SAFETY MOMENT EARTHQUAKE BENSON CAMPUS General earthquakes are minor and do not require any special action For a major earthquake: DUCK, COVER and HOLD: Take cover under tables, doorways, against load-bearing walls, or other places…
SAFETY MOMENT OSA Assembly Area CORE OIL SEARCH ALASKA INVESTOR SITE TOUR 23 25 SEPTEMBER 2019 PAGE 4
SEPTEMBER 2019 INVESTOR PRESENTATION PART 1 PART 2 Topic Lead Duration Topic Lead Duration Introduction Keiran Wulff 20 mins Exploration Plan Josef Chmielowski 20 mins James Robinson 2019/20 Work Programme Bruce Dingeman 20 mins…
ALASKA SITE TOUR Day 2: North Slope Tour 06:45 Depart Hotel Captain Cook for Airport Note: Please wear PPE provided 07:30-09:00 Fly from Anchorage to Deadhorse 09:30-11:30 Tour of Deadhorse Schlumberger Facility 11:30-12:30…
ALASKA NORTH SLOPE VISIT Day 2: North Slope Tour (continued) 12:30-17:05 Bus Tour to Kuparuk Tour Central Processing Facility (90 mins) 17:30-19:00 Fly from Deadhorse to Anchorage 19:15 Return to Hotel Captain Cook 19:30 Dinner…
ALASKA ACQUISITION CONTEXT BRINGING DIVERSIFICATION, CONTROL AND EARLY COMMERCIALISATION OPTIONS OSH has world class gas portfolio in PNG Oil Searchs Alaska position brings sustained development, predictability and control, driven by;…
ALASKA NORTH SLOPE ESTABLISHED OIL PROVINCE WITH MEGA DISCOVERIES 20 billion barrels oil discovered to date, over 15 Much of the basin under-explored with several billion barrels oil produced emerging play-fairways World class…
OIL SEARCH ALASKA (OSA) ONE YEAR ON DR KEIRAN WULFF, EXEC. VP & PRESIDENT ALASKA MR BRUCE DINGEMAN, CHIEF OPERATING OFFICER OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH PNGX: OSH US ADR: OISHY www.oilsearch.com
OSA ONE YEAR ON MAJOR PROGRESS IN ALL AREAS Created opportunities with regional stakeholders Aligned the joint venture, exercised the option Preparing for partial divestment Delivered a safe and successful appraisal programme…
OSA ONE YEAR ON WORLD CLASS CAPABILITY WITH DEPTH OF ALASKAN EXPERIENCE EVP & President Wulff Executive Advisor COO Bailey Dingeman SVP External SVP Production & Affairs Operations SVP Projects Balash Elmer Writt SVP…
OSA ONE YEAR ON MAJOR PROGRESS ON ALL AREAS TARGETING FID MID-2020 Pikka Development Exploration & New Ventures Appraisal Exploration Positive 2019 drilling 20 prospects with gross potential Well data trades 1.2 billion barrels…
OSA ONE YEAR ON SAFE AND SUCCESSFUL WINTER APPRAISAL DRILLING PROGRAMME DELIVERED WITHIN BUDGET AND SCHEDULE HSES Execution Data Budget 0 1st 780 ft 30M (237 m) Recordable December of Cores below AFE Incidents spud on ice cut…
OSA ONE YEAR ON EFFECTIVE LOCAL SUPPLY CHAIN COLLABORATION CONTRIBUTED TO THE SUCCESS OF OSAS FIRST APPRAISAL DRILLING CAMPAIGN 2018/2019 People Contracts Suppliers Spend Inventory Setting the 223 127M Net Stage: 578 (as of Feb 2019)…
OSA ONE YEAR ON PIKKA B EXCELLENT FLOW RATES & THICKER NET RESERVOIR IN THE HEART OF THE DEVELOPMENT Pikka B & BST1 Earliest well off ice in 43 years Outstanding safety record Acquired 780 core including 300 of high-angle deviated…
