EnQuest 2015 Results Key themes Delivering on our current priorities Further capex and opex reductions Unit opex in low 20s/bbl post Kraken Kraken is on track, additional 125m capex cut Excellent operational performance in 2015…
Strategic priorities in a low oil price environment Delivering on execution Strong 36,567 Boepd production in 2015 Averaged over 50,000 Boepd in Nov & Dec with Alma/Galia onstream Malaysia delivered 9,062 Boepd in 2015, 25% of…
Strategic priorities in a low oil price environment Restructuring EnQuests operating cost base Further improvements to streamlining of operations, ahead of previous targets Delivered opex of 29.7/bbl in 2015, down from 42.1/bbl in…
Strategic priorities in a low oil price environment Strengthening the balance sheet - good operational performance Kraken full project capex had previously been reduced by c.10% Now down by a further c.125m, through optimisation of…
Production results to year end 2015 Above top of 33,000 Boepd to 36,000 Boepd guidance range Net production (Boepd) 2014 2015 2014 2015 40000 10000 9,025 8,930 9000 8,835 8,689 35000 36,567 8000 7,690 30000 27,895 7000 25000…
Strong reserves and production growth in first six years Reserve life of over 18 years Net 2P reserves 2010 to start of 2016 Ave net annual production (Boepd) 190 216 2009 to 2015 MMboe MMboe 40000 36,567 35000 30000…
Jonathan Swinney Chief Financial Officer
Results summary Year to 31 December Unless otherwise stated all figures are before exceptional items and depletion of fair value uplift and are in US dollars US dollars 2015 2014 Change % Export production (Boepd) 36,567 27,895 31.1…
Summary income statement Year to 31 December 2015 2014 US dollars Business Business performance performance ms ms Revenue 906.6 1,009.9 Cost of sales (733.4) (654.1) Gross profit 173.2 355.8 Exploration and evaluation expenses (0.3)…
Focus on cost efficiency Unit operating costs on course for low 20s/bbl post Kraken Unless otherwise stated all figures are before exceptional items and depletion of fair value uplift and are in US dollars 2015 2014 Change % Cost of…
Group taxation position No material UK cash CT/SCT on operational activities expected UK Tax Allowances ms Recognised at 31 December 2014 1,818 2015 net additions plus RFES 693 Prior year adjustment 25 Tax losses at 31 December…
751.1 million cash capital expenditure Year to 31 December 2015 USm 310 158 95 68 51 30 24 29 33 Office sale 22 Kraken Alma/Galia Thistle/Deveron Tanjong Baram Dons Heather/Broom GKA PM8/Seligi Other Office build…
Cash flow Year to 31 December USm 718 245 (967) (751) (75) (1,548) Cash & equivalents less Net cash flow Financing & other Cash & equivalents less Capex borrowings at from operations (excludes borrowings) borrowings at 1…
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 25-27/bbl for 2016 Into low 20s/bbl post Kraken and Scolty/Crathes Cash capex…
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 license Production efficiency remains strong Streamlining…
EnQuest Producer Project to producing asset Opex per bbl of 22.5 in 2015 2015 Highlights First oil safely achieved on 27 October 2015 Commissioning progressed smoothly First three wells operating with temporary diesel power…
Greater Kittiwake Area Transformed performance after taking operatorship Opex per bbl in 2015 reduced by 61% from 2014 2015 Highlights Average full year production increased by 140% from 2014-2015 Gadwall successfully brought…
Scolty/Crathes On track and on budget Summary Two-well, 25km subsea tie-back development, north of Kittiwake first oil by H1 2017 Lump-sum contracts for topside and subsea, milestone payments deferred to first oil Stena Spey…
Thistle/Deveron High production efficiency, cash flow returned from drilling programme Opex per bbl in 2015 reduced by 19% from 2014 2015 Highlights Excellent drilling performance: initial three well programme successful - extended…
Ythan, Dons & Conrie Ythan performance ahead of expectations Ythan - 2015 Fast track development schedule Production significantly above expectation, production decline less than expected 2016 - Future development being…
Heather/Broom High operational uptime, benefitting from improved water injection Opex per bbl in 2015 reduced by 23% from 2014 2015 Highlights Heather Fields production rate doubled following 2014 drilling and improved water…
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 more than 50% for Heather/Broom Sullom Voe Terminal (SVT)…
Summary Opex/bbl ahead of guidance and set to be in mid- 20s/bbl in 2016 Drilling costs/performance ahead of industry - upper quartile benchmarks Strong production delivery - Kittiwake now delivering upper quartile performance…
