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Capital Markets Day
24th January 2012
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 2
Disclaimer
Important Notice
Nothing in this presentation or in any accompanying management discussion of this presentation (the "Presentation") constitutes, nor is it intended to
constitute: (i) an invitation or inducement to engage in any investment activity, whether in the United Kingdom or in any other jurisdiction; (ii) any
recommendation or advice in respect of the ordinary shares (the "Shares") in Bowleven plc (the "Company"); or (iii) any offer for the sale, purchase or
subscription of any Shares.
The Shares are not registered under the US Securities Act of 1933 (as amended) (the "Securities Act") and may not be offered, sold or transferred except
pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any other
applicable state securities laws.
The Presentation may include statements that are, or may be deemed to be "forward-looking statements". These forward-looking statements can be identified
by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "seeks" or
"should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or
intentions. These forward-looking statements include all matters that are not historical facts. They include statements regarding the Company's intentions,
beliefs or current expectations concerning, amongst other things, the results of operations, financial conditions, liquidity, prospects, growth and strategies of
the Company and its direct and indirect subsidiaries (the “Group”) and the industry in which the Group operates. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking
statements are not guarantees of future performance. The Group’s actual results of operations, financial conditions and liquidity, and the development of the
industry in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In addition,
even if the Group’s results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, are consistent
with the forward-looking statements contained in the Presentation, those results or developments may not be indicative of results or developments in
subsequent periods. In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the Presentation may not
occur. Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company undertakes no obligation to update or
revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. All written and oral forward-looking
statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements
referred to above and contained elsewhere in the Presentation.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 3
Presentation Agenda
• Overview
• Value Realisation
• Development & Operations
• Economics & Funding
• Interim Q&A’s
• Asset Overview (Resources)
• Exploration
• Outlook & Conclusion
• Q&A
oil & gas
Overview
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 5
Company Overview
• 5 Blocks in Cameroon covering 4,644km².
• 3 offshore shallow water, 2 onshore; all operated.
• Overall P50 contingent resource base 217 mmboe* (net).
• Extensive 3D & 2D seismic database; expanded significantly
during 2010/2011 (Bomono & Etinde).
• Substantial prospect inventory continually being developed
across portfolio.
• Offshore Bowleven (operator) 75% Etinde Permit (25% Vitol).
• Onshore Bowleven (operator) 100% Bomono Permit.
• SNH back-in rights 20% (Etinde) and 10% (Bomono) at grant of
exploitation licence.
Company Assets
* Source: Annual Report for 2011. Operator’s volumetrics. Volumetrics update post Sapele-3 pending, excludes EOV.
Nigeria
Equatorial
Guinea
Cameroon
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 6
Vision & Strategy
• Strategy focused on creating and realising value through
material exploration success and development.
• Seek value adding partnerships and niche acquisitions as
appropriate.
• Fostering strong external partnerships and in-country
relationships.
• Targeted approach to technical, commercial and political
risk.
• Resources to Reserves.
Vision
Strategy – Regional Focus on West Africa
“It is our vision to build an African focused exploration
and production company which in time becomes
renowned for its ability to consistently create and realise
material shareholder value through exploration led
organic growth and niche acquisitions.”
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 7
Company Overview
• Current team has drilled 8 wells since joining in early 2007.
• Busiest and most successful Operator in Cameroon.
Succeeded in opening up Douala Basin and discovering oil on
acreage previously considered as gas prone.
• Multiple discoveries made – all wells encountered hydrocarbons.
• Wells have been targeted to maximise value – oils and rich gas.
• Drill locations have also been considered in context of the desire
to maximise the area of retained prospective acreage.
• Extensive additional 3D seismic acquired (Block 6, 4C OBC etc).
Bowleven – Finding Resources & Securing Acreage
†
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 8
Etinde Drilling History
2007 2008 2009 2010 2011
• 100% Drilling success rate.
• Focus on liquids.
• Gross resources up 166% since 2006.
• Operator’s estimates, excludes Sapele-3 and
Alpha-Epsilon System:
Track Record – Wells and Resources
IE-3 (August 2010)
Tested 22,909boepd
from 5 zones
40m Net Pay
IE-2z (March 2007)
Tested 8,800boepd
55m Net Pay
IF-1R (August 2008)
Tested 3,812boepd
61m oil column
D-1R (July 2007)
Tested 5,655boepd
11m Net Pay
Sapele-1 (Feb 2011)
33-43m Net Pay
Sapele-1ST (June 2011)
Tested 3,101boepd
19m Net Pay
Sapele-2 (Aug 2011)
Tested 3,119boepd
35m Net Pay
Sapele-3 (Oct 2011)
19m Net Pay
20km
IC
IM
Sapele-3
IE Manyikebi
SNA-1X
Sapele-1/1ST
Sapele-2 D-1R
IF
Etinde P50 Gross Resource
mm
boe
Deep Omicron Fairway
Vitol
farm-in
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 9
Key Events for 2012-2013
Etinde
• Target to sign MOUs for up to 80mmcf of dry gas sales by end
H1 2012.
