2013 Full Year Results Presentation Thursday, 27 March 2014
Agenda Strategy 4 Financial results 7 Portfolio management 14 Production growth 17 Reserves growth 22 Conclusions 29 Appendix 31 3 2013 Full Year Results Presentation
Strategy Osman Shahenshah Shareholder value 4 2013 Full Year Results Presentation
A year of unprecedented results 2013 Record financial results 2014 Targeting low-risk Net production at top end of reserves growth guidance 47,112 boepd Ogo: 3rd largest global discovery Revenue of US1.6bn and cash in 2013 forward…
Strategy Afrens value drivers TODAY Market Cap US2.6bn Early access in hot industry Asset value upside postcodes Nigeria, Kurdistan, East Africa 2006 AIM listing Significant resource potential Growing reserves adjacent…
Financial results Darra Comyn Shareholder value 7 2013 Full Year Results Presentation
2013 financial results summary Record financial performance Strong cash flow generation from quality producing assets USm 2013 20122 Change Revenue 1,644 1,571 +5% Gross profit 643 791 -19% Profit for the year 475 189 151%…
Profit for the year 2012 to 2013 profit comparison 700 600 72 500 400 USm 300 33 537 513 106 7 37 200 38 119 100 187 51 40 0 - - - End 2012 Revenue Revenue Operating costs Royalties DD&A Other Finance…
Tax update US419m in taxes and royalties of which US400m was paid in Nigeria in 2013 (2012 - US233m) Income tax credit of US157m reflects reversal of prior years deferred and current tax provisions Ebok tax exemption: June 2011…
Sources and uses of funds End 2013 cash balance of US390m 1,800 1,600 1,400 735 1,200 1,005 1,000 USm 800 59 446 600 291 265 400 599 200 390 0 End 2012 Operating cash flow Investment Acquisitions Working…
Financial flexibility Extended debt maturity profile and lower cost of debt Afren net debt End 2013 USm End 2012 USm Rate Repayment due 2016 senior secured notes 253 500 11.5% 2016 2019 senior secured notes 250 300 10.25% 2019…
Capital expenditure 2014 capex allocated to highest cash return projects FY 2013 capex spend 36% US716 million 64% FY 2014E capex spend 24% US845 million 76% Development E&A drilling and seismic activity 13 2013 Full…
Portfolio management Galib Virani Shareholder value 14 2013 Full Year Results Presentation
Portfolio management Track record of accretive acquisitions 30.0 Focus on financial Total entry and appraisal cost per bbl discipline (track 25.4 Consensus PV per bbl(1) record of acquiring 25.0…
Capital allocation to the highest cash return projects Large opportunity set within our existing portfolio Okoro/Ebok/Okwok recovery upside 2P Ebok deep Upside OML 115 Okoro & FFD Ebok & NFB Existing Existing Okwok Core…
Production Growth Iain Wright Shareholder value 17 2013 Full Year Results Presentation
Production growth Moving forward with Okoro FFD Okoro Further Field Development Platform Okoro Okoro Main MOPU Platform Ima Terminal (Ailsa Craig 1 FSO) 18 2013 Full Year Results Presentation
Production growth Ebok Production in period 34,910 bopd (y-o-y increase +16%) Well performance and rates in line with prognosis 5 new production and 2 injector wells planned for 2014 Floating Platform Storage Offloading…
A major production hub offshore south east Nigeria Planned new infrastructure at Ebok CFB and Okwok Offtake Tanker Floating Storage Offloading Vessel Planned Okwok West Fault Block Mobile Offshore Wellhead Platform -…
Production growth Self-funding double digit 5-year growth 2013 production of 59,926 boepd Group net working interest production (boepd) gross (47,112 boepd net) - at top end of guidance 47,112 43,830 2014 guidance: 62,000 bopd…
Reserves Growth Iain Wright Shareholder value 22 2013 Full Year Results Presentation
Reserves growth Okoro track record Continued outperformance at Okoro 90 Reservoir and production out- performance 80 70 Significant further 2P recovery upside expected 60 50 mmbbls Recovery to date 32.5 mmbbls in line…
Reserves growth more to come Significant remaining upside potential 500 mmbbls gross unrisked resource potential OML 115 resources upside Large remaining resource upside 205.5 Ebok 2P 103.8 Only 30% of total area resource potential…
Ogo one of the largest discoveries in 2013 2,716 km2 3D marine seismic commenced Looking to establish full extent of syn-rift play, new dip-closed structures in the north and east Appraisal drilling to follow seismic 900…
Group reserves and resources Proved and Contingent Prospective mmboe Probable Resources Resources End 2012 270.3 840.7 7,127 Production (17.0) - Divestments (1.5) (1.9) Discoveries and extensions 26.4 (26.4) 310 Revision of…
E&A programme Wells operating/new well spuds Gross unrisked Net unrisked Asset W.I. Country Activity 1H 2014 2H 2014 resources resources PoS(2) (mmboe) (mmboe) Ain Sifni 20% Kurdistan region of Iraq Appraisal drilling 661 132 - El…
Conclusions Osman Shahenshah Shareholder value 29 2013 Full Year Results Presentation
Conclusions 2013 Record financial results 2014 Targeting low-risk Net production at top end of reserves growth guidance 47,112 boepd Ogo: 3rd largest global discovery Revenue of US1.6bn and cash in 2013 forward programme flow from…
Appendix Production and development 32 - 40 Exploration and appraisal 41 - 54 31 2013 Full Year Results Presentation
