Agenda Overview Amjad Bseisu, CEO Financials Jonathan Swinney, CFO UK North Sea Neil McCulloch, President North Sea Kraken Richard Hall, Head of Major Projects Malaysia Amjad Bseisu, CEO & summary 2
2016 EnQuest Half Year Results Delivering on priorities amid continuing low oil prices Strong production growth, 42,520 Boepd, up 43% on H1 2015 Unit opex down to 23/bbl, ahead of target Kraken on track for first oil in H1 2017,…
2016 Half Year Results Record production levels and structural cost cutting Production UK up 22% before inclusion of new Alma production: Malaysia up 20% 42,520 Boepd Following workovers, 5-31 August Alma averaged 18,785 Boepd gross…
Jonathan Swinney Chief Financial Officer 5
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 2016 H1 2015 Change % Export production (Boepd) 42,520…
Summary income statement Half year to 30 June H1 2016 H1 2015 US dollars Business Business performance performance ms ms Revenue 391.3 444.0 Cost of sales (273.6) (335.6) Gross profit 117.7 108.4 Exploration and evaluation expenses…
Focus on cost efficiency Unit operating costs on course for full year average in 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 H1…
262 million cash capital expenditure Outflow in H1 2016: Non-Kraken capex is small scale USm 172 29 22 21 7 1 1 9 Kraken Alma/Galia Thistle/Deveron Heather/Broom GKA Dons Scolty/Crathes Malaysia Other 9
Cash flow Half year to end June 2016 USm Funding facilities: 1.7bn credit facility, 155m retail bond, 650m high yield bond (1,548) 183 (262) (1,681) (54) Cash & equivalents less Net cash flow Capex Cash & equivalents less…
Group taxation position No material UK cash CT/SCT on operational activities expected UK Tax Allowances ms Recognised at 31 December 2015 2,536 2016 net additions plus RFES 198 Tax losses at 30 June 2016 2,734 Tax allowances…
Outlook 2016 Unit opex expected to be around the lower end of the previous guidance range of 25/bbl to 27/bbl 2016 full year cash capex reduces to a range of 670 m to 720m EBITDA will further benefit from hedging, with 5.5…
Neil McCulloch President, North Sea 13
H1 production results to 30 June 2016 42,520 Net production (Boepd) H1 2015 H1 2016 10000 40000 8,966 9000 35000 8,152 8000 7,777 7,690 29,665 30000 7000 6,601 6,419 6,433 6,114 25000 6000 5000 20000 4000 3,615 3,738…
Strategic priorities in a low oil price environment Kraken and Scolty/Crathes on track, under budget Production performance on track Delivery Alma/Galia delivering to potential Upper quartile drilling performance Production…
Alma/Galia Good uptime from EnQuest Producer FPSO Following interventions, gross production averaged 18,785 Boepd between 5 - 31 August H1 2016 All six Alma/Galia production wells onstream early Q2 2016 Extended ramp up period…
Greater Kittiwake Area Right assets in the right hands H1 2016 Production up 28%, improved production efficiency Gadwall performing well after sidetrack operations Drilled Eagle discovery well H2 2016 Focus on delivering…
Scolty/Crathes Ahead of schedule, under budget First oil now around 2016 year end Wells successfully drilled - good subsurface outcomes Hook up and commissioning ongoing Extends GKA field life to late 2020s 18
Thistle/Deveron High production efficiency, investment returned from 2015 drilling programme H1 2016 Production up 17% on H1 2015 Drilling programme complete H2 2016 Late life extension process changeover and optimisation Awaiting…
Dons, Ythan & Conrie H1 2016 Dons/Conrie Wells performing better than expected Ythan Production above expectations Completed chemical treatment to enhance production No further wells required in short term H2 2016 Project…
Heather/Broom Excellent operational uptime, delivering positive margins H1 2016 Excellent production efficiency high 90%s YTD Heather production up 69% from H1 2015 H2 2016 Routine maintenance/integrity work Well intervention…
2016 H1 - Well Delivery Performance Sustained excellent operational efficiency Top quartile cost performance 2014 -2016 Rig Operations Time Breakdown Kraken Drill Centre 1 completed two months ahead of schedule Stena Spey top…
Summary Significant progress on delivering growth projects Strong results for H1 2016, having streamlined cost base Capital discipline strong on existing sanctioned projects and future programme curtailed to Kraken drill-out and…
Richard Hall Head of Major Projects 25
Kraken Development Progress update Overall schedule On schedule for sailaway in H2 2016 and first oil in H1 2017 Subsea The entire 2016 subsea/SURF programme has been successfully completed Drilling Making excellent progress; DC1…
Kraken Development FPSO at the Keppel yard in Singapore, nearing mechanical completion The FPSO is nearing mechanical completion, the focus is now on pre-commissioning and commissioning activities. Three of the four engines are…
Malaysia 28
Malaysia: 20% increase in production over H1 2015 PM8/Seligi: material production gains from efficiency and low cost well work EnQuest assumed operatorship October 2014 Average daily Malaysian production increased over 20% and…
Malaysia Strong performance from efficiency, investing in medium-term growth PM8/Seligi 2016 PM8/Seligi production of 8,152 Boepd in H1 2016 was up 5% on H1 2015 Performance is supported by strong production efficiency and the…
Summary 31
Institutionalising a new structurally lowered cost base EnQuests business model is right for this environment Low cost capability High operating efficiency Excellent execution EnQuest has reinvented itself A now permanently lower…
Delivering strong compound annual growth rates 31% increase in 2015, c.18% in 2016, then further substantial increases beyond Average net production (Boepd) 50000 Q&A 50,000+ 44,000 45000 2,000 40000 42,000 36,567…
EnQuests North Sea asset base As at 30th June 2016 Licence Block(s) Name P073 21/12a Goosander P213 16/26a Alba P236 211/18a & b Thistle, Deveron, Don SW, Conrie, West Don P238 21/19a & 21/19b Grouse, Mallard, Gadwall P242 /…
Proven track record adding value in maturing basins PM8/Seligi gross production GKA production from January 2014 until 30 June 2016 40,000 EnQuest assumed 30,000 operatorship October 2014 20,000 10,000 0…
Greater Kittiwake Area opportunity 50 km tie-back radius & competitor infrastructure 36
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…
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 39
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 40
Revised Kraken infrastructure Three drill centres 41 41
Thistle, Conrie and The Dons infrastructure 42
Heather / Broom infrastructure 4343
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 44
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