• Draft Etinde Exploitation Application on track for submission on
31st March 2012.
• Rig due to be delivered following completion of operations for
Noble Energy. Anticipated around middle of year.
• 2-4 well offshore appraisal and development drilling
programme commencing with IM well.
• Project financing - discussions already commenced.
• Gas Sales Agreements, FID and finalisation of debt finance
targeted for 2013.
Bomono
• Drilling campaign scheduled to commence mid 2012.
†
Mobilise for Commercialisation
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 10
Strong Management Team
• Management team with track record of finding, financing and delivering oil and gas
projects to market.
• Excellent in-country relationships through EurOil with appropriate ministries and SNH.
• Bowleven and Vitol JV well-aligned in objective of exploiting gas and liquids in the
Etinde Permit, as a matter of priority.
• Development project to be EurOil driven with Bowleven and Vitol to contribute
management and technical expertise.
• Bowleven now positioned to deliver home-grown production and cashflow in 2015.
Kevin Hart CEO
Philip Tracy Interim Operations
Director
Ed Willett Exploration Director
Chief Tabetando Chairman EurOil
John Brown Finance Director
Peter Wilson Director/General
Counsel
oil & gas
Value Realisation
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 12
Gas Handling – The Key to Monetising Resources
• Etinde resources are predominately gas-associated liquids.
• In order to realise the value of Bowleven’s existing discoveries,
finding a solution for the associated gas is key.
• In common with nearly all African countries, Cameroon has only
a small but rapidly expanding market for gas.
• Until very recently Cameroon Government had a strong
preference for any Cameroon gas, including Etinde gas, to be
earmarked for use in aggregated LNG (GdF) scheme.
• Whilst gas sales to a third party is clearly preferable it is not a
pre-requisite to development as alternative “in house” solutions
exist.
• Commercialising gas is a key objective of the work programme
that has been agreed by the JV for 2012.
• Production will provide the cashflow base for ongoing
development – plus further exploitation of the existing extensive
prospect inventory.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 13
Alternative In House Solutions
Gas Solutions – Multiple Options
Fertiliser (Ferrostaal)
70mmscfd
Power (AES Sonel)
10mmscfd
LNG (Cameroon/Bioko)
80-185
mmscfd
Methanol (JV)
60-110
mmscfd
Small Scale
LNG
60-110
mmscfd
Third Party led
• Negotiations advancing. • Being progressed in parallel.
Liquids focused – gas enabled
Reinjection (JV)
Dependent
on Reservoir
• Gas pricing TBC.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 14
Volume : 70mmscfd Dry Gas.
Start up : 2015
Status : Draft MOU under negotiation
(10 year supply).
Location : Limbe. Ferrostaal & SNH as
promoters will be owner/operator
of facility.
Notes : • LOI between Ferrostaal and SNH announced in October 2011.
• Plant’s annual production 600k tonnes Ammonia, 700k tonnes Urea
• Strong domestic and Central Africa fertiliser market (Cameroon currently
imports fertiliser).
• Site inspection and survey completed for preferred plant location at Limbe.
• Comparable projects by Ferrostaal in Trinidad and Oman.
• FEED sanction 2012.
Third Party Gas Solutions Fertiliser Plant
Fertiliser Plant
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 15
Volume : 10mmscfd Dry Gas initially
(pre-plant upgrade).
Start up : ASAP
Status : Draft MOU under negotiation
with AES Sonel (10 year supply).
Location : Limbe (adjacent to existing refinery).
Notes : • In conjunction with larger scale offtake solution.
• Dual fuel power source plant already in use at Limbe, conversion less
than 12 months.
• Significant supply constraints within country.
• Studies underway (USTDA backed) to double plant capacity (currently
85MW).
Third Party Gas Solutions Power Plant (GTE)
Existing AES Power Plant
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 16
Volume : 85-185mmscfd Dry Gas from Etinde.
Start up : Earliest 2017
Status : Term sheet signed establishing
commercial framework
Location : Kribi. GdF and SNH as promoters
will be owner-operator.
Notes : • Countrywide offshore gas aggregation scheme (270km pipeline, 4 FEED supply
sources).
• Pre-FEED (Foster & Wheeler) completed end-2011 on a first LNG train with
2.5-3.5mtpa capacity.
• Facility to be situated at Kribi at deep water harbour project. Site preparation
work ongoing.
• Bankability study completed by Société Générale and Standard Chartered.
• Upstream committee established to coordinate opportunities and possible
synergies.
• Next steps are resource certification and feedgas HOA.
• FEED commences 2013.
Third Party Gas Solutions Liquefied Natural Gas
GdF - Liquefied Natural Gas
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 17
Volume : 60-110mmscfd Dry Gas.
Start up : TBC
Status : Under Evaluation.
Location : Limbe
Notes :
• 0.6-1.3Mtpa Methanol plant.
• Cost screening and feasibility study completed H2 2011.
