Agenda Introduction 4 Finance 6 Operations review 13 Outlook 32 3 Agenda 2009 Full year results presentation www.afren.com
Introduction 4 2009 Full year results presentation www.afren.com
Realising the opportunity Established Platform Stable, cash generative production stream (average production of 22,100 boepd in 2009) Growing reserves base (100% appraisal success at Ebok) Portfolio growth: OPL 310, Okwok and OML…
Finance 6 2009 Full year results presentation www.afren.com
Highlights 25 kboepd Production 22.1 kboepd (+470%) (2008: 3.9 kboepd) 0 2007 2008 2009 350 US mm Turnover US336 mm (+680%) (2008: US43 mm) 0 2007 2008 2009 350 US mm Operating cashflow US278 mm (+US305 mm) (2008: -US27…
Net income Profit and loss account Profit and loss account statutory normalised US mm 2009 2008 2009 2008 Gross Profit / (loss) 105.8 (28.0) 105.8 (28.0) Cost control Administrative expenses (13.9) (21.7) (13.8) (21.7) initiatives…
Sources and uses of funds USm Cash sources 600 313 - Operating Cash inflow US278 mm (2008 US27 mm outflow) 500 - Net Equity Proceeds US313 mm - Investment Revenue US1 mm 400 (2008 US5 mm) 148 Cash uses 300 207 - Investment…
2010 Capital budget Budget US198 mm capex invested in 2009 2010 US430 mm (excluding acquisitions) 2010 capex budget focused on Ebok US198 mm development in Nigeria 2009 Exploration capex to test Ebok Deep and OML 115 (assume…
Strengthened balance sheet end 2009 Cash at bank: US321 mm Gross debt: US267 mm (US281 mm excluding accounting adjustments) Net cash: US54 mm US450 mm RBL facility - Up-scaled on higher reserves base - BNP Paribas / Natixis /…
2010 financial strategy and outlook Continue with strict cost control and discipline - Drive costs down at every opportunity - Okoro opex - Ebok development capex and opex Appropriate budget set at US430 mm - Production growth -…
Operations review 13 2009 Full year results presentation www.afren.com
Group reserves and resources end 2009 (net working interest) NSAI 2P Reserves and Contingent Resources NSAI Prospective Resources 113 mmboe 1,054 mmboe 15 35 57 21.6 26.9 80 92 411 364 64.2 2P Developed 2P…
Appraisal and development highlights Appraisal 100% appraisal drilling success rate at Ebok Gross 2P Ebok reserves independently certified at 107.5 mmbbls Validation of regional subsurface model and amplitude interpretation direct…
Ebok/Okwok/OML 115 south east Nigeria reserves and production hub 100% appraisal drilling success at Ebok - Subsurface interpretation validated - Enhanced understanding of regional geology - Expansion into Okwok and OML 115…
Ebok gross reserves and resources (NSAI) (mmbbls) 300 43 267 200 47 16 53 100 107.5 0 2P Reserves North Fault D2 Upside West Flank Ebok Deep Total Resources Block Extension Qua Iboe Operations review 18…
Ebok / Okwok / OML 115 Exploration and appraisal targets Ebok Deep Multiple structural closures identified underlying the existing D series reservoirs Target selected: Biafra Formation channelised sands Prospect identified: 30…
Phased Ebok development Phased approach to field development - Simultaneous development / appraisal / exploration Allows for optimal development sequencing in response to drilling results - Dynamic project - Accelerate development…
Ebok field development FSO Moored within Ebok Central 70m of CWHP Wellhead Platform Ebok West Wellhead Platform 4 Gas line 8 Production line 6 Water injection ESP Power & control cable 4 Test line 8 Produced line 8…
Ebok development drilling Ebok-2 Ebok-6 Ebok-3 Ebok-4 Phase 1 wells Ebok-5 Ebok-1 Phase 2 wells D2 south lobe appraisal (Ebok-6 well completed) Operations review 22 2009 Full year results presentation www.afren.com
Okoro better reservoir performance and enhanced recovery West East Production continues at gross rates between 18,000 to 19,000 bopd Base Qua Iboe - 44 cargos exported at end 2009 - Offtake process optimised with 500m exports via…
Community relations - update Scholarship programme for students in the Eastern Obolo community - 64 students attending tertiary, post-graduate and specialised studies Womens economic empowerment project in the Effiat community -…
Exploration portfolio NIGERIA - OPL 310 NIGERIA - OPL 907 / 917 Legal Interest (40%) Working Interest (21%) 70% economic interest Held through an 80% Partner (Optimum - 60%) economic interest Potential seismic acquisition Planned 2D…
Exposure to West African Transform Margin and Upper Cretaceous Afren acreage Upper Cretaceous fairway Operations review 27 2009 Full year results presentation www.afren.com
OPL 310 drilling objectives Gross un-risked resource estimate Prospect 1 upgraded to 521 mmboe by NSAI Several prospects identified all with multiple reservoir targets (Cenomanian, Turonian and Albian sandstone reservoirs)…
2010 firm drilling programme Ebok Phase 1 and 2 (underway) Okwok 12 production wells & Objective to define field 1 water injection wells size and development Onstream October 2010 requirements (15,000 bopd) D2 reservoir target 2010…
2010 work programme ASSET ACTIVITY J F M A M J J A S O N D Ebok Phase 1 Field development Ebok deep Exploration drilling Okoro Infill drilling Ebok WFB Field development Okwok Appraisal drilling OML 115 Exploration…
First Hydrocarbon Nigeria 4000 3500 The Petroleum Industry Bill Nigeria shut-in production Liquids Production (000 b/d) 3000 2500 Development of an indigenous E&P industry 2000 2006 Unrest begins Active appraisal &…
Outlook 32 2009 Full year results presentation www.afren.com
Realising the opportunity Established Platform Stable, cash generative production stream Growing reserves base Portfolio growth: 3 acquisitions in 2009 Indigenous platform: First Hydrocarbon Nigeria Management reserves in line with…
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