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1
Preliminary Results 2009 Presentation
2 November 2009
Disclaimer
2
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. Recipients of the Presentation are advised to read the admission document dated 1 December 2004 issued by the Group (as supplemented by subsequent announcements by the Company to Regulatory Information Services) for a more complete discussion of the factors that could affect future performance and the industry in which the Group operates. 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.
Preliminary Results 2009 Presentation
Presentation Agenda
• Opening Remarks
• Asset Overview
• Financial Overview
• Outlook and Closing Remarks
• Open Questions
Preliminary Results 2009 Presentation 3
Kevin Hart, CEO
Ed Willett, Exploration Director
John Brown, Finance Director
4
Opening Remarks
Company Overview
• Strategy focused on creating and realising value through material exploration success.
• Seek value adding partnerships as appropriate.
• Fostering strong external partnerships and in-country relationships.
• Strong technical and management teams with successful track record.
5
Financial Strength
• Current cash position of circa $120 million, no debt.
• First phase of Vitol farm-out transaction provides additional $100 million gross expenditure carry.
• 7 Blocks (5 in Cameroon and 2 in Gabon).
• 4 offshore shallow water, 3 onshore.
• 6 operated, 1 non operated.
• Overall P50 contingent resource base 217 mmboe
• Extensive 3D & 2D seismic database.
• Substantial prospect inventory developed across portfolio.
• Extensive 2010 drilling & seismic work programmes planned.
Company Assets
Strategy - Regional Focus on West Africa
Preliminary Results 2009 Presentation
(2008: 203 mmboe).
Company Overview
• Strategy focused on creating and realising value through material exploration success.
• Seek value adding partnerships as appropriate.
• Fostering strong external partnerships and in-country relationships.
• Strong technical and management teams with successful track record.
5
Financial Strength
• Current cash position of circa $120 million, no debt.
• First phase of Vitol farm-out transaction provides additional $100 million gross expenditure carry.
• 7 Blocks (5 in Cameroon and 2 in Gabon).
• 4 offshore shallow water, 3 onshore.
• 6 operated, 1 non operated.
• Overall P50 contingent resource base 217 mmboe
• Extensive 3D & 2D seismic database.
• Substantial prospect inventory developed across portfolio.
• Extensive 2010 drilling & seismic work programmes planned.
Company Assets
Strategy - Regional Focus on West Africa
Preliminary Results 2009 Presentation
(2008: 203 mmboe).
Exploration: Resources to Reserves
• OLHP 1 & 2 (Bomono) Cameroon; seismic planned 2010.
• MLHP 6 (Etinde) Cameroon; seismic planned 2010.
• Epaemeno, Gabon; exploration drilling planned 2010.
• MLHP 5 (Etinde); additional seismic and exploration well planned 2010.
• EOV (NW Kowe), Gabon; mature prospect.
6
Appraisal/Development
• MLHP 7 (Etinde) Cameroon; multiple existing discoveries including IM & IE/ID gas/condensate and IF oil.
• Initial focus on appraising/developing IE and IF fields, appraisal well programme planned for 2010.
• EOV field – advanced discussions ongoing on EOV.
Development/Production
Exploration Phase
Preliminary Results 2009 Presentation
2009 Highlights
Preliminary Results 2009 Presentation 7
Above: Etinde PSC signing.
• Etinde PSC signed December 2008, setting economic basis for future developments.
• Equity fundraising in June 2009 raised approximately $113 million.
• Etinde farm-out transaction entered into with Vitol E&P Limited (Vitol) in August 2009; assignment approval anticipated by end 2009.
• Current group cash balance approximately $120 million.
• Vitol initial carry ($100 million gross) provides additional flexibility.
• Funding in place for planned 2010 work programme.
• Advanced discussions ongoing in relation to EOV.
• P50 contingent resources for the Group increased to 217 mmboe (2008: 203 mmboe).
• Completed GdF/SNH feasibility study adds momentum to the development of Cameroon gas resources.
Corporate
Operational
8
Cameroon
Asset Overview
Cameroon Overview
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.
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.
9Preliminary Results 2009 Presentation
Douala
Cretaceous Turonian plays accessible in onshore area and shallow waters.
Etinde PSC Overview
Preliminary Results 2009 Presentation 10
Commitments
Asset Strategy
Etinde (MLHP 5, 6, & 7)
• 100%* Bowleven
• Etinde Permit covers an area 2,316km².
