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4Q 2014 – Enquest

Enquest · Mar 19, 2015 · 56 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 4Q 2014 – Enquest – slide 1
    EnQuest 2014 Full Year Results PM8/Seligi, Malaysia
  2. 4Q 2014 – Enquest – slide 2
    Agenda Overview Amjad Bseisu, CEO Financials Jonathan Swinney, CFO Operations Neil McCulloch, President, North Sea Summary Amjad Bseisu
  3. 4Q 2014 – Enquest – slide 3
    EnQuest 2014 Results Key themes Strong operational performance in 2014 Continued good reserves growth Ongoing action in response to low oil prices Major developments on track Material international business Well positioned…
  4. 4Q 2014 – Enquest – slide 4
    EnQuest 2014 Results Strong operational performance Production Up 15% on 2013 27,895 Boepd 88% production efficiency on existing UK assets (top quartile) First international production contributed 3,459 Boepd Net 2P reserves Up…
  5. 4Q 2014 – Enquest – slide 5
    Action in response to low oil prices Ongoing efficiency measures across the board Hedging in 2016: 10 million barrels, puts averaging c.68 place 2015: realised 100m of gains; now 10 million barrels hedged, puts averaging c.65/bbl…
  6. 4Q 2014 – Enquest – slide 6
    Delivering on asset plans Core competencies of cost control and operational efficiency Existing UK hubs performing well Thistle/Deveron Heather/Broom Transforming GKA production and GKA Field life operational efficiency, ahead of…
  7. 4Q 2014 – Enquest – slide 7
    2014 Production results by hub Year of record production Net production (Boepd) 2013 2014 30000 27,895 25000 24,222 20000 15000 11,014 10000 9,024 8,835 7,925 5000 4,339 4,081 3,4592 1,2811 922 1,284 0…
  8. 4Q 2014 – Enquest – slide 8
    Further improvement in core UK production efficiency 100% 2013 operator rankings EnQuest 2014 like for like UK North Sea production efficiency task force (O&G UK) production efficiency at 88% 90% EnQuest 2013 80% 70% Average…
  9. 4Q 2014 – Enquest – slide 9
    Malaysia: 23% of EnQuest production in H2 2014 Opportunity to increase production significantly in the future Seligi 2014 was a transformational year for EnQuests international business First Tanjong Baram small field risk…
  10. 4Q 2014 – Enquest – slide 10
    Five years of strong reserves growth 514% reserve replacement ratio Net 2P reserves 2010 - 2014 182.3 220.0 MMboe MMboe 80.5 (42.8) MMboe MMboe Production Additions to 2010 to 2014 reserves 2010 to 2014 Net 2P reserves…
  11. 4Q 2014 – Enquest – slide 11
    Financials
  12. 4Q 2014 – Enquest – slide 12
    Results summary Year to 31 December Unless otherwise stated all figures are before exceptional items and depletion of fair value uplift and are in US dollars US dollars 2014 2013 Change % Export production (Boepd) 27,895 24,222 15.2…
  13. 4Q 2014 – Enquest – slide 13
    Summary income statement Year to 31 December 2014 2014 2014 2013 US dollars Business Exceptional Reported Reported performance items ms ms ms ms Revenue 1,009.9 18.6 1,028.5 955.2 Cost of sales (654.1) (57.8) (711.9) (527.1) Gross…
  14. 4Q 2014 – Enquest – slide 14
    Exceptional impairment post tax of 335.3m Non-cash items 678.8m : impairment of oil and gas assets (pre-tax) 152.0m : impairment of oil and gas intangible assets Cash cost 32.8m is SVT tariff actualisation 13
  15. 4Q 2014 – Enquest – slide 15
    Focus on cost efficiency EnQuest historical operating costs Vs doubling in UKCS costs over last 5 yrs /bbl 40.0 Cost of operations Unit production costs 35.0 Impact of GKA acquisition, 3.3/bbl 30.0 3.3 25.0 20.0 15.0 26.9…
  16. 4Q 2014 – Enquest – slide 16
    Group taxation position No material UK cash CT/SCT on operational activities expected before 2025 ETR % ms UK Tax Allowances ms Loss Before Tax (579) Recognised at 31 December 2013 1,087 2014 net additions plus RFES 768 UK CT Rate…
  17. 4Q 2014 – Enquest – slide 17
    1,060 million cash capital expenditure Year to 31 December USm 399 229 108 99 70 58 39 39 19 Alma/Galia Kraken Thistle/Deveron Heather/Broom GKA Dons E&E Malaysia Other 16
  18. 4Q 2014 – Enquest – slide 18
