Skip to main content MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited Investor Presentation | Shale Experts
Loading...
Pm

MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited

Oil Search Limited · May 28, 2004 · 60 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. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 1
    2004 AGM 28 May 2004
  2. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 2
    Summary Operatorship starting to deliver: Production : Performance improving : Moran optimisation continuing : NW Moran and SE Mananda in FEED Revenues : Benefiting from high oil prices Reserves : Strong reserves position…
  3. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 3
    A Core Value of Oil Search Safety, People and the Environment First An uncompromised focus on World Class HSES performance will be the foundation for growth in all areas of business The company recorded outstanding safety…
  4. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 4
    2003 Highlights Core Operating Profit (After Tax) of US89.6m (A137.3m) 62% higher than 2002 A Record for the Company Profit After Tax (after exploration write- offs and capital profit) was US85.7 million (A131.3 million) 82% higher than…
  5. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 5
    2003 Highlights Strong result based on: Oil and Gas Production 10.29 million boe (up 24%) Oil price US 29.80 (up 20%) Gold price US361 per ounce (up 13%) Balance Sheet strengthened Gearing 10.3% US 1 cent Dividend and US 1 cent…
  6. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 6
    2003 Highlights Purchase of ChevronTexacos oil and gas assets in Papua New Guinea Done at a very attractive price Significant addition to oil and gas reserves Took over operatorship of all oil and gas fields in PNG Able to control…
  7. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 7
    2003 Highlights Gas Commercialisation Strategy to bring Pipeline Project to a commercial decision Revised development plan with improved economics Progress on other development options
  8. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 8
    Financial Summary Nigel Hartley
  9. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 9
    2003 Results USM 2003 2002 Revenue 358.2 51% 237.0 Field Costs 90.3 57.1 Other Costs 27.3 18.8 Exploration w/o 12.5 14.0 EBITDA 228.1 55% 147.1 Net Amortisation 64.3 56.3 11.7 A 8.3 A EBIT 163.8 81% 90.7 (7.7 US ) (4.5 US )…
  10. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 10
    0 100 200 USm 47.0 2002 Result 36.0 Oil Price Oil Sales 55.6 11.6 Gold Cont. Oil Field 23.9 Costs 4.1 Admin 8.0 Amortisation Finance 3.8 Costs 5.8 Other 30.6 Tax 2003…
  11. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 11
    Core Operating Profit After Tax US89.6m profit 62% higher than 2002 90 USM 89.6 80 70 60 50 55.2 40 30 20 10 17.6 0 2001 2002 2003
  12. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 12
    Financial Outlook Profit guidance Operating cost guidance Treasury outlook
  13. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 13
    Profit Guidance Based upon budgeted production (10.5mmbbl), and average oil prices of US31/bbl for the balance of 2004, core after tax profit should be higher than the 2003 core results of US89.6m For every additional US Dollar on…
  14. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 14
    Operating Cost Guidance Actual Outlook 7 USM 2003 2004 6 Field Costs 61.8 65.9 5 Other Operating 7.6 9.6 Field 4 Field Site Restoration 6.0 7.5 Costs 3 Costs Administration 13.4 11.6 6.75 2 6.43 Hides/Minerals 31.5 5.6 1 FX…
  15. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 15
    Treasury Outlook Gearing 250 % 200 30 150 Debt 20 Cash 100 Gearing 10 50 0 2001 2002 2003 Apr-04 US157m in cash at end April, debt at US192m Gearing below 5% based on unaudited figures US2c (US21.6m) dividend, paid 11 May No…
  16. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 16
    Operational Overview
  17. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 17
    Operational Overview Oil Production 9.400 mmbbls +23% (25,754 BOPD) Gas Production 5.3BCF +29% (14.6 mmscfd) Total BOE 10.35 mmBOE +24% (28,352 BOEPD) Oil Production in PNG 47,809 BOPD +4%
  18. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 18
    Net Production Net production of 10.35mmboe 24% higher than 2002 12 mmboe 10 10.35 11.0 8 8.34 6 7.18 4 2 0 2001 2002 2003 2004
  19. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 19
    PNG Licence Map Oil Search now owns over 70% of oil reserves and over 50% of discovered gas
  20. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 20
    PNG Licence Map Oil Search is the largest investor in PNG responsible for 20% of export revenues and 14% of GDP
  21. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 21
    PNG Licence Map Oil Search has a strong commitment to develop natural resources - Oil and gas -People
  22. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 22
    Moran Development Full development taking place Complicated field Production rate now increasing Slower than anticipated but getting there Facilitated by : Gas Flaring Flexibility : Moran 6 Production Test : Moran 10 tie in
  23. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 23
    Oil and Gas Reserves Core value of the company Fully independent reserve audit recently completed Proven oil reserves increased by 10.8 million bbls or 14% (after production) to 86.4 million bbls Proven and probable increased by…
  24. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 24
    Oil and Gas Reserves 1P + 2P Net production of 10.35mmboe 24% higher than 2002 mmboe 140 120 134.6 100 118.0 80 89.7 8 6 .4 60 7 5 .6 6 0 .2 40 20 0 2001 2002 2003 1P Reserves 2P Reserves
  25. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 25
    Oil and Gas Reserves Reserve additions done at highly competitive cost Company has added : 239% of proven oil reserves at US5.08 per bbl (after deducting production over past 3 years) 306% increase of Proven and Probable reserves…
  26. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 26
    Development
  27. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 27
    Development Core to Growth Company presently developing two oil fields with two others under review NW Moran (new discovery) SE Mananda Under review Nabrajah (Yemen Block 43) Saunders
  28. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 28
    NW Moran Locality MANANDA HEGIGIO ATTIC GORGE MANANDA FOOTWALL NW MORAN SE MANANDA MORAN AGOGO CPF MORAN PIPELINE KUTUBU CPF
  29. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 29