Certified reserves and resources Nigeria -Sao Tome & Nigeria Cte d'Ivoire Principe Kurdistan Region of Iraq Total Group Oil Oil Oil Oil (mmbbl) Gas(bcf) mmboe (mmbbl) Gas(bcf) mmboe (mmbbl) Gas(bcf) mmboe (mmbbl) Gas(bcf) mmboe Oil…
Production and development programme 1. Offshore Nigeria: Ebok & Ebok NFB Production and Development activities map 18 producing wells CFB extension installation to be completed 1H 2014, NFB full field development to follow 5 new…
Offshore Nigeria Okwok Successful organic reserves growth OKW-10 OKW-11ST Cored Interval FB2 FB1 95 Net Oil Pay 72 Net Oil Pay FB3 OKW-10ST 2P reserves addition Cored Interval of 47 mmbbls following successful E&A…
Onshore Nigeria OML 26 Full cycle E&P opportunity Full cycle E&P exposure 2 developed fields (Ogini producing and Isoko) 0 5km 3 undeveloped fields (Aboh, Ovo and Ozoro) Crude export is via the Forcados terminal through a 29 km…
Recent operational progress Significant momentum 2 new 5.2 MMscf/d gaslift compressors installed and functional LACT unit has been tied-in to the Eriemu manifold and commissioning is ongoing New 2 x 30kbbl Sulzer export pumps…
Ogini FDP in progress Multi-well drilling campaign expected to commence shortly 37 new production wells, mostly horizontal, from existing well pads 13 shot to medium term work-overs Replacement of existing 10 Ogini- Eriemu oil…
Offshore Nigeria OML 113 FDP approval received FDP focused on the development of the Cenomanian oil reservoir First phase development concept consists of two subsea production wells, tied back to a leased FPSO Wells most likely…
Kurdistan Barda Rash field development Ramping-up production Continued ramp up in production Flow lines and facilities to be updated to bring BR-4 and BR-5 into production in 2014 Domestic sales expected to be augmented by access to…
Kurdistan commercialising production at Barda Rash Export infrastructure established Shaikan Source: Wood Mackenzie 40 2013 Full Year Results Presentation
Material exploration portfolio An attractive portfolio located in highly prospective basins Exploration Portfolio Gross Net prospective prospective Country resources resources (mmboe) (mmboe) Ethiopia 344 103 Kenya 4,443 3,959…
Nigeria OML 115 Several prospects and leads have already been identified Utue Field High quality analogues at EUR 266 MMBO all levels Iyak Field Drilling similar amplitudes Ameena East prospect and responses to EUR 150 MMBO…
Kurdistan Ain Sifni Commerciality declared World class acreage located within a prolific and proven oil trend Simrit-2 exploration well Drilled to a total depth 12,467 ft following initial discovery Total net oil pay encountered of…
Afren East Africa Exploration Exploring East Africas petroleum systems East Africa Gross mean Net mean prospective prospective Afren acreage resources resources Country Asset WI (%) (mmboe) (mmboe) Ethiopia Blocks 7,8 30% 344 103…
Afren East Africa Exploration Significant upgrade to prospectivity based on 2012/2013 seismic campaign Kenya Blocks L17 & L18 (100% & Operator) 1,207 km 2D marine seismic and 474 km 2D shallow water and transition zone seismic…
Afren East Africa Exploration Significant upgrade to prospectivity based on 2012/2013 seismic campaign Tanzania Tanga Block (74% & operator) 755 km 2D shallow water Tanga Block 930 km 2D marine seismic 620 km2 marine 3D seismic…
Ethiopia Blocks 7 and 8 (Ogaden Basin) Appraisal of the El Kuran oil discovery underway Mid Hamanlei TWT Structure El Kuran -1 A A Faf A A Gabredarre U. Hamanlei M.Hamanlei El Kuran-1 well with gas shows in…
Kenya Block 1 Large under-explored sub-basin of the proven Ogaden Basin Large under explored sub-basin of the Ogaden Basin, El Kuran Oil & Gas continuous with the Calub, Hilala and El Kuran Discovery (1972) discoveries Numerous…
Kenya Blocks L17/L18 Mombasa High identified as a low risk onshore drilling opportunity for 2015 MIDDLE EOCENE MATURITY MIDDLE JURASSIC MATURITY Sunbird discovery Sunbird discovery MOMBASA MOMBASA HIGH HIGH WASIN WASIN…
Kenya Blocks L17/L18 Mombasa High identified as a low risk onshore drilling opportunity for 2015 SUNBIRD-1 Mombasa High Oil dominated systems charged from Jurassic/Eocene marine source rocks Block L18 in particular ideally…
Tanzania Tanga Block A unique opportunity to explore a high potential oil prone basin CHUNGWA CHUNGWA A NANASI A NANASI A A Tongoni & Tambarani Tongoni & Tambarani Oil seeps on Pemba Island Oil seeps on Pemba Island Seeps…
Tanzania Tanga Block Prospectivity matured to drill ready status following extensive seismic acquisition programme Chungwa-1 Nanasi-1 A Shallow water 2D Deep water 3D Nanasi/Mkonge Complex A SEAFLOOR TWT (MSECS) Cretaceous…
Madagascar Block 1101 (90%) Block 1101 Sterling EXXON Afren EAX Block EXXON 1101 EXXON Antso and Mantaly AGIP 1970/71 Bemolanga oil sands 1-3 tcf gas 20 bn bbls OOIP Tsimororo heavy oil 1-2 bn bbls OOIP Manandaza 41 API…
Madagascar and the Seychelles Rift Play: Karoo 3D seismic successfully completed over deepwater Area A Bonit Lead 3.0 TWT (Seconds) Calub 4.0 Tarbaj Hill Seychelles 5km la cu Majunga s tri Seismic Line…
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