Richard Hall Head of Major Projects
The Kraken development Successfully delivering extensive drilling and subsea programmes FPSO on track
Kraken development Project status FPSO conversion on schedule for 2017 first oil Drilling/well programme ahead of schedule Excellent reservoir correlation with subsurface expectations Submerged turret/buoy fabricated and…
Kraken development Wells/drilling: two already completed D3 D2 B2 Wells drilled through reservoir 30
Installation of Submerged Turret Production (STP) buoy and Drill Centre 1 (DC1) risers Buoy/turret lift from transportation vessel STP buoy/turret pre-ballasting DC1 riser and buoyancy module installation 31
Kraken development FPSO recent activities power modules lift on board 32
Kraken development 2016 drilling programme revision, moving to three drill centres Drill wells from DC1, DC2, DC3 locations, no DC4 Development becomes 23 well development DC3 12 producers & 11 Injectors vs. 14 & 11…
Revised Kraken infrastructure Three drill centres 34 34
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 Schedule of work for 2016, continuing on schedule 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…
Malaysia
Malaysia: 25% of EnQuests production in 2015 PM8/Seligi: material production increase since EnQuest took over EnQuest assumed operatorship October 2014 Production efficiency enhanced from 82% to over 90% Improved by focusing on:…
PM8/Seligi Well interventions have already added 3,000 Boepd from idle wells 2015 Added 3,000 Boepd gross by restoring idle wells to production Focus on mechanical jobs only sand cleanout, gas lift reinstatement, surface valve…
Tanjong Baram field Leveraging EnQuests proven execution capability March 2014 signed RSC Feb 2015 platform substructure installed and spud of first well April 2015 completed installation of subsea pipeline May 2015 platform…
Summary
EnQuest Turning field decline into production growth and economic field life extension PM8/Seligi gross production GKA production from January 2014 until end December 2015 Thistle gross production Heather net production SVT…
Addressing the challenges of low oil prices High operating efficiency, great execution, low cost capabilities are all essential Strong operational performance Record production growth, high operational efficiency Generating positive…
Repositioned for resilience now and for sustainable growth Delivering strong compound annual growth rates 31% increase in 2015, c.26% in 2016, then further substantial increases beyond Average net production (Boepd) Q&A 50000…
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…
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…
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 47
Largest UK Independent Producer in the UK North Sea Government data (DECC) for UK North sea independent producers Total Production for the year ending September 2015 1,400,000 1,200,000 1,000,000 800,000 600,000…
EnQuests North Sea asset base As at 31st December 2015 Licence Block(s) Name P073 21/12a Goosander P213 1 16/26a Alba P236 211/18a & b Thistle, Deveron, Don SW, Conrie, West Don P238 21/19a & 21/19b Grouse, Mallard, Gadwall…
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,…
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…
Greater Kittiwake Area opportunity 50 km tie-back radius & competitor infrastructure 52
Alba 8% non-operated, 1,178 Boepd in 2015 (1,214 Boepd in 2014) 2015 Strong well and plant performance during the year with an average production of 1,178 Boepd Production enhancement / base ADW protection opportunities have…
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 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 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…
Tanjong Baram field First oil production in only 14 months Net pay exceeded pre-drill expectations EnQuest (operator, 70%), Uzma (30%) Developed under a risk services contract (RSC) Located 6 km off the coast of Miri, Sarawak in 10…
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 58
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…
FPSO Armada Kraken Construction continues Installed greenwater protection Installed flare tower E-House & laydown installed on main deck Helideck & loading hose/reel installed 60
Kraken development FPSO overall view 61 61
Thistle, Conrie and The Dons infrastructure 62
Heather / Broom infrastructure 6363
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 64
Group taxation position Appendix Effective tax rate reconciliation ETR % ms Loss Before Tax (1,341) UK CT Rate 50 (670) PRT 6 (83) RFES 8 (109) UK and overseas tax rate differences (1) 17 Permanent items (7) 88 Prior year…
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