EnQuest 2013 Results Production up 6% Significant 66 MMboe reserves increase Strong cash flow generation 0
Agenda Overview Amjad Bseisu, CEO Financials Jonathan Swinney, CFO Business performance Amjad Bseisu & major projects Operations David Heslop, MD UKCS Summary Amjad Bseisu 1 1
Repeatable strategy delivering success Good production of 24,222 Boepd in 2013, a 6% increase. Due to successful operational and reservoir performance, including delivery of nine wells Sustained strong cash flow and balance sheet…
Realising value through capability Technical leadership in integrated development Heather/Broom Upgrading existing facilities Thistle/Deveron Newer technology, new seismic Greater Kittiwake Area Field life Simplifying processes…
Significant reserves growth and cash flow generation Developments set to deliver material production growth Production of 24,222 Boepd in 2013 Production 9 wells successfully delivered, c.300m capital investment in producing fields &…
Financials 5
Results summary Year to 31 December Unless otherwise stated all figures are before exceptional items and depletion of fair value uplift and are in US dollars US dollars 2013 2012 Change % Export production (Boepd) 24,222 22,802 6.2…
Group taxation position ETR % ms UK tax losses ms Profit before tax 331 Recognised at 31 December 2012 604 2013 net taxable losses 284 UK corporation tax rate 62 205 PRT 6.6 21 RFES 89 North Sea Tax Reliefs (16.6) (55) Leasing…
984 million cash capital expenditure Year to 31 December 2013 USm 461 172 109 69 57 37 34 24 21 Alma/Galia Kraken Thistle/Deveron Dons Heather/Broom Alba E&E G&A Other 9
Cash flow Year to 31 December 2013 Strong financial position, credit facility up to 1.7bn and 155m retail bond USm 563 90 (984) (50) (381) Tax, interest paid, other Cash & equivalents less Cash & equivalents less Cash flow…
Finance outlook Full Year 2014 Capex expectations of around 1bn Production and transportation costs expected to be in the range 415m to 435m Including c.60m for GKA and c.25m for Alma/Galia, our new production hubs Depletion…
Business performance & major projects 13
Four years of strong cash flow generation 450% reserve replacement ratio, reserve life over 20 years Net 2P reserves 2010 - 2013 Cash flow 2010 - 2013 147.0 194.8 MMboe MMboe 2.1bn (0.2)bn Tax, Finance, Other 80.5 (32.7)…
Expanding our asset base in 2013 and 2014 Don North East 60% Don North East Out of round licence FDP submission Kraken Appraisal well 2014 Cairngorm Appraisal well Cairngorm Farmed out 55% Awarded two licences in the…
Alma/Galia First oil set to add c13,000 Boepd to EnQuests daily production Extended life of FPSO vessel up to 15 years; with the extended field life, gross reserves increased to 34 MMboe Subsea infrastructure in place with, trees…
Kraken on track A conventional development programme High level of definition Carried out FEEDs for FPSO and subsea integrated equipment ahead of sanction Detailed project gate processes, including well construction and…
Greater Kittiwake Area, near Scolty/Crathes & Avalon Additional reserves, production and a new hub Acquired 50% of: Kittiwake, Grouse, Mallard, Gadwall and Goosander Completed Q1 2014 EnQuest to operate Production opportunities…
International South East Asia & North Africa EnQuests first steps outside the UKCS International production acquisition, providing an operating platform in Tunisia a low cost entry point 100 MMboe of gross contingent resources and…
Cairngorm appraisal well Recently reached its target Assessment of the results of the Cairngorm appraisal well is underway Preliminary analysis indicates a 173ft hydrocarbon column was encountered, with evidence of good reservoir…
Operations 21
Production efficiency: EnQuest in top UKCS quartile Source: O&G UK research Relative company performances: oil portfolios Production efficiency performance by operator for all oil assets 22
2013 production results by hub 6% increase on 2012, good performance from existing hubs 2012 2013 Net production (Boepd) 24,222 22,802 10,992 11,014 8,058 7,925 3,752 4,339 - 944 Thistle/Deveron The Dons Heather/Broom…
Thistle / Deveron Strong H2 2013 delivered production levels not seen since the 90s 2013 Drilled A60 (WFB-P1), 80ft high to prognosis, started production in August, strong performance A59 w/o Area 6 I1 Workover of A53/60 injector…
Thistle Life extension projects Power & Electricity Upgrade Project Required to provide reliable power and Thistle life remove electrical equipment obsolescence Dons Area D Turbine operational extension projects Jacket Integrity…
Strong production from Thistle/Deveron 26
The Don fields 2013 Don Southwest S12Z producer drilled S13 injector drilled West Don W1 Conrie S7 W6 injector brought on line in 1Q delivering a significant oil production W2 increase W5 W3Z Record water injection rates of…
-115 200 -11 -11 Don North East Area (Don NE) (60%) 80 0 -11450 30 0 -11250 -1 -11 14 00 -1 -1 13 13 00 -1 50 12 50 -1120 0 Licence for blocks 211/18e & 211/19c, drilling…
Heather / Broom 2013 Overall production up 16% on 2012 Strong year of production from Broom Strong operating efficiency from Heather 2/0 Else 5- Rig reactivation completed and operating 15 H42 H33 Accommodation upgrade completed…
Delivering strong compound annual growth rates 25% for reserves & 15% for production Net 2P reserves (MMboe) 194.8 115.2 128.5 80.5 88.5 2009 2010 2011 2012 2013 Average net production (Boepd) 5,000 Guidance Range…
Delivering sustainable growth On course for six hubs and 50,000 Boepd in UKCS Exploiting our existing reserves Dons, Thistle/Deveron, Heather/Broom, Alba Making selective acquisitions Commercialising & developing discoveries…
Q&A 34 34
EnQuests North Sea assets at the end of 2013 Plus the GKA acquisition and Don North East 3535
Largest UK Independent Producer in the UK North Sea Government data (DECC) for UK North sea independent producers Total Production for the year ending November 2013 1,400,000 1,200,000 Total Production in Mass Units (tonnes)…
Kraken overview Field summary 2 fields located in Block 9/2b 350km NE of Aberdeen Field area 12 x 3.5 km Water Depth of 110m Heavy Oil (14 Deg API) but good flow properties Low sulphur content and not waxy FDP approved by DECC…
Alma / Galia ALMA GALIA N-Dev W2 W1 GA K3 GB K1 K4 GE K5 K2 K6 EQ Development wells EQ Development wells 2014 Planned producer Drilled / completed producer Future producer Drilled producer (planned…
Alba 8% non-operated, 944 Boepd in 2013* 2013 2 wells drilled and completed 2014 Planned drilling operations 2 producers Acquisition of new 4D seismic survey Key input for maturing future drilling targets Replacement…
Income Statement Year to 31 December 2013 2012 US dollars Exceptionals, Business Depletion of performance fair value uplift ms ms ms ms Revenue 961.2 - 961.2 889.5 Cost of sales (532.3) (8.5) (540.8) (458.4) Gross profit 428.9 (8.5)…
Balance Sheet As at 31 December 2013 2012 US dollars ms ms ASSETS Property, plant and equipment 2,871.2 1,816.6 Non-current assets Goodwill 107.8 107.8 Intangible oil and gas assets 130.9 97.5 Investments 2.4 2.3 Deferred tax…
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