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SEPTEMBER 2006 US ROADSHOW – Oil Search Limited

Oil Search Limited · Sep 11, 2006 · 59 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 1
    OIL SEARCH LIMITED US Roadshow September 2006 1
  2. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 2
    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%…
  3. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 3
    Oil Search Where We Operate 3
  4. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 4
    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
  5. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 5
    PNG operating environment Laying the NW Moran pipeline SE Mananda bridge over Hegigio Gorge 5
  6. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 6
    Oil Search Where We Operate 6
  7. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 7
    Oil Search in Yemen 1 producing oil field (Nabrajah, Block 43) 6 concession areas (5 as Operator) Farm-in opportunities 7
  8. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 8
    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…
  9. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 9
    MENA operating environment Yemen landscape around Block 35 Al Ahkaf 1 well site Egypt Area A Pipeline 9
  10. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 10
    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,…
  11. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 11
    Achievements Net Production Growth 40,000 Kutubu Moran Gobe Main SE Gobe Hides Nabrajah SEM 35,000 +10% Post AGL +6% sale 30,000 +25% 25,000 +23% stb/d 20,000 15,000 10,000 5,000 0 2000 2001 2002 2003 2004 2005 1H…
  12. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 12
    Achievements Growth in Revenues 700 600 500 USm 400 300 200 100 0 2001 2002 2003 2004 2005 Jun-06 12
  13. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 13
    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 10 100 7.7 8 80 4.5 6 60 4 40 1.8 20 2 0 0 2001 2002 2003 2004 2005 1H 2006…
  14. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 14
    Control of Costs 1H05 1H06 Normalised PNG Oilfield US Costs per Barrel USm USm 8 Kumul Field Costs 1.31 7 - Oil: PNG 33.1 22.2 Tariffs - Oil: Yemen - 5.9 6 1.49 - Hides 1.4 2.3 Tariffs 5 0.75 Other Prodn Opex 4 Net - Oil…
  15. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 15
    Strong Balance Sheet US537 million in cash at 600 end June, no debt Cash Debt Gearing US126 million of debt % outstanding repaid in first 500 quarter 2006. US term 40 loan commitment converted to a revolver 400 Liquidity of…
  16. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 16
    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…
  17. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 17
    Growth - The Next Phase New Strategic Review underway Objective to more than double Company value by 2010 Starting from a position of strength Excellent asset base, with large discovered gas resource and quality exploration…
  18. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 18
    Growth - The Next Phase Focus for Growth Deliver Value Substantial remaining potential in PNG oil fields Further development in Yemen Cost controls and improved profitability Extract Value Commercialise our 1 billion boe gas and…
  19. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 19
    DELIVER VALUE 19
  20. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 20
    PNG production 20
  21. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 21
    PNG Oil Production Over recent years, Oil Search has PNG (Gross) been successful in slowing 80,000 decline curve from mature fields 70,000 Trend Before Potential Oil Production (stb/d) 60,000 Oil Search Strong performance…
  22. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 22
    Field-by-field update Kutubu Kutubu (Gross) 1H06 gross production averaged 50,000 45,000 17,462 bopd, 2.6% lower than in Oil Production (stb/d) 40,000 Trend Before 1H05. Strong performance given 35,000 Oil Search…
  23. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 23
    Field-by-field update cont. SE Mananda 10,000 SE Mananda (Gross) Field came onstream in late 9,000 Oil Production (stb/d) March 2006 8,000 7,000 Reservoir issues have meant 6,000 5,000 a downgrade in anticipated…
  24. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 24