• Next steps - partner evaluation of engineering and technical definition.
In House Gas Solutions Methanol Plant
Methanol Plant
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 18
Volume : 60-110mmscfd Dry Gas.
Start up : TBC
Status : Under evaluation.
Location : Limbe
Notes :
• 0.35Mtpa LNG plant.
• Cost screening and feasibility study completed H2 2011.
• Next steps - partner evaluation of engineering and technical definition.
• Least mature of options.
Third Party Gas Solutions Liquefied Natural Gas
Small Scale Liquefied Natural Gas Scheme
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 19
Volume : Reservoir dependent.
Start up : TBC
Location : TBD.
Notes : • Possible to enhance liquids yield through reservoir pressure maintenance.
• Ongoing reservoir studies and core analysis.
• Capex would need offshore compression, additional injector wells and dry
gas pipeline from shore (all liquids stripping and compression to be done
onshore).
In House Gas Solutions Reinjection
Reinjection
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 20
C5’s Cond.
Ph
as
e 1
– M
LH
P-7
Ta
rget
201
5
Su
bs
eq
ue
nt
Ph
ases
On
str
eam
2016-
Po
ten
tia
l
Fu
ture
Ph
as
es
Maximising Liquids Value
• All liquid offtake is marketable internationally i.e. free marketing rights for oil.
• Strong local and pan-African market for Propane & Butane (Cameroon
currently imports from Equatorial Guinea).
• Current concept is phased development.
• Flexibility in gas disposal options maintained.
IM
IE
IF
Omicron Deep &
Lower
Epsilon
D-Discovery
(D-1R)
Other existing &
Future
Discoveries
Oil, Condensate
& up to
90mmscfd of
wet gas
Liquids Stripping
(Primary
Processing)
NGL Plant Up to 80mmscfd
Dry Gas
Power (AES)
Up to 10mmscfd
Fertiliser
(Ferrostaal)
Up to 70mmscfd
LNG
Up to 80mmscfd
Delivery Point Gas Options
C4’s Butane
C3’s Propane Methanol
c.60-70mmscfd
Small Scale
LNG
c.60-70mmscfd
Reinjection
Total Liquids Production
10-15% Shrinkage
3rd
Party L
ed
Alte
rnativ
e In
-House S
olu
tions
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 21
IF
Sapele Omicron Deep
IE
D1-r
IM
Sapele Lower
Omicron
0
100
200
300
400
500
600
0 200 400 600 800 1000 1200 1400
Init
ial L
iqu
ids
Yie
ld b
bls
/mm
cf
Mean WGIIP bcf
Total Mean WGIIP & Initial Liquids Yield*
1,272
Note: D-1r and Lower Omicron based on sample yields * Operator's estimates
Value Optimisation: Gas supply configuration to maximise liquids yield
Test Yields
bbls/mmcf
IF 1,272
Omicron Deep 313-329
IE 127-292
Lower Omicron 121
D1-r 59
IM TBC (IM-5)
Note: D-1r and Lower Omicron based on sample yields; *Operator’s estimates.
• Test yields exclude NGLs
which could provide
significantly enhanced liquids
production e.g. IE Field
additional c.70bbls/mmcf.
1,272bbls/mmcf
WGIIP bcf
oil & gas
Development & Operations
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 23
C5’s Cond.
Ph
as
e 1
– M
LH
P-7
Ta
rget
201
5
Su
bs
eq
ue
nt
Ph
ases
On
str
eam
2016-
Po
ten
tia
l
Fu
ture
Ph
as
es
Maximising Liquids Value
IM
IE
IF
Omicron Deep &
Lower
Epsilon
D-Discovery
(D-1R)
Other existing &
Future
Discoveries
Oil, Condensate
& up to
90mmscfd of
wet gas
Liquids Stripping
(Primary
Processing)
NGL Plant Up to 80mmscfd
Dry Gas
Power (AES)
Up to 10mmscfd
Fertiliser
(Ferrostaal)
Up to 70mmscfd
LNG
Up to 80mmscfd
Delivery Point Gas Options
C4’s Butane
C3’s Propane Methanol
c.60-70mmscfd
Small Scale
LNG
c.60-70mmscfd
Reinjection
Total Liquids Production
10-15% Shrinkage
3rd
Party L
ed
Alte
rnativ
e In
-House S
olu
tions • Single multiphase pipelines to shore-based facilities.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 24
EurOil Development Project Organisation
Project Steering Committee
• Stakeholder Interface
• Operational HSEQ
• Technical Authorities
Development Project Team
3rd Party Expertise
• Development Management
• Gas Usage
• Project Finance
• Drilling Operations
• Sub-Surface Appraisal
• Engineering Design & Construction
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 25
Stage Gated Process
APPRAISE DEFINE EXECUTE OPERATE SELECT
1 2 4 5
EXPLORE
3
Intent to
develop
Project
Sanction Feed
approval
Comm’g
& startup
Exploration drilling, seismic, formation evaluation, modelling
Field development planning
Feasibility Studies Engineering
Procurement
Detail Design
Construction
Commissioning and
Start Up
Drilling /Production Well
Completions
Maturity of Cost
Estimates Class 5
estimates
-40% +50%
Class 4
estimates
-20% +40%
Class 3
estimates
-15% +25%
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 26
Boundary Conditions
• Development of gas solution “drives” the project.