• 3 year exploration period, expiring December 2011.
• 200km² 3D seismic data and 1 well.
• Commitments will be covered in 2010 programme.
• Existing IM & IE/ID gas/condensate and IF oil discoveries.
• IE and IF appraisal drilling planned.
Discovered Resources (MLHP 7)
• Further seismic coverage planned to identify additional prospectivity.
• High impact exploration drilling planned.
• Significant and established prospect inventory.
Exploration Resources
• To move resources to reserves.
• Secure appraisal area over MLHP 7 existing discoveries
• Aggressive exploration plan over MLHP 5 & 6.
* pending assignment approval for Vitol transaction.
11
Cameroon Appraisal / Development
Asset Overview
Isongo Oil Discovery -IF – Bowleven 2008. Tertiary sourced 35°API oil transforms prospectivity and value of acreage.
Isongo Prospects -Multiple undrilled structural culminations associated with existing discoveries. Low risk and high potential.
Biafra Prospects -Shallow dry gas accumulations at Manyikebi and IE plus additional prospectivity. Oil shows in IM-1.
MLHP 7 Discoveries & Prospects Inventory Overview
Preliminary Results 2009 Presentation 12
Isongo Gas Condensate Fields -Isongo Marine, IC, ID and IE. IE successfully appraised by Bowleven in 2007. Characterised by rich condensate yield – CGR of 70-140 bbl/mmscf.
• IF oil discovered August 2008.
• Bowleven assessment of hydrocarbons in place 225mmbbls STOIIP.
• Independent certification by TRACS supports Bowleven’sassessment.
• A prominent gas chimney effect obscures much of the seismic reflectivity of the oil charged reservoir interval.
• Sea bed survey undertaken highlights presence of gas chimney.
• 4 component OBC 2D seismic data acquired.
• High resolution 3D seismic to be acquired over IF field ahead of appraisal drilling 2010.
MLHP 7 IF Field Update
1000m
Seabed expression of IF Gas Chimney
Poor data zone
IF-1IF-1R
13Preliminary Results 2009 Presentation
3D Compressional Wave Data
WSW ENE
TWT
• IF oil discovered August 2008.
• Bowleven assessment of hydrocarbons in place 225mmbbls STOIIP.
• Independent certification by TRACS supports Bowleven’sassessment.
• A prominent gas chimney effect obscures much of the seismic reflectivity of the oil charged reservoir interval.
• Sea bed survey undertaken highlights presence of gas chimney.
• 4 component OBC 2D seismic data acquired.
• High resolution 3D seismic to be acquired over IF field ahead of appraisal drilling 2010.
MLHP 7 IF Field Update
1000m
Seabed expression of IF Gas Chimney
Poor data zone
IF-1IF-1R
13Preliminary Results 2009 Presentation
IF-1 IF-1R
3D Compressional Wave Data
WSW ENE
TWT
• IF oil discovered August 2008.
• Bowleven assessment of hydrocarbons in place 225mmbbls STOIIP.
• Independent certification by TRACS supports Bowleven’sassessment.
• A prominent gas chimney effect obscures much of the seismic reflectivity of the oil charged reservoir interval.
• Sea bed survey undertaken highlights presence of gas chimney.
• 4 component OBC 2D seismic data acquired.
• High resolution 3D seismic to be acquired over IF field ahead of appraisal drilling 2010.
MLHP 7 IF Field Update
1000m
Seabed expression of IF Gas Chimney
Poor data zone
IF-1IF-1R
13Preliminary Results 2009 Presentation
IF-1 IF-1R
2D Shear Wave Data
WSW ENE
TWT
• IF oil discovered August 2008.
• Bowleven assessment of hydrocarbons in place 225mmbbls STOIIP.
• Independent certification by TRACS supports Bowleven’sassessment.
• A prominent gas chimney effect obscures much of the seismic reflectivity of the oil charged reservoir interval.
• Sea bed survey undertaken highlights presence of gas chimney.
• 4 component OBC 2D seismic data acquired.
• High resolution 3D seismic to be acquired over IF field ahead of appraisal drilling 2010.
