EnQuest Capital Markets Day Delivering sustainable growth in reserves and production 15 November 2013
Agenda Introduction and IMS Amjad Bseisu, CEO The Kraken Development Overview video Richard Hall, Head of Major Projects Andrew Thomson, GM Technical Alasdair MacInnes, Kraken Development Manager Jonathan Swinney, CFO…
Repeatable strategy delivering success 2013 production up 7.2% to end Oct Strong performance at all producing assets, especially Thistle Good operations progress, good development drilling results and good reservoir performance On…
Growth through the realisation of untapped potential Technical leadership in integrated development Creating development value via: Heather/Broom Upgrading existing facilities Thistle/Deveron Newer technology, new seismic Field…
EnQuests North Sea assets At 30 June 2013, plus Avalon farm in, GKA acquisition, Kraken sanction 44
2013 Production results by hub Up 7.2% to end of Oct year-on-year Net production (Boepd) 2012 2013 23,129 21,569 11,031 10,203 7,845 6,941 4,315 3,521 - 842 Thistle/Deveron The Dons Heather/Broom Alba Total 5
EnQuest Production Thistle/Deveron All figures EnQuest net production (bopd) unless otherwise stated 20,000 A59 w/o due 3rd DOE pump complete online September September 18,000 16,000 A60/55 online August with good 14,000…
Production efficiency: EnQuest in top UKCS quartile Source: O&G UK research Relative company performances: oil portfolios Figure 7: Production efficiency performance by operator for all oil assets 7
Alma/Galia EnQuest Producer FPSO now in UK finishing yard, closer to the field In the field, subsea infrastructure is now in place with trees and manifolds hooked up, pipelines and umbilicals in place and risers and mooring systems…
Greater Kittiwake Area, near Scolty/Crathes & Avalon 4.7MMboe reserves, additional production and a new hub Acquired 50% of: Kittiwake Grouse Mallard Gadwall Goosander EnQuest to operate The GKA fields have been developed…
Beyond the UKCS Malaysia & Tunisia Malaysia Targets being matured for new exploration drilling in 2014 Prospects include Kitabu and Maligan, with operators estimates of prospective resources at 71 MMboe and 132 MMboe…
Cairngorm appraisal well Drilling started, scheduled to finish around end of the year Cairngorm discovery, located on the platform margin of the Viking graben Well 16/3a-11z drilled in 1990 encountered a 105m oil column in fractured…
The Kraken development EnQuests sixth hub, 137 MMboe gross Secures medium term reserves and production growth 82.2 MMboe net 2P reserves, increase of Kraken North c.60MMboe (20MMboe already booked) First oil in 2016/2017 Anticipated…
Kraken summary Richard Hall Head of Major Projects
The Kraken Development Video of the Kraken development plans Project overview Richard Hall, Head of Major Projects Subsurface Andrew Thomson, GM Technical Field development Alasdair MacInnes, Kraken Development Manager…
Kraken overview Delivering sustainable growth in reserves and production EnQuests sixth hub (after GKA) Working interest of 60% Over 80MMboe of net 2P reserves First oil in 2016/17 - net peak production in excess of 30,000 boepd…
Kraken overview Block 9/2b 2 Fields Water Depth of 110m 350km NE of Aberdeen Heavy Oil Development, 14 Deg API Developing 137 MMbbls reserves Field area 12 x 3.5 km approx 25 wells 16
Kraken overview Development concept selection Primary options - FPSO (ship), FPSO (Sevan), Fixed platform, Jack-up (TGP500) FPSO large process, areal extent of field, relatively remote location Lease downside protection Minimum…
Kraken overview Development plan and field layout 4 integrated Template/Manifold Type Drill Centres: 1 combined service manifold at the 4th drill centre 14 horizontal producers, 1000m All manifolds can accommodate 11 horizontal…
Kraken overview: Conversion FPSO Bumi Armada Berhad - hull secured Nominated Vessel MV Prisco Alcor Double hull DNV classed Suezmax tanker Length 275m Breadth 50m Depth 22.5m Delivered by HHI in September 2007 First 5 year…
Kraken overview Drilling and well planning Drilling commences 2015 First oil 2016/17 Drilling continues to 2019 4 producers & 3 injectors at first oil 14 producers & 11 injectors total Horizontal wells with gravel packs in…
Kraken overview Development Capex well established 60% of Capex already awarded via firm contracts Drilling & Operator Wells Costs 23% 16% Subsea - Facilities - SPS FPSO 21% 15% Subsea - SURF 25% Operator Costs Net CAPEX…
Kraken overview Development expenditure Opex field life cost (excludes FPSO lease) High Opex confidence using EnQuest asset benchmarking and bottom-up estimates OPEX Without Work-Overs: c.15 per barrel Export Services & 10%…
Kraken Development Plan 2017 1st Oil 25
Kraken overview Conventional development plan approach EnQuest is pursuing a conventional approach to Kraken development execution: New seismic/ 6 appraisal wells Extensive subsurface analysis Formal FEEDs for the FPSO and subsea…