OSA ONE YEAR ON PIKKA C CONFIRMED NORTHERN DEVELOPMENT AREA AND OBTAINED KEY INFORMATION FOR FUTURE COMPLETION DESIGNS Pikka C & CST1 Successfully drilled and completed 3,800 ft lateral well Completed high-resolution wireline…
PIKKA DEVELOPMENT MR ROBERT WRITT, SVP PROJECTS MR STEVE ROBINSON, SVP DRILLING & COMPLETIONS MR MARK IRELAND, SVP SUBSURFACE MR MATTHEW ELMER, SVP PRODUCTION & OPERATIONS OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH PNGX: OSH US ADR:…
PIKKA DEVELOPMENT OVERVIEW US ARMY CORPS OF ENGINEERS RECORD OF DECISION RECEIVED IN MAY Facilities Scope 26 miles of gravel roads and 70 acres of gravel pads 123 miles of pipelines 36 miles of power & fibre optic cable Up to 12…
EARLY PRODUCTION SYSTEM (EPS) ACCELERATING WELL COMPLETIONS LEARNINGS AND FIRST OIL EARLY CASHFLOW, LESSONS WILL DRIVE COST REDUCTIONS AND EFFICIENCIES INTO FULL FIELD DEVELOPMENT DRILLING PROGRAMME Early Production System (EPS)…
VALUE ENGINEERING 86 IDEAS SCREENED; 5 KEY FACTORS DRIVE SIGNIFICANT VALUE IMPROVEMENT WITH CONTINUOUS IMPROVEMENT AND VALUE ENHANCING PROGRAMMES ONGOING Previous Current Effect Facility 120kbd nameplate 135kbd target Accelerate early…
DRILLING & COMPLETIONS FOCUSED ON OPTIMAL RIGS, SERVICES AND CONTRACTOR RELATIONSHIPS TO DRIVE PERFORMANCE 50-55 producer/injector well pairs from three pads 90% Nanushuk wells 10% Alpine wells Ranked in 4 Tiers Well lengths from…
DRILLING & COMPLETIONS EARLY SECURING OF KEY EQUIPMENT AND SERVICES TO LOCK IN VALUE & RISK MITIGATION DRIVERS Final negotiations for two fit-for-purpose rigs Modern rigs on the slope, ideal for pad drilling Heads of Agreement…
CORE DEVELOPMENT AREA APPRAISAL COMPLETE DRILLING, TESTING, 3D SEISMIC COMBINED WITH DETAILED RESERVOIR MODELLING 20 penetrations, 6 wells with flow test data, 4 Qugruk 7 (Repsol 2014) Pikka C / S CT1 (Oil Search 2019) wells with core…
PIKKA OPERATIONS OPERATING PHILOSOPHY ENVIRONMENTAL EXCELLENCE, CLOSE COMMUNITY COLLABORATION & FOCUSED ON MINIMISING FOOTPRINT Industry has 40 years North Slope operations experience High quality people/contractor resources…
PIKKA OPERATIONS MULTIPLE OPPORTUNITIES FOR COLLABORATION WITH OTHER OPERATORS Established infrastructure in place Connected by shared roads to major infrastructure Shared aviation, camps, warehousing Waste handling Mud…
SCHEDULE TO FIRST OIL EARLY PRODUCTION IN 2022 FOLLOWED BY MAIN PRODUCTION IN 2024 2018 2019 2020 2021 2022 2023 2024 Appraisal FEED Development (EPS) Production (Main) Built base team Production review Drilling 50 55 120kbd…
CORPORATE SOCIAL RESPONSIBILITY OPERATING THE OIL SEARCH WAY DR KEIRAN WULFF, EXEC. VP & PRESIDENT ALASKA MS CINDY BAILEY, EXECUTIVE ADVISOR OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH PNGX: OSH US ADR: OISHY www.oilsearch.com
DEMONSTRATING COMMITMENT TO ENVIRONMENTAL & SOCIAL GOVERNANCE (ESG) OIL SEARCH VISION: TO GENERATE TOP QUARTILE RETURNS FOR SHAREHOLDERS THROUGH EXCELLENCE IN SOCIALLY RESPONSIBLE OIL AND GAS EXPLORATION AND PRODUCTION Oil Search adopts…
MANAGING ESG RISKS & MAXIMISING TRANSPARENCY COMMERCIALLY RESILIENT PROGRAMMES WHILST FOCUSING ON ENVIRONMENTAL BEST PRACTICE Carbon Tracker awarded Oil Search top quartile placement for resilience to financial transition risk from…
