Non deal Asian road show Presentation materials February 2012 Non deal Asian roadshow presentation materials, February 2012
Afren plc Introduction and progress update www.afren.com Non deal Asian roadshow presentation materials, February 2012
Afren a leading independent upstream E&P company 29 assets in 12 countries; 1,026 mmboe 2P + 2C and 3,515 mmboe prospective upside NIGERIA Working Operated Asset Interest Partner by Afren KURDISTAN REGION OF IRAQ Okoro Setu 50.0%2…
Transformational growth Fast growth via acquisition and development since IPO in 2005 December 2005 January 2012 Market Value: US2,400 mm Market Value: US50m Production: 42,000 to 46,000 Kurdistan Production: Zero region of…
Our strategy Designed to deliver sustainable long term growth Target material 2P/2C additions Growing production (in line with historical acquisition 1 profile underpinning 2…
1 Track record of materially accretive acquisitions Continuing to deliver low cost barrels Focus on areas where Afren is strategically advantaged Low entry costs Proved working hydrocarbon systems US/bbl 10.0 9.0 8.0 Majors…
2 Strong production platform in place Full Year 2012E net production 42,000 to 46,000 boepd Group net working interest production 50,000 40,000 30,000 20,000 10,000 0 2008 2009 2010 2011 2012E Significant step…
2 Visible production growth within the portfolio today Only 8% of 2P/2C developed Net 2P & 2C recoverable reserves: Okoro 1,026 mmboe* First Oil achieved in 2008 Okoro East transforms outlook Okwok: 29 Okoro: 11 Ain Sifni: 8…
3 Targeted conversion of 2C to 2P predictable reserves generation A clear pathway to increase Afrens existing 2P reserves base in the near term Net mmbbls 400 Contingency: FDP submission Contingency: 350 Completion…
3 Organic reserves growth through exploration An attractive portfolio located across several highly prospective basins Ghana: 494 Nigeria: 530 Low risk, quick to monetise opportunities Proven play concepts, significant upside…
3 2012 work programme The most active work programme in Afrens history; multi-well exploration campaign underway Gross resources Number of E&A 2012 Group activity summary Country WI (%) Work Programme targeted mmboe wells…
4 Robust capital structure The financial flexibility to develop the portfolio and support growth Approximately US292 million* cash at bank end 2011 Cash generative portfolio cash flow in excess of forward capex Hedges in place for…
4 2012 capital expenditure Exploration is a key component; flexibility and discretion over spend retained FY 2012 capex spend US450 to US500 million Majority of capex 38% is discretionary Development 21% E&A Drilling Seismic…
Conclusions Well positioned for further growth In just over six years the Afren management team has acquired a portfolio of 31 Established track assets in 12 countries. Strategically: record - One of the first successful independents…
Afren plc Nigeria Production and Development www.afren.com Non deal Asian roadshow presentation materials, February 2012
Okoro field development Afrens maiden greenfield development project offshore south east Nigeria Okoro field (producing) Okoro East (new discovery) Ima field export terminal Slide 17 Non deal Asian roadshow presentation…
The Okoro field development The Okoro field - a successful technical and commercial precedent Located in OML 112 Partnered with Amni, an established indigenous oil and gas company Afrens maiden Green field development project…
Okoro field development Okoro field optimising production and maximising recovery; moving towards the 3P recovery case Actual field performance vs 2009 reservoir model 40 2.0 36 1.8 32 1.6 Field Oil Rate, STB/D (thousands)…
The Ebok field development Ebok - Afrens second greenfield development offshore south east Nigeria Partnered with Oriental Energy Resources The Ebok/Okwok/OML 115 area is located in a prolific oil producing part of the Niger…
Ebok field Building a new production hub offshore south east Nigeria Slide 21 Non deal Asian roadshow presentation materials, February 2012
Ebok field Operational update All wells associated with the initial development phases commissioned by December 2011 Performance in line with prognosis and production stabilised Production processing systems and crude offtake…
Ebok field Central wellhead platform after Transocean Adriatic IX rig moved from location Slide 23 Non deal Asian roadshow presentation materials, February 2012
The Ebok field development Phase 2 development drilling Slide 24 Non deal Asian roadshow presentation materials, February 2012
The Ebok field development Central and West Fault Block facilities configuration Slide 25 Non deal Asian roadshow presentation materials, February 2012
