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2005 HALF YEAR EARNINGS CALL – Oil Search Limited

Oil Search Limited · Aug 23, 2005 · 56 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. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 1
    OIL SEARCH LIMITED 2005 Half Year Results 23 August 2005 1
  2. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 2
    Programme Overview Peter Botten Financial Results Nigel Hartley PNG Activities Update Mark Wilson Middle East / North Africa Jon Pattillo Gas Commercialisation Peter Botten Outlook Peter Botten 2
  3. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 3
    2005 Half Year Results 3
  4. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 4
    Overview Continued world class safety performance Record profit of US63.9m 53% increase Strong production performance At three year high Mature fields performing well Kumul production deferral recovered Record oil prices Costs…
  5. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 5
    Overview Other highlights of 1H 05 Major progress on PNG Gas Project Indicative customer loads over 200PJ/a FEED advancing : no surprises AGL sale brings long term alignment Other development options being matured First production…
  6. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 6
    Overview First Half 2005 TSR of 71.7%, ranking Oil Search No.3 in ASX 200 In recognition of first half performance, Board has increased interim dividend from US one cent to US two cents per share 6
  7. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 7
    Share Price Performance 500 450 400 Relative Performance Index OSH ELECTED 350 OPERATOR OF ASSUMPTION OF PNG OIL FIELDS OPERATORSHIP 300 & ACQUISITION CPS OF CT ASSETS GAS 250 CONVERSION PROJECT FEED STRATEGIC 200…
  8. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 8
    2005 Half Year Results 8
  9. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 9
    1st Half 2005 Results USm 1st Half 1st Half 2004 2005 EPS Operating Revenue 170.9 37% 233.4 Operating Expenses (31.4) (35.8) Other Net Costs (9.0) (9.3) EBITDAX 130.5 44% 188.3 Amortisation/Depr (32.5) (36.2) Exploration…
  10. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 10
    1H 2005 Profit Drivers 125 69 100 (12) (5) (3) (3) 75 USm 16 (25) 50 14 64 25 42 0 s n e 04 05 x x p le ic io Ta pe Ex 20 20 Sa Pr at O or tis il 1H…
  11. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 11
    Revenue Growth USm 250 200 150 Minerals 100 Oil 50 0 1H 1H 1H 1H 1H 2001 2002 2003 2004 2005 43% CAGR over last four years Oil revenues up 37% on prior 1st half Realised oil price: US53 (1H04: US36.18) 11
  12. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 12
    Cash Operating Expenses 1H 2004 1H 2005 USm US/bbl USm US/bbl Oil Field Costs per Barrel Field Costs 9 - Oil 27.5 6.33 33.1 8.04 8 - Hides 2.8 1.3 Kumul, 1.30 7 Other Prodn Tariffs, 6 Tariffs, 1.48 Opex 1.29 5 - Oil 4.1…
  13. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 13
    Net Profit After Tax USm US cents 90 6 5.7 80 5 70 60 3.7 4 50 3.2 3 Net Profit 40 63.9 Expln Exp 30 1.8 2 41.7 EPS 20 36.5 1 10 17.9 0.2 3.2 0 0 1H 01 1H 02 1H 03 1H 04 1H 05 Net profit up 53% on restated…
  14. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 14
    Cash Flows USm 1st Half 1st Half 2004 2005 Operating 136.1 167.4 Investing Exploration/Development (38.6) (101.8) Other 25.4 (8.6) Financing Dividends (22.3) (33.5) Debt Repaid (16.0) (21.0) Other - (4.8) Net Cash Movement…
  15. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 15
    Treasury Review 250 Gearing % 200 40 150 30 Debt Cash 100 20 Gearing 50 10 0 2002 2003 2004 Jun-05 US208 million in cash at end June, debt at US147million Liquidity of over US300 million, including undrawn committed…
  16. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 16
    2005 Half Year Results 16
  17. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 17
    Oil Search Production 2005 Half Year % Change % Change from 1H from 2H 04 04 Net Oil & 5.090 MMbbls Condensate -1.3% +2.3% Production (28,121 BOPD) Wet Gas 2.73 BCF -1.0% -0.7% Production (15.1 MMscf/d) 5.544 MMboe Total…
  18. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 18
    Oil Search Production 2005 Half Year PNG Gross Oil Production PNG production adversely 80,000 affected by Kumul terminal 70,000 60,000 shutdown in February and Oil Rate (stbo/d) 50,000 March, though partially…
  19. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 19
