Skip to main content SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited Investor Presentation | Shale Experts
Loading...
Pm

SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited

Oil Search Limited · Mar 5, 2003 · 43 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. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 1
    Summary of 2003 Production & Development Strong production Probable 2003-2004 Activities outlook Conduct operating cost review and commence implementation Complete technical limit drilling study initiative & implement with continuous…
  2. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 2
    Exploration Review
  3. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 3
    2002 Activity Summary Exploration Program In 2002 the companys exploration field activity was restricted to the drilling of 2 wells & seismic in PNG over the NW Moran & SE Mananda area & a major 3D program in Yemen Exploration…
  4. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 4
    Bilip 1 oil & gas discovery is marginal but highlights potential for string of small discoveries along trend from SE Gobe SE Gobe Saunders-1 13m oil column penetrated in Iagifu Sandstone Bilip-1 GOC and OWC constrained In-place…
  5. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 5
    Near Field Drilling Opportunities 03-04 With Near Term Reserve & Production Growth Potential NW MORAN 20- 40mmbbls Spud 2Q 03 NW PAUA 150mmbbls MANANDA ATTIC 86mmbbls MANANDA FW 253mmbbls SE MORAN SE MANANDA…
  6. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 6
    Yemen Block 15 3D Survey 1988km2 completed Dec 2002 to mature leads for multiple well program in 2004 TOTAL: 28,000bopd Block 15 Leads NEXEN: 230,000bopd 18 Leads 5 leads 100 200mmstbo 4 leads 300mmbo Sarar-1X Recovered 1700…
  7. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 7
    2003 Exploration Program - PNG Oil Search will participate in 4 firm exploration wells in PNG in 03 Prospect Oil Search % Unrisked Gross Timing Reserves (MMBO) Bosavi-1 23% 120-170 Feb 2003 NW Moran-1 47% 20-40 2nd Q 03 SE Moran-1…
  8. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 8
    SE Mananda NW Moran NW Paua SE Moran Saunders Bilip Appraisal Arakubi Bosavi-1 2003 Programme Kapul-1 & Drilling Opportunities Bigpela
  9. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 9
    KAPUL 1 : to spud 4Q 2003 Permit: PPL227 Reserves: 80-120mmbo OSH Interest: 70% PN91-117 PN91-122
  10. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 10
    2003 Exploration Program - International Yemen Block 15 Activity will focus on the interpretation of the 2002 3D seismic leading to the delineation of 2004 drilling candidates Oil Search has been approached by a number of companies…
  11. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 11
    Block 15 diverse play types & structural development Omega Sharmah-1X Ras Ghashwah Delta Hami-1X Beta Sigma Sigma Beta Gamma The western area has structural leads with potential recoverable reserves of 100-300mmbo
  12. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 12
    Block 15 Miocene basin-floor fan complexes Masilah-1X LEAD 3 Basin Floor Fan Lead 3 Y01-15-115 Lead 3 Y01-15-115 The eastern sector contains stratigraphic leads with potential reserves 400 mmbo directly analogous to…
  13. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 13
    Block 35 Highly prospective & in close proximity to 1Bn Barrels reserves & 280,000bopd production from Nexen, Total & DNO Block 44 Block 35 Block 52 Qabar Hood Block 53 16N Block 10 Wadi Sana Block 32 Block 14 Block 43…
  14. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 14
    2003 Exploration Objectives Pursue a strategy that results in the company participating in at least 5 exploration wells per year Evaluate and implement options to increase production in its existing developments (esp. Moran) Establish…
  15. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 15
    Gas Commercialisation
  16. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 16
    PNG Pipeline Project Developers completed market review post AGLs decision not to take PNG Gas as a foundation customer. Sufficient market potential exists to underwrite Project development in Northern Australia, Queensland and Southern…
  17. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 17
    PNG Pipeline Project Committed Conditional Agreements TXU Southern States CS Energy South Queensland MIM Northern Territory Other Major Potential Customers Alcan, PAWA Northern Territory Mt Isa Energex,Comalco, QAL, Incitec, etc.…
  18. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 18
    PNG Pipeline Project Total Volume Committed 60-75PJ/year Total Volume Required for FEED 100-150PJ/year Dependent on customer quality and commitment FEED threshold clearly within reach
  19. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 19
    PNG Pipeline Project Progress in past 12 months: Upstream Agreements/PNG Legislation in place Workable Upstream Partner Agreements in place Credible financing plan for State participation Conditional Sales Agreements in place…
  20. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 20
    PNG Pipeline Project AGL decision a set back prior to major decision on FEED Project was working to year end 2002 timetable for FEED Decision based on timing of delivery and certainty Conundrum Project certainty requires commitment
  21. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 21
    PNG Pipeline Project Impact of AGL Decision Required Developers to review market size and distribution NT and Queensland markets now operating in restricted supply environment Major engineering work now completed in preparation…
  22. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 22