MLHP 7 IF Field Update
1000m
Seabed expression of IF Gas Chimney
Poor data zone
IF-1IF-1R
13Preliminary Results 2009 Presentation
IF-1 IF-1R
MLHP 7 IE Field Update
• IE-1 drilled 1981; encountered dry gas in Biafra (mean 80bcf GIIP) and gas/condensate in Isongo (mean 463bcf WGIIP).
• IE-2Z appraisal drilled February 2007 (Bowleven) established high flowrates and significant condensate potential.
• IE-3 appraisal well location identified; ready to drill.
• IE-3 well stacked objectives:
– To appraise Isongo Sand 1 updip of IE-1 and IE-2z wells
– To prove additional volumes in Isongo Sand 2 & 3.
– To penetrate the Biafra shallow gas accumulation.
• First well in 2010 drilling campaign.
14Preliminary Results 2009 Presentation
ETM-1
IE-1IE-2z
ID-1
2.5km
IE-3 (Proposed)
Proposed well location
MLHP 7 IE Field Update
• IE-1 drilled 1981; encountered dry gas in Biafra (mean 80bcf GIIP) and gas/condensate in Isongo (mean 463bcf WGIIP).
• IE-2Z appraisal drilled February 2007 (Bowleven) established high flowrates and significant condensate potential.
• IE-3 appraisal well location identified; ready to drill.
• IE-3 well stacked objectives:
– To appraise Isongo Sand 1 updip of IE-1 and IE-2z wells
– To prove additional volumes in Isongo Sand 2 & 3.
– To penetrate the Biafra shallow gas accumulation.
• First well in 2010 drilling campaign.
14Preliminary Results 2009 Presentation
MLHP 7 Resource (Mean Unrisked Volumes In Place)
Preliminary Results 2009 Presentation 15
*includes NGLs, which comprise condensate and LPGs. †NGLs include LPGs for ID & IE only.
Dry GIIP (bcf)
Wet GIIP* (bcf)
NGL†
(mmbbl)STOIIP
(mmbbl)
Isongo Marine Field* 466 18
Isongo E Field* 80 463 105
Isongo D Discovery* 8 1
Isongo C Discovery* 77 5
Isongo F Discovery 225
Manyikebi 56
Total Discovered Resource† 136 1014 129 225
Isongo Marine Exploration 1291 42
Isongo D Exploration 158 35
Isongo C Exploration 288 6
Isongo E Exploration 16 64 5
Isongo G Cluster 349 8
Total Exploration Resource† 16 2150 96
Total MLHP 7 Resource† 152 3164 225 225
†Volumes presented as gross figures.
IF-1r DST Flare
• Remapping of MLHP 7 in 2009 has resulted in the following key updates since the last presentation of volumetrics:
• Middle Isongo IM discovered gas-condensate up from 348 to 466bcf WGIIP and exploration resource up from 823 to 1291bcf WGIIP.
MLHP 7 Forward Plan 2010 - Drilling
• Priority commercialisation of existing resource base.
• Up to 4 wells planned in 2010 to include appraisal of IF Oil, IE condensate and high-impact exploration well on MLHP 5.
• 4th well in programme to be confirmed following initial drilling and seismic results.
• IE-3 location selected; ready to drill.
• IF-2 initial location selected; 3D seismic to confirm.
• Jack-up rigs available in region for 2010 drilling.
• Tender process planned for Q4 2009.
• Rig rates significantly lower than 2008 peak.
16Preliminary Results 2009 Presentation
2009 2010 2011
Q4 Q1 Q2 Q3 Q4 Q1 Q2
EtindeDrilling
Preparation IE-3 MLHP 5 IF-2 Etinde WellAppr. Expl. Appr. TBC
MLHP 7 Forward Plan 2010 - Seismic
• Etinde commitment of 200km² 3D seismic data; covered by 2010 campaign.
• Current plan to acquire additional c.500km² 3D data on MLHP 6 & 7.
• MLHP 6 & 7 programme to image updip additional prospectivity from IE and IF.
• High resolution 3D planned over IF pre-appraisal drilling.
• Tendering for seismic crews in preparation phase.
• Reprocessing existing 3D seismic to improve subsurface imaging pre appraisal/development activities; contract awarded.