    Cash flow Year to 31 December USm Funding facilities: 1.7bn credit facility, 155m retail bond, 650m high yield bond 718 (381) (64) (53) (1,060) (590) (58) (100) (52) (933) Cash & equivalents less Net cash flow Capex…
  19. 4Q 2014 – Enquest – slide 19
    Outlook Full Year 2015 EBITDA will benefit from hedging 120m from resetting the 2015 puts 80m from call premiums received 2015 cash capex of around 600m Production and transportation costs expected to be approximately…
  20. 4Q 2014 – Enquest – slide 20
    Operations 19
  21. 4Q 2014 – Enquest – slide 21
    Thistle / Deveron Delivering production levels not seen since the 90s 2014 Production up 14% on 2013. No drilling rig operations on Thistle in 2014 Continuing benefit from H2 2013 wells, outperforming A59 w/o Area 6 P2…
  22. 4Q 2014 – Enquest – slide 22
    Dons/Conrie Continuing very strong production efficiency 2014 Production efficiency of 89% Don South West S14 (TJ) drilled, on production Successful acid treatments carried out W1 Conrie S7 West Don W2 West Don W4 shut-in at…
  23. 4Q 2014 – Enquest – slide 23
    0 17 -1 -11750 0 -1150 The Don fields: Ythan 2 00 -11 -11 80 0 -11450 30 0 -11250 -1 -11 14 00 -1 -1 13 13 00 Ythan first production expected by mid-2015 -1 50 12 0 50 85 -11…
  24. 4Q 2014 – Enquest – slide 24
    Heather / Broom Highest production efficiency in 5 years 2014 Included a 136 day period without production interruption Accommodation upgrade completed 2/0 Else Rig reactivation completed and the drilling programme 5- enhanced…
  25. 4Q 2014 – Enquest – slide 25
    Greater Kittiwake Area Delivering production, efficiency and opex ahead of expectations 2014 Production was increased from just over 2,500 Boepd in the first few months, to over 5,500 Boepd in October The Mallard workover was…
  26. 4Q 2014 – Enquest – slide 26
    Outline UK drilling programme 2015 Existing commitments plus focus on high margin barrels Alma/Galia Galia production well Kraken Alba Tyrone/Tiree New production appraisal well Batch drilling GKA Thistle Reinstatement of…
  27. 4Q 2014 – Enquest – slide 27
    Alma/Galia The EnQuest Producer has left the yard, on track for first oil mid-2015 Construction on the FPSO is complete Five production wells are fully complete, available to come onstream and are awaiting FPSO tie-in The subsea…
  28. 4Q 2014 – Enquest – slide 28
    Kraken proceeding on budget and on schedule First oil in 2017 Conversion work continuing at shipyard in Singapore Drilling rig contract for the Transocean Leader has been executed. The drilling rig contract is a four year contract,…
  29. 4Q 2014 – Enquest – slide 29
    Tanjong Baram Two well development programme, on track for production in mid-2015 Thunder Crane Installed in February Drilling TBRM-A1, preliminary analysis indicates well results better than anticipated Host modifications…
  30. 4Q 2014 – Enquest – slide 30
    PM8/Seligi 2015 focus on well interventions and improving the field infrastructure Seligi Near term Field and reservoir management review and optimisation of existing production Review Yong & North Raya Medium term Seligi Water…
  31. 4Q 2014 – Enquest – slide 31
    Summary
  32. 4Q 2014 – Enquest – slide 32
    EnQuests producing hubs From 3 to 6 hubs, a growing & increasingly diversified portfolio Thistle/Deveron The Don fields Heather/Broom Greater Kittiwake Area PM8/Seligi (Malaysia) Alma/Galia 31
  33. 4Q 2014 – Enquest – slide 33
    Delivering strong compound annual growth rates 15% to end 2014, expecting c.17% in 2015, then further substantial increases Average net production (Boepd) 50,000+ 3,000* 33,000* 27,895 24,222 23,698 22,800 21,074…
  34. 4Q 2014 – Enquest – slide 34
    Q&A Thistle/Deveron Dons Northern Producer Heather/Broom Alma/Galia EnQuest Producer 33
  35. 4Q 2014 – Enquest – slide 35
    Delivering sustainable growth On course for over 50,000 Boepd Exploiting our Commercialising existing reserves & developing discoveries Dons, Thistle/Deveron, Heather/Broom, Ythan Alba Scolty/Crathes Alma/Galia Kraken…
  36. 4Q 2014 – Enquest – slide 36
    EnQuests growing North Sea asset base As at 31 December 2014, plus 28th UK licensing awards The Dons Thistle / Deveron Heather/Broom Kraken Alba Avalon Crathes / Scolty Greater Kittiwake Area Alma/Galia 35
