Final Results 2014 Maintaining a stable business platform in volatile emerging markets 27 March 2014
Agenda Introduction - Paul Davies, Chief Executive Financial Review - Cynthia Dubin, Finance Director Operations Review - Martin Miller, Operations Director Our Markets - Peter Dixon, Commercial Director Summary & Outlook - Paul…
Agenda Introduction - Paul Davies, Chief Executive Financial Review - Cynthia Dubin, Finance Director Operations Review - Martin Miller, Operations Director Our Markets - Peter Dixon, Commercial Director Summary & Outlook - Paul…
Summary of 2013 Delivering targeted production and building reserves Average oil and gas production increased by 18% to 9,731 boepd Recommencement of development drilling in Ukraine in April 2013 following Q1 bond placement…
Agenda Introduction - Paul Davies, Chief Executive Financial Review - Cynthia Dubin, Finance Director Operations Review - Martin Miller, Operations Director Our Markets - Peter Dixon, Commercial Director Summary & Outlook - Paul…
Financial highlights 2013 Improved liquidity and fully funded investment programme Improved liquidity and financial stability from operating cash flow and placement of convertible bond Revenues driven by Ukrainian gas prices which…
Financial summary 2013 Ukraine impacted by interruption of development drilling Revenue down to 180.7m due to lower Key Financials production in Ukraine, however partially (m) Y2012 Y2013 Change offset by a significant increase in %…
Group revenue Reduction in Ukrainian revenue offset by increase in Russian revenue Group revenue declined by 10.9% to 180.7m mainly due to lower production in Ukraine across all three products (oil, gas and LPG) and slightly lower…
Profit from operations Impacted by production volumes and Russian plant becoming operational Profit affected by 22.2m decrease in revenues mainly due to reduced production in Ukraine however this was partially offset by an increase…
Profit for the year Impacted by operations and reduced taxation charge Full year administration expenses in Russia offset by lower foreign exchange loss 2m charge for the fair value movement on derivative liability is associated with…
Capital expenditure Majority of investment in Ukraine Focus returned to Ukraine Capex programme fully covered by operating cashflow Capex spend of 64.4m in line with expectations both in Ukraine and Russia Investment in Ukraine…
Movement in cash and undrawn credit facilities Stronger liquidity position Cash generated from operations is 74.8m Net cash financing inflow of the 37.8m from proceeds of bond placement Significant improvement in cash and undrawn…
Agenda Introduction - Paul Davies, Chief Executive Financial Review - Cynthia Dubin, Finance Director Operations Review - Martin Miller, Operations Director Our Markets - Peter Dixon, Commercial Director Summary & Outlook - Paul…
Operational review 2013 Ongoing development, appraisal and exploration 15
Operational summary 2013 Key developments Ukraine Elizavetovskoye Early Production Facility (EPF) completed; A2 carbonate development wells E-301 & E-302 have both outperformed expectations Rudenkovskoye - Completed 10-stage multi-frac…
Ukraine Ongoing development, appraisal and exploration 17
Ukraine Elizavetovskoye: More to come Production from A2 carbonate already approaching EPF capacity of 15 MMcfd G-sands appraisal E-304 will be next well Fast tracking scheme to double capacity using equipment from the Novo-Nik EPF…
Ukraine Novo-Nik area: Further development Rudenkovskoye Novo-Nikolaevskoye Complex Development plan reconfigured following R-103 frac results Planning high resolution 3D seismic and further drilling & fraccing of R-105 in late…
Ukraine Zaplavskoye: Tapping the potential Z-05 flows a rich gas condensate from Visean sandstone reservoirs and defines stratigraphic trap limits New seismic amplitude analysis helps definition of planned Z-06 well location for…
Russia Fully funded development programme 21
Russia Koshekhablskoye field: Ready to increase production Expansion project to increase plant Koshekhablskoye-Georgievskoye Licences capacity by around 50% from 40 MMcfd to Oxfordian reservoir and lead outlines 60 MMcfd will be…
Group production Setting scene for expansion Quarter 1 Start-up of Elizavetovskoye wells Quarter 2 NN-80 Novo-Nikolaevskoye development well Quarter 3 Core field appraisal drilling E-303 G sands result Quarter 4 Koshekhablskoye…
Agenda Introduction - Paul Davies, Chief Executive Financial Review - Cynthia Dubin, Finance Director Operations Review - Martin Miller, Operations Director Our Markets - Peter Dixon, Commercial Director Summary & Outlook - Paul…
Commercial highlights Strong realisations in Ukraine, improving realisations in Russia Ukraine Revenue Realisation Prices remained at or above European m levels Ukraine Gas sales make up more than 60% of our Ukraine revenue Gas…
Ukraine Gas market fundamentals short of gas, high prices Annual consumption 50 Bcm per year Gas production and imports Domestic production 20 Bcm per year 2 Bcm Historically heavily dependent on Domestic Production Russian imports…
Russia Gas market fundamentals prices up average 18% p.a. for six years Two key drivers of gas price in Russia Significant increase in production cost will drive commercial gas price rises Existing Gazprom fields (cheap to produce)…
Agenda Introduction - Paul Davies, Chief Executive Financial Review - Cynthia Dubin, Finance Director Operations Review - Martin Miller, Operations Director Our Markets - Peter Dixon, Commercial Director Summary & Outlook - Paul…
Summary Significant progress from funded developments Rising oil and gas production targeted and achieved Ukraine investment programme restarted with positive results Elizavetovskoye development brought on-stream and growth…
Outlook Rising production and increased reserves Production growth has continued into 2014 with an increasing Ukrainian contribution. Fully funded development programmes in Ukraine and Russia through 2014 target further…
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