Tullow Oil plc 2008 Half-yearly Results 27 August 2008
Contents Section Page Introduction 4 Finance 6 Production and Development 13 Exploration 22 Conclusions and Q&A 33 Appendix 1 Strategy 35 Appendix 2 - Africa 38 Appendix 3 - Europe 45 Appendix 4 South Asia 48…
Entering a phase of major growth Strong underlying business performance Portfolio management demonstrates financial strength Exceptional progress in Ghana and Uganda Major programmes over the next 12 months Building our team…
Finance Tom Hickey 2008 Half-yearly Results Slide 6
Operational performance m Revenue up 33% to 378m Production up 1% to 70,550 boepd* Revenue Revenue mix Oil 69%:Gas 31% 400 378m Realised oil price - 80.1/bbl (1H07: 56.1/bbl) Realised gas price 51.7p/th (1H07: 36.9p/th) Revenue…
Cash flow, interest and hedging m Operating cash flow - 295m (1H07: 201m) 187m reinvested in capital programmes 2.6m Proposal to maintain interim dividend at 2.0p/share 35.0m 300 Interest charge - 21.2m (1H07: 23.2m) Reduction in…
Portfolio management and long-term financing Jubilee Financing Plans in preparation Net Tullow Capex to first Oil 1.2 billion - Attractive Fiscal terms - Strong long-term gearing potential Refinancing planned Q408 - Approx 2 billion…
Capital programmes 187m invested in 1H08 with significant 2008 480m increase planned for 2H08 2008 capital split 45:55 between 2007 370m Development and Exploration/Appraisal, focused on key assets 0 100 200 300 400 500 Africa…
Finance supporting long term growth Record 1H08 results - Sales revenue up by over 30% - Net profit up by over 200% Financial Strategy in place for 2010 and beyond - Operating cash flow funding 2008 capital investment -…
Production and Development Paul McDade 2008 Half-yearly Results Slide 13
Outstanding operational performance P&D business in excellent shape 1H 2008 Production - 70,550 boepd 2008 forecast: 68,000 to 70,000 boepd Successful portfolio management in UK and Africa First gas achieved from Wissey development…
World-class Jubilee field development Overview Ghana licences signed March 2006 Jubilee Field discovery June 2007 Tullow designated as field Operator Feb 2008 M-2 establishes major upside May 2008 Phase 1 sanction - Q4 2008…
Rig capacity and initial drilling plan Contracted Deepwater Rigs Jubilee Appraisal Programme Blackford Dolphin October (220 days) Eirik Raude November (3-5 years) Aban Abraham February 2009 (1 slot) Atwood Hunter April 2009 (3x9…
Jubilee development first oil 2H 2010 Jubilee development concept Simultaneous appraisal and development Multiple FPSO/subsea developments Phased approach - accelerate first oil, manage uncertainty Phase 1 scope Production capacity…
Uganda - Early Production System Mputa EPS Development plan defined Appraisal data incorporated Production capacity 4,000 bopd Topping plant to deliver product HFO utilised for power generation - Manve power plant Kampala 50MW -…
Development activity continues across African portfolio Production continues at record levels - 42,000 bopd Sustained drilling and development activity Equatorial Guinea 16,000 boepd net - Okume development drilling ongoing -…
Plans for increased 2009 UK investment Southern North Sea 23,550 boepd net Effective portfolio management - Non-core CMS assets sale (35m) Q2 2008 - Hewett-Bacton asset sale (210m) Q4 2008 Record gas pricing driving increased…
Significant progress across the business Steady production delivery Potential for material upgrades to resources World class progress on Jubilee phase 1 deepwater development Increased investment planned for gas business…
75% global exploration success rate in 2008 to date UK 1 well 2 Doris 282km 2D Portugal Mauritania 807 km 2D Bangladesh 2wells 3 Banda NW 252 sq km 3D 2 Khop 411 sq km 3D India 1 well 2 C1 Senegal 624 sq km 3D Uganda…
Ghana exploration drilling recommencing Q3 2008 Exploratory appraisal Three to five wells aim to extend and define the limits of the Jubilee field Mahogany-3 will explore deeper fans below proven reservoirs Frontier drilling…
Potential Jubilee analogue in Cte dIvoire Tullow hold equity in three blocks CI-103 (85% op) CI-102 reprocessing progressing - well in 2010 600 sqkm 3D acquired, processing in 2008 CI-103 New 3D acquired - well in 2010 Ako Albian…
Uganda major progress on four exploration fronts 100% success record in Lake Albert Basin 14 wells drilled, all encountered hydrocarbons Oil discovered over a range of 150 km Kaiso Tonya Mputa-5 & 6 appraisal wells end 2008 (OGEC…
Nearshore exploration proving up additional resources KF-2 KF-1 KF-3 Pelican KF-North Kingfisher OWC Kingfisher Mid - Excellent reservoir Kingfisher Deep - not charged KF-2 drilled to a depth of 3,906m in August Good…
High impact programme in Butiaba, Blocks 1 & 2 Immediate success from Butiaba campaign 2D seismic delivers prospects and discoveries: Taitai in May (Escarpment fan play) Ngege in June (Victoria Nile delta play) Karuka in July…
