October 2014 Overview Presentation Tullow Oil plc October 2014
October 2014 Overview Presentation OVERVIEW PRESENTATION
October 2014 Overview Presentation Good progress made during 1H 2014 West Africa Stable Jubilee production 103,000 bopd TEN development on time and on budget Onshore discovery at Igongo in Gabon East Africa Kenya discoveries support…
October 2014 Overview Presentation Delivering on our strategy Additional cash flow from new production Monetisation High Margin Exploration Selective Options & Production and Development Portfolio Cash flow Appraisal…
October 2014 Overview Presentation Core West African production on track to meet FY 2014 target West African production KENYA South Lokichar Basin 1H 2014 actual: 63,900 boepd Development studies underway; single basin has…
October 2014 Overview Presentation Industry-leading exploration acreage position Balanced spread of E&A campaigns provides robust feedstock to sustain Tullows average annual addition of 200mmboe mean resources Slide 7
October 2014 Overview Presentation OVERVIEW PRESENTATION
October 2014 Overview Presentation Business and funding strategy Business Strategy Funding Strategy Financing Initiatives Additional cash flow from new production Commercial Bank Facilities Operating Cash High Monetisation…
October 2014 Overview Presentation 2014 Half-yearly results summary 1H 2014 1H 2013 Comments Sales revenue 1,265m 1,347m Unchanged from 1H 2013 after adjusting for Bangladesh Gross profit 673m 764m asset sale and Gabon production…
October 2014 Overview Presentation Net income 1H 2014 v 1H 2013 m 400 300 2 84 43 27* 55 200 313 100 226 0 107 115 95 53 -100 1H 2013 Price Volume Operating Other costs Exploration Net Finance Tax Loss on 1H…
October 2014 Overview Presentation Sources and uses of funds Cash inflow 1,672m m 1H 2014 Net cash inflow 59m 2,000 Operating cash flow 728m* (1H 2013:1,030m*) Net loan draw down 944m 944m (1H 2013:901m) 1,500 219m 161m Cash…
October 2014 Overview Presentation Debt capital structure has evolved in 1H14 Debt maturity profile Key metrics mm Commitment size Maturity mm 30 June 2014 RBL 3,500 Dec 2019 Cash and cash equivalents 411 Corporate Facility 750 Apr…
October 2014 Overview Presentation 2014 capital expenditure 2.1 billion capex for full year 2014 Ghana: Jubilee Phase 1A & TEN developments (760m) Kenya: Exploration and appraisal drilling (310m) 2014 720m 220m 1,160m 2,100m…
October 2014 Overview Presentation Highlights Financial performance Strong Revenue and Cash Flow generation from core West African production Strong balance sheet Second successful 650m bond issue, re-financing of 750m corporate…
October 2014 Overview Presentation OVERVIEW PRESENTATION
October 2014 Overview Presentation Finding oil in 2014 H1 E&A Commercial Technical Outcomes Discovery Discovery Dry Hole We continue to find our own oil EAST AFRICA Cost-effective feedstock for value creation Exploration Ewoi-1…
October 2014 Overview Presentation 2014 YTD Exploration and Appraisal activities NETHERLANDS - 1 well NORWAY - 7 wells Seismic Key Vincent (E11-1) Langlitinden (7222/11-2) Gotama (31/2-21) Acquisition Hanssen (7324/7-2) Butch SW…
October 2014 Overview Presentation Campaign approach to finding oil in Africa & the Atlantic We find oil in Africa & the Atlantic Value added through finding our own New Oil Drilling Out Successful Core Plays & Basins Exploration…
October 2014 Overview Presentation Balancing investment across the portfolio We find oil in Africa & the Atlantic Frontier Core 5 1 South Atlantic Margins 4 East African Rift Basins Low cost options give exposure to upside 10 Bbo…
October 2014 Overview Presentation Shifts of emphasis within exploration portfolio for value Uruguay Ghana Liberia, Sierra Leone Guyana Suriname Gabon Namibia Netherlands Uganda Guinea Norway Ethiopia Mauritania Kenya…
October 2014 Overview Presentation Exploring for high value oil Higher profitability associated with higher oil reserve mix Oil finding principles 100% Focus on finding high value producible light oil 80% Oil is multiples more…
