Falkland Oil and Gas (FOGL) Listed on AIM in 2004 Focussed on South Atlantic oil & gas exploration large licence area, 65,000 sq km Equivalent to over 300 North Sea blocks Experienced management team, with a proven track record…
E. Falklands Basin: location, location, location Magallanes Malvinas Basin Basin The P+P 16 wells Falkland 6 Billion Boe 4 oil disc. Islands Du o Chic (Ri nge nes o High FOGL sA acreage Maurice Ewing rch Bank / )…
A new exploration area 6 Exploration wells drilled in 1998. Different Basin, Different Geology Desire Rockhopper New untested basins FOGL Licences Borders & Southern
A working petroleum system KEY INGREDIENTS 9 Source Rocks - Strong likelihood of mature oil prone source rocks - Direct Hydrocarbon Indicators (DHIs) on seismic - Positive CSEM results 9 Reservoir Rocks - Sandstones likely to be…
Prospects and leads map Over 33,000kms of new seismic data acquired & 7 CSEM lines over 12 prospects Over 100 prospects & leads identified Total basin potential could be 60 billion barrels TRACS CPR Net prospective…
Strategic Goals Finding a rig Finding a partner Funding Finding Oil Parallel strategies of farmout and securing a rig
Finding & funding a rig A number of near misses this year Rig owners need, as a minimum, a 1 year contract Requires a Falkland operators consortium Funding dilemma
Farmout background 2006: Presentations made to 16 companies, 10 visited the dataroom A number of companies expressed a serious interest, but were keen to see results of CSEM survey before proceeding Pro-active approach by BHP…
BHPB Evaluation Technically driven decision World class technical team Regional knowledge of South Atlantic petroleum systems 9 months detailed evaluation Focus on seismic interpretation, seismic attributes (AVO etc.) & CSEM…
Summary of farmout terms Base Deal A minimum of 2 exploration wells to be drilled within the next 3 years BHPB farm-in to all areas of the 2002 and 2004 licences BHPB will acquire a 40% interest BHBP will take over the operatorship…
Option Option arrangement BHPB has the option to further increase its interest in the licences up to 65%. BHPB will fund the costs of the forward programme on the same basis, i.e. by paying four thirds (86.67%) of their increased…
Funding illustration Cost US millions Well 1 35 Well 2 30 Mob/de-mob 30 Other 15 Total 110 FOGL 100% 1 5 Cash balance 2 11 BHPB backcosts 10+ 60% 35% FOGL Funding requirement: 35 Zero (+7 in hand) Notes 1. To end 2009 2. Forecast end…
Funding options Scenario 1. BHPB take up their option No further funding required 2. BHPB do not take up option FOGL will look to introduce a second partner We anticipate significant interest and we should be able to secure even…
Revised licence terms The first phase of the 2002 and 2004 licences will be extended by 3 years - now expire in December 2010. A partial relinquishment of the 2004 licences will be made at the end of 2007 all prospects retained No…
BHPB Petroleum Currently producing 350,000 boepd, rising to nearly 500,00 boped in 2010 North Sea Liverpool Bay Maritime Canada Pakistan Gulf of Mexico Algeria Trinidad Colombia Malaysia North West Shelf Exmouth…
BHPB Deepwater exploration expertise Deepwater development & production experience Working in sensitive environments Regional geological understanding of South Atlantic petroleum systems
BHPB drilling & development experience BHP Billiton has an impressive deepwater drilling track record in the Gulf of Mexico, Australia and West Africa Until recently held the record for deepwater drilling in the Gulf of Mexico…
Rig options for the Falklands BHP Billiton currently has 2 deep water rigs contracted, the development driller 1 & CR Luigs. Potential to swap CR Luigs or DD1 rig slots for a suitable rig located closer to the Falklands Potential…
Summary BHBP farm-in is a landmark deal for FOGL and enables us to move into the exploration drilling phase BHPB has access to suitable rigs FOGL retains a material stake in the licences Improved licence terms
Summary We now hold a significant interest in this high potential basin The entry of a world class resources company, with extensive deepwater exploration experience, into our licences confirms our view of the significant…
Farmout Advisors
Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. Past…
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