GOVERNANCE: HIGHLY REGULATED OVERSIGHT WILL CONTINUE THROUGHOUT FIELD LIFE ENVIRONMENTAL & CULTURAL COMMITMENTS BUILT INTO REGULATORY PROCESSES US Federal State of Alaska Local Landowners USACE NSB Kuukpik EIS, Dredge & ADNR Planning…
COMMITMENT TO ENVIRONMENTAL EXCELLENCE & TRANSPARENCY COLLABORATIVE AND SUSTAINABLE ENVIRONMENTAL PLAN Advanced work has laid the foundation for long term success More than 60 environmental and cultural studies and monitoring…
FOCUS ON COMMUNITY: THE OIL SEARCH WAY LISTENING, LEARNING, UNDERSTANDING, CONSULTING AND COOPERATING Working closely with the community to understand their needs Engaging stakeholders regularly, honestly, ethically and…
ESG ALASKA HIGHLIGHTS BUILDING RELATIONSHIPS AND CELEBRATING MUTUAL SUCCESSES Federal Environmental Impact Statement process comprehensively evaluated the Pikka Developments potential impacts on local communities Incorporating…
EXPLORATION PLAN MR JOSEF CHMIELOWSKI, VP EXPLORATION & NEW VENTURES OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH PNGX: OSH US ADR: OISHY www.oilsearch.com
NORTH SLOPE FULL POTENTIAL REGIONAL STUDY TO EVALUATE BASIN POTENTIAL DRIVING LONG TERM COMMERCIALISATION AND GROWTH STRATEGY IN ALASKA Context 1.5 trillion barrels of oil generated in the Colville trough, only 20 billion barrels oil…
INDICATIVE 5-YEAR PLAN NEAR TERM FOCUS ON PIKKA DEVELOPMENT, EXPLORATION FOCUSED ON PIKKA EXPANSION + STAND-ALONE Alaska 5-year Activity Plan 2019 2020 2021 2022 2023 2024 Licence Work Stream Activity (+ Equity) Q1 Q2 Q3 Q4 Q1 Q2…
EXPLORATION WINTER 2019/20 TWO WELL, HIGH IMPACT PROGRAMME TESTING NANUSHUK ANALOGUES Pikka East Block: Mitquq Prospect Pikka Mitquq Prospect Pikka Nanushuk analogue play Pikka tie-back to ND-A pad Stirrup Prospect Tie-back or…
2019/20 WORK PROGRAMME MR BRUCE DINGEMAN, CHIEF OPERATING OFFICER MR STEVE ROBINSON, VP DRILLING & COMPLETIONS OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH PNGX: OSH US ADR: OISHY www.oilsearch.com
2019/20 WORK PROGRAMME OVERVIEW Exploration drilling, two-rig, two highly prospective - well programme Pikka East (Mitquq) discovery represents additional volumes and rate for Pikka CPF Horseshoe (Stirrup) potential resource to…
EARLY CIVIL WORKS FIRST OF TWO EARLY WORKS SEASONS Gravel lay (base plan) Pad and road to ND-B from Mustang Project Pikka ND-A Bridge over Miluveach River ND-B Associated culverts Mine Upgrade road from Kuparuk Unit Site F to…
PIKKA EAST - MITQUQ 1 MOBILIZATION 6 miles of ice road Start from 3S-Nuna Gravel road Heavier duty road for heavier rig (Nabors 7-ES) No river crossings Camp and equipment near gravel road to construct ice road OIL SEARCH ALASKA…
HORSESHOE STIRRUP 1 EARLY SEASON ACCESS 26 miles of snow trail to mobilise rig and camp, 16 miles of ice road Continue to build ice road for wheeled traffic during rig mobilisation and potentially for surface hole drilling Mobilisation…