    PNG Pipeline Project Impact of AGL Decision PNG gas penetration of southern customers limited in 2007-2010 timeframe Clearly results in higher gas prices for southern consumers and less competition Trade-off of price vs timing and…
  23. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 23
    PNG Pipeline Project Pre-FEED Engineering Highlighted viability and do-ability of development programme, with lower cost and greater flexibility Preferred option to build gas processing plant onshore, with a number of sites being…
  24. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 24
    PNG Pipeline Project Pre-FEED Engineering Involves simple development of Hides contemporaneous with Kutubu Kutubu, Moran, Gobe and Hides producing over 400 mmscfd, with proven production record and reserve backing Involves NGL…
  25. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 25
    PNG Pipeline Project Pre-FEED Engineering and Commercial Analysis Provided comprehensive review of pipeline routes and cost structure Can only be finalised by market definition Confident on process and viability
  26. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 26
    PNG Gas Pipeline Options Darwin Gove Weipa Darwin Gove McArthur Gove Townsville Darwin Weipa River Weipa Mt Isa Amadeus Basin Gladstone McArthur McArthur River Townsville River Townsville Mt Isa Ballera Mt Isa Moomba…
  27. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 27
    PNG Pipeline Project Present Focus Pre-FEED engineering work largely completed documentation underway Intense marketing efforts to secure required customers for FEED Customers in Queensland, Northern Territory & Southern States
  28. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 28
    PNG Pipeline Project An Oil Search Perspective Totally committed to fully test viability of Project Clearly the best option for PNG, for industry development underscoring economic growth Clearly the best option for Australia…
  29. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 29
    PNG Pipeline Project An Oil Search Perspective Reviewing all options to commercialise large gas volume A number of complementary options identified Clear commercial pressure to move forward to develop resource ASAP
  30. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 30
    Gas Commercialisation Options Liquid stripping project based on Hides resource a viable commercial option - Development possible 2005-06 Other options being reviewed Southern industry hub utilising Kimu / Uramu gas reserves OSH,…
  31. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 31
    Strategic Review Summary
  32. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 32
    2002 Activity Summary Following the merger a detailed & independent analysis of the companys exploration portfolio was undertaken. The purpose was to: 1. Establish the growth potential within the companys existing assets 2. Determine an…
  33. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 33
    2002 Activity Summary The analyses confirmed that: 1. Oil Search P & L portfolio contained 67 leads with a positive EMV of which 10 are considered drillable status 2. The commercial success rate in PNG since 1990 is 16% (ie approx 1…
  34. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 34
    2002 Activity Summary The analyses confirmed that: 5. An exploration budget in the order US30mm is appropriate for a company of Oil Searchs size & revenue 6. Oil Search equities in some areas need to be rationalised to improve…
  35. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 35
    2002 Activity Summary The analyses indicated opportunities are NOT an impediment & that the principal concerns in achieving an active program in PNG relate to: 1. Oil Search not controlling its core asset base & 2. The high cost of…
  36. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 36
    2002 Activity Summary Oil Search subsequently has developed and commenced strategy to gain greater influence on its core asset base and to pursue dramatic cost reductions in PNG through: 1. Implementing Technical limit drilling…
  37. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 37
    Outlook 2003 & 2004
  38. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 38
    Outlook 2003 and 2004 Continued pursuit of Strategic Review Initiatives Production Outlook looks strong, with growth in 2003 and 2004 and additions in 2005 figures dependent on field performance, well and workover timing Production…
  39. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 39
    Outlook 2003 and 2004 PRODUCTION GROWTH Upside to come from further Moran extensions / optimisation, NW Moran, SE Moran, etc and facilities improvement Flow on to profits, subject to oil prices
  40. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 40
    Outlook 2003 and 2004 Focus on Core Profitability Material potential cost savings have been identified in operations and drilling Minor impact in 2003 but realisation of savings in 2004 Company in excellent position to revise…
  41. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 41
    Outlook 2003 and 2004 Exploration Focus on drilling cost reduction Delivery of sustainable drilling programmes Mananda and Moran appraisal Measured new venture activities Exploration Budget US33million
  42. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 42
    Outlook 2003 and 2004 Gas Commercialisation Commercial closure of PNG Pipeline Project Development of other/ complementary options: Liquid stripping, CNG small scale LNG, Methanol
  43. SUMMARY OF 2003 PRODUCTION & DEVELOPMENT – Oil Search Limited – slide 43
    Summary Strong profit and cashflows with production growth Balance Sheet strength and capacity to grow Control and pervasive influence on business with cost and profitability goals Exploration activity in PNG and elsewhere Gas…

From the store

Browse maps, data & reports in the Shale Experts store