Introduction 2012 review Implications of 2012 drilling programme Funding & Forward Plan 2
2012 Review Equity fund raising Farm-outs Drilling Loligo Scotia 3
Farm-outs to EDF-Edison & Noble Energy Edison farmed-in to 25% of the Northern Licences & 12.5% of the Southern licences Noble farmed-in to 35% of the Northern & Southern Licences Operatorship of northern licence area transferred to…
Noble Energy Focussed on oil rather than gas Proven exploration track record Major investment in 3D seismic Recognise 12 BBbl gross unrisked potential Committed to further drilling in 2014 - 2015 5
2012 drilling performance Both wells drilled safely and without Downtime due to weather incident North Sea Average Both wells drilled within budget Demonstrated year-round drilling possible Ocean Guardian: North Falklands 2010 2011…
A proven hydrocarbon province The 4 exploration wells drilled in 2012 has demonstrated a working petroleum system in the south & east Falkland basins 1. Proven mature source rocks 2. Reservoir sands present 3. Working…
Loligo: encouraging results Proves a working hydrocarbon system in the northern part of the basin: 6 separate gas bearing zones (T1T5) Reservoir quality is an issue at this well location: Good porosities of 20-30%, but low…
Loligo: multiple gas bearing zones encountered T4 Shale 9
Loligo depositional model 10
Scotia: tight gas discovery Scotia is a viable stratigraphic trap 50 metres of gas bearing reservoir Large seismic amplitude covering an area of c.350 sq.km Reservoir quality an issue: low moderate porosity Low permeability.…
The fault block play 12
Darwin condensate discovery & the Fault Block Play 13
Implications of 2012 drilling programme Key Questions Can the gas & associated liquids be commercialised Where is the good quality reservoir Is there any oil in the basin 14
Commercialising gas & associated liquids The feasibility of various LNG options are currently being investigated Natural gas is projected to be the fastest growing fuel globally LNG supply is projected to grow at 4.5% p.a. to 2030…
A new reservoir model Very good quality Cretaceous reservoir in Well developed clean quartz sands on East Falkland 2 wells: Toroa & Darwin New depositional model - source of sand (provenance) Seismic amplitude response 3D seismic…
Cretaceous reservoir distribution 17
Cretaceous Source Rocks: The key to finding oil 18
Funding and forward programme 19
Funding our forward programme Estimated expenditures until 2015 Net Cost to FOGL millions 2013/14 3D seismic 60 3 Well Programme 100 Including Noble carry on first 2 wells Operating & Corporate expenses 15 175 Cash at Jan 2013…
2013 3D seismic programme Hersilia Mid Cretaceous fan complex & northern Loligo c. 4,000sq km: Q4 2013 Cretaceous Fault Block Diomedea Mid Cretaceous 1,018 sq km completed fan complex 6,400 sq km: completed 21
Hyper Fast-track data from Diomedea Existing 2D seismic New 3D seismic 22
Prudent approach to risk management Total investor funding 2008 2012 228 million Total funds received from farm-outs 105 million (BHP, Noble & Edison) Net cost to FOGL of these 3 wells 103 million Current cash 220 million Proven…
Newsflow Diomedea & Fault Block 3D surveys completed. Fast track results in August 2013 Northern Licence area 3D to commence in Q4 2013 Market update on Southern area 3D by end 2013 Market update on Northern area 3D by mid 2014…
Conclusions Proven working hydrocarbon province Loligo gas discovery may have significant potential Darwin results de-risks fault block play in the Southern licence area Farm-outs have underpinned a prudent approach to risk…
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