2013 Capital Markets Day London, 11th February 2013
Agenda 14.00 Opening remarks Brian OCathain 14.15 Work Programme and Production Outlook Dave Thomas 14.30 2013 Exploration programme Dermot Corcoran 14.45 Kurdistan Region of Iraq Joe English 15.00 Romania Ronaldo Miele 15.15 Coffee…
Balanced Portfolio with a Regional Focus Balanced portfolio of exploration, development and production assets High impact exploration initiatives in Kurdistan Region of Iraq, Romania, Egypt and Italy Core development and…
High Quality Assets with Material Scale Full Cycle E&P Portfolio Combined Reserves and Resources Production Egypt and Bulgaria 2P reserves of 79 MMboe (mid 2012) 79 Production of 28.5 Mboepd (2012 average) 2P MMboe Onshore…
Major progress since last Capital Markets Day in 2011 Last Algerian appraisal well flows 67 MMscf/d & 1,000 bpd condensate Dec 11 Enel farm-in ratified Dec 11 Enel funds received, Macquarie loan repaid Feb 12 Declaration of…
Significant corporate activity planned for 2013 Refinancing of HSBC bridge facility Q1 2013 Combined group accounts published April 2013 Launch scheme circular for main board listing May 2013 Main Market listing June 2013 Stock…
Moving into a new peer group Reserves Implied 2P Market Share 2P multiple Company Cap. mm price Mmboe /boe Tullow Oil plc 16,829 11.75 297.6 56.55 Dragon Oil 4,483 5.73 658.0 6.81 Premier Oil 3,223 3.71 296.0 10.89 Ophir Energy…
Experienced Management Team Supporting Business Tom Hickey, CFO Brian OCathain, CEO David Thomas, COO Diane Fraser Geoff Probert David Archer John Naismith Dermot Corcoran MD Finance MD North Africa MD Black Sea Head of Technical…
Work Programme and Production Outlook Dave Thomas
Active Two Year Work Programme Development Projects and 15 Wells (9 Firm Exploration) 2013 2014* WK3 SEEM CRET WK 9 SEEM CRET (CONT) WD HZ 14 SZ 2 WD HZ 15 WK 10 WO (CONT) Nile Delta SD 2 DIKIRNIS REFRIGERATION & KHILALA TAMAD…
2013 Firm Capital Work Programme (150m) Country 2013 Forecast (m) Exploration Development Total Algeria - 11 11 Bulgaria 9 27 36 Egypt 10 48 58 Italy 3 - 3 Kurdistan 22 - 22 Romania 20 - 20 Total 64 86 150 Increasing…
Health, Safety, the Environment and Social Responsibility Committed to achieving the highest HSES performance levels All operations managed to international standards with ISO 14001 and OHSAS 18001 accreditation…
Exploration Overview Dermot Corcoran
15
Expanded portfolio supports sustained exploration drilling program 4 well firm drilling program 2013 - Kamchia-1 (Bulgaria, offshore) - Muridava-A (Romania, offshore) - Est Cobalcescu-A (Romania, offshore) - Shakrok-1 (Kurdistan)…
2013/2014 Planned Activities Q4 2013 2014* 12 SEEM CRET SEEM CRET July 2014 Nile Delta (cont) (cont) El Qaa Plain 3D E. Gulf of Suez 450km2 MESAHA 1 Oct. 2014 Mesaha MESAHA Aug. 2013 KAMCHIA cont Bulgaria Oct. 2014…
Material Discovery Potential (9 Firm + 3 Contingent Wells) Drilling Portfolio 2013/2014 (12 Wells) Net Mean Volumes Vs. COS 140.0 Net Mean Volume Unrisked (MMBOE) Shireen Carp. Seis 120.0 113.0 114.3 100.0 80.0 Shakrok…
Net Mean Expectation Volumes (9 Firm + 3 Contingent Wells) Net Mean Expectation Vol. 126.9 Mmboe (9 Firm Wells) Drilling Program 2013/2014 (12 Wells) 193.8 Mmboe (12 wells) Net Mean Expectation Volumes Net Mean Volume Risked…
Kurdistan Region of Iraq Joe English
Kurdistan Region of Iraq: Shakrok and Dinarta Shakrok and Dinarta PSCs signed in July 2011 Hess 64% (op) Petroceltic 16% KRG 20% - carried Contain 5 large undrilled surface structures 100s mmbo potential on each structure…
Kurdistan Region of Iraq: Shakrok and Dinarta 22
Benchmarking Exploration Success Rates 150 exploration & appraisal wells drilled from 2005-2012 Roughly 40:60 split between exploration and appraisal wells Of 47 exploration wells drilled 27 commercial / probably commercial 15 100…