October 2014 Overview Presentation How we explore: our process works 600M 1,000M Risked upside* Monte Carlo simulation of Prospect & Lead Inventory (P10 = 4.3 Bbo) within full potential of plays & basins (6.6 Bbo) Slide 23
October 2014 Overview Presentation Cost efficient exploration 3.3/boe (2007-2013) 900 Potential Kick in East African Rift Basins 3 core campaigns < 3.3/boe 800 Creaming Curve East African Rift Basins 1.95/boe Net Contingent…
October 2014 Overview Presentation Net contingent resource additions from E&A 900 Ekales-1 & Agete-1 200mmboe / year, steady average performance 800 Strong run of success in Uganda & Ghana Twiga-1 & Etuko-1 New basins campaigns…
October 2014 Overview Presentation E&A Highlights Good progress year to date Successful Exploration & Appraisal outcomes in first half of 2014, continuing to add value to portfolio Campaign approach Campaign approach hedges…
October 2014 Overview Presentation OVERVIEW PRESENTATION
October 2014 Overview Presentation Core West African production on track to meet FY 2014 target 2014 West African production 1H 2014 actual: 63,900 boepd FY 2014 guidance: 64-68,000 boepd TEN development on track First oil…
October 2014 Overview Presentation West African production generating strong cash flows Significant incremental investment activity across non-operated assets Strong pre-tax operating cash flow generation across West African…
October 2014 Overview Presentation Ghana projects on track to enhance production and cash flow Ghana gross production profile 250 Jubilee production on track to meet 2014 FY TEN being developed (80:20 oil:gas) TEN Upside (45:55…
October 2014 Overview Presentation Potential to increase Jubilee FPSO capacity FPSO capacity improvements Current oil capacity Work Work Work completed in progress outstanding - Constrained by gas export infrastructure - On track to…
October 2014 Overview Presentation Visible future growth TEN development overview Base development case 300 mmboe reserves being developed 24 well development Gross development capex of 4.9 billion Leased FPSO, capacity of 80,000…
October 2014 Overview Presentation Visible future growth - TEN Project on track Execution schedule with strategic milestones 2013 2014 2015 2016 Over 2 million man-hours ACTIVITY Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 worked…
October 2014 Overview Presentation Non-operated sustaining high margin production Good technical work has delivered investment opportunities High value incremental High return investments compete strongly for capital within…
October 2014 Overview Presentation Non-operated case study: Gabon Gabon net production profile 16,000 14,000 High value infill drilling has offset decline 12,000 10,000 Tullow technical influence impacting boepd 8,000…
October 2014 Overview Presentation Non-operated case study: Equatorial Guinea Use of 4D seismic data to optimise infill drilling - First iteration in 2010 (learning ahead of use at Jubilee & TEN) - Next campaign planned for late…
October 2014 Overview Presentation Guinea phase of West African Margin Campaign Targeting the elusive upside of the Jubilee play Regional geology points to turbidite sands deposited by an ancient delta of the Niger River Potential…
October 2014 Overview Presentation Central Atlantic Margin Campaign Mauritania Outboard Plays Mauritania deepwater turbidites (1st phase) Fregate-1 discovers over 30m light oil & condensate Commercialisation options under review…
October 2014 Overview Presentation OVERVIEW PRESENTATION
October 2014 Overview Presentation Progressing oil resources towards development in East Africa Full life cycle regional scale E&P business Two basins discovered; over 300,000 bopd gross potential Large yet-to-find from basin opening…
October 2014 Overview Presentation East Africa Business highlights Full life cycle regional scale E&P business Two basins discovered with over 300,000 bopd potential Large yet-to-find upside from basin opening exploration campaign…