• The bulk of the value is in the sales of the liquid hydrocarbons.
• JV working to define the technical scope of the processing plant
required to maximise the value of the liquids and deliver dry gas
at the factory gate.
• Multiple gas utilisation concepts are being evaluated.
• The bulk of the hydrocarbon processing will be performed
onshore.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 27
IF
IE
Sapele
All Liquids & Gas
Condensate to
Limbe
Limbe Hub and
Power Plant Douala GTE
and Gas
supply
Bomono
20km
Phase 1
Concept: Combined Hub and Spoke Development Fully Integrated Holistic Option to Maximise Synergies
• Potential to accelerate
development/production.
• Facilitates phased approach.
• All processing onshore;
unmanned offshore
platforms.
• Provides flexibility for future
expansion.
Indicative Etinde Concept Assumptions (gross)
Class 5 Estimates
Core Hub
Limbe Processing facility $275-325million
Each Spoke
2-3 wells $20-30million each
Wellhead Jacket $25-30million each
Pipeline $1-2million/km
IM
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 28
Key Milestones Gantt Chart 2012 2013 2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
Debt negotiation ongoing
IM-5
IE-4/IF-2
MLHP-5
MLHP-6
Design, Construction,
Installation
Exploitation
Authorisation
Export Contracts
Negotiation
Concept
Selection
Pre-FEED FEED
Concept Screening &
Pre-Engineering Studies
Exploitation
Application &
FDP finalised
Draft
Exp.
Appl.
Gas Utilisation Studies
Dra
ft E
xp
loita
tio
n A
pp
lica
tio
n
Su
bm
issio
n
Ga
s s
ale
s M
OU
sig
ne
d
Fin
al E
xp
loita
tio
n
Ap
plic
atio
n S
ub
mis
sio
n
Reserves
Certification
Ga
s S
ale
s A
gre
em
en
t
sig
ne
d
Pre
limin
ary
In
ve
stm
en
t
De
cis
ion
Ph
ase
1 F
irst
Pro
du
ctio
n
Fin
al
Inve
stm
en
t
De
cis
ion
Field Mapping and Reserve
Simulation
Production Drilling
oil & gas
Economics & Funding
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 30
IF
Sapele Omicron Deep
IE
D1-r
IM
Sapele Lower
Omicron
0
100
200
300
400
500
600
0 200 400 600 800 1000 1200 1400
Init
ial L
iqu
ids
Yie
ld b
bls
/mm
cf
Mean WGIIP bcf
Total Mean WGIIP & Initial Liquids Yield*
1,272
Note: D-1r and Lower Omicron based on sample yields * Operator's estimates
Value Optimisation: Gas supply configuration to maximise liquids yield
Test Yields
bbls/mmcf
IF 1,272
Omicron Deep 313-329
IE 127-292
Lower Omicron 121
D1-r 59
IM TBC (IM-5)
Note: D-1r and Lower Omicron based on sample yields; *Operator’s estimates.
• Test yields exclude NGLs
which could provide
significantly enhanced liquids
production e.g. IE Field
additional c.70bbls/mmcf.
1,272bbls/mmcf
WGIIP bcf
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 31
Valuation Assumptions for Indicative Initial Development Economics
• Cash at 1.1.2012 US$160million including EOV proceeds.
• $1.55=£1.
• 294,455,919 Bowleven shares in issue.
• Bowleven development equity 60%; Vitol and State 20% (State
20% back-in on development sanction).
• Inflation 3% p.a.
• Discount Reference Date 1.1.2012.
• Single PSC Exploitation Area.
• Liquids (oil, condensate and NGL’s) sold as blend at Brent $90
long-term real (2012 terms).
• Gas sales price TBC.
• Post-processing sales gas delivered to Upstream delivery point
in Limbe for Fertiliser and Power Plant.
• No value for post-plateau tail gas or liquids production.
• No value for Bomono.
• IM plus 1 well 2012, appraisal costs US$60million included
in cash flows.
• Etinde Historic Costs to end 2011 US$536 million;
Bowleven share US$394million (net cost recovery
$468million).
• Phased Hub and Spoke development; 1st production
2015; Platforms on IE and Sapele; Wellheads on IM and
IF; ten development wells; pipelines from IE and Sapele to
processing plant including NGLs.
• Total Capex to gas delivery point ~US$910million; opex
US$19 million (Phase 1) to US$32 million p.a (all phases).
• Wet Gas plateau production rate 90mmcfd; 10 year
plateau; gas shrinkage ~11%; dry gas 80mmcfd.
• Average liquids rate scenarios per mmcf: 125, 250, and
400 bbls.