Shakrok and Dinarta Major Undrilled Structures Dinarta and Shakrok contain large undrilled anticlines in a prolific petroleum province 24
Shakrok and Dinarta Targeting Stacked Proven Reservoirs Discoveries Reservoir Targets on Shakrok (S) and Dinarta (D) Shakrok (S) Bradost (D) Shireen (D) Age of Outcrop Chinara (D) Jurassic Pelewan (S) Targets Age of…
Four structures with 500 mmbo potential A single mid-case discovery would add significant value to Petroceltic Atrush Gross 2C of 465 mmboe (YE 2011) to 627 mmboe (YE 2012) TAQA purchased 39.9% net interest for a reported…
Shakrok and Dinarta: Significant Progress in 2012 Five geological fieldwork trips completed Shakrok 2D seismic acquisition complete Rig Contract for Shakrok-1 signed Spud date Q3 2013 Dinarta 2D seismic acquisition in progress…
Shakrok Prospect Surface Geology Mapping Shakrok Safen Bina Bawi Pelewan Shakrok Prospect mapped as a large high-relief anticline with no major surface faulting 28
Shakrok Prospect Large Surface Anticline SW-dipping NE-dipping layers layers N E 25 km View from Safeen Mtn 29
Shakrok Prospect Structural Modelling Crest poorly imaged on seismic Models based on field data, seismic imaging, gravity data and local analogues Data consistent with simple fold geometry Seismic processing ongoing 2D Dip Line…
Shakrok-1: Planned Spud Date in Q3 2013 2D seismic acquisition and fieldwork complete Crestal well location selected Rig Contract for Shakrok-1 signed; spud date Q3 2013 Expected to take 160 days to drill; test results in early…
Dinarta Fieldwork and 2D Seismic Acquisition In Progress Shireen Anticline: Simple Fold Geometry Jurassic-Triassic Reservoirs Oil-Filled Matrix in Upper Cretaceous outcrops in Chinara Anticline Thin-section (black =…
Exploring for Jurassic Oil in the northern Kurdistan Region Jurassic Thermal Maturity Map versus Discovered Oil Gravity (API) Presented at Geological Society of London conference on Hydrocarbon Exploration in the Zagros Mountains…
Exploring for Triassic Oil in the northern Kurdistan Region Triassic Thermal Maturity Map versus Discovered Oil Gravity (API) Presented at Geological Society of London conference on Hydrocarbon Exploration in the Zagros Mountains…
Kurdistan Summary: Major Ramp-Up in Exploration Activity in 2013/14 Significant progress in Shakrok and Dinarta in 2012 2D seismic acquisition, Field work, G+G Studies Presence of 5 large undrilled anticlines in a prolific petroleum…
Romania Ronaldo Miele
Romania (Muridava and Est Cobalcescu) 3D Seismic driven exploration in emerging petroleum province Petroceltic operated blocks awarded in the Legend Petroceltic Licensed Gas Field Oil Field Romanian 10th Round (2010) Romania…
Increased Regional Activity majors entering deepwater plays Domino-1 Miocene gas discovery (Exxon/OMV) with 1.5 to 3.0 Tcf of resources Eugenia Eocene/Cretaceous gas discovery (Sterling Res.) Khan Asparuh award to…
Muridava and Est Cobalcescu Work Programme Joint Venture Partners: Muridava: Petroceltic 40% (operator), Sterling Resources 40%, Petromar 20% Est Cobalcescu: Petroceltic 40% (operator), Beach Energy 30%, Petromar 30% Exploration…
Muridava and Est Cobalcescu Exploration Play Types Schematic Ana/Doina Type Olimpiskaya Type Domino Type Cobalcescu Type Source Kitchen Oil/Gas Play Gas play Lebada Type 41
Muridava and Est Cobalcescu Exploration Play Types 3D Seismic Section Miocene High Amplitude Miocene Domino Play Type Eocene/Cretaceous Olimpiskaya Play Type Miocene Cobalcescu Play Type Eocene/Cretaceous Lebada Play…
High Quality 3D Seismic dataset emerging Prospect Inventory Significant prospect inventory emerging at multiple target levels (work in progress) Structural and stratigraphic traps independent prospect risks Initial focus on…
