Introduction Egbert Imomoh, Executive Chairman Toby Hayward, Interim CEO Previously Managing Director of Afren Nigeria Formerly Senior Non-Executive Director (since 2005) and non-Executive Chairman Active in shareholder…
Investigation update Independent reviews continue 1H14 results confirm no negative effect on operational and financial position No impact on partnerships and license arrangements Aiming to balance thoroughness with…
Summary 1H production 33,488 bopd Revenue US565 million and operating cash flow US354 million 2014 net production guidance revised to 32,000 36,000 bopd Barda Rash removed from guidance, following temporary suspension Further…
Priorities Nigeria core assets High return, cash generative, self funding production Focus: 4 key developments to achieve step-up in production, cash flows Exploration upside (Ebok, Okwok, OML 115) Ogo 3rd largest global discovery…
Financial results
Context to 1H 2014 financial results Production volumes down 25% Ebok cost recovery reached Natural decline DD&A provisions Ebok five-year tax exemptions boost Profit After Tax with deferred tax reversal Cash flow in…
1H 2014 financial results summary USm 1H 2014 1H 2013 Change Net production (bopd)1 33,488 44,712 (25%) Revenue 565 797 (29%) Gross profit 194 377 (49%) Profit after tax 160 62 +158% Normalised profit before tax2 127 309 (59%)…
Sources and uses of funds 1H 2014 cash balance of US433m 800 700 600 291 354 500 32 8 44 USm 400 300 433 200 390 100 0 - - - - - End 2013 Operating cash flow Investment activities Working capital and…
Capital expenditure Allocation to highest cash return projects 1H 2014 capex spend 19% US293 million 81% FY 2014E capex spend 24% US845 million 76% Development E&A drilling and seismic activity 13 2014 Half-yearly…
Financial flexibility Extended debt maturity profile and lower cost of debt Repayment due / Afren net debt 1H 2014 USm End 2013 USm Rate Final maturity 2016 senior secured notes 253 253 11.5% 2016 2019 senior secured notes 250 250…
Production
Production Targeting 5-year double digit growth 1H 2014 production: Group net working interest production (boepd) 47,112 49,870 bopd (gross) 43,830 33,488 bopd (net) 32,000 36,000 FY14 net guidance revised to 32,000 36,000…
Production Ebok drilling underway at NFB and new CFB extension Gross production in period 29,300 bopd CFB extension installation expected to complete Q3 2014 6 new production wells (3 from NFB and 3 from CFB) and 1 injector well…
Production Okwok fast track development underway FDP approval received Finalisation of reservoir models and development well planning underway Well Head jacket fabricated awaiting installation in Q3 2014 18 2014…
Production New Ebok CFB and Okwok infrastructure Offtake Tanker Floating Storage Offloading Vessel Planned Okwok West Fault Block Mobile Offshore Wellhead Platform - Production Unit extended for NFB development Ebok…
Production Moving forward with Okoro FFD Infill well drilling ahead New Okoro Further Field Development Platform Okoro Okoro Main MOPU Platform Ima Terminal (Ailsa Craig 1 FSO) 20 2014 Half-yearly Results Presentation
Production OML 26 Ogini FDP approval received Ogini FDP approved 37 new production wells from existing well pads, 13 work-overs Durga-2 rig on site July 2014, 5 well programme, first well spudded, LWD underway 3 producers…
Production OML 113 - FDP approval received FDP focused on Cenomanian oil reservoir First phase: 2 subsea production wells, tied back to leased FPSO Likely wells: Recompletion of Aje-4 well New well drilled to the Aje-2…
Production Barda Rash Phase 1 completed Phase 1 Worked over Installed and three existing commissioned Early Acquired and processed 3D seismic wells Production Facility (interpretation on-going) Domestic sales Phase 2…
Production Barda Rash Phase 2, drilling operations on-hold pending local security resolution Flow lines and facilities updated, BR-4 tested successfully BR-5 intersects similar intervals to BR-4, well testing programme to complete…
Kurdistan Ain Sifni commerciality declared, FDP submitted 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…
Reserves
Long-term growth Only 26% of total discovered 2P/2C barrels in production or under development Reserves and resources life of 75 years 6% 20% 1,096 mmboe 74% 2P (developed) 2P (undeveloped) 2C (FDP…
Reserves growth low hanging fruit Upside that is quick to monetise 500 mmbbls gross unrisked resource potential OML 115 resources upside Large remaining resource upside 205.5 Ebok 2P 103.8 Only 30% of total resource potential…
Ebok Deep Targeting upside to existing 2P base Low risk upside Targeting deeper Qua Iboe Off-Structure well with oil at BQIU and Biafra sands below the and deeper reservoir quality currently producing sands reservoirs Ebok…
Nigeria OML 115 Ameena East prospect prioritised for drilling Utue Field High quality analogues at EUR 266 mmboe all levels Drilling similar amplitudes Iyak Field Ameena East prospect and responses to EUR 150 mmboe discoveries in…
Ogo one of the largest discoveries in 2013 OPL 310 2,716 km2 3D marine seismic completed, fast-track 3D cube expected Q3 2014 Looking to establish full extent of syn-rift play, new dip-closed structures in the north and…
Material exploration portfolio A balanced portfolio 70% South Africa Block 2B 60% 50% Probability of Success 40% Onshore Nigeria Offshore Nigeria Madagascar Block 1101 30% Kenya Blocks L17/L18 CI-525 Kenya Block 1…
Conclusions
Conclusions High quality asset base; executing on forward programme Strong partner relationships Excellent wider technical team and track record of delivery Continuing to focus on capital discipline and prioritise high-value…
Continuing to deliver on key milestones 1H 2H Okoro FEED underway Ebok, 6 producer and 1 water injector programme underway Okwok FDP received, wellhead jacket fabricated currently awaiting installation Okoro infill well drilling…
Appendix
Production and development programme 1. Offshore Nigeria: Ebok & Ebok NFB 17 producing wells Production and Development activities map CFB extension installation to complete Q3 2014, NFB full field development to follow 6 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…
Kurdistan Independent exports via KRI-Turkey pipeline Shaikan Source: Wood Mackenzie 40 2014 Half-yearly 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…
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 Block 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 Block 8 (Ogaden Basin) Appraisal of the El Kuran oil discovery underway Mid Hamanlei TWT Structure El Kuran -1 A A Faf A A BLOCK 8 Gabredarre U. Hamanlei M.Hamanlei El Kuran-3 well completed with…
Kenya Block 1 Large under-explored sub-basin of the proven Ogaden Basin Large under explored sub-basin of the Ogaden Basin, continuous with the Calub, Hilala and El Kuran discoveries Numerous plays on block proven by offset…
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 Oil dominated systems charged from Mombasa High 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…
Seychelles Area A and B Prospect portfolio in deep and shallow water A BONIT PROSPECT A Undrilled Cretaceous rift Espadon First structure out of basin 176 mmbbls Undrilled failed Jurassic rift Cretaceous-Tertiary Jurassic…
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