ECONOMICS & COMMERCIAL MR PATRICK FLOOD, VP COMMERCIAL DR KEIRAN WULFF, EXEC. VP & PRESIDENT ALASKA OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH PNGX: OSH US ADR: OISHY www.oilsearch.com
ALASKA FISCAL REGIME Oil Production Alaskan North Slope (ANS) ANS differential to Brent. Currently trading at 1 premium to Brent. Oil Price Cost of moving product from field to point of sale (7 8 / bbl) Transport Costs (TAPS tariff…
PIKKA DEVELOPMENT PERMITTED SCOPE BREAK-EVEN PRICE COMPARES FAVOURABLY TO UNDEVELOPED GLOBAL PROJECTS Base Pikka Project - Low 40s/bbl (initial project carries all infrastructure costs) Tie-backs, ERD will reduce long term…
PIKKA DEVELOPMENT PERMITTED SCOPE OTHER DISCOVERED RESOURCES (HORSESHOE, NORTH) PROVIDE OPTIONS FOR BACKFILL/EXPANSION* Facility and wells nameplate of 120kbd, targeting 135kbd Confirmed 1,800 ft well spacing Improved from 1,400…
PERMITTED SCOPE RESOURCE, COST AND SCHEDULE HIGHER CONFIDENCE THAN PREVIOUS ESTIMATES WITH FURTHER REFINEMENTS ANTICIPATED AT FEED ENTRY & FID Permitted Scope (Pikka ND-A, B & C) (US2019) Nanushuk 2/3 Alpine C Other Reservoirs…
FULL ALASKA POTENTIAL STRONG BASE FOR DEVELOPMENT + DEEP PROSPECT INVENTORY Material resource growth since acquisition with upside Successful appraisal (drilling + seismic calibration) Optimised development plan (well…
ASSET AND JV ALIGNMENT STRATEGIC ALIGNMENT WITH REPSOL TO SUPPORT PIKKA DEVELOPMENT PLAN & COMMERCIALIZATION STRATEGY US450 million AOG/GMT Option Core PIKKA UNIT OSH 51% Divestment exercised June 2019 Area Oil Search & Repsol…
DIVESTMENT PROCESS ADVANCED WITH ADVISOR AND TIMELINE FOR PARTIAL DIVESTMENT DEVELOPED Joint Venture aligned around common strategy for OSA to undertake and independent partial divestment Expect divestment of 15% to bring OSA equity…
FUNDING OPTIONS FOR PIKKA DEVELOPMENT Financing requirements for the Pikka development close to being finalised and dependent on completing Development design and cooperation agreements driving capital expenditure Phasing of spend…
CAPITAL MANAGEMENT OSH HAS NUMEROUS LEVERS TO CONTROL EXPENDITURE AND CAPITAL ALLOCATION. OSH share of LNG expansion and Alaskan oil development costs being matured, subject to timing of FEED entry, EPC contract awards and change in…
CONCLUSIONS MR PETER BOTTEN, CBE, MANAGING DIRECTOR OSH DR KEIRAN WULFF, EXEC. VP & PRESIDENT ALASKA OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH PNGX: OSH US ADR: OISHY www.oilsearch.com
ALASKA BU: PORTFOLIO OSA HAS ESTABLISHED A WORLD CLASS PORTFOLIO UNDERPINNED BY THE PIKKA DEVELOPMENT AND SUPPLEMENTED BY A HIGH-QUALITY PROSPECT INVENTORY Core asset for OSA in AK Targeted Contingent Pikka Resources 700 million…
ALASKA 2019/20 BUSINESS PRIORITIES CLEAR FOCUS AND DEFINED PROGRAMMES AROUND DELIVERING A WORLD CLASS OIL PROJECT Target 30kbd + early production FID in 2020 with 1st oil 2022 Tie-back to nearby existing facility with ullage Currently…
KEY ALASKA Nov/Dec 2019: Pikka FEED + LLI MILESTONES Winter 2019/20: New field exploration drilling Early civil works (gravel lay) Exploration seismic acquisition Jul 2020: Pikka FID Winter 2020/21: Exploration drilling 2021+…
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