October 2014 Overview Presentation East Africa regional crude oil export pipelines Regional pipeline agreed - Governments across region supportive 600 km Significant progress on technical design 860 km - Routing and environmental…
October 2014 Overview Presentation Kenya Ethiopia: World-class oil province potential E&A campaign delivery parallel approach 1. South Lokichar Basin drill-out, appraisal & testing Discovery of over 600 mmbo Pmean gross resources…
October 2014 Overview Presentation Kenya development plans rapidly advancing Explore, appraise and develop simultaneously Exploration and appraisal drill out by end 2015 - 600 mmbo Pmean gross resources discovered to date Appraisal…
October 2014 Overview Presentation Exploring Kenya & Ethiopias significant resource potential The following basins will be tested in 2014/2015 Spud date North Kerio Basin: Kodos Sept 2014 Turkana Central Basin: Epir 4Q 2014 Turkana…
October 2014 Overview Presentation Focus on driving down Kenya well costs Kenya well costs Since 2004 50 104 exploration and appraisal wells & sidetracks - 77 as operator 40 wells tested both production & injection 40 Total…
October 2014 Overview Presentation Kenya overview: volumes, maps & cross-sections Slide 47
October 2014 Overview Presentation Three basin opening Kenya wells in 2H 2014 North Kerio Basin: Kodos Drilling Turkana Central Basin: Epir 4Q 2014 Turkana North Basin: Engomo 4Q 2014 Slide 48
October 2014 Overview Presentation Uganda development status Project definition being finalised 250 Appraisal programme completed Development costs reduced by 30% 200 200 Kingfisher PL awarded, all EA2 Field Gross Production…
October 2014 Overview Presentation Uganda development optimisation and Capex savings Development optimisation and Capex reduction 3bn Capex cost reduction 4% programme in 2013/14 Reduction in 9% Facilities Capex Reduction in Capex…
October 2014 Overview Presentation Next growth frontier exploration examples 2015+ Namibia reachable turbidites Older turbidites beneath shelf (low cost) Oil system established by Wingat-1 (HRT) New 3D survey highlights 2015…
October 2014 Overview Presentation OVERVIEW PRESENTATION
October 2014 Overview Presentation Near infrastructure & Frontier opportunities in North Atlantic Barents Sea - Frontier Major oil finds continue at Wisting prospect cluster Hassel & Bjaaland target cluster potential up to 500…
October 2014 Overview Presentation OVERVIEW PRESENTATION
October 2014 Overview Presentation Guyanas: extensive Jubilee play potential plus upside plays Non-operated E&A lacks success after Zaedyus-1, turns to de-risked oil plays and new attractive lower geo-pressured prospects on Eastern…
October 2014 Overview Presentation Next growth frontier exploration examples 2015 Guyanas Margin Significant oil charge proven by Zaedyus-1 (72 m pay) Industry interest continues to ramp-up Commanding acreage spread with play…
October 2014 Overview Presentation OVERVIEW PRESENTATION
October 2014 Overview Presentation 18 month Exploration and Appraisal programme mmboe Country Block Prospect/Well Interest Gross Mean Net Mean Spud Date WEST & NORTH AFRICA Gabon Arouwe Sputnik-1 35% 206 72 Imminent In addition to…
October 2014 Overview Presentation 18 month Exploration and Appraisal programme mmboe Country Block Prospect/Well Interest Gross Mean Net Mean Spud Date SOUTH & EAST AFRICA Etom 21 11 Completed 13T Ekales appraisal 50% (op) 53 26…
October 2014 Overview Presentation 18 month Exploration and Appraisal programme mmboe Country Block Prospect/Well Interest Gross Mean Net Mean Spud Date EUROPE, SOUTH AMERICA & ASIA PL 494 Heimdalsh 15% 140 21 Completed PL 591…
October 2014 Overview Presentation Download the Tullow Investor Relations and Media App from the Apple and Android stores: Tullow Oil plc 9 Chiswick Park 566 Chiswick High Road London, W4 5XT United Kingdom Follow Tullow on:…
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