    2005 Kutubu Update Summary 50,000 Potential 45,000 Forecast Fields have responded well to 40,000 History Trend Before Oil Search intense engineering effort 35,000 Oil Rate (stbo/d) 30,000 Current Kutubu production levels…
  20. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 20
    2005 Gobe Update Summary 40,000 SEG Wedge 35,000 Gobe Main and SE Gobe are SE Gobe mature assets 30,000 Gobe Main Field oil production is constrained Oil Rate (stbo/d) 25,000 by gas handling limits 20,000 Focus…
  21. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 21
    SEG Wedge Development 807500 810000 812500 815000 817500 0 90 00 -1 SEG 11 drilled in May 2005, - 15 0 80 00 -1 -1 6 0 70 9245000 9245000 -1 0 20 proved a 61m oil column in the 0…
  22. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 22
    2005 Moran Update 25,000 Summary Potential Base Forecast 20,000 Plant and flowline debottlenecking Base Oil Rate (stbo/d) efforts now largely completed 15,000 Oil rates now benefiting from focus 10,000 on gas…
  23. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 23
    NW Moran EPT Development Summary Boundary of 3D image Completed installation of NW Moran flowline, production facilities at NWM and APF, commissioning underway Project cost = US 25 million, significantly delayed, impacted by…
  24. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 24
    NW Moran EPT Construction Progress Heli- supported bridge installation 24
  25. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 25
    NW Moran EPT Construction Progress Heli- supported bridge installation 25
  26. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 26
    SE Mananda Development Summary Hegigio bridge, pipeline and facilities construction underway Artists Impression Currently drilling top hole sections of each of 3 new development wells Project cost = US101 million, delayed by…
  27. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 27
    SE Mananda Construction Progress South Abutment A-frame Tower Roll Up 27
  28. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 28
    SE Mananda Construction Progress South Abutment A-frame Tower Roll Up 28
  29. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 29
    SE Mananda Construction Progress South Abutment A-frame Tower Roll Up 29
  30. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 30
    SE Mananda Construction Progress SEM Bridge Cable Launching 30
  31. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 31
    PNG Exploration 2005 Activities 140 km of seismic data recorded in foldbelt 6,000 km of airborne gravity and magnetic data recorded Exploration deepening of SE Mananda well late 2005 Passive seismic project being implemented…
  32. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 32
    Arakubi Prospect Arakubi 2004 seismic has de-risked Arakubi Mean reserves 18 mmstb Arakubi sits above and NE of Usano Site underway May share common fluid contacts Information from well will aid in Structurally simpler 2006…
  33. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 33
    Juha Appraisal Currently 0.5 tcf Proven 10km gas-in-place (GIIP) Two wells being PRL2 x-section considered one appraisal of Juha discovery one exploration of Mega-Juha - Exploration mega-Juha prospect Juha Current 1P…
  34. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 34
    2005 Half Year Results 34
  35. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 35
    MENA Objectives and Performance Develop 2nd core area into a material business meeting strict investment criteria Substantially grow Companys production base & provide growth opportunities Differentiate Oil Search through the…
  36. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 36
    Block 43 Nabrajah Field First Non-PNG Oil Production Achievements Early Production Facility commissioned for first oil in July 2005 Currently producing 3,300 bopd from 2 wells in the Qishn reservoir building to 15,000 bopd capacity…
  37. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 37
    Block 43 Nabrajah Field Block 43 Development Area Block 14 Prospects and Leads Map Nab-9 Nab-8 Nabrajah Nab-2 Nab-1 Nab-5 Al Haglah-1 N-2 gas test 15 Mscfg/d 2000 m SRD Gas/oil contact Block 43 N-5 2225 m SRD Area of…
  38. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 38
    Block 43 Nabrajah Facilities Under Construction Tie-in to Block 14 Separator at CPF Manifold at CPF Storage tanks 38
  39. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 39
