Oil Search - Profile Established in PNG in 1929 Operates all of PNGs producing oil and gas fields In 2005, generated approx 22% of PNGs export revenue and 10% of its GDP. Largest investor and taxpayer. PNG Government is 18%…
Oil Search Where We Operate 3
Oil Search in PNG 6 producing oil fields (Kutubu, Moran, NW Moran, Gobe Main, SE Gobe & SE Mananda) 1 producing gas field (Hides) Major gas development opportunities Extensive exploration acreage 4
Oil Search Where We Operate 5
Oil Search in Yemen 1 producing oil field (Nabrajah, Block 43) Nabrajah Basement development 6 concession areas (5 as Operator) 6
Oil Search in Egypt East Ras Qattara Area A - comprises 2 development leases (5 small oil fields) and four exploration leases Umm El Yusr Area A Exploration Kareem, Yusr, Kheir & Shukheir Development Also: Wadi Dara…
Core Expertise Developing country specialist Ability to work co-operatively with host governments and local communities Culturally sensitive and diverse Experienced in operating in challenging environments Low cost, innovative,…
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 4th out of ASX 150 % 120 5th out of 100 ASX 150 8th out of 80 ASX 150 60 40 20 0 2003 2004 2005 11
Growth - The Next Phase Strategic Review in 2002 Five year plan to double market capitalisation, and to generate top quartile returns Delivered : operating control of core business : significant production increase : operating…
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 Business in a New Environment Oil prices around/above US50/bbl Unprecedented demand for gas (especially Asia-Pacific) delivering new price environment Shortage of equipment, services and people cost…
Growth - The Next Phase Oil Search positioning itself to take advantage of opportunities created by the new market fundamentals Key part of Strategic Review Targeted value extraction in producing fields Tight cost controls…
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 2011 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 18
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…
PNG Oil Production Oil Production (stb/d) Oil Production (stb/d) 50,000 35,000 History Forecast History Forecast KUTUBU 30,000 40,000 GOBE 25,000 30,000 20,000 15,000 20,000 Trend Before 10,000 Oil Search SE Gobe…
SE Mananda Development First Oil on 26 March with production currently on ramp up to 7,000 bopd Reserves downgrade in early 2006 partly offset by recent NW Moran drilling at SEM 3. Current gross SE Mananda reserves estimated at…
SE Mananda Bridge 23
SE Mananda Bridge 24
Yemen Production - Nabrajah Nabrajah gross Surface location production currently Top Basement location averaging around 9,000 bopd Nabrajah 2 Nabrajah 8 Nabrajah 9 Facilities expansion to Nabrajah 10 25,000 bopd nearing…
EXTRACT VALUE 26
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 Barikewa 20,000 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…
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 underway Flexible gas supply options but to include potential development of: Juha…
Current Oil Production and PNG Gas Project 34
Juha Angore Pnyang Honinabi Current Oil Production Mogulu North Mogulu South and PNG Gas Iehi Project Kimu Uramu Including Barikewa Phase 2 Gas Pandora 35
New Appraisal and Development Programme Dedicated exploration / drilling resources Juha drilling programme 06-07 Barikewa seismic acquisition then appraisal drilling Kimu / Korobosea seismic then drilling Engineering and FEED…
Juha Engineering feasibility study on Juha gas and liquids cycling plant completed Juha 3 Juha 2 Juha 1 Juha cycling looks attractive, particularly in high oil price environment Planning to drill two Juha wells, with activity…
CREATE VALUE 38
2006 PNG Exploration PNG up to 5 Mananda Attic Drilling exploration wells Juha Seismic planned for 2006 Mix of low risk/near NW Paua field opportunities Arakubi and higher Damami risk/large potential River seismic wells…
Arakubi Prospect Arakubi due to spud 20 June Located 2km from infrastructure, and sits above and NE of Usano, may share common fluid contacts Mean reserves 18 mmstb Information from well will Arakubi aid in Usano re-…
Yemen 2006 Appraisal/Exploration Complete appraisal programme on Nabrajah: Nab-10 testing underway, Nab-11 to follow Complete acquisition/processing of Block 43 seismic NABRAJAH Up to six exploration wells planned late 06/early…
Egypt & Libya Egypt - East Ras Qattara 3D has substantially increased block potential 2 wells commencing 3Q06 Two Wells Egypt - Area A 15 well/3 years committed development /exploration programme Exploration commences early…
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 Upside…
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…
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