• Liquids include depletion condensate, oil, additional
condensate C5+ generated through NGLs processing,
propane and butane.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 32
Indicative Cost Estimates and Phasing (Class 5 ±50%)
Real 2011 Capex Phase 1 Processing Subsequent
Phases Total
First production
Development wells
Date
Number
2015
5 wells
2015
2017
5 wells
-
10 wells
Development wells
Wellhead Platforms
Pipeline/tiebacks
US$million
US$million
US$million
135
50
100
135
50
130
270
100
230
Total Field US$million 285 0 315 600
Processing & NGL’s Plant US$million 0 310 0 310
Total US$million 285 310 315 910
CAPEX Total 2013/2014 2015/2016 2017 2018/2019
Development Wells 270 135 45 90
Platforms 100 50 20 30
Pipelines/Tie Backs 230 100 20 110
Processing & NGL’s Plant 310 310
Total 910 595 85 0 230
Phase 1 All Phases
Opex p.a. US$million 19 32
Yr of 1st production 2015 2020 onwards
Note: Initial capex will be
reduced in the event
appraisal wells are
suspended as producers.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 33
Illustrative Productivity
400bbls/mmcf = 36 mbpd
250bbls/mmcf = 22.5 mbpd
125bbls/mmcf = 11.25 mbpd
250bbls/mmcf
Reality
90mmcfd Wet Gas • Economics are based on
constant liquids over the
plateau period.
• In reality, fields will exhibit
higher initial flush production
followed by a declining
profile.
Note: Operator’s estimate.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 34
Illustrative Initial Development Valuation
Bowleven Initial Development Valuation £/share at 1st Jan 2012: Etinde Hub & Spoke $90 Brent; Average Liquids Rates.
Total Liquids Produced = 82 mmbbls (27% of Mean Etinde Liquid Resources).
Total Liquids Produced = 131 mmbbls (44% of Mean Etinde Liquid Resources).
Liquids Yield bbls/mmscf
(Includes NGL’s)
2.61
3.92
$70/bbl Brent
$90/bbl Brent
$110/bbl Brent
• 90 mmcf wet gas
• 80 mmcf dry gas
• Ten year plateau
• Total Dry Gas Sales 292bcf
• Total Wet gas produced c.330bcf
Note: Bowleven 294 million shares; $1.55=£1; cash includes EOV proceeds; no value for Bomono or tail production.
Operator’s estimates.
Total Liquids Produced = 41 mmbbls (14% of Mean Etinde Liquid Resources).
0.35 1.34
0.35 2.95
0.35 4.51
125
250
400
1.69
3.30
4.86
£/share
Cash
Etinde Hub & Spoke NAV
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 35
Bowleven Net Share of Initial Development Cashflow
(2,000)
(1,500)
(1,000)
(500)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
(400)
(300)
(200)
(100)
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
US$ million Cumulative US$ million Annual Bowleven's Net Share of Initial Development Cash Flow 90mmcfd; 250 bbls/mmcf; US$90/bbl; Gas price TBC.
Cost oil
Profit oil
Capex incl. all fees etc
Opex
Corporation Tax
Annual NCF
Cumm NCF
Cash flow positive
~ 13 months after
1st production
Note: Operator’s estimate.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 36
Project Funding
• Forecast net cash balance at 1Q 2012 ~ $160 million, no debt.
• Forecast total 2012 Group expenditure $110 million (assuming 2 wells on Etinde with coring, testing,
development studies, plus one Bomono well).
• Estimated net share of development capex over life of fields (post SNH back-in) ~US$550million.
• Estimated net peak working capital requirement c.US$400million*.
• Debt finance market – discussions commenced with a number of banks.
• Strong funding relationships within JV with lending institutions.
• Significant post back-in equity position (60%) gives further financing flexibility.
*(60% of $595 million Phase 1 gross capex =$357million plus taxes of $80million and cost inflation allowance of ~$20million, less corporate cash end 2012 c. $50million).
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 37
Summary of Key Milestones for 2012
Milestone Date Status
Gas Sales MOUs by end H1 2012 Negotiations ongoing
Draft Exploitation Application by end Q1 2012 Preparation underway
Drilling (2-4 wells) Commence mid 2012 Rig due for release from Noble Energy.
Contract signed
Final Exploitation Application end Q3 Concept screening in progress
Banking Term Sheet secured end 2012 Dialogue open
oil & gas
Interim Q&A’s
oil & gas
Asset Overview (Resources)
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 40
Cameroon Overview Relatively underexplored - an emerging oil story
Douala Basin
• MLHP 5 & 6, OLHP 1 & 2.
• Onshore and shallow
offshore areas.
• Highly prospective
acreage.
• Number of onshore oil
seeps.
• Tertiary and Cretaceous
leads.
• Onshore early exploration
phase on 2D dataset.
• Offshore mature
prospects portfolio on 3D
dataset.
Rio del Rey Basin
• MLHP 7.
• Shallow offshore area.
