Capital Markets Day Senegal - Building on Success May 2015 Delivering value from discovery and development
Capital Markets Day, May 2015 3 Fire Safety and Evacuation Rothschild operates a phased evacuation system. The following announcements SKY will sound via the public PAVILLION address system: Stand by message stay on your floor and…
Strategy Simon Thomson
Capital Markets Day, May 2015 5 Strategy Balanced Mature basin exploration and development Business Model Frontier and emerging basin exploration Core development assets through to free cash flow Fully Funded Value-add…
Capital Markets Day, May 2015 6 Strategy Consistent Strategic Delivery for more than 20 Years Experienced and successful exploration, appraisal and development operator Operations conducted onshore and offshore, shallow and deepwater,…
Capital Markets Day, May 2015 7 Agenda Strategy CEO Simon Thomson Exploration Exploration Director - Richard Heaton Senegal Regional Director, Africa - Rob Jones Discoveries and Appraisal Senegal Exploration Manager - Martin…
Capital Markets Day, May 2015 9 Exploration Creating Growth Through Exploration Significant acreage positions with technical and commercial value Range of opportunities with appropriate spectrum of risk Material discoveries…
Capital Markets Day, May 2015 10 Exploration Atlantic Margin Geological Focus illustrative geological reconstruction Countries of the world 175 million years ago Senegal one licence, three blocks Morocco Mauritania Republic of…
Capital Markets Day, May 2015 11 Exploration Regional Setting Exploration strategy focused on multiple play types formed from break-up of supercontinent Pangaea Provides underexplored mature hydrocarbon basins of Foum Draa Mesozoic…
Capital Markets Day, May 2015 12 Exploration Senegal Focus of Interest Previous offshore wells Tiof Banda demonstrated oil on the shelf Tortue-1 Kosmos Chinguetti Tevet (Esso 1968-1972, Rufisque dome) Gas Discovery 2015…
Capital Markets Day, May 2015 13 Exploration Basin Opening Discoveries Proven hydrocarbon system in new Atlantic Margin basin Forward programme submitted to Government of Senegal last week: Appraisal and exploration drilling - 3 firm…
Senegal Rob Jones Delivering value from discovery and development
Capital Markets Day, May 2015 15 Senegal Doing Business in Senegal Third year of investment with strong relationships at all levels of Government Government Senegal is a stable democracy with an important regional role President Macky…
Capital Markets Day, May 2015 16 Senegal Operational Infrastructure Dakar Excellent transport hub International, national airports Dakar Senegal US Embassy Heliport One of the biggest ports in West Africa Key Government offices…
Capital Markets Day, May 2015 17 Senegal Joint Venture Partnership Strong and active international Joint Venture (JV): Cairn (Operator) 40%, ConocoPhillips 35%, FAR 15% and PETROSEN 10% Focus on highest HSE and security standards…
Capital Markets Day, May 2015 18 Senegal Joint Venture Partnership and Governance Senegal Evaluation Programme submitted to Government of Senegal Legal system: Petroleum Code allied to PSC; The code establishes investment framework,…
Capital Markets Day, May 2015 19 Senegal 2015 Operations Operations to commence Q4 2015 Total Acreage 7,490km2 2015 work programme: Three wells (two appraisal, one exploration) and 3D seismic Rig selected Environmental and…
Capital Markets Day, May 2015 20 Senegal From Exploration to Exploitation Exploration Evaluation (Appraisal) Exploitation (Development) Assume operatorship mid SNE discovery / appraisal 2013 FAN discovery / appraisal Integrated…
Capital Markets Day, May 2015 21 Senegal Evaluation Programme Objectives Evaluation Gather sufficient data to produce an Integrated Exploitation Plan Determine the geological and petrophysical characteristics of the fields…
Capital Markets Day, May 2015 22 Senegal Vision Substantial Prospectivity across all Three Blocks FAN-1 and SNE-1 Offer Commercial Potential, Especially In Combination With Near Field Tie-Backs FAN-1 and SNE-1 Discoveries…
Discovery and Appraisal Martin Dashwood Delivering value from discovery and development
Capital Markets Day, 11 May 2015 24 Discovery and Appraisal The Opportunity Pre Drill Active petroleum system with world class source rocks proven by FAN-1 and multiple plays Deepwater North Fan Prospect FAN-1 and SNE-1…
