HIGHLIGHTS KERENDAN BUALUANG First gas Water debottlenecking achieved in line completed leading to with guidance 4x ROI FORTUNA EXPLORATION Upstream and off-take Imminent return to high solved, progress being impact…
OUR STRATEGY A resource exploration and monetisation company To create value for shareholders through having an industry leading exploration success rate and monetising this success to grow NAV per share. 2016 Half Year Results…
EXPLORATION AND MONETISATION Core Value Building a self sustaining explorer Growth Delivering 200M-300M p.a. in free cash flow + returns to Excess free cash flow returned to shareholders shareholders One-off returns linked to…
MARGIN IS EVERYTHING (NOT PRICE) Asset quality and fiscal terms are key 80 Exit, re-engineer or HEAVY DEEPWATER renegotiate fiscal terms Our response to create value OIL Negative margins 70 TRADITIONAL ULTRA 1. Continue to find low…
NAV PER SHARE GROWTH IS OUR OBJECTIVE How we have tightened our model Create Value for Shareholders How we manage our resources: Assets High grading the exploration portfolio Assets Value driven Asset Development Plans Emphasis on…
OPHIRS DRIVERS OF NAV GROWTH c. 11,000 boepd, 75M p.a. of cash from operations Resource 996 MMboe of 2C resource being progressed to monetisation Monetisation Further upside potential identified in Bualuang 408M of cash (207M of…
RESOURCE MONETISATION Bill Higgs COO
MONETISATION Monetise resource in one of three ways: Sell Maximise discovered Farm production resource down margins MONETISATION WILL GENERATE RETURNS TO SHAREHOLDERS 2016 Half Year Results Slide 10
BUALUANG CREATING VALUE TODAY Monetisation of 2P Reserves KEY METRICS FY 2016 Water debottlenecking project completed Water disposal capacity increased Cash flow per bbl: 13.6 to 75,000 bwpd Water handling capacity increased Tax per…
BUALUANG ADDITIONAL VALUE TOMORROW Monetising contingent resource Phase 4 development Ocean bottom 3D highlighted potential additional 2P, 2C and prospective resources Identified 10-15 potential commercial opportunities for…
SINPHUHORM Monetisation of 1P reserves KEY METRICS FY 2016 Cash flow 9.0 per boe: Tax per bbl: 6.1 Capex per bbl: 1.6 Opex per bbl: 2.0 At an oil price of 43 per bbl Mature and stable gas producing asset Net…
KERENDAN FIRST GAS Monetising 122 Bcf of 2P, focus now on monetisation of additional 320 Bcf of net 2C KEY METRICS FY 2017 Phase 1 on-stream 3Q 2016 Initial volumes c. 5 MMscfd; ramp up to 20 Cash flow per boe: 15.7 MMscfd around…
FORTUNA FLNG Bookends of the value chain in place tbc Upstream Midstream Offtake Fixed price EPCIC bids Discussions with Golar on 4 HoA signed with significant received and locked in until track players in global LNG market…
TANZANIA REGAINING MOMENTUM Sold 20% to Pavilion Energy for 1.3 bn Prior (March 2014) Transaction Remaining holding of 20% Low Holding Costs c. 20M per annum (net) to hold Cost until FID New Government has awarded the…
FUNDING & BALANCE SHEET Tony Rouse CFO
FINANCIAL SUMMARY UNITS 1H 2016 1H 2015* FY 2015 COMMENTS NET SOURCES OF FUNDS: Revenue millions 52.1 86.5 161.1 Bualuang realisation 34.17/bbl Cost of production (operating expenses, millions (30.1) (49.5) (72.5) royalty and…
USES OF FUNDS CAPEX 1H 2016 E&A 38M E&A spend 1H 38M Monetisation 42M CDI contribution to back costs (3D seismic) Other 28M Myanmar well planning and EIA Malaysia entry costs for Block 2A Resource monetisation spend 1H 42M…
FINANCE OUTLOOK Sufficient Cash liquidity Sustainability Management to invest for value creation Reduced running costs Bualuang development Opportunities to funded from accelerate business plan Deleveraged the business cash…
EXPLORATION Bill Higgs COO
SUSTAINABLE EXPLORATION TO DELIVER RISKED RETURNS Strategy to consistently deliver risked returns 66% commercial success rate We have a proven Drilled 7 play opening wells, 2 successes track record Involved in discovery of 3…
EXPLORATION PORTFOLIO HIGH-GRADED Prioritising valuable plays Gabon Conjugate Aru Trough Myanmar Cote DIvoire Margin (oil) (oil) (gas) (oil) High Graded Gabon post-salt Makassar Kerendan Sarawak EG Retained but (oil)…
TANZANIA EXPLORATION DRILLING Two Wells in 4Q 2016/1Q 2017 Highlights INCREASING DEVELOPMENT OPTIONS REDUCING DEVELOPMENT COST Targets 1 Tcf Net cost: c. 20 million PROBABLE 2017 DRILLING Planned Wells: - Block 1 Kitatange, CoS…
COTE DIVOIRE 1st well in operated campaign, high impact oil exploration Highlights Extensive regional play fairway evaluation HIGH QUALITY ROCKS, EXCELLENT FISCAL TERMS has been conducted over past 18 months Play potential…
COTE DIVOIRE - AYAME PROSPECT High graded, high impact oil exploration Pre-stack depth migration in depth and AVO reconnaissance volume A A A AYAME WEST LOWER FAN ISOPACH AYAME WEST UPPER CHANNEL AYAME WEST LOWER FAN…
EG EXPLORATION Highlights EXTENSION OF PROVEN PLAY INTO UNEXPLORED ACREAGE Play potential: Multi-hundred Million Full fold barrels data Forward committed c. nil spend: OPTION FOR 2017 DRILLING Image area Area of Mutual…
GABON NEW OUTBOARD PLAY Conjugate margin becoming better understood Highlights EMERGING OIL PLAY Focus Area Play potential: Multi-billion barrel Prospect B Mean 1.8 Bnbo (CoS 16.2%) Forward committed spend: Nil OPTION FOR 2017…
MYANMAR BLOCK AD-03 Intense Industry Activity in 2015-2016 Highlights FIRST WELL BE TO DRILLED IN DEEP-WATER PLAY Play potential: Multi - TCF Prospect A: Mean 2.5TCF (CoS 19%) Prospect B: Mean 1.5TCF (CoS 21%) Forward committed…
EAST INDONESIA ARU BASIN Trepang 3D seismic acquisition in 2016 Highlights Material position in a underexplored Play potential: Multi-hundred Million barrels deepwater exploration play Forward committed spend: c. 12 million -…
WEST PAPUA/ARU - OMAH PROSPECT New PSDM reprocessing provides greater prospect clarity Omah remains a robust, clearly defined prospect Recent FIS data from Cikar-1 interprets oil X Omah Prospect X 2016/2017 focus on assessing the…
EXPLORATION AND MONETISATION PRINCIPLES Sustainable Sufficient, stable cash flow to support annual drilling through the cycle programme and reserves monetisation Maintain top-quartile exploration performance Disciplined Internal…
CORPORATE PRIORITIES 2016-2017 Achieve a Continue monetisation journey to solution for Fortuna sustainability Recommence Maintain exploration balance sheet drilling strength ALL LINKED TO MAKING SHAREHOLDER RETURNS 2016…
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