Frontier Exploration Explorers Conference, London, 14th January 2010 Dr Mike Watts, Cairn Energy PLC Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
VISION La Clairvoyance Rene Magritte Explorers Conference January 2010 Discovering hidden value through entrepreneurial exploration 3
Exploration in Frontier Basins Focus on materiality Early entry Exploration potential Commercial terms Explorers Conference January 2010 Discovering hidden value through entrepreneurial exploration 4
Examples of Evolving Frontier Basins Greenland Chukchi Sea Basins Himalayan Basin Gulf of Mexico Deepwater KG Basin Rajasthan Ghana African Rift Basin Brazil Uganda Tano Basin Santos Basin Explorers Conference January…
Frontier Discoveries and Potential Brazil Tupi, Lara, Guara Indicative Disko + Ghana South Greenland D6 Jubilee Prospects Dhirubai Rajasthan Mangala Modified from Sanford Bernstein Research Nov 2009 Explorers Conference…
Risk Mapping Political Risk Rajasthan KG Basin Greenland Basins Technical Commercial Risk Risk Explorers Conference January 2010 Discovering hidden value through entrepreneurial exploration 7
Rajasthan Explorers Conference January 2010 Discovering hidden value through entrepreneurial exploration 9
KG Deepwater Basin Frontier to Producing Basin Ravva Ravva 1. 2P 300 million boe RAVVA 2. 2P 300 million boe RAVVA Cairn Basin Plateau production 65,000 boe Two Blocks Plateau production 65,000 boe Master (D5 + D6) 1994 1999…
GREENLAND - Overview USGS places Greenland in the top ten yet to find hydrocarbon destinations of the world GREENLAND Cairn initial prospect and lead inventory confirms multi-billion bbl unrisked exploration potential in the Disko…
Greenland Frontier Basins North North East Basin Basin Year Oil Price Government Take 1974 4-10 / bbl 80% Baffin Bay 2009 80 / bbl 50% Basin Ilulissat NORWAY Western Basin Nuuk Qaqortoq South East Basin UK…
GREENLAND Source Rock Landslides in 1933 and 1958 Explorers Conference January 2010 Discovering hidden value through entrepreneurial exploration 13
GREENLAND Oil Seeps Disko West Nuussuaq 1 Extensive peninsula satellite slicks 1 Extensive satellite Cairn slicks reported GREENLAND 4 3 Lancaster Exxon, Disko Chevron, Island Sound Oil shows and gas at outcrop and Cairn…
GREENLAND reservoirs Explorers Conference January 2010 Discovering hidden value through entrepreneurial exploration 15
GREENLAND Plays and Structures Tertiary Fan Complex Tilted Fault Block 50 Km Explorers Conference January 2010 Discovering hidden value through entrepreneurial exploration 16
Frontier Exploration Strategy Frontier exploration offers company transformational potential when commercial terms are appropriate to the high initial technical risk Early entrants in frontier basins can become Basin Masters…