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2015 Half Year Results – Enquest

Enquest · Aug 18, 2015 · 58 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2015 Half Year Results – Enquest – slide 1
    EnQuest 2015 Half Year Results Strong production growth of 17%, 29,665 Boepd
  2. 2015 Half Year Results – Enquest – slide 2
    Amjad Bseisu Chief Executive
  3. 2015 Half Year Results – Enquest – slide 3
    Agenda Overview Amjad Bseisu, CEO Financials Jonathan Swinney, CFO UK North Sea Neil McCulloch, President North Sea Malaysia Amjad Bseisu & summary 2
  4. 2015 Half Year Results – Enquest – slide 4
    2015 Half Year Results Key themes Good financial result, given current environment - cost reduction programme on track Strong operational performance - high production efficiency - successful drilling programme Major…
  5. 2015 Half Year Results – Enquest – slide 5
    2015 half year results Driven by strong production performance Production Production up 17.3%, included 7,777 Boepd from Malaysia 29,665 Boepd Maintained full year 2015 production guidance 33,000 Boepd and 36,000 Boepd, strong H2…
  6. 2015 Half Year Results – Enquest – slide 6
    Delivering on core competencies of operational efficiency and cost control Existing UK hubs performing well Thistle/Deveron Heather/Broom Field life Transforming GKA production and GKA extensions operational efficiency, ahead of…
  7. 2015 Half Year Results – Enquest – slide 7
    Further improvement in EnQuest production efficiency High PE performance is key to the future of the UK North Sea 100.0% 2014 operator rankings Like for like EnQuest 2014 88% UK North Sea production efficiency task force (O&G UK)…
  8. 2015 Half Year Results – Enquest – slide 8
    Jonathan Swinney Chief Financial Officer
  9. 2015 Half Year Results – Enquest – slide 9
    Results summary Half year to 30 June Unless otherwise stated all figures are before exceptional items and depletion of fair value uplift and are in US dollars US dollars H1 2015 H1 2014 Change % Export production (Boepd) 29,665 25,292…
  10. 2015 Half Year Results – Enquest – slide 10
    Summary income statement Half year to 30 June 2015 2015 2015 2014 US dollars Business Exceptionals Reported Reported performance ms ms ms ms Revenue 444.0 (29.4) 414.6 503.6 Cost of sales (335.6) 12.8 (322.8) (380.4) Gross profit…
  11. 2015 Half Year Results – Enquest – slide 11
    Focus on cost efficiency Unit operating costs on course for targeted reduction to 38/bbl in 2015 /bbl 50.0 Production Transportation Unit opex cost down 15% 45.0 Absolute costs of sales flat 10.5 40.0 Increased level of…
  12. 2015 Half Year Results – Enquest – slide 12
    404 million cash capital expenditure Outflow in H1 2015, including approx.100 million re work done in 2014 USm 100 95 50 53 41 39 23 3 Alma/Galia Kraken Thistle/Deveron Heather/Broom GKA Dons Malaysia Other 11
  13. 2015 Half Year Results – Enquest – slide 13
    Cash flow Half year to end June 2015 USm Funding facilities: 1.7bn credit facility, 155m retail bond, 650m high yield bond 718 (933) (1,282) 83 (304) (c.100) 2014 work done (28) Cash & equivalents less Net cash flow…
  14. 2015 Half Year Results – Enquest – slide 14
    Group taxation position No material UK cash CT/SCT on operational activities expected before 2025 ETR ms UK Tax Allowances ms Loss Before Tax (35) Recognised at 31 December 2014 1,818 2015 net additions plus RFES 470 At UK CT Rate…
  15. 2015 Half Year Results – Enquest – slide 15
    Outlook Full Year 2015 EBITDA will further benefit from hedging Confirming 2015 cash capex of around 600m, plus cash capex in respect of the 2014 programme Confirming production and transportation costs expected to achieve…
  16. 2015 Half Year Results – Enquest – slide 16
    Neil McCulloch President, North Sea
  17. 2015 Half Year Results – Enquest – slide 17
    Alma/Galia first oil In final stages, commissioning of first oil systems nearing completion The Alma/Galia programme for the year to date has been successfully completed largely as planned Moored the FPSO Pulled in the risers…
  18. 2015 Half Year Results – Enquest – slide 18
    H1 2015 production results Reaffirming full year guidance 33,000 to 36,000 Boepd H2 includes Alma + a significant scheduled increase from existing UK producing assets Net production (Boepd) 2014 2015 29,665 30000 25,292 25000…
  19. 2015 Half Year Results – Enquest – slide 19
