Agenda Overview & Operations Update Amjad Bseisu, CEO Financials Jonathan Swinney, CFO UK North Sea Neil McCulloch President North Sea Kraken Richard Hall Head of Major Projects Malaysia Bob Davenport General Manager,…
2015 H2 operations update Strong production. Alma/Galia performing well. Reduction in costs Production H2 production to end of Nov up 39% on H1 35,022 Boepd in 2015 to end Nov included 8,654 Boepd from Malaysia 2015 to end Nov Included…
Strategic priorities in a low oil price environment 1) Delivering on execution Strong 35,022 Boepd production to end November Averaged 48,677 Boepd over Oct / Nov Individual days already over 50,000 Boepd Alma/Galia reservoir and…
Strategic priorities in a low oil price environment 2) Restructuring EnQuests operating cost base Programme to streamline operations more than on track Now expecting to deliver opex 31-32/bbl in 2015 Anticipating unit opex in…
Strategic priorities in a low oil price environment 3) Strengthening the balance sheet - good operational performance Reduced Kraken capex by c.10% Prioritised investment programme Internationally: Exited Norway, Tunisia, Egypt UK:…
Production results year to end November 2015 Strong production, up 26% year on year, 41,360 Boepd in H2 so far - up 39% Vs H1 Net production (Boepd) 2014 2015 2014 2015 40000 10000 9,061 9,136 35,022 9000 8,609 35000 8,401 8000…
Jonathan Swinney Chief Financial Officer
Guidance to the market Full Year 2015 Reaffirming production guidance between 33,000 Boepd and 36,000 Boepd Unit production and transportation operating expenditure will now be 31-32/bbl; ahead of target Cash capex in 2015 will…
Guidance to the market Outlook Production guidance between 44,000 Boepd and 48,000 Boepd for 2016 Average unit opex anticipated to be in the range of 26-28/bbl for 2016 Cash capex in 2016 is expected to be approximately 700 -…
Neil McCulloch President North Sea
Strategic priorities in a low oil price environment Production performance on track Delivery Upper Quartile drilling performance Ythan delivered one year after taking licence Production efficiency remains Upper Quartile…
EnQuest Producer Project to producing asset First Oil safely achieved on 27 October 2015 Floating Production Storage and Offloading (FPSO) installation performing well First cargo lifting planned for late December Full rate…
Alma and Galia Performance in line with expectations Galia Alma (GP1) K3Z (AP1) 1 5 Alma K5 (AP2) 1 7 Well performance in line with expectations: AP1 (K3Z) Zechstein producer 3,900 Boepd gross AP2 (K5) Devonian producer…
Greater Kittiwake Area (GKA) A key hub Platform installed 1990 (CRINE) 16 well slots (rig removed) Oil capacity 36,000 Boepd (pumps 27,500) Water injection 50,000 Boepd Oil via Forties Pipeline System Gas to Fulmar 15
GKA hub strategy Improve margins and maximise value Increase Production Efficiency Maximise base Reduce opex, reduce cost/bbl production Maximise Execute scale squeezes base production Manage Supply Chain 2014 Mallard…
GKA Transformed performance after taking operatorship 17
Scolty/Crathes sanctioned Synergies with Kittiwake realised Scolty & Crathes EnQuest 50% MOL 50% Two-well subsea development, north of 9 km Kittiwake Greater Kittiwake Area High-quality reservoirs, c. 7 Mmboe (net) 2P 16 km…
Significant Prospectivity Around GKA 19
Thistle / Deveron High production efficiency, cash-flow returned from drilling programme High production efficiency of mid-80s% Three well programme extended and activities complete in 2015 : A61 accessing updip target against…
Dons / Conrie YTD production significantly above budget in 2015 High production efficiency of mid- W1 Conrie S7 80s% High levels of water injection W2 efficiency following increase in W5 W3Z S6 injection capacity in March S13…
Ythan onstream a year after taking licence Performance Ahead of Expectations NE Extension Fast track development schedule: Ythan Core Area Licence acquired Q2 2014 FDP approved Q3 2014 First oil 25 May 2015 Ythan…
North Sea OPEX/BOE 2015 Cost reduction programme firmly on track: 60 Sullom SullomVoe VoeTerminal shutdown Terminal shutdown Lower unit rates - Scale treatments, 50 subsea inspection, repairs and maintenance, logistics,…
Northern North Sea (NNS) Infrastructure Operational Gas Group (OGG) Reliable, cost-effective source of fuel gas secured by innovative industry group buy Cost reduced by almost 50% for Heather/Broom Sullom Voe Terminal (SVT)…