• Highly prospective
acreage within a proven
active hydrocarbon
system.
• Tertiary oil and gas-
condensate discoveries.
• Established portfolio of
additional Tertiary
prospects.
• Maturing exploration with
transition into an
appraisal/development
phase.
Cretaceous Turonian plays accessible in onshore area and
shallow waters.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 41
Etinde Existing Discoveries Overview of Gross Unrisked Mean Volumes In place*
Deep Omicron fairway
*Operator’s estimates.
oil & gas
MLHP-7
IM, IE, IF and Biafra Discoveries
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 43
Etinde Existing Discoveries IM – Gas Condensate Field
• Discovered by TEPCAM in 1967 with the IM-1 well.
• 3 additional wells drilled from 1971-1981 discovering and
appraising Gas-Condensate in the Upper and Middle Isongo.
• High quality reservoir sands with excellent deliverability.
• Gas composition from IM-4 Upper Isongo DST 11.4mmscfd,
827bcpd yields a CGR 72.5bbl/mmscf – similar to Alba Field
(Equatorial Guinea).
• Only one well successfully penetrated Middle Isongo; CGR is
uncertain at this reservoir level.
• Mean WGIIP 466bcf (Upper and Middle Isongo)*.
• Bowleven will begin operations on the IM-5 well in late-Q2
2012.
• Well to appraise Middle Isongo reservoir and enhance the
established volumes and confirm CGR.
Present
Historical
• The IM-5 well is likely to be used as a future producer.
• It is anticipated that the IM Field will be used as one of the
first phase producers into the Etinde Hub & Spoke
development.
Future
IM-1 IM-2
IM-1
IM-2
IM-3
IM-4
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 44
Etinde Existing Discoveries IE – Gas Condensate/Oil Field
• Discovered by TEPCAM in 1980 with the IE-1 well.
• 2 Appraisal wells (IE-2z, IE-3) drilled by Bowleven.
• High quality reservoir sands with excellent deliverability.
• IE-3 flowed at a combined rate of 22,909boepd*.
• Rich liquids yield – CGR of 127-292bbl/mmscf, and IE-3 also
flowed oil on test.
• Additional NGL component of c.70mmbbls/mmscf.
• Mean WGIIP 408bcf; 95mmbbl liquids†.
• Bowleven acquired a 4C OBC survey for improved crestal
imaging of the IE Field.
• New seismic data now being interpreted to refine field
structural model and locate the IE-4 appraisal well.
Present
Historical
• It is anticipated that the IE Field will be used as one of the
first phase producers into the Etinde Hub & Spoke
development.
• Appraisal well to enhance proved volumes and located to
maximise liquids production.
Future
*Maximum flow rates per interval ranged from 845 to 11,778boepd with a cumulative maximum rate of
14576bpd liquids and >50mmscf gas (total 22,909boepd). † Operator’s volumes.
IE-3
IE-2z IE-1
ID-1
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 45
Etinde Existing Discoveries IF – Oil Field
• Discovered by Bowleven in 2008 with the IF-1R well.
• 1 well drilled on structure to date.
• High quality interbedded reservoir sands with excellent
deliverability.
• Drill stem tested 3,371bopd 35°API oil with 2.65mmscfd
associated gas, combined rate 3,812boepd.
• Mean STOIIP 225mmbbls*.
• Bowleven acquired a 4C OBC survey for improved imaging
of the IF Field through a prominent gas chimney with
extensive seabed expression.
• New seismic data now being interpreted and integrated with
previous mapping to further improve structural definition and
overall field extent beneath the gas masking effect.
Present
Historical
• It is anticipated that the IF Field will be used as one of the
future producers into the Etinde Hub & Spoke development.
• Further wells to target and maximise liquids production.
Future
IF-1R
Biafra Gas
Isongo Oil
4C OBC Data
4C OBC data on
periphery of the IF gas
chimney. Signal much
improved from
previous volumes
allowing some detail in
the western flank of IF
to be determined.
S-wave data yet to be
incorporated.
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 46
Etinde Existing Discoveries Etinde – MLHP-7 Biafra Gas Fields
• Shallow play prolific in the Niger Delta and Rio del Rey Basin
recognised across the MLHP-7 part of the Etinde PSC area.
• Drilled by 6 wells; 2 of which to specifically target the Biafra
interval.
• Dry gas encountered in 5 wells with the exception of IM-1
which encountered oil shows.
• Excellent reservoir quality encountered in all wells.
• IE & Manyikebi - Mean Dry GIIP 136bcf*.
• An areal extensive play being extended into MLHP-6.
• Volumetric resource update during Q1-Q2 2012 for IF, IM,
ETM and MLHP-6 Biafra prospectivity.
Present
Historical
• Potential to incorporate into future phases of the Etinde Hub
& Spoke Development.
• Possible potential also remains to fast-track development to
provide feedstock gas to AES Sonel (Gas to Power scheme)
at Limbe.
