Introduction to FOGL Focused on high impact oil & gas exploration off the Falkland Islands Licences to South and East of Falkland Islands in large untested basins 49,000 sq km licence area equivalent to 220 North Sea Blocks BHP…
Location map 6 Exploration wells drilled in 1998. Different Basin, Different Geology Magallanes Basin P+P 6 Billion Boe New untested basin New drilling in 2009
North Sea comparison
North Sea discoveries through time 700 600 Average field discovery size (MMboe) FOGL is targeting large prospects, by early entry into a new basin, 500 rather than small late-life discoveries in a mature basin 400…
Prospect and lead inventory Over 100 prospects & leads indentified
Multiple Play types Multiple independent play types = significant risk diversification Springhill Tertiary Foldbelt Onlap Play Channel Play Play e.g. Toroa & Lutra e.g. Loligo &, Nimrod e.g. Undine Cretaceous Cretaceous…
De-risking Over 32,000 km of new seismic data acquired since 2005 Acquired 7 CSEM lines (750km) over 12 prospects 7 positive CSEM anomalies noted Seismic attributes indicating hydrocarbons: Amplitudes & AVO Independent data sources…
Positive CSEM anomalies Positive CSEM anomalies within the Tertiary Channel Play Nimrod Complex Colour rendered CSEM line superimposed on b&w 2D seismic line Trapped hydrocarbons = Toroa Higher electrical resistance = Positive…
A working petroleum system KEY INGREDIENTS 9 Source Rocks - Abundant evidence for a world class source rock - Direct Hydrocarbon Indicators: DHIs, pushdown & amplitudes on seismic, Positive CSEM results 9 Reservoir Rocks -…
Significant potential Over 100 prospects and leads identified TRACS CPR: Prospective resources of 10 billion bbls in top 10 prospects Multiple play types & a variety of trapping mechanisms Lots of running room - materiality The 4…
BHP farm-in agreement Commitment to drill a minimum of two exploration wells by end 2010 Underlines quality of exploration potential Acquired 51% interest and operatorship Paid 12.75 million and will fund 68% of the drilling programme…
Current activities: preparation for drilling 9 Select best prospects for drilling 9 Conduct site surveys: 3 parts to survey Fugro Meridian digital site survey & benthic sampling James Clark Ross deployment of wave & current meters…
Future activities: drilling programme Minimum 2 well exploration programme committed to by BHP Billiton Additional exploration &/or appraisal wells under consideration Timing dependent on rig availability Deep water rig market…
Funding Cash balance of c. 19 million at end 2008 No debt FOGL is not fully funded through the drilling programme Funding options under consideration: Another farm-out discussions on going with a number of parties or An…
Development of oil & gas Conventional oil and gas development solutions will be used. These have already been proven in comparable environments elsewhere Weather conditions similar to West of Shetland or Norwegian Sea Water depths of…
Economics Excellent fiscal terms corporation tax 26%, Royalty 9% Positive economics with a post tax NPV10 of 8/bbl* A 100mmbbl field is about the minimum fieldsize and would be economic down to an oil price of c. 25/bbl Political…
Summary Hugely prospective Multi-billion barrel targets to be tested in initial exploration programme De-risked prospects Drilling programme committed to Attractive fiscal terms / secure licence / politically stable Credibility of…
Disclaimer 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…
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