Est Cobalcescu - Miocene Stratigraphic Trap Potential Domino-1 analogue Domino-1 Discovery (2012) Miocene Prospect Potential analogue OMV reported 70.7 meters of net gas pay at Domino-1 with preliminary estimate of 1.5-3.0 TCF…
Est Cobalcescu Miocene Stratigraphic Trap Amplitude anomaly Miocene Prospect large (60 km2) high amplitude event possible slope-basin floor deep water turbidite fan system potential Direct Hydrocarbon Indicator High seismic…
Est Cobalcescu Eocene/Cretaceous Lebada Type Prospect Multiple target structure Eocene to Triassic targets Sandstones and carbonates Similar to Lebada Field Target Level 47
Muridava Eocene/Cretaceous Structural Trap Eocene to Cretaceous targets Along trend from Olimpiskaya & Eugenia South discoveries Olimpiskaya Discovery (2001) Eocene limestones tested at 6mmcfd Paleocene tested water with minor…
Muridava Additional Miocene Structural & Stratigraphic Targets Miocene slope fan complex Gravitational slump structure Analogy with Cobalcescu/Domino Target Level 49
Indicative Volumetric Estimates & Risking (work in progress) Play Type Number of Combined P50 Indicative Leads Resources (Bcf) COS (%) Est Cobalcescu Miocene (Upper Pontian) 2 819 20-30 Miocene (Lower Pontian) 6 996 25…
Romania Gas Prices Current wellhead price (4.67 per Mcf) for domestic producers is lower than the gas import price (9.20 per Mcf) An EU directive is in place to end subsidies and align gas prices with international pricing Under…
Romania Summary Increasing industry interest in the Western Black Sea area, with Majors paying high entry costs, particularly for deep water acreage Petroceltic has a competitive advantage in the region with well established…
Bulgaria Production and Development John Naismith
Bulgaria Country Overview Petroceltic has operated in Bulgaria since 1998 Significant regional knowledge base and operating capability 12 exploration, appraisal and production wells 3 gas field developments Installed first (only)…
Bulgarian Gas Market Annual gas consumption is 90 Bcf with main consumers being Fertiliser Plants, Refineries, Municipal Heating and Kaolin works Main gas suppliers are Gazprom 85% to 90% of market and Petroceltic10% to 15% Majority…
Bulgaria Production and Development Galata Block Concession (WI 100%) Galata Block (Petroceltic operated ) located in shallow water…
Galata Block Onshore Infrastructure Galata platform with 14 export pipeline to shore (25 km) system capacity 70 MMcfpd Kaliakra (15km )and Kavarna ( 8 km) subsea tie-back s Onshore Processing Plant (OPP) near Varna slug catchers,…
Galata Field Galata field was discovered in 1993 High porosity carbonate reservoirs, developed with two wells, GP-1 and GP-2 Shut in January 2009 pending evaluation as potential gas storage project reservoir is recharging post…
Kavarna Field GRV Kavarna and Kaliakra Top Reservoir Maps Kaliakra Kavarna Future 10 export line to Kaliakra-2 10 export line Simple, high relief structure More complex, low relief structure 59
Kavarna Kavarna Production and KaliakraHistory Production Performance Kavarna Kavarna Production History (Sales) 33 16 Gas Rate Cumulative Gas produced steady production 30 14 27 performance 24 12 weak aquifer…
Bulgaria Exploration Ronaldo Miele
Bulgarian Exploration Strategy Strategy designed to capitalise on existing infrastructure Extensive use of 3D seismic to define prospectivity in areas of interest Primary focus is extension of proven play fairways Kamchia 1…
Galata Concession Overview Permit Term: initial phase 3 years to Feb 2011 first extension period 2 years to Feb 2013 500 km2 3D seismic, 1 firm and 1 contingent well firm work commitments already met 6 month extension agreed in…