Future
IE Biafra Field
ETM-1
Gas Response
IF-1R
Gas Response
Manyikebi
Biafra Discovery
Manyikebi
Biafra Extension
Timeslice Optical Stack – Biafra Interval
ID-1 IE-1
IE-2z
IE-3
ETM-1
IF-1R
IM-1 IM-2
IM-3
IM-4
IC-1
Manyikebi
Manyu Oil
*Operator’s volume.
oil & gas
MLHP-5
Sapele Lower & Deep Omicron discoveries,
D-1R Discovery
Palaeocene & Cretaceous discoveries
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 48
Etinde Existing Discoveries Sapele – Deep Omicron Oil Fairway
• Discovered by Bowleven in 2011 with the Sapele-1 well.
• 4 wells drilled by Bowleven penetrating the stratigraphically
trapped accumulation.
• High quality interbedded reservoir sands with excellent
deliverability, extend across MLHP-5.
• Flow rates for Sapele-1ST =3101boepd*, Sapele-2
=3119boepd†.
• Mean HIIP 477mmboe (not including Sapele-3 extension)‡.
• Integration of ongoing post-well studies to provide volumetric
update and define future appraisal and development well
locations.
Present
Historical
• Anticipated that the Deep Omicron oil will form part of the
second phase for the Etinde Hub & Spoke Development.
Future
*Sapele-1ST flowed at a stabilised rate of 2,023 bopd of 39.2 degree API oil and approximately 6.47 mmscfd of
associated gas.
†DST1 peak flow rate of 381 boepd, comprising 233 bopd of light oil and 0.89 mmscfd of associated gas and DST 2
comprising 1,818 bopd of light oil and 5.52 mmscfd associated gas. ‡ Operators volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 49
Sapele-3: Extending the Fairway
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 50
Etinde Existing Discoveries Sapele – Lower Omicron Gas-Condensate Fairway
• Discovered by Bowleven in 2011 with the Sapele-1 well.
• 4 wells drilled by Bowleven penetrating the stratigraphically
trapped gas-condensate accumulation.
• Arealy extensive, good quality interbedded reservoir.
• Test in Sapele-2, initially flowed wet gas up to 3.1mmscfd,
however test curtailed due to a pressure leak in test string.
• Mean HIIP 203mmboe*.
• Geological model evolving with integration of ongoing post-
well studies together with planning for future well locations.
Present
Historical
• Anticipated that the Lower Omicron hydrocarbons will form
part of the future phasing for the Etinde Hub & Spoke
Development.
Future
*Mean HIIP of 203mmboe comprises 132mmbbls CIIP and 1219bcf WGIIP; operator’s volumes.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 51
Sapele Wells Lessons Learnt
• The Sapele wells are drilled in a geologically/operationally
challenging environment.
• Interbedded reservoir facies with shale source rocks.
• Lower and Deep Omicron sandstone reservoirs are laterally
extensive/connected and are marked by substantial pressure
inversions. This was not known prior to the drilling of the Sapele
wells.
• The combination of pressure peaks and inversions create
situations where the well is markedly over or underbalanced.
• Underbalanced situation leads to influx and well control
safety issues.
• Overbalanced situation leads to formation invasion,
damage, mud cake and mud loss to formation.
• The overbalance situation in the reservoirs had led to
compromise logging and testing results.
• Logging environment very demanding, high downhole
temperatures frequently exceeding tool ratings, differential
sticking on longer tools also key issues.
• Subsequent wells will be redesigned to case off different
pressure regimes during drilling e.g. Sapele-3.
• Sapele-3 drilled within budget and without substantial formation
invasion.
Pore pressure chart for one of the
Sapele wells, highlighting the
operational margins for Mud Weight
(to include ECD). Note the c.2ppg
EMW drop on entering the Deep
Omicron reservoir.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 52
Etinde Existing Discoveries D-1R – Gas-Condensate Field
• Discovered by Bowleven in 2007 with the D-1R well.
• Single well penetration of the stratigraphically trapped
accumulation.
• Good quality reservoir sandstones of Miocene age.
• Well tested 25.4mmscfd with 56bbl/mmscf condensate
(combined 5,655boepd); no depletion.
• Well test analysis indicative of greater connected volume than
can be seismically mapped.
• Mean WGIIP 71.5bcf, with 4.4mmbbls condensate*.
• Geological and geophysical evaluation ongoing.
Present
Historical
• Possible appraisal drilling for possible GOC/GWC.
• Anticipated that the D-Discovery will form part of the future
phasing of the Etinde Hub & Spoke Development.
Future
Far Angle Stack
Type II AVO Anomaly
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 53
MLHP-5
MLHP-6
Sapele-1ST
Sapele-2
Sapele-1
SNA-1X
D1-R
Sapele-3
Epsilon
Complex
Etinde Existing Discoveries Sapele – Palaeocene Alpha-Epsilon System
• E-W trending Palaeocene depositional systems have long
been recognised in the Douala Basin.
• Numerous oil shows and discoveries within this petroleum
system; CoCo Marine 1 & 2, Moulongo Marine etc.