Outstanding drilling performance ESTIMATED FINAL WELL COST vs. Budget vs. RUSHMORE UPPER QUARTILE (MM Gross) Wells commenced in 2015 (rushmore data 2010-2015) 60 180 Cumuulative Budget / Cumulative Estimated Final Cost Budget /…
Wells delivery excellence Achieved through: Unwavering focus on delivery - keeping it simple, focusing on the detail - getting it right first time Managing the cost base down and maintaining contractor performance Smart use of…
Summary Excellent production delivery, portfolio meeting guidance, Kittiwake now delivering Upper Quartile performance in line with NNS assets Opex/boe ahead of guidance and set to be in the high 20s/bbl in 2016 Alma/Galia…
Richard Hall Head of Major Projects
30 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…
Kraken development Development plan and field layout 4 integrated Template/Manifold Type Drill Centres 14 horizontal producers up to 1000m All manifolds can accommodate expansion / step out 2 single service integrated 4 slot 11…
Kraken development Key deliverable of buoy achieved on schedule 32
Kraken development FPSO module location 33
FPSO Armada Kraken Construction continues Installed greenwater protection Installed flare tower E-House & laydown installed on main deck Helideck & loading hose/reel installed 34
Kraken development Deep Energy installing pipeline end termination (April 2015) 41
Installation of Submerged Turret Production (STP)buoy and DC1 risers Buoy/turret lift from transportation vessel STP buoy/turret pre-ballasting DC1 riser and buoyancy module installation 42
Kraken development 2016 subsea programme to first oil Subsea programme/timings Subsea Drill Centre DC3 Umbilicals, Risers, Flowlines (SURF) Install water injection & production Integrated Template Structures (ITS) Drill Centre DC2…
Kraken development Wells/drilling D3 D2 B2 Wells drilled through reservoir 44
Kraken Wells progress summary 2015 Drill Centre 1 Drill Centre 2 (DC1) (DC2) Topholes complete 7 DC1, 6 DC2 17 complete 7 DC1, 6 DC2 12 to date 1 DC1, 2 DC2 8 to date 1 DC1, 1 DC2 Kraken Summary end November 2015 42…
All wells drilled to date in line with expectations Well B2 Dataset: BBK2012 PGS Extended Far JJB Pseudo Density Geosphere canvas at TD 10/8/15 Depth 46
Kraken development Schedule of work for 2016 Wells available pre-first oil : 4 producers & 4 injectors Rig Programme Transocean Leader Drill Centre 1 (DC1) Drill and complete six wells to finish DC1 drilling programme DC3 Batch…
Kraken development Capex reductions achieved through planning and project execution Extensive planning pre-sanction including 2 Well defined contracts/contractual scopes FEEDS1 for FPSO and subsea FEED with attractive payment…
Kraken development Project status FPSO conversion on schedule for 2017 first oil Drilling/well programme ahead of schedule Excellent reservoir correlation with subsurface expectations Further Reservoir upside discovered by…
Bob Davenport General Manager, Malaysia
Malaysia Ground floor opportunities aligned with our strategy Decision to leverage EnQuests proven expertise in managing mature offshore assets by extending footprint beyond the UK Southeast Asia and particularly Malaysia selected as…
Malaysia Right place, right time, right owner Low operating costs Progressive national oil company, regulator Remaining reserves of c. 8-10 Bnboe Over 3,500 energy sector companies World class oil and gas infrastructure Steady…
EnQuest Malaysia World class resource with significant remaining upside PM8/Seligi fields (50% WI) 2.2 Bnboe HIIP Produced 680 MMboe (31% recovery factor) Gross reserves: 2P 38 MMboe; 2C 105 MMboe Peak production 160,000 Boepd once…
PM8/Seligi Asset
PM8/Seligi A producing hub with capacity for future growth PM8 fields 5 producing fields: Lawang, Langat, Serudon, Yong, North Raya 4 unmanned platforms supported from Seligi 10 producing, 25 idle oil well strings All production…
PM8/Seligi Improved performance with minimum spend EnQuest assumed operatorship October 2014 Average gross production increased from 12,400 Boepd to 15,100 Boepd (+22%) Production efficiency enhanced from 82% to 95% (+13%) Improved…
PM8/Seligi Ensuring facility integrity for safety and reliability PM8/Seligi facilities Field testing new inspection technology for temporary pipeline wraps Average asset age 21 years 84 inspected 2 manned and 11 satellite platforms…
PM8/Seligi Improving compressor reliability for higher production efficiency October 2014 November 2015 Gas Power Compress Gas Power Compress Gear Box Gear Box Turbine Turbine or Turbine Turbine or Excess Train A Train A hours…