OML 26 A full cycle portfolio of assets onshore Nigeria Isoko Field 56km Ogini Field 63km East of Warri East of Warri Onshore Nigeria, Delta State 2 developed fields (Ogini and Isoko) 3 undeveloped fields (Aboh, Ovo and Ozoro)…
OML 26 Large scale production and development opportunity Acquisition of 45% interest through First Hydrocarbon Nigeria (Afren a 45% shareholder) completed 940 mmboe total gross reserves and resources Large scale re-development…
OML 26 Operating framework and capital requirements Afren will provide technical and operational management services to FHN under an agreed set of terms FHN will partner with NPDC in re-development of the block Full field…
Afren plc Kurdistan region of Iraq www.afren.com Non deal Asian roadshow presentation materials, February 2012 www.afren.com
Strategic entry to the Kurdistan region of Iraq Transferring a core production and development skill set developed in Nigeria Leverage strong development track record Early mover advantage Kurdistan region of Iraq Fast track,…
Kurdistan region of Iraq upstream activity map A renewed search for oil Regionally active operators include: Source: Shamaran Petroleum, Kurdistan Oil and Gas Activity, September 2010 Slide 31 Non deal Asian roadshow…
Afrens presence in the Kurdistan region of Iraq A large scale discovered, but undeveloped resource base with low risk / high volume upside Barda Rash PSC 60% operated working interest Independently certified gross 2C STOIIP 14,174…
The Barda Rash field development Three out of three wells have successfully found oil BR-1 well S N Successful drilling results BR-1 discovery well Spudded in April 2009 Drilled to 3,300 m depth Oil encountered from Cretaceous to…
The Barda Rash field development A clear forward plan to develop Barda Rash Tawke field export pipeline entry point 1,470 mmbbls total gross recoverable resources* Phase 1 Phase 2 Light Oil: 3% Khurmala export Light Oil: 1%…
Afren plc Exploration www.afren.com Non deal Asian roadshow presentation materials, February 2012 www.afren.com
Okoro East prospect Pursuing low risk / high reward near field exploration upside NNW SSE NNW DSTs underway Defined on good quality 3D Similar structural setting and comparable resource Basal Channel sand very fast Qua-iboe…
Okoro East prospect Pursuing low risk / high reward near field exploration upside Dip section with time slice illustrating underlying horst block below the Okoro East prospect NNW SSE Time slice at 2000 msec Ok-13A NNW Qua…
Okoro East Pre-drill expectations Pre drill Summary STOIIP for Okoro East P90 Mean P10 Okoro 19 47 86 Reservoirs Deeper targets 38 110 243 Unrisked Total 57 157 329 20 - 30% recovery factor Non deal Asian roadshow…
Ebok/Okwok/OML 115 area Exploration and appraisal drilling plans low risk, amplitude supported upside potential Seismic survey Ocean bottom cable, four component 3D seismic survey across whole area Advanced technology to further…
OML 115 Several prospects and leads have been identified at the upper levels Recent high quality oil discoveries near Ufon complex Etisong N-1 (2011) Ufon prospect Three reservoirs found. Exploration well H2 2011 Tested 8,500…
Ebok/Okwok/OML 115 area Significant remaining upside potential 508 mmbbls gross unrisked Ebok 2P resource potential 106.5 Large scale resource upside Okwok Contingent Only 21% of total area resource 51.8 potential reflected in 2P…
Exploring in the Kurdistan region of Iraq Drilling results are confirming potential; oil reserves are increasing Kurdistan region of Iraq awarded its first World class exploration success rate PSCs in 2003 - 36 awards made in total…
Ain Sifni Low risk opportunity to efficiently deliver large volume growth Exploration and appraisal highlights JS-2 exploration well spudded in Q4 2011 to test the western extent of the Jebel Simrit structure; possibility of putting…
Ain-Sifni Block, Kurdistan Ain Sifni Shaikhan - Jebel Simrit Betnaar Structures Located within a prolific and proven oil trend B Jebel Simrit-1 well Betnaar Data from Hunt Oil Middle East; interpretation from PetroTel Slide…
The West Africa Transform Margin An attractive acreage position in a prolific and emerging exploration fairway Block CI-11 (47.96%) Block CI-01 (65.00%) Keta Block (35.00%) OPL 310 (70.00%) (oil and gas production) (exploration &…
Keta block - Ghana Focused exploration in a high potential basin ENI farmed in for a 35% working interest; Afren retains a 35% working interest - Full carry through exploration well Large scale prospectivity identified - 1,412…
Keta block - Ghana The Cuda prospect geological setting S N Gravity-driven slumping of the Campanian section attributed to thrusting during the Maastrichtian Slide 47 Non deal Asian roadshow presentation materials, February…
