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2004 HALF YEAR RESULTS – Oil Search Limited

Oil Search Limited · Aug 25, 2004 · 48 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. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 1
    2004 Half Year Results 1
  2. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 2
    Programme Introduction and Overview Brian Horwood & Peter Botten Financial Results Nigel Hartley Activities Update Mark Wilson New Field Development Status Mark Wilson NW Moran SE Mananda Exploration Mark Wilson PNG Middle…
  3. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 3
    2004 Half Year Results 3
  4. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 4
    Overview Continued world class safety performance across our operations Strong Recorded Profit Profit After Tax US60.1 million (UP 65%) A Record for the Company Profit After Tax US52.1 million (UP 29%) (before non core items)…
  5. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 5
    Overview Significant strengthening of Balance Sheet : Cash up US84.6 million Debt reduced to US184 million Net debt free Value Initiatives beginning to realise value : Field initiatives adding production Development activities…
  6. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 6
    Overview Gas Commercialisation options further matured Pipeline Project FEED alignment requiring customer confirmation Other options being brought to maturity Oil discovery in Yemen underscores diversification strategy 6
  7. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 7
    Overview In recognition of excellent first half performance Board have decided to declare a US one cent per share interim dividend Record Date 1st October 2004 Payment Date 8th October 2004 7
  8. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 8
    2004 Half Year Results 8
  9. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 9
    1st Half 2004 Results USm 1st Half 1st Half 2003 2004 EPS Operating Revenue 154.3 10% 170.1 Field Costs (39.3) (30.3) Other Net Costs (12.2) (12.5) EBITDA 102.9 24% 127.3 Net Amortisation (26.2) (23.4) EBIT 76.7 35% 103.9…
  10. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 10
    10 USm 1H 0 25 50 75 100 20 125 O 03 il 36.5 Pr ic O e il 27.0 Sa le s 16.4 A O m pe or tis x 11.6 at io n 2.8 O th G er 0.5 ol d Re v (28.0) C Ta or x e C (14.6)…
  11. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 11
    Revenue Growth USm 180 Minerals Oil 160 140 120 100 80 60 40 20 0 1H 2000 1H 2001 1H 2002 1H 2003 1H 2004 25% CAGR over last five years Oil revenues up 35% on prior 1st half 11
  12. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 12
    Operating Expenses 1H 2003 FY 2003 2004 AGM 1H 2004 Guidance USm US/bbl USm US/bbl USm US/bbl USm US/bbl Field Costs - Oil 21.4 5.65 61.8 6.75 65.9 6.43 27.6 6.35 - Hides/Minerals 17.9 28.5 5.4 2.7 Direct Operating* - Oil…
  13. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 13
    Core Profit After Tax USm US cents 60 6 Core Profit Core EPS 50 5 4.7 40 4 3.6 30 3 2.5 52.1 20 2.0 40.2 2 0.6 23.9 10 1 13.7 5.1 0 0 1H 00 1H 01 1H 02 1H 03 1H 04 Core profit up 29% on prior first half 13
  14. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 14
    Net Profit After Tax USm US cents 70 6 Net Profit 5.4 60 EPS 5 50 4 40 3.2 3 30 60.1 1.9 2 20 1.8 36.5 10 1 0.2 17.9 13.3 3.2 0 0 1H 00 1H 01 1H 02 1H 03 1H 04 Net profit up 65% on prior first half 14
  15. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 15
    Cash Flows USm 1st Half 1st Half 2003 2004 Operating 108.6 136.1 Investing Exploration (20.8) (25.5) Development/Plant (20.7) (14.3) Sale of Investment/subsid. - 26.6 Financing Buy Back (18.7) - Dividends (11.7) (22.3) Debt…
  16. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 16
    Treasury Review 250 Gearing % Debt 200 40 Cash Gearing 150 30 100 20 50 10 0 2001 2002 2003 Jun-04 US187m in cash at end June, debt at US184m Zero gearing based on net positive cash position at end June US 2 cent…
  17. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 17
    2004 Half Year Results 17
  18. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 18
    2004 Kutubu Update Production initiatives Optimisation Kutubu Production Forecast 40000 zone changes & swing actuals well management 35000 No workovers, no infill drill Well intervention Forecast with workovers only recent…
  19. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 19
    Kutubu Appraisal IDT9 ST2 IDT9 ST2 NW IagifuStructure Top Toro A Drilled May-August 2004 IDT9 ST2 Completed August 2004 First ever Kutubu completion in the Iagifu sands Production imminent Iagifu 6X IDT9 Iagifu 4X 1 km…
  20. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 20
    2004 Gobe Update Production Initiatives Gobe Production Forecasts Water capacity upgrade incl. Saunders Development 20000 Largely completed Facility and well 18000 Gobe Main optimisation SE Gobe Compressor overhaul 16000…
  21. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 21
    2004 Moran Update Production Initiatives Moran Production Forecast Moran 2 coiled tubing 25,000 clean-out completed NW Moran 1ST5 Moran 4 converted to 20,000 2004 Avg Prodn = 13.8 kbopd 2005 Avg Prodn = 21.7 kbopd Moran 10…
  22. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 22
    2004 Half Year Results 22
  23. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 23
    NW Moran Development NW Moran 1X well Successful appraisal of the NW extension to Moran Extended Production Test (EPT) Moran 10 On schedule NW Moran 1X Moran Field ST5 M ST4 ai n Th ru M4/6/9 Pad st NW Moran…
  24. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 24
    SE Mananda Development Marginal Field development of MANANDA HEGIGIO ATTIC stranded oil GORGE MANANDA Project on schedule NW MORAN FOOTWALL Development proposal with SE MANANDA Government includes 3-4 new wells, SE MANANDA…