    New Yemen Exploration Blocks Block S2: Masilah OMV Habban -1 Basin Play New Basement Fairway Discovery 120,000bopd Pipeline Marib-Shabwah Basin Play Fairway 250,000bopd Pipeline Blocks 3, 7 and 74 consolidate OSHs…
  40. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 40
    Marib-Shabwah Basin Blocks 3 & 7 Prospects and Proven Play Types Block 8 CRETACEOUS Block 7 OSH 34% QISHN SST AZAL SST SABATAYAN SALT Block S2 Al Harsh OMV Habban New Basement ALIF SST Discovery 750m oil column…
  41. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 41
    Masilah Basin Blocks 35, 43 and 74 Prospects and Proven Play Types Block 14, Block 14 Fields 1.2 billion bbls Block 35 10, 51, 9 QISHN SST CRETACEOUS reserves OSH 46% & 43 (Nabrajah) Block 14 SAAR SHOAL SAAR CLASTICS…
  42. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 42
    Yemen Block 15 drilling Ras Ghashwah-1X Sarar-1X Masilah-1X Recovered 38 API oil from Recovered 1700 litres 45 API oil from Oil and Gas shows fractured Eocene limestone Hami-1X Cretaceous sands Heavy oil & bitumen Shuhayr-1…
  43. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 43
    Other MENA Activity Libya EPSA IV award: Area 18 (30%) OSH 30% non operator Seismic acquisition planned for 1Q06 Well in 2007 3 major leads Lead size 150-450mmbo potential OSH participating as a accepted operator and…
  44. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 44
    2005 Half Year Results 44
  45. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 45
    PNG Gas Project - FEED ExxonMobil making progress on technical issues, preparation of EIS, project execution planning, commercial contracts, financing plan etc OSH focus areas: In country operations Co-ordination with oil projects…
  46. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 46
    PNG Gas Project - Markets In 1H05, signed two new gas sales contracts, which substantially underwrite the project Conditional contracts have been signed totalling 196-268PJ/a Seeking to convert these conditional agreements to…
  47. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 47
    PNG Gas Project Importance of AGL Deal Sale of interests in PDL2 and PDL4 by OSH to AGL delivers 10% interest in Gas Project Deal to be completed at date of Gas Project Financial Close Introduces new, regionally aligned, upstream…
  48. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 48
    PNG Gas Project Timetable FEED completion end 2005 Project sanction decision early 2006 (triggers commencement of early development activity eg long lead time items) Financial close 2H 2006 First gas sales - 2009 48
  49. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 49
    Gas Commercialisation Other Activities OSH has material 2P gas resources, of which less than half is committed to PNG Gas Project seeking markets for balance Petrochemical Joint Venture Mitsubishi Gas Chemical and Itochu…
  50. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 50
    Gas Commercialisation Other Activities Compressed Natural Gas to NZ Work continues with EnerSea and Itochu Increased interest from gas buyers in NZ Updated technical and commercial information has increased interest in CNG 2H05…
  51. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 51
    2005 Half Year Results 51
  52. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 52
    Outlook - Production Production from PNG fields at highest level in three years Development activity at Kutubu and Gobe has been very successful, Moran facilities debottlenecking showing good results. New field development in PNG…
  53. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 53
    Outlook Drilling/Exploration Multiple development drilling opportunities made more attractive by high oil price 2H05 drilling focus on SE Gobe wedge, SE Mananda development, Moran development Site preparation on Arakubi, Juha in…
  54. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 54
    Outlook - Gas PNG Gas Project Convert conditional gas sales contracts to bankable firm sales contracts Complete FEED studies Progress project financing Other gas commercialisation activities advancing 54
  55. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 55
    Summary Steady growth in production expected in 2005 and 2006 Unhedged exposure to high oil prices Gas commercialisation strategy on track Nabrajah Basement appraisal has potential for significant upside Financially strong,…
  56. 2005 HALF YEAR EARNINGS CALL – Oil Search Limited – slide 56
    OIL SEARCH LIMITED 56

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