Oil Search Update June 2016 ASX: OSH POMSoX: OSH US ADR: OISHY Oil Search Limited ARBN 055 079 868 www.oilsearch.com
Contents Oil Search history of delivery Oil Search creating an Asia-Pacific power house Drivers for IOC / OSH Transaction Strengths of OSH /Total MoU Delivering transactions for all stakeholders FAQs Oil Search Update - June…
Oil Search - History of commitment to shareholders and Papua New Guinea (PNG) Established in PNG in 1929 Juha Pnyang Juha PPL260 North PNG LNG Project Market capitalisation A10bn Gas Fields (US7.5bn) PNG LNG Project Hides Listed…
PNG LNG Project - World class LNG development performing well above expectations ExxonMobil-led development, delivered on time and performing well above nameplate without additional capex: Annualised production rate of 7.4 MTPA in 2015…
Kutubu, Moran, Gobe Main & SE Gobe oil fields - Still generating quality production and revenue Kutubu and Moran fields remain key producers (95% total oil produced in 2015) Pnyang Juha Juha PPL260 North PNG LNG Project Gas Fields…
Core strategies have delivered long term share price outperformance 12.00 OSH IOC Brent 8 Jun 2016: A6.98/Sh US45.05/Sh 10.00 US52.5/bbl Rebased to OSH Share Price 8.00 6.00 4.00 31 Dec 2010: 2.00 A7.04/Sh…
OSHs quality assets driving long term growth - Strategies focused on commercialisation and value optimisation Strong production base from high quality, low cost quality assets with low sustaining capital requirements: 2016 forecast…
More than just an oil company - Committed to helping preserve a stable PNG operating environment Operating and political stability essential for long-term sustainability OSHs unique role in PNG: 87 years operating in-country, strong…
OSH / IOC Transaction Creation of a major PNG oil and gas champion In May, OSH announced: Acquisition of 100% of IOC Execution of MoU with TOT for back-to-back farm-out Will result in OSH increasing stake in Papua LNG Project to 29%…
IOC & Total transactions why now Strengthens OSHs world-class LNG position & drives synergies Best-in-class break-even costs1 Long term market outlook for gas remains strong, with shortages anticipated early next decade: Current…
Pathway to cooperation and/or integration of two world-class LNG projects in PNG Examples of potential areas Agreements pave way for potential material capex and opex savings plus potential schedule acceleration of of cost savings…
Potential capex savings of US2-3 bn (OSH est) - Sharing facilities and infrastructure with PNG LNG Excludes significant savings in PMT/Owners costs Additional savings on site through schedule acceleration and contingency preparation and…
Lessons from other projects Source: Google maps Curtis Island PNG can learn from other global LNG developments and expansions 2016 Value destruction has been typical in many LNG developments: Governments and shareholders the major…
IOC acquisition terms 8.05 OSH shares (fixed ratio) plus Contingent Value Right (CVR) for each IOC share Share consideration implies US40.25 per IOC share1 Offer price Cash alternative up to total of US770 million value equal to all…
CVR terms - IOC shareholders benefit from uncapped upside potential in Elk-Antelope resource CVR payable in cash to IOC shareholders based on resource certification of Elk-Antelope fields US0.77/mcfe for 2C resource over 6.2 tcfe, on…
CVR - Increased governance to ensure fairness Accurate resource certification critical: Sets design basis for multi billion dollar project Underwrites LNG marketing activities Project financing with international banks and lending…
MoU with Total - Underwrites value, aligns parties and de-risks cooperation OSH to sell 60% of interest acquired from IOC in PRL 15 and 62% of IOCs interests in other exploration assets to TOT. Consideration comprises: 60% of IOC…
Indicative timetable to completion IOC acquisition structured as Plan of Arrangement under Business Corporations Act (Yukon) Process similar to Australian Corporations Act Scheme of Arrangement Requires approval from 66 2/3% of shares…
OSH mapping of Elk-Antelope structure - Western margin fault poorly defined, may extend +/- 1km west Positive appraisal results from 2015 drilling and testing programme Key uncertainty is western boundary, to be tested by Antelope 7,…
Antelope 7 - Key to confirming western extension of Antelope field Antelope 7 Antelope 7, planned to General location spud in September 2016, will test poorly imaged western forelimb Potential for additional 1-2 tcf+ along western…
OSH and IOC exploration potential - Material portfolio supporting long term growth OSH existing PNG portfolio OSH plus IOC PNG portfolio Pnyang Pnyang Hides Angore Hides Angore Moran Agogo Moran Agogo Juha SE Kutubu Juha Kutubu…
IOC & Total transactions strengthen OSHs balance sheet - Funds growth and facilitates cooperation and alignment OSH generating positive cash flows, even at oil prices well below current levels Continue to generate Cash flow breakeven…
Summary Strong production, with excellent performance from PNG LNG Project Robust cash flows with low breakeven oil price Steady progress on potential PNG LNG Project expansion and Papua LNG Project. Both globally competitive and…
Appendices Oil Search Limited ARBN 055 079 868
FAQs Is the US40.25 per No. IOC shareholders receive a fixed 8.05 OSH shares for every IOC share share fixed Implied purchase price moves with the value of the OSH share price and the AUD/USD exchange rate Calculation for cash…
FAQs TOT resource based payments to IOC under 2014 SPA have been simplified: Now comprise two fixed payments US141.6m on 1 July 2017 and US230m on FID of Papua LNG Project How have the TOT Net present value of payments are equivalent in…
FAQs Pro-forma liquidity position of approx. US2.0 billion compared with US1.7 billion as at 31 March 20161 post repayment of IOC corporate debt, excluding What are the balance US371.6m of TOT future payments in July 2017 and FID which…
FAQs All IOC shareholders should read the Management Information Circular for further and more complete information about this transaction before making an Why should the dissident investment decision but we believe this deal has the…
OSHs view on claims from Concerned InterOil Shareholders group (CIS) OSH believes CIS' claims are incorrect. ..unsubstantiated CIS resource estimates significantly higher than all JV partners and independent experts/certifiers, who have…
Overview of IOC Key assets Corporate Snapshot Highlights Close as of 19 May 2016 US/sh 31.65 1-month VWAP US/sh 31.88 Market Capitalisation2 USm 1,617 Net Debt2 USm 146 Enterprise Value2 USm 1,764 Listing NYSE Country of…
IOC Working interests* Permit PRL 15 Permit PRL 39 Permit PRL 39 Permit PPL 475 Permit PPL 475 Excl. Excl. Discovery Elk-Antelope Discovery Triceratops Discovery Discovery Raptor Discovery Triceratops Raptor Pre Post Pre Post Pre Post…
PNG Government support PNGs Prime Minister, the Hon. Peter ONeill MP official statement This acquisition will provide cost savings and efficiencies for our nations greatest growth opportunities, which will directly benefit the…
PNG Government support PNGs Minister for Petroleum and Energy, the Hon. Ben Micah MP official statement These announcements will result in increased prosperity, jobs and development for the people of PNG. Furthermore, one of our…
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