  25. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 25
    2004 Half Year Results 25
  26. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 26
    PNG Exploration Foreland drilling Mananda Attic Kapul 1 4Q 04 oil potential (100mmstb) Foldbelt Activity Wasuma Iehi workover Mananda FW Significant Foldbelt Seismic Arakubi program underway completed Wabi Mananda Attic +…
  27. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 27
    2004 Exploration Activity Middle East / North Africa OSH is continuing its measured diversification into the Middle East/North African region: Drilling 5 exploration wells in Yemen during 2004-5: Commenced appraisal of Nabrajah…
  28. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 28
    2004 Exploration Activity Block 35 Yemen (46% Operator) Completed 366km 2D seismic programme in March 2004 Plan to drill Al Ahkaf 1 exploration well in November 2004 Al Ahkaf 1 Prospect 80-100 mmbbls rec 28
  29. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 29
    2004 Exploration Activity Block 15 Yemen (50% Operator) Sharmah-1X Ras Ghashwah-1X Sarar-1X Produced 3045bopd 43API oil Recovered 38 API oil Recovered 1700 litres 45API from fractured Eocene Limestone 200m+ gross column oil from…
  30. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 30
    2004 Exploration Activity Block 43 Yemen (28.33%) Plugged and Abandoned Meshat-1 well 1Q04 Drilled Nabrajah-1 well 1Q04: Meshat-1 oil and gas discovery in Qishn S2 Sandstones Drilled Neheb-1 well 2Q04: oil and gas shows in…
  31. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 31
    2004 Exploration Activity Nabrajah Discovery Block 43 Preliminary Near Top Qishn Depth Map Nabrajah-1 flowed 2000 bopd, 2.4MMscf gas from Qishn S2 Sandstones S1 Qishn Sandstones also found oil bearing in Nabrajah-1 but not…
  32. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 32
    2004 Half Year Results 32
  33. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 33
    Gas Commercialisation Accelerated portfolio approach to commercialising gas resources New analysis with integrated oil and gas business approach Highlands Gas Project Alignment of Joint Venture on FEED requirements FEED…
  34. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 34
    Gas Commercialisation Petrochemical Joint Venture Positive conclusion to pre feasibility study Pre Development Agreement with Mitsubishi Gas Chemical and Itochu Currently :- Finalising gas source and pricing structure Plant site…
  35. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 35
    Gas Commercialisation Hides Liquids Cycling Project Awaiting decision on Highlands Gas Project Mature for FEED decision Compressed Natural Gas Pre Development Agreement with EnerSea and Itochu Reviewing transportation and market…
  36. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 36
    2004 Half Year Results 36
  37. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 37
    Value Optimisation Ten months into oil field operatorship : Initiatives starting to deliver value Substantial potential identified impacting 2005 programmes High Value Areas : Fiscal Management Field Optimisation Drilling…
  38. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 38
    Value Optimisation HIGH VALUE AREAS : Fiscal Management Licence Awards NW Moran EPT Production Flexibility Moran 6 Temporary Production Facility Flaring and facility use flexibility Marginal Field Taxation 38
  39. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 39
    Value Optimisation HIGH VALUE AREAS : Field Optimisation Reduced Operating costs New drilling opportunities (IDT9) Facility modification Numerous initiatives attention to detail Over 7,500 bopd added to Kutubu production…
  40. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 40
    Value Optimisation HIGH VALUE AREAS : Drilling 15% cost reduction achieved Improved efficiency Contract renegotiation completed Rig 2 purchase and upgrade taking place Up to 50% reduction in rig day rates Major impact in 2005…
  41. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 41
    Value Optimisation HIGH VALUE AREAS : Supply Chain and Contract Review Major contract review underway, with renegotiation as they fall due Over US130m in contract renewal in 04/05 Targeting US25m reduction Work in progress will…
  42. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 42
    2004 Half Year Results 42
  43. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 43
    Outlook Solid production base, with two ongoing developments, improved profitability through value initiatives Production Solid production impacted by performance of IDT9 ST2, Moran 10 Kutubu and Moran at or above budget with…
  44. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 44
    Outlook Development NW Moran On schedule, with construction about to start SE Mananda On schedule, development decision 3Q, subject to confirmation of fiscal terms Nabrajah Appraisal drilling underway Development under…
  45. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 45
    Outlook Exploration / Drilling Further exploration / appraisal at Kutubu (Iagifu targets) Kapul 1 and Iehi Exploration / Appraisal Block 35 Al Ahkaf 1 Block 43 Nabrajah Seismic in Gobe / Wasuma 45
  46. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 46
    Outlook Value Optimisation Focus on high value initiatives with impact on 2005 budget and programmes Drilling - Rig 2 commissioning - revised casing programme Supply Chain Management - major contract negotiation - logistics…
  47. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 47
    Outlook Gas Commercialisation Mature development option for FEED decision by Year End Overall Strong production performance, with continued high commodity prices, company on track to deliver excellent operating and financial…
  48. 2004 HALF YEAR RESULTS – Oil Search Limited – slide 48
    2004 Half Year Results 48

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