Capital Markets Day, 11 May 2015 25 Discovery and Appraisal Discovery Wells Drilling Schematic Two wells targeted multiple plays FAN multiple deepwater stacked fans of mid-upper Cretaceous and stratigraphic traps SNE Cenomanian Albian…
Capital Markets Day, 11 May 2015 26 Discovery and Appraisal SNE-1 Well Potentially the worlds largest offshore oil discovery in 2014 Water depth 1,100 metres (m) Oil bearing column 100m Net oil bearing reservoir 30m (plus 19m gas)…
Capital Markets Day, 11 May 2015 27 Discovery and Appraisal SNE-1 Key Reservoir and Hydrocarbon Data SNE-1 Shelf Well SNE-1 MDT Pressure Profile Gas Gross 107m Net Pay 19m GAS 0.12 psi/ft Average Porosity (PHIE) 25% Average…
Capital Markets Day, 11 May 2015 28 Discovery and Appraisal SNE Field Forward Programme SNE-1 Appraisal Objectives Drilling of optimum appraisal wells Coring and testing of the reservoir: A Determine reservoir continuity and SNE-1…
29 Discoveries and Appraisal Appraisal Location Considerations Issues to consider and rank in choosing appraisal well locations SNE-1 Discovery Reservoir compartmentalisation Depth conversion Seismic attribute HIGH…
Capital Markets Day, 11 May 2015 30 Discovery and Appraisal SNE-1 Appraisal Target Considerations Central Location Velocity control depth mapping DST of key reservoir zones North Flank Evaluate all reservoir zones Core (and/or DST)…
Capital Markets Day, 11 May 2015 31 Discovery and Appraisal FAN-1 Well FAN-1 Water depth 1,427m W E Hydrocarbon bearing interval 500m Multiple stacked deepwater Cretaceous fan sands Net oil bearing reservoirs 29m Gross Oil…
Capital Markets Day, 11 May 2015 32 Discovery and Appraisal FAN-1 Forward Programme FAN Appraisal Seismic reprocessing and reservoir characterisation Ongoing analysis of rock and fluid samples, well log data Remapping of the field…
Development Chris Burnside Delivering value from discovery and development
Capital Markets Day, 11 May 2015 34 Development From Discovery to Development Evaluation programme aims to confirm volumes, connectivity and productivity Preliminary foundation development concept for SNE Standalone FPSO (Floating…
Capital Markets Day, 11 May 2015 35 Development Key Reservoir Influences on Development Design Key Characteristics of SNE-1 Discovery SNE-1 MDT Pressure Profile Good quality, saturated oil 32 API with GOR 750 scf/stb GAS 100m…
Capital Markets Day, 11 May 2015 36 Development Development Concept Potential Foundation Project Concept will depend on a number of factors: Fluid type(s) Scale of resources and location Operating philosophy Reservoir management…
Capital Markets Day, 11 May 2015 37 Development Development Concept Potential Evolution Potential Evolution Options FPSO may handle several deepwater fields within 30-40 km radius Satellite discoveries may be efficiently tied-back…
Capital Markets Day, 11 May 2015 38 Development Front-End Loading for Development JV Development FEL studies commencing in 2015 in parallel with appraisal drilling Early identification of production risks and opportunities to improve…
Operations Paul Mayland Delivering value from discovery and development
Capital Markets Day, May 2015 40 Operations Overview Objective is to drill the second phase of wells in Senegal safely, more efficiently and at lower cost than first phase Deliver the planned well objectives and meet the data…
Capital Markets Day, May 2015 41 Operations Rig Selection Numerous unsolicited offers / enquiries from drilling contractors / operators following recent dramatic fall in oil price : rates and terms significantly improved from 2013 /…
Capital Markets Day, May 2015 42 Operations JV Capability Current JV brings many benefits and capabilities that can be applied to potential future development(s) Commitment to HSSE and sustainable development Cairn, as Operator, has…
Capital Markets Day, May 2015 43 Operations Benchmark Project Timelines in West Africa Historical Development 2004 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012…
Capital Markets Day, May 2015 44 Operations Development / Cost Analogues; Gumusut-Kakap, Malaysia Gumusut field was discovered in Malaysias deepwater Block J in December 2003 Discovery well drilled in 1,000m of water, 6 subsequent…
