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November 2017 Acquisition in Alaska – Oil Search Limited

Oil Search Limited · Nov 1, 2017 · 25 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. November 2017 Acquisition in Alaska – Oil Search Limited – slide 1
    Colville River, Alaska North Slope ACQUIRING WORLD CLASS OIL OIL SEARCH ASSETS IN THE PROLIFIC ALASKA NORTH SLOPE ALASKA NORTH SLOPE A New Path for Growth 1 November 2017 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX:…
  2. November 2017 Acquisition in Alaska – Oil Search Limited – slide 2
    AGENDA Transaction overview Deadhorse Investment highlights TAPS & Asset summary Dalton ALASKA Highway Oil Search impact Anchorage Valdez port Conclusions Alaska Canada (USA) USA PAGE 3
  3. November 2017 Acquisition in Alaska – Oil Search Limited – slide 3
    TRANSACTION OVERVIEW Acquisition and operatorship of a Tier 1 oil field, under appraisal with exploration upside, at attractive point in the oil price cycle Oil Search to acquire a 25.5% interest in the Pikka Unit and adjacent…
  4. November 2017 Acquisition in Alaska – Oil Search Limited – slide 4
    BACKGROUND AND STRATEGIC RATIONALE Extensive screening identified this compelling opportunity that met OSHs strict investment criteria & was pursued proactively 1 Quality of the investment opportunity 2 Focused investment &…
  5. November 2017 Acquisition in Alaska – Oil Search Limited – slide 5
    INVESTMENT HIGHLIGHTS Unique opportunity for OSH to participate in a large, world class oil discovery with material growth potential One of the largest conventional oil fields discovered in the US in more than 30 years World class,…
  6. November 2017 Acquisition in Alaska – Oil Search Limited – slide 6
    WORLD CLASS OIL PORTFOLIO Proven basin, adjacent to giant fields and a long operating history OSH is acquiring 351 leases (2,889 km2) including: Pikka Unit AOG North Star Nikiatchuq 51% W.I (229) (196) Milne Point Pikka Unit…
  7. November 2017 Acquisition in Alaska – Oil Search Limited – slide 7
    STRONG FUNDING AND LIQUIDITY POSITION Balance sheet strength supports both PNG LNG & Alaskan assets Strong existing free cash flow generation from producing assets TOTAL LIQUIDITY (USM) Current total liquidity is US2 billion, comprising…
  8. November 2017 Acquisition in Alaska – Oil Search Limited – slide 8
    KEY ACQUISITION METRICS Highly attractive and competitive entry price POTENTIAL DISCOVERED RESOURCES PRECEDENT TRANSACTION MULTIPLES (US/BBL)(2) Gross OSH acquisition estimate of discovered Nanushuk & satellites 5.5 fields resources of…
  9. November 2017 Acquisition in Alaska – Oil Search Limited – slide 9
    INDICATIVE TIMETABLE TO FIRST OIL Appraisal programme will define final configuration & timing of the Nanushuk development 2018 2019 2020 2021 2022 2023 2024 Appraisal FEED Development Production 2017/18: 1 appraisal Contracting…
  10. November 2017 Acquisition in Alaska – Oil Search Limited – slide 10
    MEDIUM-TERM OIL MARKET FUNDAMENTALS IMPROVING Non-OPEC capex for producing fields has fallen from a peak of US280bn in 2014 to current levels of US125bn. This underinvestment will lead to increases in depletion rates from traditional…
  11. November 2017 Acquisition in Alaska – Oil Search Limited – slide 11
    ACCESS TO EXISTING INFRASTRUCTURE Extensive existing infrastructure with ullage and very supportive and stable State government Nanushuk discovery lies between Alpine & Deadhorse supply base Kuparuk River fields Established…
  12. November 2017 Acquisition in Alaska – Oil Search Limited – slide 12
    ALASKA BUILDS ON OSHS CAPABILITY Complementary lower cost evaluation and appraisal, creates world class quality and balanced portfolio mix Replicate success of Halliburton Papua New Guinea Alaska (Papuan Basin) (North Slope) agreement…
