OIL SEARCH LIMITED ANNUAL GENERAL MEETING 31st May 2002 Ladies & Gentlemen I would like to reiterate our Chairmans welcome to you all. It is gratifying to see such a good turn up of interested shareholders and it is a pleasure…
2002 Annual Meeting 2001 Results Summary 2001 Financial Summary Oil Search/Orogen Merger Company Reserve Base PNG Production Outlook PNG to Australia Gas Project Development & Exploration Outlook Strategic & Organisation Review 2
Highlights Core operating revenues were at record levels at A244million, marginally higher than the previous record in 2000 In US dollar terms revenues declined 11% on previous year Results have been impacted by lower production,…
Highlights Core operating profit before tax was A67.2million up 6.6%, dropping marginally in US dollar terms Core operating profit after tax was A34.6million (US17.6million) down 43% 2000 results being impacted by a one off…
Other Highlights Reserve Review Proven reserves replaced 181% of 2001 Production at US2.10/bbl Proven and probable reserves replaced 139% of 2001 Production at US2.71/bbl Production 6.3 million stb down 12% on 2000 Following…
Other Highlights Exploration Successful appraisal Moran 6 with reserve additions and implications of field extension Success of Saunders 1, with early EWT Encouragement at Marabou 1 Disappointment at Bakari In exploration…
Other Highlights Gas Commercialisation Progress on PNG to Queensland Project Committed Operator Reinvigorated marketing New management agreement On the gas commercialisation front, further progress was made on the Gas to…
Other Highlights Oil Search - Orogen Merger Sound economic fundamentals Major equities in all projects Significant increase in market size and liquidity A major strategic advance The Oil Search Orogen Merger This was clearly…
Other Highlights Organisational Review Review of required organisation post merger underway Major review of performance, objectives and vision for new organisation, with outside expertise New Organisation, New Vision, New…
Main Result Drivers Sales Revenue A244.0m (US123.9m) Up 0.1% in Australian Dollar terms Down 11.2% in US Dollar terms Production of 6.23mbbls down 12%, impacted mainly by decline at Gobe and delays in Moran 6 Further 0.34mbbls…
Main Result Drivers Tax expense on core profit A32.6m (US16.5m) compared to A2.5m (US1.4m) in 2000 Effective tax rate 48.6% compared to Petroleum Tax Rate of 50% Year 2000 tax rate distorted by one off adjustments to bring into…
Earnings Before Interest & Tax (EBIT) 90 89.6 85.4 80.6 80 70 60 50 40 AM 30 30 24.3 20 10 0 1997 1998 1999 2000 2001 USM 14.8 18.7 51.4 48.9 45.5 Chart shows 5 year EBIT performance, including details in Australian…
2001 Results Operating Cashflow Summary 2001 2000 USM AM USM AM Receipts 130.9 257.8 130.1 227.2 Payments (35.7) (70.2) (44.7) (78.0) Net Receipts 95.2 187.6 85.4 149.2 Net Interest (11.4) (22.5) (14.5) (25.3) Tax Paid (10.6)…
Total Debt & Gearing 400 60 Total Debt 350 Gearing Ratio 50 300 % Gearing Ratio 40 250 USM 200 30 150 20 100 10 50 0 0 1997 1998 1999 2000 2001 Chart of Debt and Gearing, shows steady reduction in debt and…
Impact of Merger Substantial Increase in production base and consequential revenue Further reduction in gearing levels following merger Robust Balance Sheet and Business Plan going forward Slide summarises impact of merger…
Oil Search Limited Oil Search Orogen Merger 20
Oil Search / Orogen Merger A pivotal Point for Papua New Guinea The merger is a major positive for investment in oil and gas in Papua New Guinea A PNG based organisation now owns over half of the oil and gas reserves in the…
Oil Search / Orogen Merger A pivotal Point for Papua New Guinea Better able to attract and drive investment in the country A very strong company with world-class assets - Significant reserve and production base - Very strong balance…
Oil Search / Orogen Merger Combined Asset Base Hides (GTE) 100% Moran 52.53% Kutubu 52.58% Gobe Main 57.33% SE Gobe 44.96% PNG to QLD Gas 37% This map displays the location and equities of the combined assets now…
Oil Search / Orogen Merger Strong Reserve Base Field mm BOE Kutubu / SE Mananda 37 Moran 54 Gobe / Saunders 14 Hides (GTE) 20 Subtotal Reserves 125 Gas Project Resources 381 Total Proved & Probable 1002 Reserves &…
Oil Search / Orogen Merger A pivotal Point for Papua New Guinea The new Oil Search better able to address the challenges of developing resources in PNG Insufficient investment was made in oil and gas 1999- 2001 to grow our business…
Share Price Performance Index OSH v OML Share Price Performance - Indexed Prices 200 ACTIVE EXPLORATION 180 MORAN DISCOVERY 160 ACQUISITION BY GAS PROJECT GAS PROJECT OML ANNOUCE OIL SEARCH DRAFT DELAYS GOVT REVIEW 140 OF BPS…