• Sapele-1 encountered gas and oil shows in Epsilon which
was latterly confirmed as Palaeocene in age from
biostratigraphy.
• Sapele-3 well also encountered oil in the same Palaeocene
interval.
• Pay zones correlate to bright amplitude seismic data.
• Mean GIIP 1819bcf for the system*.
• Gas condensate, dry gas and oil were all encountered at
Sapele-1 & 3 validate additional Palaeocene prospectivity.
• Liquids volumetric analysis ongoing with the integration of
Sapele-3 well results.
Present
Historical
Palaeocene depositional features from seismic timeslice
• Anticipated that the Alpha-Epsilon System will form part of
future phasing for the Etinde Hub & Spoke development.
Future
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 54
Etinde Existing Discoveries Sapele – Cretaceous Discovery
• Discovered by Bowleven in 2011 with the Sapele-1 well.
• Medium quality interbedded reservoir sandstones of the Upper
Cretaceous.
• The stratigraphically trapped accumulation was found to contain
high pressure dry gas.
• Sapele-1 was abandoned due to the high pressure influx of gas
to the well bore.
• Mean Dry GIIP 1029bcf*.
• Geological and geophysical evaluation of the Cretaceous
interval across the Douala Basin of Cameroon is ongoing to
define reservoir fairways, future drilling locations and pressure
profiles within the basin.
Present
Historical
• Cretaceous gas reservoirs have the potential to provide
significant gas volumes to future production phases.
• Pressure encountered require careful operational planning prior
to the drilling of future wells into this interval.
• Anticipated that the Cretaceous reservoirs will form part of a
future phase to the Etinde Hub & Spoke development.
Future
Cretaceous
Gas Kick
Epsilon
Complex
N
Cretaceous Amplitude Map (kick interval).
Sapele-1
Sapele-1
*Operator’s volume.
oil & gas
Exploration
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 56
Bomono
Present
Historical
Future
• 6 deep wells and c.10 shallow wells drilled in the 1950’s.
• Wells and onshore oil seeps proved active hydrocarbon
system.
• Tertiary and Cretaceous structural and stratigraphic traps
defined in area.
• 285km 2D acquired in Q1 2010 dry season. Further 215km 2D
acquired by end January 2011.
• New 2D data integrated into existing vintage dataset and now
defines a series of structural prospects.
• Prospect selection in progress, with a (commitment) well due
Q3 2012.
• Planning for immediate follow-up appraisal wells.
• Anticipated that Bomono discoveries will be linked into the
proposed facilities at Limbe for gas stripping and oil export.
Unrisked Mean
HIIP Oil mmbbls
Associated Gas
bcf Gas bcf
Condensate
mmbbls
Tertiary D & E
Sands. 355 186
Tertiary B & C
Sands. 326 112
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 57
MLHP-6
Present
Historical
Future
• Sparse 2D data and spec-surveys acquired across the MLHP-
6 area.
• Recognition of onshore seeps immediately adjacent to Mt
Cameroon, with shows in peripheral wells (Pungo-1X, 1970).
• No wells on block.
• Bowleven acquired full 3D seismic dataset in 2010 which
affords a new understanding of the Cameroon Line, its
evolution and associated prospectivity.
• Variety of play types to explore for in MLHP-6.
• Highly prospective acreage given its position between proven
active hydrocarbon systems.
• Sapele-3 well confirms extension of Deep Omicron & Alpha-
Epsilon System into MLHP-6.
• Kosmos recently signed the new Fako block in the equivalent
onshore area, on the flanks of Mt Cameroon.
• Further exploration drilling expected on MLHP-6.
oil & gas
Outlook & Conclusions
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 59
Summary
• Exploration success has extended Etinde resources into liquids and across the acreage.
• Energy/Momentum/Means to deliver Etinde to first production.
• Key milestones 2012-2013.
• End Q1 2012 – Draft Exploitation Application & Development Plan submitted to SNH,
• Q2 2012 – IM-5 well spuds. Signed MOUs for gas sale agreements.
• Q2/Q3 2012 Bomono operations.
• End Q3 2012 – IM-5 well TD, pre-FEED Etinde Hub & Spoke development commences.
• Q3 2012 – Additional well spud (IE/IF, Block 5, Block 6).
• End Q4 2012 – TD of additional well.
• 2013 – Gas Sales Agreements, FID and finalisation of debt finance targeted.
• 2 - 4 offshore wells are programmed for 2012, not all required before the decision point reached for the Etinde Hub & Spoke
development.
• Project financing discussions already commenced.
• Fully funded for 2012.
• With a potential gas solution and liquids focus, significant cash flow is anticipated from first production – enabling further
exploration and development.
Liquids focused – gas enabled
oil & gas
Contact:
John Brown – Tel: +44 131 524 5678
Kevin Hart – Tel: +44 131 524 5678
www.bowleven.com
Bowleven Plc.
1 North St Andrew Lane,
Edinburgh,
EH2 1HX,
United Kingdom.