Kraken overview Major contracts in place Major Contracts have been tendered and awarded/ close to award Subsea Production System(SPS) awarded in May and is progressing on schedule, with steel cut on initial templates and machining…
Subsurface Andrew Thomson General Manager Technical
Kraken subsurface Introduction State of the art Geostreamer 3D seismic acquired and interpretation completed:- Can see the sand sands are 30 120 ft thick Palaeocene Heimdal III sands, deep water gravity flow deposit Not…
Kraken subsurface Summary of Kraken appraisal to date Kraken has moderately viscous oil 9/2b-6 (Enquest 2013) 78 161 cp Samples 125cP Oil Other heavy oil comparisons: Alba 7 cp Captain 50-150 cp 9/2b-2 (Nautical 2007)…
Kraken subsurface 9/2b-5Z reservoir penetration & test 31
Kraken subsurface 9/2b-6 well Kraken North appraisal Drilling Reservoir Section CPI Encountered range of subseismic injectite features, 1 25 TVT, without problem Generally less complex than prognosed H3 Injectite Prognosed vs…
Kraken development layout Horizontal injector : Producer waterflood Development based upon 14 producers & 11 injectors Gravel packed producers - 1000m max length Standalone screen injectors 1400m max length 33
Kraken subsurface STOIIP, reserves & recovery factor FDP STOIIP Produced RF% North 68 20 30% Central 85 38 45% South 268 89 33% Kraken Area 421 147 35% Conservative Recovery Factor Viscosity in cP Kraken Ultimate…
Kraken subsurface Gross production profile & reserves FDP MMstb South Central North Total Produced 89 38 20 147 Fuel 10 Sales 137 Gross Produced Oil stb/d 35
Kraken subsurface Upside Potential Western Feature 2, to be drilled H2 2014 WF2 (overlaying) WF1 Outline only Underlying surface Heimdal I Depth Map WF-2 Map showing overlapping Heimdal features Well Objectives…
Field development Alasdair MacInnes Kraken Development Manager
Kraken field development overview
Kraken field development Overall flow balance basis of design C3 Efficient process design Proven design Proven equipment High redundancy built in High operational uptime capability through field life 25 year design life 39
Kraken field development FPSO topsides layout Aft Laydown EOR Flare Oil Power WI & PF Oil Metering E-House Generation Pumps Separation KO Drum VFD Steam Mid-ships PW & SW Turret Fwd LER House Boilers Laydown Treatment…
Kraken field development SPS scope of supply established technology Proven design Track record of system supply Repeatable arrangement Proven installation method 25 year design life Ongoing contract for delivery 41
Kraken field development Well design - lower completion Conventional horizontal well design EnQuest track record of well delivery No 6 Well demonstrated and proved drilling feasibility 42
Kraken field development Hydraulic Submersible Pumps principle of operation Proven design Track record of operating 11 year run life Repeatable arrangement Operating experience with similar crude Robust in operation Full…
Kraken field development Development organisation in place Head of Major Projects Richard Hall Kraken Development Manager Alasdair MacInnes Commercial/ Project HSEQ Subsurface Facilities Engineering Drilling…
Financials Jonathan Swinney Chief Financial Officer
Kraken economics 60% EnQuest working interest Gross production of 137 MMboe, net 82 MMboe Net capex to first oil is c.1.4bn; gross capex to first oil c.1.8bn Net capex for the project of c.2.2bn for 60% WI and including carry of…
Kraken development Main gross assumptions, as per FDP Kraken South Kraken Central Kraken North Kraken Area total year oil prod water prod gas prod oil prod water prod gas prod oil prod water prod gas prod year oil prod water prod gas…
Kraken economics 60% EnQuest working interest Total opex over 25 year life of c2.8bn excluding FPSO leasing Equates to c.20 per bbl over the life of the field, c.5 per bbl at plateau production Including FPSO leasing opex c30 per…
EnQuest corporate funding and finance outlook EnQuest has entered into a new lending facility Committed 6 year 1.2bn facility underwritten by BNP Paribas and Scotiabank with accordion feature of a further 500m available with banks…
Summary Amjad Bseisu CEO
Kraken summary First new field development A proven field with large volumes in place and upside potential Regulatory approvals and major contracts in place Robust full cycle economics and long field life Using established…
The EnQuest Team Biographies Amjad Bseisu, Chief Executive Amjad holds a BSc Honours degree in Mechanical Engineering and an MSc and D.ENG degree in Aeronautical Engineering. From 1984 to 1998, Amjad worked for the Atlantic Richfield…
The EnQuest Team Biographies Richard Hall, Head of Major Projects Richard Hall graduated with a BSc in Chemical Engineering and spent the first 10 years of his career gaining experience with Operating oil companies (Amoco, Hess and…
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