  13. November 2017 Acquisition in Alaska – Oil Search Limited – slide 13
    OPPORTUNITY TO REPLICATE PNGS SUCCESS Tier 1 assets, acquired at an attractive point of the cycle, with development and exploration growth & controllable expenditure 15 YEAR TOTAL SHAREHOLDER RETURNS (%)(1) All of OSHs acquisitions have…
  14. November 2017 Acquisition in Alaska – Oil Search Limited – slide 14
    SUMMARY Alaska, when combined with PNG, provides a unique portfolio of Tier 1 assets with clear commercialisation paths Combined with our world class PNG assets, the Alaskan acquisition provides OSH with an unprecedented platform for…
  15. November 2017 Acquisition in Alaska – Oil Search Limited – slide 15
    APPENDIX OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
  16. November 2017 Acquisition in Alaska – Oil Search Limited – slide 16
    ACREAGE POSITION World class position in a proven basin adjacent to existing infrastructure with ullage(1) Nikaitchuq 229 MMbbls Point McIntyre Pikka Unit 500 MMbbls Alpine 572 MMbbls Prudhoe Bay Kuparuk River 12,500 MMbbls…
  17. November 2017 Acquisition in Alaska – Oil Search Limited – slide 17
    NANUSHUK FIELD SUMMARY Extensive 50+km long by 4 6km wide reservoir fairway covering approximately 200km2 A Nanushuk play-fairway schematic dip section A Fjord 3 Fjord 3A Q3A Q3 Q8 Tofkatprojected 1B Coalville River 1 (1992) (1995)…
  18. November 2017 Acquisition in Alaska – Oil Search Limited – slide 18
    PIKKA UNIT DEVELOPMENT Nanushuk main development but oil also discovered in three other reservoirs Q6 Q2 Q9 Q7 Q301 Q8 Qugruk-5A Play-fairway delineated by 12 wells, 6 production tests and full modern 3D seismic data coverage Pikka…
  19. November 2017 Acquisition in Alaska – Oil Search Limited – slide 19
    2015 2017 SANCTIONED DEVELOPMENT CAPEX Wood Mackenzie 2017 estimates Development cost/boe reduction subject to appraisal results and impact on final resource volumes Pikka Unit Nanushuk and satellite fields capex per bbl…
  20. November 2017 Acquisition in Alaska – Oil Search Limited – slide 20
    EXPLORATION Material appraisal and exploration upside Possible future appraisal and exploration locations Estimated 1.5 bnbbls prospect portfolio outside Pikka Unit Pikka Unit within existing leases Multiple play-types and…
  21. November 2017 Acquisition in Alaska – Oil Search Limited – slide 21
    ENVIRONMENT Overview Alaska North Slope in summer Alaska North Slope in winter Most exploration and appraisal operations are undertaken during the winter to mitigate damage to the Tundra The average temperature on the North…
  22. November 2017 Acquisition in Alaska – Oil Search Limited – slide 22
    ARMSTRONG ENERGY LLC A proven Alaskan oil finder with a world class position 2003 Oooguruk 2004 Nikaitchuq 2013 Pikka Unit 2017 Horseshoe Field 91 mmbbls Field 229 mmbbls Nanushuk Nanushuk Armstrong Enters Alaska 2002 AOG…
  23. November 2017 Acquisition in Alaska – Oil Search Limited – slide 23
    ALASKA FISCAL REGIME Overview Alaska maintains a competitive fiscal regime with incentives for exploration, development and commercialisation of oil and gas projects Royalties, production tax, property tax and conservation surcharges…
  24. November 2017 Acquisition in Alaska – Oil Search Limited – slide 24
    MEDIA COMMENTARY Repsol makes the largest U.S. onshore discovery in 30 years. The contingent resources currently identified in the Nanushuk play in Alaska amount to approximately 1.2 billion barrels of recoverable light oil. Repsol…
  25. November 2017 Acquisition in Alaska – Oil Search Limited – slide 25
    OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com

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