Galata Block Exploration Play Types Main play high porosity carbonate reservoirs in fault block traps encased by shales and sourced by biogenic gas - aim to extend play from platform margin to the North Other unproven plays in the…
Galata Block Subsurface Database Block originally held by Texaco/Petreco Historic exploration performed with sparse 2D seismic data Galata discovered on 2D data but limited early exploration success Petroceltic has acquired 1500…
KAVARNA EAST 10 BCF Galata Block Gas Discoveries GALATA 75BCF KAVARNA KALIAKRA 27 BCF 34 BCF 66
Galata Block 3D Area Exploration Prospects -pushing the trend North KAMCHIA KALIAKRA KAVARNA EAST KAVARNA GALATA EAST GALATA MAIN 67
Kamchia-1 Well Highest ranked of identified prospects Legend Exploration Gas Field Prospect High relief fault block with possible gas charge from the south or from within the platform area Bulgaria Galata Block P50 prospective…
Bulgaria Exploration Summary Petroceltic has operated in Bulgaria since 1998 and has significant regional technical and commercial knowledge and operating capability Key exploration play is Paleocene/Upper Cretaceous carbonates (3…
Egypt Production & Development John Naismith
Egypt Country Overview Petroceltic active in the onshore Nile Delta since 1998 (through Odyssey takeover) 44 exploration wells drilled, 36% commercial success rate Acquired Merlon in 2006, building equity from 50% to 100% and…
Egyptian Senior Management Said El Salmy - General Manager MSc in Finance and 40 years experience in the industry 27 years with Phillips in the USA and Egypt 3 years with Shell Egypt as CFO and Deputy GM of Marketing served with…
Egyptian Production and Developments Onshore Nile Delta Petroceltic operated assets onshore Nile Delta (100% WI) - 15 development leases, 13 fields currently on production - two material assets with long term production - SE…
Egyptian Joint Operating Company (Mansoura Petroleum Company) non-profit making company jointly owned by Petroceltic and the Government Board of Directors comprises 4 Government and 4 Petroceltic representatives long established…
Petroceltics Nile Delta Concessions: Environment Dry farmland Wet farmland Many Many canals villages 75
Mansoura / Southeast El Mansoura - Fields on Production/Plants West Qantara Khilala NE Abu Zahra East Abu South Khadra Khilala South Zarqa South Batra West Mansoura Dikirnis City South Plants El Tamad Mansoura &…
Petroceltic Egyptian Facilities West Khilala Qantara West Dikirnis 77
Main Producing Fields West Khilala Gas Field Development dry gas field with excellent reservoir quality ultimate reserves 288 Bcf 7 gas producers current production rate 48 MMcfpd 0 1km simple facilities constructed quickly and…
West Khilala Field Gas Rates 2011 / 2012 high productivity fields, with a successful infill well drilled in 2012 further infill drilling in 2013 to 2015 will sustain production 120 FeedGasMMscfd Compl eti on WKHI001:ABUMADIL2…
West Khilala Reservoir Management active reservoir management programme in place Perforate less data acquisition surveys to monitor than 60 ft to minimise pressure and saturation changes Maximum coning Gas column latest infill…
West Khilala-9 Infill WK-9 next development well in Egypt drilling schedule, to be completed with gravel pack sidetracks to WK-3 and WK-4 are also planned for 2013/2014 compression project underway WKh-9 WKh-9 these projects will…
West Dikirnis Overview oil rim with gas cap technically advanced development with Update horizontal wells, gas re-injection and LPG plant gas re-injection has stabilised production LPG Plant is recovering significant liquids…
