2013 ANNUAL RESULTS PRESENTATION // 27 February 2014
Agenda Introduction, Highlights, Production Simon Lockett Business Units review Robin Allan Exploration update Andrew Lodge 2013 financial results Tony Durrant Summary / Outlook Simon Lockett 27 February 2014 // Page 2
Introduction ...our strategy is to invest in high-quality developments whilst maintaining balance sheet strength... Premier today Going forward Robust cash flow and profitability The Board will: 800 mmboe reserves and resources…
Highlights Production currently 4 kboepd ahead Strong and rising cash flows of of budget 833m (808m*) Dua, Pelikan and Naga expected Cash of 449m (187m*) in 2014 Facilities increased to 1.2bn Solan progressing towards (900m*)…
Production Delivery capacity is the lower of field well capacity, facilities capacity or the expected market demand for output Operating efficiency is the actual production rate divided by the delivery capacity 27 February…
Business Units review
North Sea Production 14.9 kboepd (2012: 12.1 kboepd) Strong production from Wytch Farm and Scott/Telford Huntington production reached 35 kboepd Development Solan, Catcher and Bream Kyle redevelopment due on-stream in Q3 2014 55m…
North Sea Solan Development drilling Reservoir reached on prognosis Pressure data indicates good reservoir connectivity 2nd phase of drilling to start in April 2014 Jacket in Methil, Scotland Platform and subsea Tank, topsides and…
North Sea Catcher First oil 2017 Capex 24/bbl 2P reserves of 92 mmboe Upside of 140 mmboe Development drilling starts 2015 Rig and well systems contracts awarded Update Field Development Plan submitted to DECC, project budget to…
North Sea Bream Area Development concept Bream 2C resource estimate: 70 mmboe Mackerel Mackerel 17km tie-back to Herring Bream FPSO Herring prospect upside potential Key milestone Year-end partner sanction decision 27…
North Sea looking forward Optimise levels of operating efficiency Rising cash flow from new developments returning 20% IRR Maximize the benefit of our UK CT losses and allowances of 2.3bn Exploration reduced to a smaller number of…
Pakistan Production Kadanwari 14.9 kboepd (2012: 15.6 kboepd) Gas demand and cash flows remain strong Improving recovery Infill wells established new zones in Badhra, Bhit and Kadanwari Adding compression at Badhra, Bhit and…
Vietnam West Telesto on Dua Production and development 2 year payback 14.1 kboepd (2012: 15.2 kboepd) Reduced due to gas export pipeline damaged by 3rd party Year to date production of 18 kboepd (net) 6/bbl premium to Brent oil…
Indonesia Production Singapore demand remains above minimum contract volumes 13.7 kboepd (2012: 14.2 kboepd) Average price of 17/mcf achieved (GSA1) Contractual share increased to 39.4% Year to date actual 47% Development…
Falkland Islands Sea Lion Concept selection highlights Tension leg platform with permanent drilling rig selected Minimal subsea infrastructure Better economics than a new build FPSO scheme Phased development Phase 1 recovers 293…
Exploration
2013 exploration results 6 discoveries from 7 exploration wells Luno II and Matang 40 mmboe of resources added Finding costs 5.3/boe (pre-tax) 800 mmboe unrisked prospective resources added Brazil and onshore Kenya North…
2014 indicative exploration drilling programme 5 high impact wells planned 27 February 2014 // Page 18
Indonesia Kuda/Singa Laut 2 wells planned to drill the Kuda Laut Kuda/Singa Laut prospect Kuda Laut is a four way dip closure targeting Miocene sands Singa Laut is the adjoining Singa Laut three-way structure with reservoirs in…
Indonesia Lama play Proven by Premiers Anoa Deep in 2012 17mmscfd Identified look-a-like opportunities from shows in existing wells 5 prospects and leads Ratu Gajah Q1 2014 Anoa Deep appraisal Q4 2014 Gross prospective resource…
Indonesia Ratu Gajah well Originally drilled in 1984 not flow tested Ratu Gajah-1 proposed location Gas readings, high resistivity and mud losses, Babar-1 same as Anoa Deep Ratu Gajah East prospect Similar in Babar-1 and Koko-1…
Norway Luno II Luno II North Luno II Central Luno II S. (Prospect) 16/4-6 Luno II 16/5-5 appraisal First oil discovery on south west margin of Utsira High Luno II Central segment to be Balder Top Chalk BCU appraised in Q2 2014…
Norway Mandal High Built on acreage position around Mandal High 20% equity in PL663 2013 70% and 50% in PL725 and PL726 2014 Drill or drop options 500 mmboe of gross unrisked prospective resources Myrhauk Rig contracted; spud Q4…
Kenya Southern Anza Basin Over 9 bnbbls discovered in the Muglad, Albertine and Lokichar Basins Look-a-like plays identified in the Anza Basin Farmed into Block 2B to drill the Badada prospect 55% equity Targeting Tertiary…
Brazil exploration new country entry Under-explored, emerging plays in proven deep water basins offshore NE Brazil Plays targeted are above and within Cretaceous rifts Access to 1 bnbbls unrisked gross resources Awarded 3 blocks…
Falklands high impact drilling in 2015 Lower F2 amplitude extraction F3G amplitude extraction High quality dataset Unrisked mean gross prospective Sea Lion resource of 1bn bbls (250 mmbbls fan outline risked) Four E&A wells to be…
Exploration business model Focus on high Drilling in Indonesia, Kenya and Norway in 2014 impact Maturing prospects across Brazil, Kenya, Iraq, Vietnam opportunities in and Norway for drilling in 2015/2016 emerging plays Falklands…
2013 Financial Results
Income Statement 12 months to 12 months to Highlights 31 Dec 2013 31 Dec 2012 Operating costs (US/bbl) 57.7 2013 2012 Working Interest production (kboepd) 58.2 UK 43.3 41.9 Entitlement production (kboepd) 52.4 51.6 Indonesia 10.9…
Cash Flow Statement 12 months to 12 months to Highlights 31 Dec 2013 31 Dec 2012 m m Capital expenditure (m) Cash flow from operations 1,061 1,041 2013 2012 Taxation (228) (233) Exploration 207 187 Development 658 569 Operating…
Liquidity and balance sheet position At 31 Dec 2013 At 31 Dec 2012 Repayment of drawn facilities USm USm and committed LCs Cash 449 187 Bank debt (686) (500) Bonds and loan notes (992) (578) Convertibles (224) 1 (220) Net…
Forward Financial Profile The business is managed using 85/bbl base case Asset cash flows supplemented by disposal programme Discretion around exploration spend / unsanctioned projects Self-imposed covenant headroom / maximum gearing…
Outlook
Outlook Maintaining financial strength, flexibility Cash Flows (Current Oil Prices) and growing cash flows Dua, Pelikan, Naga and Solan on-stream Catcher JV sanction; Bream sanction decision Sea Lion partner prior to sanction Key…
Appendix
End 2013 2P reserves and contingent resources Falkland Pakistan & Indonesia Norway UK Vietnam Total Islands Mauritania 2P Reserves On production - 34.5 - 19.6 37.4 24.3 115.9 Approved for - 22.7 - 2.6 30.0 9.1 64.5 development…
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