    Thistle / Deveron Strong production efficiency of over 90% Drilling successful wells economically Drilling rig reactivated and Phase II drilling commenced in Q2: A61 (WFB-P2) drilled, completed and on production by mid-May. Nearly a…
  20. 2015 Half Year Results – Enquest – slide 20
    Thistle / Deveron Compelling cost per barrel economics, average c.4/bbl Well Reserves (mmstb) Capex Actual M Budget M A61 (WFB-P2) 2.0 9.0M 6.4M (actual) A62 (WFB-P3) 4.0 8.7M 8.3M (actual) A59 ESP Workover 0.5 (protection)…
  21. 2015 Half Year Results – Enquest – slide 21
    Dons / Conrie Integration of Ythan into Dons infrastructure Strong production efficiency, over 90% pre-shutdown, also with high levels of water injection efficiency Scale treatments carried out on West W1 Conrie S7 Don W4 and W1,…
  22. 2015 Half Year Results – Enquest – slide 22
    Ythan Swift agile delivery, well performing ahead of expectations S15 drillled, completed and tied-in by May Initial evaluation of the S15 well results encouraging with the potential for additional oil in place NE Extension…
  23. 2015 Half Year Results – Enquest – slide 23
    Heather / Broom High levels of operational uptime H66 drilled and completed, brought on line in March. The well results were encouraging with a thicker oil column encountered than expected 2/0 Else 5- Rig crew then moved to Thistle…
  24. 2015 Half Year Results – Enquest – slide 24
    Adding value to the Greater Kittiwake Area (GKA) From a gross ave rate of c.2,500 Boepd to over 6,000 Boepd - before Gadwall 20000.0 GKA gross production from Q2 2014 until 12 August 2015 18000.0 Re-instated Gadwall 16000.0…
  25. 2015 Half Year Results – Enquest – slide 25
    UK drilling programme 2015 The successful delivery of this programme is a substantial achievement Alma/Galia Galia production well Kraken Alba Tyrone/Tiree New production appraisal well Batch drilling This successful…
  26. 2015 Half Year Results – Enquest – slide 26
    Kraken 6 Successfully delivering extensive Tiree drilling and subsea programmes Sidetrack 2 Geotech Primary FPSO on track 5z Tyrone 1 5 4 4z
  27. 2015 Half Year Results – Enquest – slide 27
    The Kraken development On budget and on schedule The Kraken FPSO vessel is at the shipyard in Singapore and the conversion programme is continuing on plan. Equipment procurement and fabrication of the modules is in progress. The…
  28. 2015 Half Year Results – Enquest – slide 28
    The Kraken development On budget and on schedule The fixed pipelines for the first two drill centres have been installed on the seabed. Installation of the mooring system for the FPSO also started in the first half. The drilling rig…
  29. 2015 Half Year Results – Enquest – slide 29
    Malaysia
  30. 2015 Half Year Results – Enquest – slide 30
    Malaysia: 26% of EnQuests production in H1 2015 PM8/Seligi: material production increase since EnQuest took over Take-over in mid Oct 2014 Monsoon drive 20 lower OEE 1.00 18 0.95 16 0.90 Overall Equipment Effectiveness (OEE)…
  31. 2015 Half Year Results – Enquest – slide 31
    Tanjong Baram First production delivered on time Platform topsides installed in May 2015. First production flowed in June 2015, drilling rig demobilised. Host platform requested changes to receiving vessel to accommodate higher…
  32. 2015 Half Year Results – Enquest – slide 32
    Summary
  33. 2015 Half Year Results – Enquest – slide 33
    EnQuests sustainable growth model Delivering solutions for maturing/marginal fields Growing track record of delivery Right owner for maturing / Subsurface late life assets North Sea: expertise - Thistle Investment & Ability to…
  34. 2015 Half Year Results – Enquest – slide 34
    EnQuest Turning field decline into production growth and economic field life extension PM8/Seligi gross production 20000.0 Take-over in mid Oct 2014 GKA gross production from Q2 2014 until 12 August 2015 20 1.00 18000.0 Overall…
  35. 2015 Half Year Results – Enquest – slide 35
    Delivering strong compound annual growth rates 15% to end 2014, expecting c.17% in 2015, then further substantial increases Average net production Average (Boepd) (Boepd) net production 50,000 50,000+ 45,000 40,000 35,000…
  36. 2015 Half Year Results – Enquest – slide 36
    Q&A Thistle/Deveron Dons Northern Producer Heather/Broom Alma/Galia EnQuest Producer 35
  37. 2015 Half Year Results – Enquest – slide 37
    Delivering sustainable growth On course for over 50,000 Boepd Exploiting our Commercialising existing reserves & developing discoveries Dons, Thistle/Deveron, Heather/Broom, Ythan Alba Scolty/Crathes Alma/Galia Kraken…