    NW Moran Development underway Initially through Extended Well Test to assets reserves Linked by pipeline to Agogo Facilities On production 2004 / early 2005
  30. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 30
    NW Moran Proposed Pipeline Route Proposed NW Moran Pipeline
  31. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 31
    SE Mananda Discovered 1991 uneconomic under CT cost base Project in Front End Engineering and Design prior to full project sanction Production tied to Agogo Facilities First oil mid 2005
  32. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 32
    SE Mananda Locality MANANDA HEGIGIO ATTIC GORGE MANANDA NW MORAN FOOTWALL SE MANANDA MORAN SE MANANDA PROPOSED PIPELINE AGOGO CPF MORAN PIPELINE KUTUBU CPF
  33. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 33
    SE Mananda Field Development Project
  34. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 34
    SE Mananda Field SE Mananda 2X SE Mananda 1X
  35. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 35
    Yemen Acreage
  36. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 36
    Block 43 Location NABRAJAH
  37. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 37
    Block 43 - Prospect C4 Depth Structure Prospect C4 Nabrajah
  38. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 38
    Block 43 Nabrajah-1 Oil Searchs first non PNG discovery Further appraisal with 2 wells 3Q 2004 Close to existing infrastructure Planned production end 2005
  39. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 39
    More Life in Our mature Fields Development and appraisal activity continues at Kutubu, Moran and Gobe Facility optimisation, well workovers Appraisal drilling at Kutubu testing significant reserve potential
  40. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 40
    Kutubu Field IDT 10 IDT 1 IDT 9 -1 30 0 Iagifu 6xST Iagifu 4x Iagifu 6x IHT 3 Hedinia 7x IDT 8 IDD 1 IST 1 -1 -13 10 IHT 2 0 00 -1 IDT 7 00 IST 2 0 -9 IDD 4 00 IHT 1A 00 -8 Hedinia 3x -11 IDT 6…
  41. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 41
    Kutubu Field Gas Cap Movement Main Block Toro A Main Block Toro A Gas Cap Movement Original Gas Cap Original Gas Cap Current Oil Band Current Oil Band Gas Invaded/Swept Area
  42. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 42
    Kutubu Field Iagifu 6X IDT9 Iagifu 4X Toro Formation ST2 Iagifu Formation
  43. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 43
    Gas Commercialisation
  44. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 44
    Gas Commercialisation Oil Search working on six development options to bring to commerciality: Pipeline to Australia Methanol Project Compressed Natural Gas Pipeline to North Coast and Petrochem Development Pipeline to Port…
  45. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 45
    Reserves Distribution Oil Reserves 170mmbbls - OSH 70% - EM 18% - MRDC 3% Gas Reserves 12 TCF - OSH 54% - EM 30% - MRDC 3% (PNG Govt Back in to Hides)
  46. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 46
    PNG Oil & Gas Production Outlook 2004-2020 150,000 Gross Production (boepd) 100,000 Includes NW Moran and SE Mananda 50,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020…
  47. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 47
    PNG Pipeline Project Remains the best option for gas development Pipeline to Australia / Hides Cycling Project and Hybrid Most mature and realisable project Maximises value of oil and production facilities Underscores revenues for…
  48. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 48
    PNG Pipeline Project Oil Search strategy to bring this project to a decision on Front End Engineering and Design (FEED) as soon as possible Recent discussions with ExxonMobil have agreed a common way forward Final FEED decision…
  49. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 49
    PNG Pipeline Project Total 650mmscfd Gas Production HIDES facilities production Full Condensate Recovery Multiphase 600mmscfd pipeline KUTUBU CPF Oil production & 165mmscfd gas AGOGO CPF Additional condensate oil up to…
  50. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 50
    PNG Gas Commercialisation Other Options Initial Hides Cycling Project A first step Methanol Development Mitsubishi Gas Chemical - Itochu Joint Venture High graded development potential and unproved ranking Moving to detailed…
  51. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 51
    PNG Gas Commercialisation Other Options CNG Export and local use Fertiliser Plant in conjunction with other developments In country pipeline options
  52. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 52
    Gas Commercialisation Summary Decision on FEED for Pipeline Project now essential Alignment between parties and progress on final issues Core objective to bring one gas development to FEED in 2004 Material impact on value of Company…
  53. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 53
    Exploration
  54. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 54
    Exploration Significant acceleration of exploration activity in PNG and the Middle East In PNG Kapul 1 APPL240 Iehi 1A PPL190 Arakubi 1 PDL2 In Yemen Nabrajah 2 & 3 Block 43 C4 Prospect Block 43 East Tawilah Block 43 Other wells in…
  55. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 55
    Value Optimisation
  56. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 56
    Value Optimisation Ongoing major review of operating cost base in PNG operations Significant reduction in operating and administration costs in 2004 Material reduction in drilling costs targeted with Rig 2 upgrade Contract…
  57. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 57
    Oil Search Community Projects Major community and staff health initiatives Improve basic health in project areas Baseline analysis of prevalence of major diseases; aids, hepatitis, TB Continue malaria eradication programmes…
  58. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 58
    Summary Company in excellent position to add value: Production to grow in 2004 to around 10.5 million barrels Operatorship starting to deliver increased profitability Accelerated development programmes Gas Commercialisation being…
  59. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 59
    Summary Company benefiting from high oil prices and increased production Very strong Balance Sheet and Cashflow to support growth initiatives in development, exploration and gas commercialisation Continued outlook for strong 2004 profit
  60. MAY 2004 ANNUAL GENERAL MEETING – Oil Search Limited – slide 60

From the store

Browse maps, data & reports in the Shale Experts store