OPL 310 - Nigeria Farm down process underway, high grade prospectivity identified Farm out process at advanced stage New electromagnetic data integrated with seismic Good definition on prospects and leads Drilling post…
East Africa An emerging oil and gas region with substantial potential Arabia Seychelles Plateau AFRICA en Yem Ethiopia Kenya INDIA SOUTH AMERICA Madagascar AUSTRALIA ANTARCTICA Ethiopian gas fields 4 tcf Southern…
Why explore in East Africa An under-explored opportunity set and early mover advantage Low relative drilling coverage West Africa 14,600 wells Central and North Africa 19,000 wells East Africa 480 wells Working petroleum systems…
Afren East Africa exploration activity summary Exploring east Africas rift systems Ethiopia Assets Blocks 2,6,7,8 30% Forward exploration focused on Blocks 7 & 8 Ethiopia 2 Kenya 6 7 Assets Blocks 1, 10A, L17/L18 50%, 20%,…
Blocks L17/L18 in Kenya and the Tanga Block in Tanzania Play opening opportunities at L17/L18 and Tanga Block Possible early success + early monetization Mombasa 1 million people Refinery Power stations Block L17 Ria Kalui-1…
Exploring the Kenya Tanzania coastal high Play opening opportunities at L17/L18 and Tanga Block Coastal Subsiding Fault Blocks Play Fairway Play Summary Trap: Regional NNW -SSE trending faults affect the entire sedimentary…
Exploring the Kenya Tanzania coastal high Play opening opportunities at L17/L18 and Tanga Block Exploration drilling planned for 2012 testing the costal area play offshore Exploration well on each of L17/L18 and Tanga Target…
Blocks L17/L18 - Kenya Hydrocarbons on Mombasas doorstep SW Mombasa lead NE Near Top Cretaceous TWT Structure Map L17 Kenya Mombasa New shallow water (0-20m) 2D seismic has E been acquired in the near-shore focus areas W…
Tanga block - Tanzania Attractive acreage contiguous with Kenyan blocks L17/L18 Miocene 10.5 Ma TWT Structure Map L18 Block 7,063 km2 licence covering onshore and offshore areas adjacent to Kenya L17/18 licence 10 km Southerly…
Tanga block - Tanzania Offshore expression of the coastal high trend SSW NNE 0.5 1.0 TWT (Seconds) 1.5 2.0 2.5 2km Slide 57 Non deal Asian roadshow presentation materials, February 2012
Kenya onshore Blocks 1 and 10A Play opening opportunities in the East African rift system Ethiopia Sudan Somalia Block 1 Block 10A Uganda CNOOC Q4 2009 Encountered 91m hydrocarbon pay in Cretaceous - Same basin as Block…
Kenya Block 10A Oil shows throughout the Cretaceous provide evidence of a working petroleum system Sirius 1 Oil Shows Lead B (Sirius updip) Lead C Lead D 4km Large faulted leads incorporate juxtaposition of proven…
Kenya Block 1 Large under-explored sub-basin continuous with the proved Ogaden Basin to the north El Kuran significant oil and gas shows Tarbaj Oil Seep Intra Oil in shallow water well Jurassic and Tarbaj-1 core Intra CNOOC…
Seychelles Areas A, B & C Several large scale prospects identified Several 100 mmbbl + leads in Afren Licences shallow and deep water X/Y: 200000 300000 400000 Meters Favourable fiscal regime Area B Area EAX acquired 3,637…
Seychelles Areas A, B & C Seismic data has reduced structural risk BMEL Licences X/Y: Meters Area 200000 300000 400000 Good reservoir and seals proven A 9500000 Area 9500000 Numerous large structural leads B in all 3 licence…
Seychelles Areas A, B & C Ongoing work continues to identify new potential S N 2 BMEL Licences X/Y: 200000 300000 400000 Meters 3 9500000 Area 9500000 Area B A 9400000 9400000 4 Seismic Survey 9300000…
Madagascar Block 1101 Large structures mapped close to existing oil occurrences Block 1101 200 km of seismic acquired in 2008 Antsiranana Deep Water Port 3 major structures mapped close to existing well with oil shows Evidence…
Madagascar Block 1101 Large structures mapped close to existing oil occurrences Top Isalo depth structure based on field mapping Ambilobe-1 Well Oil shows in the middle Jurassic C Isalo sands not reached Potential Drilling…
Blocks 2,6,7,8 - Ethiopia A proven working hydrocarbon system in the Ogaden Basin South Lead Central Lead Petronas Calub and Hillala Gas fields Mid Hamaneli 4 tcf oil zone Adigrat Formation El Kuran-1 and -2 wells…
Afren plc Appendix www.afren.com Non deal Asian roadshow presentation materials, February 2012 www.afren.com
Independent valuation of Afrens 2P reserves Current market valuation underpinned 63% by NSAIs last independent 2P reserves valuation* US2,400 mm US1,519 mm CdI US25 mm Okoro 246 mm Ebok US1,248 mm 2P NPV(10)…
Company Net Asset Value US mm Risked NAV* US mm Un-risked NAV* 6,000 18,000 16,000 5,000 14,000 4,000 12,000 10,000 3,000 8,000 Current market value 2,000 6,000 4,000 1,000 2,000 0 0 * Source: Last…
Loading...