PM8/Seligi Well interventions have already added 3,000 Boepd from idle wells 2015 campaign Added 3,000 Boepd gross by restoring idle wells to production Focus on mechanical jobs only sand cleanout, gas lift reinstatement, surface…
PM8/Seligi Multiple avenues for growth Serudon near Pantai field development cluster development PM8 gas development Peta & Peta-Kiri cluster development East Raya cluster development Seligi field Idle well restoration…
PM8/Seligi Forward work plans to convert contingent resource to production* *Subject to PETRONAS approval Technical studies, contracting, mobilization 63
Seligi field World class resource with significant remaining upside Seligi discovered in 1971; first oil in 1989 1.9 Bnbbl STOIIP; produced 560 MMbbl Recovery factor 30% to date Peak production 160,000 Boepd in 1995 Current…
Seligi field J-18/20 reservoir: surveillance drives recompletions, infill drilling and waterflooding J-18/20 Type Log Seligi fields largest reservoir, J- J-18/20 Top Structure Map 18/20, has c. 715 MMbbl STOIIP Recovery to date is…
Seligi field J-15/16 reservoir pilot to evaluate Seligi waterflooding potential The J-15/16 reservoir has c. 390 MMbbl STOIIP Recovery to date is 31% J-15/16 Type Log Thin, laminated sandstone: Porosity 21%; permeability 250 md; net…
Seligi field Targeting K, L and minor J reservoirs for infill and horizontal drilling Collectively, the K, L and K-10/20/25 Type Log minor J reservoirs have c. 775 MMbbl STOIIP Recovery to date is only 18% Typical layer…
PM8 fields Ongoing field reviews and remapping following 2013 seismic survey Yong Field Seismic Section 5 producing and 3 undeveloped fields 348 MMboe HIIP; produced 120 MMboe Recovery factor 34% First oil in 1998; peak production…
The PM8/Seligi production sharing contract Revenue-Over-Cost PSC model Royalty is 10% The remaining oil is split between cost and profit oil based on R/C ratio Cost oil is used to pay EnQuests costs Profit oil and unused cost oil…
The PM8/Seligi production sharing contract A natural hedge against oil price Entitlement barrels before Share of production after supplemental taxes tax Malaysia Malaysia Malaysia take share Malaysia take c. 26% c. 28% share c.…
Tanjong Baram Asset
Tanjong Baram field Leveraging EnQuests proven execution capability EnQuest (operator, 70%), UZMA (30%) Developed under a risk services contract (RSC) Located 6 km off the coast of Miri, Sarawak in 10 m water depth Wellhead platform…
Tanjong Baram field First oil production in only 14 months Net pay exceeded pre-drill expectations March 2014 signed RSC Feb 2015 platform substructure installed and spud of first well April 2015 completed installation of subsea…
Tanjong Baram fiscal terms Based on the risk services contract (RSC) model Comparison between RSC and PSC models Tanjong Baram RSC PM8/Seligi PSC Production EnQuest production entitlement from cost oil Production belongs to PETRONAS…
EnQuest Malaysia World class resource; sustainable growth World class resource 2.2 Bnboe in-place; only 31% recovered to date Multiple avenues for material growth Interventions from c. 230 idle strings Workovers, infill drilling,…
Summary
Strategic priorities in a low oil price environment Operating on the assumption of lower for longer Delivering on execution Streamlining operations Strengthening the balance sheet Institutionalising lower opex/barrel,…
EnQuest is the company to turn maturing assets around Turning field decline into production growth and economic field life extension PM8/Seligi gross production Thistle production Heather net production 6,000 Heather New Wells…
Repositioned for resilience now and for sustainable growth Delivering strong compound annual growth rates 15% to end 2014, expecting c.24% in 2015, c.33% in 2016, then further substantial increases beyond Average net production (Boepd)…
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…
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…
Thistle, Conrie and The Dons infrastructure 83
Heather / Broom infrastructure 8484
The EnQuest Team Biographies Amjad Bseisu, Chief Executive Amjad Bseisu holds a BSc Honours degree in Mechanical Engineering and an MSc and D.ENG degree in Aeronautical Engineering. From 1984 to 1998, Amjad worked for the Atlantic…
The EnQuest Team Biographies Richard Hall, Head of Major Projects Richard Hall graduated from Leeds University with a BSc in Chemical Engineering and spent the first 10 years of his career gaining experience with operating oil…
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