  38. 2015 Half Year Results – Enquest – slide 38
    EnQuests producing hubs From 3 to 6 hubs, a growing & increasingly diversified portfolio Thistle/Deveron The Don fields Heather/Broom Greater Kittiwake Area PM8/Seligi (Malaysia) Alma/Galia 37
  39. 2015 Half Year Results – Enquest – slide 39
    EnQuests growing North Sea asset base As at 30th June 2015 The Dons Production and Thistle / Deveron developments Discoveries Other licences Heather/Broom Kraken Alba Avalon Scolty / Crathes Greater Kittiwake…
  40. 2015 Half Year Results – Enquest – slide 40
    Largest UK Independent Producer in the UK North Sea Government data (DECC) for UK North sea independent producers Total Production for the year ending April 2015 1,200,000 1,000,000 800,000 600,000 400,000…
  41. 2015 Half Year Results – Enquest – slide 41
    Five years of strong reserves growth 514% reserve replacement ratio Net 2P reserves 2010 - 2014 182.3 220.0 MMboe MMboe 80.5 (42.8) MMboe MMboe Production Additions to 2010 to 2014 reserves 2010 to 2014 Net 2P reserves…
  42. 2015 Half Year Results – Enquest – slide 42
    Alba 8% non-operated, 1,249 Boepd in H1 2015 (1,214 Boepd in 2014) 2015 ADW Production for first half 2015: 1,249 Boepd 1 Planned Platform Well (ADW) to spud in Q4 New 4D seismic reinterpretation available (from 2014 seismic…
  43. 2015 Half Year Results – Enquest – slide 43
    Greater Kittiwake Area opportunity 50 km tie-back radius & competitor infrastructure 42
  44. 2015 Half Year Results – Enquest – slide 44
    Alma / Galia ALMA GALIA N-Dev W2 W1 G1 K3 GB K1 K4 GE EQ Development wells Drilled / completed producer K5 Future producer Potential future producer K2 K6 Alma abandoned at low water cut of 70% EQ…
  45. 2015 Half Year Results – Enquest – slide 45
    Alma Subsurface -10 -105 52 00 5 -1047 -104 5 -1 50 04 25 -1 -10400 -100375 -1 3 -10032550 300 -10 -10-1 -10 2202275 5 50 500205 17 -102 5 -9878-59-999 00 -101 50 -9 5 0 12 0 -1 00 5 80 -10 1…
  46. 2015 Half Year Results – Enquest – slide 46
    Alma Seismic SW 30/24-2 30/24-1 3 0/24-5 30/24-3 30/25a-2 NE 45
  47. 2015 Half Year Results – Enquest – slide 47
    0 0 0 -9 -985 45 -94 -9 -9300 -9 6229200 0 00 -925 -98 0 Alma Development -980 0 -9 -9 75 70 0 Wells Trajectory Schematic -8 50 6228800 60 7 -8 0 30/25a-02 -94 50 00 -940…
  48. 2015 Half Year Results – Enquest – slide 48
    Galia STOIIP & Reserves Only 50% Water Cut Galia Main 2 Well Sampled 30/24-15 Galia 1 Bubble Point Pressure 1900 psia Main 1 Differential Gas-Oil Ratio 631 scf/stb outline 9 29 Galia East 3 30Z outline Formation Volume Factor…
  49. 2015 Half Year Results – Enquest – slide 49
    Kraken 9/2b Appraisal Well Well objectives and results Investigate Heimdal III sand development to SW of Kraken Oil bearing Heimdal III sand at sidetrack (Tiree) location Prove up Heimdal I sand development 6 Found on depth and…
  50. 2015 Half Year Results – Enquest – slide 50
    Kraken overview Field summary 2 fields located in Block 9/2b 350km NE of Aberdeen Field area 12 x 3.5 km Water Depth of 110m Heavy Oil (14 Deg API) but good flow properties Low sulphur content and not waxy FDP approved by DECC…
  51. 2015 Half Year Results – Enquest – slide 51
    Kraken subsurface STOIIP, reserves & recovery factor FDP STOIIP Produced RF% North 68 20 30% Central 85 38 45% South 268 89 33% Kraken Area 421 147 35% Conservative Recovery Factor Viscosity in cP Kraken Ultimate…
  52. 2015 Half Year Results – Enquest – slide 52
    Kraken subsurface Gross production profile & reserves FDP MMstb South Central North Total Produced 89 38 20 147 Fuel 10 Sales 137 Gross Produced Oil stb/d 51
  53. 2015 Half Year Results – Enquest – slide 53
    Thistle life extension projects Power & Electricity Upgrade Project New D turbine Complete Topsides Structural Interim Projects PC2 Installed Q2 2014 PC1 Installed Q3 2014 Topsides Structural Integrity Projects MOD 12A, 6A…
  54. 2015 Half Year Results – Enquest – slide 54
    Greater Kittiwake Area Opportunity Avalon Scolty Crathes Kittiwake Eagle Production Platform (or FPSO) 53
  55. 2015 Half Year Results – Enquest – slide 55
    Kraken infrastructure 54
  56. 2015 Half Year Results – Enquest – slide 56
    Thistle, Conrie and The Dons infrastructure 55
  57. 2015 Half Year Results – Enquest – slide 57
    Heather / Broom infrastructure 5656
  58. 2015 Half Year Results – Enquest – slide 58
    GKA infrastructure 57

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