Kasamene-1 de-risks up-dip prospects Significant Kasamene discovery de-risks Victoria Nile delta play in Butiaba Kasamene encountered 31m of net oil pay and an oil column of 75m+ 2008 Half-yearly Results Slide 29
India: 4-well campaign in proven rift basin commenced Exciting region with high impact potential CB-ON/1 on trend between two proven basins to the north and south 2006/2007 seismic identified a number of prospects Programme…
50 exploration wells to be drilled by the end of 2009 Europe 1 well Pakistan Mauritania 1 wells 3 wells Cte dIvoire 1 well India 3+ wells Suriname 10 wells Uganda French Guiana 15+ wells 1 well Ghana 9+ wells…
Exploration programme Country Licence/Block Prospect/Campaign Interest Gross Upside Date/Status EUROPE Netherlands SNS Prospect 20-50% 10 mmboe Q4 2009 AFRICA 22.9- Ghana Jubilee Field Jubilee Exploratory Appraisal 1,000 mmbo…
Entering a phase of major growth Strong underlying business performance Portfolio management demonstrates financial strength Exceptional progress in Ghana and Uganda Major programmes over the next 12 months Building our team…
The Tullow Footprint Europe Africa Europe 22,000 boepd Angola Netherlands Portugal 3 countries Congo (Brazzaville) Congo (DRC) United Kingdom 35 licences Cte d'Ivoire 20 producing fields Equatorial Guinea Gabon Ghana Africa…
Tullows long term growth strategy PRODUCTION and DEVELOPMENT A track record of production growth and asset enhancement Strong reserves and resources growth over the last three years Gearing up for a major expansion in African…
Appendix -2 Africa 2008 Half-yearly Results Slide 38
Africa: developing a truly pan-African business A continent with many opportunities A number of largely-unexplored basins Mature basins where majors are exiting Significant areas currently unlicensed Strong knowledge base Over 20…
Mauritania/Senegal: maturing the next campaigns Overview Tullow has a material position in Mauritania 9 blocks in Mauritania/Senegal - Producing Chinguetti oil field - Tiof and Tevet oil discoveries - Banda and Pelican gas…
Continued strong performance from African assets Equatorial Guinea Okume and Ceiba Production performance continues to exceed expectations at over 110,000 bopd 25 wells drilled to date on Okume Ceiba infill drilling programme…
Gabon: production stable, developments ongoing Overview Region where Tullow can apply its expertise in revitalising mature assets Portfolio of offshore and onshore acreage - 12 producing fields - Two new developments - 4…
Kudu: focus on Gas-to-Power development Overview Offshore gas field with over 3 TCF of 2P resources 70% working interest Namibia need to develop at least 300MW of indigenous power Currently working with Namibians on gas-to power…
Tanzania and Madagascar: campaigns for the future Madagascar Tanzania Leads identified and ranked, seismic planned Completed seismic interpretation of Ruvuma Basin for mid-2009 to coincide with weather window Prospect inventory…
Appendix 3 - Europe 2008 Half-yearly Results Slide 45
SNS Gas Basin: Adding value in a challenging market Market environment Strengthening gas prices in UK Contractor environment remains tight Onerous UK tax regime for gas Strong pricing refocusing capital towards UK 1H 2008 production…
Portugal: potential extension of Mauritanian play Overview 3 blocks in Alentejo Basin awarded in 2007 Tullow 80%, with 2 local Portuguese partners Basin is undrilled, oil shows encountered in wells in the onshore Lusitania Basin…
Appendix 4 South Asia 2008 Half-yearly Results Slide 48
South Asia: Reinvesting for growth A growth region for Tullow Region of growing energy demand Major high-impact exploration potential Relatively low-cost exploration/operations Limited competition for assets Developments to fund…
Bangladesh: strong production growth Overview Current energy demand is significant Established gas pricing provides stability Key Operational Highlights Block 9 - Bangora steady at 70mmscfd - Facility upgrade to 120 mmscfd and…
Pakistan: production growth and exploration Overview Production from Chachar and Sara/Suri fields Five exploration blocks Security issues have delayed exploration work High Impact Exploration Kohat seismic interpretation…
Appendix 5 South America 2008 Half-yearly Results Slide 52
Future significant high impact potential French Guiana Tullow operated offshore licence - 97.5% Licence contains substantial Matamata prospect and potential Jubilee look-alikes Currently seeking a farm-in partner and a rig…
Tullow Oil plc 3rd Floor, Building 11 Chiswick Park, 566 Chiswick High Road London, W4 5YS Tel: +44 20 8996 1000 Fax+44 20 8994 5332 2008 Half-yearly Results Slide 54
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