongoing Contract…
Rig Deployment ANNUAL STATUS DRILLING CAPACITY Contracted until Jack-up rig 1 4-5 wells May 2015 Contracted to complete Land rig 1 4-6 wells another 3 wells Contracted to start drilling Land rig 2 and 3 5-6 wells in 4Q 2013…
Secondary Oil Recovery Pilot water injection project commenced in June 2013 in the Dzheitune (Lam) 75 area So far early positive indications of the pressure response in the pilot area Results expected in the next six months…
Marketing of crude oil Export of crude oil Marketing arrangements via Baku, Azerbaijan secured until the end of 2014 for all export entitlement volumes 14-21% discount to Brent expected based on the expectations of the oil price…
Gas Monetisation Short-term arrangement to Long-term gas sales agreement, reduce flaring of gas targeted towards export markets, and strip condensate for sale 2013 2014-16 Tendering to select a contractor for Construction of the…
Diversification Tunisia Bargou Permit Joint Venture of Dragon Oil (55%), Cooper Energy (30% and operator) and Jacka Resources (15%) 4,616km2 shallow offshore Production test not completed due to obstructions from lost circulation…
Diversification (cont.) Iraq Block 9 Consortium of Kuwait Energy (70% and operator) and Dragon Oil (30%) Basra province Final service contract signed in January 2013 866km2 onshore Drilling rig secured from the Iraqi Drilling…
Diversification (cont.) Afghanistan Sanduqli Exploration and production sharing contracts for two blocks formally signed Mazar-i-Sharif in October 2013 onshore Participating interest of Dragon Oil, Turkiye Petrolleri A.O. (TPAO)…
Investment in People and Communities Our Talent Training and Development Polyclinic Over 1,550 professional In-house and external training Building and related originating from 50 countries programmes with particular infrastructure…
1H 2013 Financial Results
1H 2013 Financial Highlights Revenue Net profit Cash Balance US 492mn US 241mn US1.7bn Net of A&D Production growth Interim dividend of Self-financing of capital 15 US cents expenditure Lower realised oil prices per share…
1H 2013 Income Statement USm 1H 2013 1H 2012 Change Comments Revenue 491.6 588.4 -16% Sales were 5.7 million barrels of crude oil at a realised price of US86/bbl. 16% decrease is attributed to a lower realised crude oil price (94%)…
1H 2013 Cash Flow Cash and term deposits total US2,125mn as at Net cash from operations down 55% 1H 2013 and include: Capital expenditure in 1H 2013 was US149mn Term deposits of more than three and US182mn cash outflow after movement…
1H 2013 Balance Sheet USmn 1H 2013 YE 2012 Comments Non-current assets Property, plant & equipment 1,577.0 1,529.6 Increase due to capital expenditure of US149.3mn offset by the and intangible assets depletion and depreciation charge…
9mo Capital Expenditure USmn The Dzheitune (Lam) C platform. 186 9mo 2013 82 131 229 Infrastructure Drilling 9mo 2012 164 135 299 Exploration Assets Total capital expenditure for 9 months 2013: Drilling (57%) Eight wells,…
Outlook
Outlook Production Drilling Production growth between 9 and 10% in 2013 10 wells, including one sidetrack, in 2013 and around 15% in 2014 and 2015 and around 20 wells per year in 2014 and 100,000 bopd production target in 2015 2015…
Outlook (cont.) Gas monetisation Tendering process to select a contractor to build a Gas Treatment Plant ongoing Construction phase is anticipated to take two to three years after the contract is awarded Diversification An…
Key Facts on the Cheleken Contract Area Russia Kazakhstan As at 30 June 2013 Proved and Probable Oil and Gas Remaining Recoverable Condensate TCF Black Sea Reserves million barrels Georgia Uzbekistan Gross field reserves to 1st…
Investor and analyst enquiries Dragon Oil plc Anna Gavrilova + 44 20 7647 7804 agavrilovadragonoil.com irdragonoil.com Media enquiries Citigate Dewe Rogerson Martin Jackson +44 20 7638 9571 Joint Corporate Brokers Davy…
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