  37. 4Q 2014 – Enquest – slide 37
    Largest UK Independent Producer in the UK North Sea Government data (DECC) for UK North sea independent producers Total Production for the year ending November 2014 1,400,000 1,200,000 1,000,000 800,000 600,000…
  38. 4Q 2014 – Enquest – slide 38
    Alba 8% non-operated, 1,214 Boepd in 2014 2014 Two new producers drilled (A68 & A69) ADW New 4D seismic survey acquired 2015 A69 Production for January: 1,374 Boepd A68 1 Planned Platform Well (ADW) New 4D seismic…
  39. 4Q 2014 – Enquest – slide 39
    Greater Kittiwake Area opportunity 50 km tie-back radius & competitor infrastructure 38
  40. 4Q 2014 – Enquest – slide 40
    Alma/Galia infrastructure Proven fields Alma abandoned at low water cut of 70% Prudent base case with upside The right facilities for the fields Dedicated completions for Devonian/Rotliegend/Zechstein Variable speed drive…
  41. 4Q 2014 – Enquest – slide 41
    Alma / Galia ALMA GALIA N-Dev W2 W1 GA K3 GB K1 K4 GE EQ Development wells 2015 Planned producer K5 Future producer Potential future producer K2 K6 Alma abandoned at low water cut of 70% EQ Development wells…
  42. 4Q 2014 – Enquest – slide 42
    Alma Subsurface -10 -105 52 00 5 -1047 -104 5 -1 50 04 25 -1 -10400 -100375 -1 3 -10032550 300 -10 -10-1 -10 2202275 5 50 500205 17 -102 5 -9878-59-999 00 -101 50 -9 5 0 12 0 -1 00 5 80 -10 1…
  43. 4Q 2014 – Enquest – slide 43
    Alma Seismic SW 30/24-2 30/24-1 3 0/24-5 30/24-3 30/25a-2 NE 42
  44. 4Q 2014 – Enquest – slide 44
    0 0 0 -9 -985 45 -94 -9 -9300 -9 6229200 0 00 -925 -98 0 Alma Development -980 0 -9 -9 75 70 0 Wells Trajectory Schematic -8 50 6228800 60 7 -8 0 30/25a-02 -94 50 00 -940…
  45. 4Q 2014 – Enquest – slide 45
    Galia STOIIP & Reserves Only 50% Water Cut Galia Main 2 Well Sampled 30/24-15 Galia 1 Bubble Point Pressure 1900 psia Main 1 Differential Gas-Oil Ratio 631 scf/stb outline 9 29 Galia East 3 30Z outline Formation Volume Factor…
  46. 4Q 2014 – Enquest – slide 46
    Kraken overview Field summary 2 fields located in Block 9/2b 350km NE of Aberdeen Field area 12 x 3.5 km Water Depth of 110m Heavy Oil (14 Deg API) but good flow properties Low sulphur content and not waxy FDP approved by DECC…
  47. 4Q 2014 – Enquest – slide 47
    Kraken subsurface STOIIP, reserves & recovery factor FDP STOIIP Produced RF% North 68 20 30% Central 85 38 45% South 268 89 33% Kraken Area 421 147 35% Conservative Recovery Factor Viscosity in cP Kraken Ultimate…
  48. 4Q 2014 – Enquest – slide 48
    Kraken subsurface Gross production profile & reserves FDP MMstb South Central North Total Produced 89 38 20 147 Fuel 10 Sales 137 Gross Produced Oil stb/d 47
  49. 4Q 2014 – Enquest – slide 49
    Kraken 9/2b Appraisal Well 6 Tiree 2 Sidetrack Geotech Primary 5z Tyrone 1 5 Geotechnical well resistivity and seismic 4 4z
  50. 4Q 2014 – Enquest – slide 50
    Thistle life extension projects Power & Electricity Upgrade Project New D turbine Complete Topsides Structural Interim Projects PC2 Installed Q2 2014 PC1 Installed Q3 2014 Topsides Structural Integrity Projects MOD 12A, 6A…
  51. 4Q 2014 – Enquest – slide 51
    Greater Kittiwake Area opportunity Avalon Scolty Crathes Kittiwake 50
  52. 4Q 2014 – Enquest – slide 52
    Alma/Galia infrastructure Proven fields Alma abandoned at low water cut of 70% Prudent base case with upside The right facilities for the fields Dedicated completions for Devonian/Rotliegend/Zechstein Variable speed drive…
  53. 4Q 2014 – Enquest – slide 53
    Kraken infrastructure 52
  54. 4Q 2014 – Enquest – slide 54
    Thistle, Conrie and The Dons infrastructure 53 Unless otherwise specified all details as per 2014 half year results, where appropriate updated by H2 IMS
  55. 4Q 2014 – Enquest – slide 55
    Heather / Broom infrastructure 5454 Unless otherwise specified all details as per 2014 half year results, where appropriate updated by H2 IMS
  56. 4Q 2014 – Enquest – slide 56
    GKA infrastructure 55 Unless otherwise specified all details as per 2014 half year results, where appropriate updated by H2 IMS

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