OUTLINE 1 2 3 FUNDING & ASSET STRATEGY BALANCE SHEET MONETISATION 4 5 SUMMARY & EXPLORATION OUTLOOK 2016 Full Year Results Slide 3
OUR STRATEGIC FRAMEWORK BELIEF 1: Oil & gas will be a relevant and necessary part of the energy mix for the foreseeable future BELIEF 2: US shales are becoming the new swing producer and set the marginal long-term price in the…
VALUE CREATION TO CREATE VALUE THROUGH HAVING AN INDUSTRY LEADING EXPLORATION SUCCESS RATE AND MONETISING THIS SUCCESS TO GROW NAV PER SHARE Commercial innovation MONETISE SMARTLY Converting 2C to 2P to US Maximising margins,…
DELIVERING ON KEY OBJECTIVES 2016 TARGETS Complete First gas FID on Kerendan gas on Kerendan Fortuna FLNG price field project renegotiation Reduce G&A Mature Myanmar, Refinance/ cost by further High-grading CDI and Aru…
DELIVERING ON KEY OBJECTIVES 2017 OBJECTIVES Complete Complete FID on FID phase IV Bualuang in-fill Kerendan gas Fortuna FLNG of Bualuang drilling price project development programme renegotiation Capture high Restart…
INDICATIVE NAV TRACKER 120 Estimated NAV Evolution (Starting NAV Rebased to 100) 100 8 NAV Threshold (100) 7 3 5 80 Potential 2017 NAV Events 60 100 Fortuna FID 87 40 Bualuang Phase IV FID 20 Kerendan gas 0…
SUSTAINABILITY Tony Rouse CFO
MANAGING OUR FINANCIAL OUTLOOK Invest for Cash NAV Growth + Management = Sustainability Fortuna delivers first gas mid-2020 Reduce running costs Exploration phased with Appropriate leverage liquidity Bualuang in-fill and Live…
2016 FINANCIAL SUMMARY FY 2015 FY 2016 COMMENTS NET SOURCES OF FUNDS ( millions) Revenue (including hedges) 178.2 107.1 Bualuang realisation of 38/bbl Kerendan Take-or-Pay 0.0 16.5 2016 Take-or-Pay received 16 Feb'17 Cost of…
2017 GUIDANCE OPERATING CASH FLOW NET OPERATING CASH FLOW (80-120m) Net Operating Cash 44% Production of 12,500-13,500 boepd Operating Cash 27% Kerendan on-stream August 2016, now ramping-up Royalty 7% to full production…
FUNDING TO FORTUNA FIRST GAS Strong balance sheet, low cost sustainable production and limited commitments Strong balance sheet Sources and Uses to Fortuna First Gas Closing gross cash of 360m and net cash of 160m 1,000m 200m…
MONETISING SMARTLY Bill Higgs COO
INVESTING FOR FUTURE NAV GROWTH Monetising is driven by operational excellence Maximising margins, safely Clear path to monetisation in the event of success MONETISE SMARTLY Robust economics at low prices NAV per share FIND…
MONETISING RESOURCES & RESERVES 1800 2P Monetisation De-risked the business model 2C Monetisation 1600 Asian assets bring 2P reserves 2P 2C and cash flow 1400 Sold contingent resource for cash 1200 Further monetisation can…
ASSET MONETISATION 2016 Activity ACTIVITY STRATEGIC RELEVANCE EST. NAV EVENT Over 1.8 million man hours worked with no LTIs NAV Protection 2016 + Generated 58M 58m through producing 4 99.6% production uptime MMboe 2016 20m x…
FORTUNA FLNG PROJECT KEY METRICS STRATEGIC CONTEXT: 2C to 2P JV formed with OneLNG Ophirs capex to first gas limited to not more than 120m FID on track for mid-2017, first gas mid-2020 Cash flow per annum c. 420m* (gross, post debt…
FORTUNA CAPEX EXPOSURE REDUCED BY 80%, VALUE INCREASED Maximum net capex only 120m Net Capex Exposure1 1000 Capex not more than 120m 14% interest carried by OneLNG 900 40m (net) protection from overruns (in addition to standard…
MILESTONES TO FORTUNA FID Signing Umbrella Agreement expected 1Q Term sheet signed Debt financing Documentation complete 2Q Gas sales contracts Off-taker announcement 2Q FID Upstream and Midstream contracts Ready to…
ASSET MONETISATION THROUGH PRODUCTION Strategic Context: 2C to 2P, 2P to Bualuang Indicative Forward production (gross) Bualuang Mbopd Mbwpd 16 80 99.6% production uptime 14 70 12 60 Produced water debottlenecking project…
TANZANIA REGAINING MOMENTUM OPHIRS 20% EQUITY EQUATES TO NET 500 MMBOE Low 2017 forecast cost of 17m Holding Cost Land awarded end 2015 Increased Government negotiating team Government established 2016 Engagement Seven…
FINDING LOW Bill Higgs COO
THE STATISTICS OF EXPLORATION 1,600 Cumulative Net Contingent Found Ophir has a track record 1,400 Estimated net risked amount to be found (pre-drill) of delivering its risked Untitled net targeted per well' outcome 1,200…
INVESTING FOR FUTURE NAV GROWTH Investing in exploration must meet the following criteria Maximising margins, safely Clear path to monetisation in the event of success MONETISE SMARTLY Robust economics at low prices NAV per…
COTE DIVOIRE STRATEGIC CONTEXT: FINDING LOW Decision Making Process HIGH QUALITY ROCKS, EXCELLENT FISCAL TERMS Multi-Hundred Million Play potential barrels Equity interest, partner 45%, African Petroleum Pmean 234 MMbo Min.…
AYAME: LEARNING FROM PREVIOUS ACTIVITY 17 wells drilled, analysis used to de-risk Ayame EGL-1X Buffalo-1X (Ocean Energy 1999) (Lukoil-Nov 2011) Calao-1X (Tullow-May 2013) CDI & Ghana Oil & Gas Saphir-1XB Saumon-1X Field Outlines…
COTE DIVOIRE A A Yellow = sandstone Green = shale Up dip pinch out of reservoir Ayame 1X Primary reservoir objective Secondary reservoir objective Top Albian Ayame-1X A A 2016 Full Year Results Slide 28
EXPLORATION PORTFOLIO Prospects being high graded from 6 plays Mexico EQ. GUINEA Myanmar New country entry Block R AMI Block AD-03 Block 5, oil prone Gas play Possible drilling 2019 Possible drilling 2018 MYANMAR MEXICO…
SUMMARY & OUTLOOK Nick Cooper CEO
OUTLOOK FOR 2017 Monetise c. 365 MMboe in 2017 Fortuna, Kerendan and Bualuang Moving towards sustainability 2017 cash flow from production of 80-120m 2017 capex of 125-175m Maintain balance sheet strength Refresh of debt portfolio…
APPENDIX Slide 32
MATERIAL RESERVES AND RESOURCE BASE Todays resource base is tomorrows cash-flow Reserves (MMboe) 1P 2P 3P Significant 2P reserves base from Thai and Kerendan 15.4 15.9 17.2 Indonesian assets Bualuang 14.2 20.9 27.6 2P reserves of 43.8…
FORTUNA FLNG PROJECT STRUCTURE Ophir OneLNG 33.8% 66.2% Fortuna Co JV Ophir Fortuna Fortuna Fortuna GEPetrol Block R Sonagas GEPetrol Sonagas EG Co Co Co 20% 80% 51% 29% 20% 100%* 49% 51% Upstream Block R PSC Midstream…
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