West Dikirnis: Liquids Production History very low decline rate since gas reinjection came on stream May 2010 liquids production is a combination of black oil , condensate and LPG when current LPG Plant Refrigeration project…
West Dikirnis-14 Infill Well Planning W WD9 E WD-14P2 WD-14HW2 TR Top B1 Top B Top A1 Top A WD-11H WD-13H WD-14 infill well planning currently being WD-12H finalised WD-1 WD-14P2 will appraise remaining oil rim…
West Dikirnis Summary gas reinjection working very well with very high uptime excellent impact on reservoir performance LPG plant functioning well with high uptimes Refrigeration project on track to complete in April 2013 audited…
South Khilala Field early field performance exceeded Placement of appraisal well in expectations and suggested South Khilala field potential reserves upside South Khilala-2 drilled to appraise southern lobe and add production…
South Damas South Damas is clean, high net-to-gross, Sidi Salim Formation (Buried Hill Play) field has outperformed with reserves estimate increasing from 30 to 50 Bcf South Damas-2 drilled January 2013 33 ft shallower than South…
Egypt Exploration Ronaldo Miele
Egypt Exploration Concession Locations SE El Mansoura El Qaa Plain Nile Delta South East Mansoura (1860 km) Petroceltic (operator)100% expiry July 2014, no outstanding commitments Mesaha Upper Egypt Mesaha (42,750 km)…
Nile Delta Exploration Summary South East Mansoura Mit Ghamr - Bilqas N El Wastani South Damas Field Sidi S Salim Buried Hills Sidi Salim Kafr el Sheikh El Tamad Field Isolated channels Rotated Fault Block Oligocene Kafr el…
Sinbelawayn high Nile Delta South East Mansoura graded Cretaceous Cretaceous Play Sinbelawayn-1 prospect (contingent) Buried Hill PI Cretaceous PI robust,3D defined 4-way closure, proven on- block reservoirs, seals and oil and…
Nile Delta South East El Mansoura S South Damas Damas N Sidi Salim Buried Hill Play Pliocene shales two existing discoveries located in the west Pay sands of the concession Miocene sands & Damas and South Damas shales (buried…
Upper Egypt Mesaha (Petroceltic 40% WI) Mesaha is a 42,750 km2 frontier exploration block a possible rift system with major tilted fault blocks was identified on seismic 0 1 2 3 4 5 km Mesaha-1 well recently drilled an intra…
Gulf of Suez El Qaa Plain (Petroceltic 37.5% WI) EGPC 2011 bid round award underexplored onshore sub basin main target pre rift Nubian sands in downthrown fault blocks substantial leads identified on limited 2D seismic…
New Business Opportunities EGAS 2012 Bid Round 15 blocks offered in the bid round Petroceltic plans to participate to leverage regional technical expertise and strengthen exploration portfolio block evaluation complete and…
Egyptian Gas Supply and Demand Balance (bcm/yr) 80 Rising 70 international gas prices drive LNG 60 exports 50 40 Rising domestic demand met by 30 reducing LNG exports 20 10 0 Production Consumption Sources: BP…
Current Egyptian Gas Pricing Arrangements Base domestic gas price is set at 2.65/mmbtu Approximately 27% of gas 27% production granted enhanced 36% prices to promote investment (3.95/mmbtu to 5.88/mmbtu) Price incentives to…
Egyptian Gas Price Comparators (/mmbtu) 20 18 18.00 Oil product imports price 16 16.00 Gas price (/mmbtu) Long term LNG import price 14 12 11.00 Short term LNG import price 10 8.50 Asian LNG exports netback price 8…
Egypt Exploration Summary Petroceltic is pursuing exploration opportunities as part of overall group strategy, and current focus is on: South East Mansoura potential for Sinbelaywan to open up a new Cretaceous basin possibility of a…
Overall Egypt Summary Egypt offers significant resource capture opportunities, rapidly rising energy demand and a good long term stable outlook Strategy is to sustain Egypt as core area within group portfolio Capitalise on organic…
Loading...