    Field-by-field update cont. Nabrajah, Yemen Nabrajah (Gross) Production from Qishn and 14,000 Nabrajah-5 Basement/Kholan 12,000 Oil Production (stb/d) well averaged 10,398 bopd in 10,000 1H06 8,000 Expected to decline;…
  25. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 25
    EXTRACT VALUE 25
  26. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 26
    Gas Commercialisation Substantial change in oil and gas markets over past 3 years: Sustained high oil price Strong interest in gas development options Growing gap between world export pricing vs Australian East Coast energy…
  27. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 27
    Gas Commercialisation The Foundations for Value Extraction Oil Search gas resources and associated liquids total 4.5TCF and 200mmbbls (1 billion boe) Core resources at : Kutubu Hides / Angore Other fields Kimu / Uramu / Barikewa…
  28. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 28
    Juha Angore Pnyang Honinabi Major Oil and Gas Fields with Mogulu North Mogulu South Exploration Iehi Kimu Uramu Barikewa Pandora 28
  29. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 29
    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…
  30. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 30
    Gas Commercialisation Maximum Value to Oil Search Ideal scenario is three stage growth of gas business over next 6 years Optimises usage and value of resource (gas and oil) Leverages oil infrastructure Staged development PNG Gas…
  31. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 31
    PNG Gas Commercialisation 1st Phase Development 80.0 70.0 Production Net to OSH 60.0 (000 boed) 50.0 40.0 30.0 20.0 10.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil MENA Oil PNGGP Liquids PNGGP Gas 31
  32. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 32
    PNG Gas Commercialisation 2nd Phase Development 100.0 90.0 Production Net to OSH 80.0 70.0 (000 boed) 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil MENA Oil PNGGP…
  33. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 33
    PNG Gas Commercialisation 3rd Phase Development Significant production increase over 4 years 120.0 Production Net to OSH 100.0 (000 boed) 80.0 60.0 40.0 20.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil…
  34. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 34
    PNG Gas Commercialisation Excluding PNG Gas Project Able to double production through petrochemical developments 80.0 70.0 Production Net to OSH 60.0 (000 boed) 50.0 40.0 30.0 20.0 10.0 0.0 2006 2010 2014 2018…
  35. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 35
    PNG Gas Project Possible Pipeline Configurations 35
  36. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 36
    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 154 - 229 PJ/yr AGL 75 95 Alcan 43 Comalco 14 50.5 Queensland Alumina 12 -…
  37. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 37
    PNG Gas Project Partners reviewing ways of optimising returns in present cost environment Confirmation of gas offtake loads Confirmation of pipeline route and phasing Optimising infrastructure ownership and transportation…
  38. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 38
    PNG Gas Project Key project issues being worked to a conclusion in the short term Clarity of direction is required as there are other attractive options for gas development Without PNG Gas, material upward pressure on gas pricing…
  39. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 39
    Gas Commercialisation Preference to secure PNG Gas Project as first development Provides optimal base for sequential development Provides leverage of existing infrastructure and oil and gas integration The Kutubu / Hides quasi…
  40. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 40
    Petrochemical Supply and Infrastructure Methanol / DME - Mitsubishi / Itochu Seeking to convert existing ITA for 86 PJ/yr to GSA In final feasibility Sanction 1H 2007 Production 2010 Fertiliser / Ammonia - Oswal Industries…
  41. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 41
    LNG Development Options Strong market conditions for supply into Asia and North America ExxonMobil reviewing LNG potential Recently signed MOU with BG to explore LNG options: Focus on areas away from Hides / Kutubu World class LNG…
  42. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 42
    Juha Cycling Possible precursor to LNG development Juha cycling comprises: Development of Juha field Production of gas and associated liquids Stripping liquids from gas stream, sold as part of oil stream Re-injection of gas into…
