Discovering Hidden Value Preliminary Results Presentation March 2013
Simon Thomson Chief Executive
Creating Value Through Exploration Led Growth Create Value Explore Discover Invest Acquire Establishing self-funding platform for value creation and growth through exploration Realise Add Value Value Produce Transact…
Creating Value Through Exploration Led Growth Significant gearing to exploration success Atlantic Margin, Mediterranean, North Sea; Exploration 250-300 million exploration spend per annum led growth 4 frontier wells in 2013 /…
Projected Operational Milestones 2013 2014 2015 FDPs on North Sea Developments Catcher Kraken Morocco Morocco Senegal Morocco Senegal Morocco Spain / Malta (Op) (Op) (Op) (Op) (Op) (Op) (Op) Greenland (Op) UK K…
Jann Brown Chief Financial Officer
Strategy Finance Funding strength and flexibility Create and realise value Exploration led growth Capital structure to support Track record and continued Platform for growth of the focus on creating exploration led…
2012 Re-gearing and Building Finance Capital base re-geared to 3.5bn returned to shareholders exploration success Pitu farm-out agreement complete Access to future cash flow to Acquisitions of Agora and Nautical for fund…
Balance Sheet Strength Finance Strong balance sheet Financial Assets Cash Financial assets in excess of 2.7bn* 1.6bn* (59%) 1.6bn* net cash CIL Stake 1.1bn* Retained Cairn India Limited (CIL) stake (41%) of 10% valued at…
Capital Allocation Finance 2012 Capex Outflows Funding allocated to maximise potential Exploration* shareholder value over the long term 65m (81%) Up to 1.5bn over five years allocated to our development assets 15m Debt…
Summary Finance Funding in place to support growth of business and deliver strategy Target annual exploration spend in-line with size of company Ongoing management of exploration portfolio Risk management reflects reduced size…
Dr Mike Watts Frontier Exploration Deputy Chief Executive Officer
Exploration Led Growth Strategy Asset base Post the capital return to Norway shareholders in H1 2012 the UK West Greenland company is more highly geared to Spain organic exploration-led growth South Greenland Frontier basin…
Geological Focus Atlantic Margin Play fairway analysis associated with continental break-up Norway UK West Greenland Spain South Greenland India Plate reconstruction (PLATES/UTIG, 2009) Morocco Senegal Discovering…
Morocco Frontier Exploration Atlantic Margin Nova Scotia Offshore Activity Morocco and Nova Scotia frontier Shell, BP, Chevron, conjugate margins Exxon, and EnCana Schematic Plate Reconstruction - After Luheshi 2012 Extensive…
Morocco Foum Draa Atlantic Margin Foum Draa Offshore 1-3 3 deepwater wells shallower than L.Cret TDs Spain Shell (2) and Vanco, drilled 2004 Extensive historic dataset including 3D seismic Several deepwater prospects identified…
Morocco Juby Maritime Atlantic Margin Juby Maritime I-III Canary Islands Juby Maritime I - III New Cap Juby discovery (Esso 1968/1969) Tan Tan-1 3D seismic Acquired (MO-002 well tested 2,377 bopd 12 API oil Q4 2012 from Upper…
Senegal Frontier Exploration Atlantic Margin Frontier Atlantic Margin basin Tiof Banda Chinguetti Proven hydrocarbon system Tevet Substantial acreage position Mauritania Mauritania Faucon 7,490 km Shell Conjugate Margin…
Senegal Frontier Exploration Atlantic Margin Mesozoic Petroleum system established offshore by Rufisque Dome wells Shelf No deepwater wells offshore Senegal north of Gambia Main source rocks; World class Turonian source rock…
Greenland Frontier Exploration Atlantic Margin First phase exploration completed: Extensive knowledge, database and operating capability Primary area North East Bid Rounds 2D seismic 85,000 km of focus Pitu 3 and 4 2 x 3D seismic…
Baffin Bay - Pitu Block Regional Location Atlantic Margin Industry boreholes Pitu is ideally situated Melville Melville Bay Bay Basin Hydrocarbon charge from both the Ridge Melville Bay Basin and the southern Northern Kivioq…
Greenland Frontier Exploration Atlantic Margin Play types Industry consortium shallow borehole programme in 2012 operated by Shell established for the first time: Much of the Baffin Bay Basin stratigraphy Presence of good oil prone…
Pitu - Geochemical Surveys (2011 and 2012) Atlantic Margin 2011 Geochemical Survey Results highlighted microbial anomalies Sea bed indicative of oil in the 3D area anomalies with oil signatures 2012 Geochemical Survey Results…
Pitu - 5 Prospects Highlighted by 3D Seismic Atlantic Margin Prospects defined Py 3 composite AT prospect N prospect by 3D prospect (Tertiary) (Cretaceous) Py composite prospect An (AT, N and Ak) Combined gross unrisked mean…
Other Areas of Greenland Atlantic Margin Schematic Plate Reconstruction Map East Greenland East Greenland Bid round 1, 2013 Skrugard Cairn may seek pre-qualification for round 2 Havis Havis Skrugard Greenland Goliat Goliat…
South Greenland - Prospects within the 3D Seismic Area Atlantic Margin Evaluation continues E Prognosed high quality reservoirs in turbidite channels A Large structural traps Direct Hydrocarbon Indicators (DHI) Stacked…
Mediterranean Spain France Frontier contract terms (100% interest) Nordeste Valencia Basin Barcelona Licence Spain Applications 3D seismic planned 2013 Drilling targeted for 2014/2015 subject to necessary AM1 AM2 approvals…
Mature Basin Exploration and Development
Exploration, Appraisal and Pre-Development UK and Norway North Sea Kakelborg 33/5 & 33/6b Tybalt Active new business programme to 211/8c & 211/13c Timon Huggorm 35/9b 33/9 expand and replenish portfolio with 211/11b & 21/16b…
Appraisal and Operated Exploration UK and Norway S Discovery well 35/9-7 Appraisal well 35/9-8 N Skarfjell initial post discovery Skarfjell (Cairn 20% non operator) Resource Estimate range 60-160 mmbbls Skarfjell discovered…
Development Projects UK and Norway Kraken Kraken Appraisal North / Head Location Appraisal 2013 North Sea assets balance global portfolio and provide 9/1a Cairn 100% 9/2b Cairn 25% future cash flow to fund exploration in…
Simon Thomson Chief Executive
Conclusion Create Value Re-geared structure for maximum exposure to organic growth potential Targeting multi-well drilling programme in the coming 18 months Add Value Portfolio management and build of assets in 2012 New entry…
Q&A
Creating Value Through Exploration Led Growth Create Value Explore Discover Invest Acquire Realise Add Value Value Produce Transact Organic Growth Sell Re-invest Transact Develop Cash return Discovering Hidden Value…
Appendix Income Statement Finance 2012 2011 m m Pre-award costs (18.1) (16.7) Tybalt, Timon, Bardolph, Unsuccessful exploration costs (158.7) (941.8) Kakelborg, Geite and Administrative expenses Spaniards write-offs (53.3)…
Appendix Balance Sheet Finance 2012 2011 m m Oil and gas exploration / appraisal assets Movement mainly acquisition 899.8 80.8 additions 977m, less unsuccessful write-offs Development assets 159m and transfer of 71.0 - Mariner…
Appendix Cash Flow Finance 2012 2011 m m Net cash (used in)/generated from operating activities (73.7) 1,913.4 Oil and gas capital expenditure (139.1) (1,369.9) Other capital expenditure (6.0) (8.8) Net outflow on business…
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