Oil Search Limited Exploration & Development 27
Exploration Moran-6 PDL-5 Moran-6 NW Moran Prospect Structure is higher and flatter than pre-drill interpretation Extended Toro oil to NW and potentially into PPL 219 with deeper OWC Oil proven in Digimu reservoir Moran-6 NW…
Exploration Saunders-1x PDL-4 40m oil zone in Iagifu sandstones Proves extension of oil bearing Iagifu reservoir to SE of SE Gobe field EWT and mapping required for OOIP and reserves Saunders-1x PDL 3 PDL 4 BilipHW…
Gross PNG Oil Production: Actual and Forecast 160000 Production rises with Moran Central Development 140000 ACTUAL FORECAST 120000 Gross Production (bopd) 100000 80000 60000 40000 20000 0 1991 1993 1995 1997…
Existing & New Exploration PNG Oil Production: Actual and Forecast 160000 140000 ACTUAL FORECAST 120000 Gross Production (bopd) 100000 80000 60000 40000 20000 0 1991 1993 1995 1997 1999 2001 2003 2005 2007…
Production Forecast in BOE: Actual and Forecast 160000 PNG Gas Project is fundamental to industry growth 140000 ACTUAL FORECAST 120000 Gross Production (bopd) 100000 80000 60000 40000 20000 0 1991 1993 1995…
Oil Search Limited PNG Australia Gas Project This last slide brings me to the Gas Project and where it now stands 33
Gas Supply to Eastern Australia A Changed Market Landscape PNG major volume supplier Timor Sea divisions on development and fiscal issues new discoveries and volume potential in: - Victoria - Otway - CSM traditional supply…
Gas Supply from PNG Project has had a number of reincarnations. Now has: cohesive Joint Venture supply agreements, guaranteeing reserve dedication strongly committed Operator agreed fiscal terms, giving investment certainty…
PNG Supply to Australia Strategic Focus Gas sale agreement with AGL - major strategic importance - significantly expanded market - ensures major new interconnected pipeline network and transportation framework Townsville Power…
Eastern Australian Gas Supply with PNG 1400 1200 1000 Gas (PJ) 800 600 400 200 0 2002 2004 2005 2006 2007 2009 2011 2012 2013 2014 2016 2018 2019 2020 2001 2003 2008 2010…
PNG Supply to Australia Pipeline project targeting 150PJ to 200PJ of new or replacement markets Queensland usage presently 100PJ/year Primary customers: - electricity generation, where competitive - resource projects - contract…
This rolling map shows the planned track of this pipeline from the Highlands of PNG to Brisbane, with a new connection to the existing Balera to Mount Isa line and a new pipeline from Balera to the Moomba-Sydney line. The location of…
The location of potential customers is also shown on this map. 42
This slide shows the potential market areas in southern Australia, with the initial focus on the AGL load of between 40 and 50 PJ per year in Sydney. 43
PNG to Queensland Project The Way Forward Queensland market being tested with priority to close Gas Sales Agreement Townsville Bidding Process other customers continued push for volumes to southern states Progress on equity…
PNG TO Queensland Project Opportunities for further commercialisation PNG gas reserves are significantly greater than the base volumes anticipated at project inception Base volume 5.0TCF (1.2 billion BOE) Incr'l volumes 8.3TCF…
Gas Field Map As you can see on this map, as well as the gas and oil fields in the Highlands, the Company has interests in a range of other significant gas and liquids discoveries, including Kimu and Uramu near the south coast.…
PNG Gas Development Oil Search has undertaken commercial reviews for development of gas based industries in PNG Based on development of southern gas fields Kimu and Uramu Offshoot of PNG to Australia Development Encouraging…
Oil Search Limited Strategic Direction and Organisation Review A full strategic organisational review is now taking place within the organisation, using both internal and external expertise, to reset objectives relevant to the…
Strategic Direction and Organisation Review Essential Output: Full definition of the operating upside of the business and available growth options. Prioritised initiatives and implementation plan. Key Deliverables: Diagnostic…
Summary PNG Oil and Gas Business at a Crossroads: The Oil Search/Orogen merger creates a very strong, locally based company with tremendous assets: - production and reserves - reserves and balance sheet - growth projects Need to…
Summary Complete Strategic Review New Vision, Revised Objectives, Implementation Plan Convey results to shareholders Convey to stakeholders Initial Focus Areas Gas Commercialisation Contract confirmation Move to FEED…
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