Capital Markets Day, May 2015 45 Operations Development / Cost Analogues; Baobab, Ivory Coast Baobab field was discovered in Cote dIvoire Block CI-40 in March AFRICA 2001 Ivory Coast (Cote dIvoire) Discovery well was drilled in…
Adding Value Richard Heaton Delivering value from discovery and development
Capital Markets Day, May 2015 47 Adding Value Future Exploration Programme Confirmation of source rock and burial history from new data Remapping key reservoir and source intervals RUFISQUE LEAD 1 FAN-1 Redefining basin model…
Capital Markets Day, 11 May 2015 48 Discovery and Appraisal Proposed 3D Survey - Summary Leads Identified in Rufisque Offshore and Sangomar Offshore Blocks Proposed survey 2,000km2 Enable easterly closure mapping of Shelf Edge…
Capital Markets Day, May 2015 49 Adding Value Exploration Potential Targets To date, recognised eight different play types across all Senegal acreage Unconformity Subcrop Remnant Topography Karst and Fractured Fault Closures…
Capital Markets Day, May 2015 50 Adding Value Bellatrix Prospect Prospect on immediate northern flank of SNE discovery Cenomanian through Albian prospective reservoirs Cairn Current Gross resource range recoverable (mmbbls) P90 35…
Capital Markets Day, May 2015 51 Adding Value Sirius Prospect Prospect located along trend to SNE-1 Albian-age prospective reservoirs Similar association with seismic velocity push-down Cairn Current Gross resource range recoverable…
Capital Markets Day, May 2015 52 Adding Value Cairn Prospects and Leads Inventory Currently 5 prospects and 80% Cairn Prospects and Leads - Probability of Commercial Success 18 leads Bellatrix LEADS Sum of gross 70% PROSPECTS…
Capital Markets Day, May 2015 53 Adding Value Discoveries, Appraisal and Exploration SNE-1 discovery: Gross Contingent Resources 1C: 150mmbo 2C: 330mmbo 3C: 670mmbo FAN-1 discovery: Large in place volume (STOIIP P50: 950mmbbls) Hub…
Economics and Funding James Smith Delivering value from discovery and development
Capital Markets Day, May 2015 55 Economics and Funding Senegal Overview SNE-1 2C contingent resource of 330mmbls, part of a broader potential of gross mean risked resource of 1 bn bbls Current economic analysis focuses on standalone…
Capital Markets Day, May 2015 56 Economics and Funding Notional Development Scenario For 330mmbbls Standalone SNE Field 2,000 120 120,000 Development expenditure: 1,800 Dependent on concept solution and scale of resources 100…
Capital Markets Day, May 2015 57 Economics and Funding Economic Scenarios For 330 mmbbls Standalone SNE Field 18 40% 16 10% return breakeven, 35% oil…
Capital Markets Day, May 2015 58 Economics and Funding Economics Set in Context Project Breakeven Price Benchmarking 140 Price (Real 2015) 120 100 Indicative 330mmbbls SNE-1 Oil/bbl development 80 Oil Price,…
Capital Markets Day, May 2015 59 Economics and Funding Funding to End 2017 1,200 1,000 800 USm 600 400 200 - Cash RBL drawdowns Catcher devex Kraken devex Commited E&A Further three Operational for devex…
Capital Markets Day, May 2015 60 Economics and Funding Cairn Financial Strategy Delivering value from discovery and development within a balanced portfolio Greatest value potential from exploration and appraisal in Senegal, but…
Conclusion Simon Thomson Delivering value from discovery and development
Capital Markets Day, May 2015 62 Conclusion Senegal Summary and Vision Foundation for long term multi-field, multi-phase Exploitation Plan to maximise value: Achieve Commerciality Phasing Investments: 3-6 further (tested) wells by H2…
Capital Markets Day, May 2015 63 Conclusion Focus on potentially world class asset in Senegal Creating growth 2015 fully funded Appraisal and Exploration programme through exploration Future material exploration in emerging and…
Capital Markets Day, May 2015 65 Presenters Paul Mayland Rob JE Jones Chief Operating Officer Regional Director - Africa Paul holds a B.Eng (1st Class) Engineering Rob is a Regional Director of Africa at Cairn Energy with whom he has…
Capital Markets Day, May 2015 66 Contacts David Nisbet Kate Trevenen Group Corporate Affairs Investor Relations Co-ordinator E-mail: E-mail: david.nisbetcairnenergy.com kate.trevenencairnenergy.com Tel: +44 (0)7711 146 068 Tel:…
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