  43. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 43
    CREATE VALUE 43
  44. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 44
    PNG Prospects Juha Appraisal 4Q 2006 Proposed NW Paua 1 2Q 2007 Proposed Mananda Attic 1 Proposed Mogulu 4Q 2007 4Q 2007 Arakubi 1 Kutubu Attic 1Q 2007 Usano Development 4Q 2006 Proposed Cobra 1 4Q 2007…
  45. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 45
    PNG Drilling Activity Extensive oil production, oil exploration, gas appraisal and gas exploration programme is underway OSHs rig strategy is to buy rigs, purpose-built for PNG. New rig scheduled to arrive in- country 2H 2007, and…
  46. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 46
    Juha Appraisal Existing gas discovery, 60 km north west of Hides Three wells drilled on structure in 1980s Juha A Two wells planned to Juha 3 Juha 2 commence in 4Q06 Juha 1 appraisal of Juha Juha B discovery exploration of…
  47. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 47
    Kutubu Attic Kutubu Anticline Kutubu 2 proposed Kutubu 1x 15km east of Iagifu/Hedinia fields 1000 Drilled in 1988 Reached reservoir well down-dip with good shows Subsequent seismic msl confirms substantial updip potential…
  48. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 48
    NW Paua SW Moran 4X NW Paua 1 NE Highly prospective anticline adjacent to MSL Moran 1000 Paua 1x well drilled 1996 2000 proved structure, 3000 reservoir and charge but 4000 2 km in complex forelimb 2005 seismic acquired by…
  49. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 49
    Arakubi Prospect Arakubi commenced drilling July 06, but encountered hole and rig problems. Re-spud pending rig repair, likely to be deferred into 2007 Located 5km east of Arakubi Kutubu, 2km from infrastructure May share…
  50. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 50
    Yemen Prospects Proposed Prospect B Proposed East Wadi Sana-1 4Q 2006 1Q 2007 NABRAJAH Proposed Shaibah-1 4Q 2006 Proposed Al Harsh-2 2Q 2007 Proposed Ataq-1 2Q 2007 Proposed Riyan-1 1Q 2007 Proposed Suad-1 1Q…
  51. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 51
    Onshore Yemen Drilling Block 43 (OSH 28.3%) New seismic will be used to mature next exploration target, with drilling expected to commence in 4Q06 Range of prospects, with mean reserves ranging from 10 50 mmbbls Block 35 (OSH…
  52. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 52
    Offshore Yemen Drilling Block 15 Masilah-1X Oil and Gas shows Sarar-1X Ras Ghashwah-1X Recovered 1700 litres 45 API oil from Recovered 38 API oil from Cretaceous sands fractured Eocene limestone Hami-1X Heavy oil &…
  53. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 53
    Oil Search in Egypt Area A (OSH 100%) Commencement of multi-well exploration programme scheduled for 4Q06 Pool sizes range from 5 20 mmbbl Shahd 1 Due to proximity to and capacity in Ghard 1 infrastructure, any discoveries can be…
  54. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 54
    Kurdistan region, Iraq OSH has acquired TURKEY Bina Bawi EPSA 20% interest in A & Zakhu Kurdistan T Petroleum, which Region holds 50% of the Mosul Bina Bawi EPSA in Kurdistan Kirkuk Option to convert to direct 10%…
  55. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 55
    Drilling Activity Summary, 2006/07 Up to 17 wells in PNG, comprising: 5 oil exploration wells 5 gas explopration/appraisal wells 7 development wells Up to 18 wells in Yemen, comprising: 9 exploration wells in Block 3, Block 35,…
  56. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 56
    Production Including Risked Exploration 60.0 50.0 Production Net to OSH 40.0 (000 boed) 30.0 20.0 MENA expln PNG expln 10.0 Hides GTE MENA Oil 0.0 PNG Oil 6 8 4 8 0 2 4 0 2 6 0…
  57. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 57
    Production Potential With Gas 160.0 140.0 Production Net to OSH 120.0 (000 boed) 100.0 80.0 60.0 40.0 20.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil MENA Oil Hides GTE PNG Risked Expln MENA Risked Expln…
  58. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 58
    Summary Oil Search well placed to deliver real value to shareholders Large discovered gas and liquids resource Range of commercialisation options Importance of alignment and control Core assets performing well Middle East…
  59. SEPTEMBER 2006 US ROADSHOW – Oil Search Limited – slide 59
    OIL SEARCH LIMITED 59

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