MLHP 7 current 3D 575km²
MLHP 5 & 6 current 3D 812km²
MLHP 6 & 7 Proposed 3D
500km²
17Preliminary Results 2009 Presentation
2009 2010
Q4 Q1 Q2 Q3
EtindeSeismic
Reprocessing MLHP 7 3D
MLHP 6 & 7 3D Acquisition, Processing & interpretation
MLHP 7 Conceptual Development
18
IE
Gas Reinjection Pipeline
IF WHP Platform6-Slot Wellhead and subsea wells
Multiphase pipelines from fields to FPSO for fluid separation, gas compression,
living quarters and storage.
Limbé
Existing Limbé Refinery and Power station
Potential Gas Export Pipeline
Field Oil/NGLsMbbl/d
Gas Fuel/ Export
MMscf/d
Gas Recycling /ProductionMMscf/d
Development Wells
Prod. Inj.
IF 30 (oil) 36 - 4 3
ID-IE 15-25 (NGL) - 130-150 3-5 2-3
TOTAL 45-55 (liquids) 36 130-150 7-9 5-6
IF
IE WHP Platform9-Slot Wellhead
Preliminary Results 2009 Presentation
• Integrated development option for discoveries via FPSO with associated gas piped to shore.
• Phase 1: IF oil development via FPSO.
• Phase 2: IE/ID gas-condensate recycling.
• Gas reinjection to maintain reservoir pressure.
• Condensate production to FPSO.
• Phase 3: Potential tie-in of IM if opportunity for gas off-take arises.
Manyikebi Discovery
IC Discovery
ID Discovery
GdF SUEZ – SNH Cameroon LNG Study
19Preliminary Results 2009 Presentation
• Strategic partnership between GdF SUEZ and SNH formed November 2008.
• Objective to develop an LNG export plant in Cameroon.
• GdF/SNH Phase 1 feasibility study concluded.
• Sufficient in-country gas resources for LNG facility.
• Onshore plant at Kribi preferred option.
• Potentially provides a market and monetises Etinde gas fields including IM.
Bowleven / SNH
Gas Collection
Liquefaction facility
Domestic Market
LNG Purchaser
Gas, LPGs LNG
Other Gas Suppliers
Upstream commitment to develop proven reserves & continue exploration for additions.
Gas gathering, processing connecting all required suppliers
Construction & operation with committed long term gas supply and LNG offtake.
Buyer commitment to long term LNG purchase
20
Cameroon – Exploration
Asset Overview
Douala Basin Discoveries
Preliminary Results 2009 Presentation 21
Logbaba (1950’s) Gas-condensate in Upp. Cret. deep-water sands. (VOG currently drilling well 105).
Souellaba (1950’s)Oil-gas in Miocene-Eocene deep-water sands
SANAGA-1x (1970)1885ft shows (C7+) in Eocene, Paleocene & Cretaceous sands
N. Matanda (1980/81)Gas-condensate in Upp. Cret. Deep-water sands
D-1r (2007), 25mmscfd, 1400bcpd from 75ft gross
Miocene deep-water sands
Coco Marine (2002/5)3000bopd 34° API oil, & 1.8mmscfd from Paleogene deep-water sands
Noble (Belinda, 2005/7)O-1 24mmscfd, 1225bcpdO-3 30mmscfd, 1540bcpdI-4 29mmscfd, 1634bcpdMiocene deepwater sands
Noble (Yolande + YoYo, 2007)YoYo-1 31mmscfd, 330bcpdI-3 36mmscfd, 371bcpd
Noble (Carmen, 2008/9)O-5 26 feet of net oil pay, 13 feet of net gas pay TD at 11,150ft Lower Miocence
Noble (Diega, 2008)I-6 37ft net oil pay, 2700bopd (separate from gas-condensate zone)
Noble (Benita, 2007/8)I-1 34mmscfd, 1038bcpdI-2 115ft net oil pay 32°APII-5 42ft net oil pay, 6250bopd
Douala Basin Discoveries
Preliminary Results 2009 Presentation 22
• Active drilling & discoveries on neighbouring acreage.
• Oil shows in Sanaga-1X and the Souellaba oil field on the block boundary.
• Unique opportunity to access the prolific West African Tertiary and Cretaceous fairways from shallow water & onshore locations.
Mean unrisked in-place volumes **
>4.5 WGIIP*(tcf)
>250 mmbbls CIIP
>700 mmbbls STOIIP
• Portfolio of prospects in across the Tertiary and Cretaceous fairways.
• MLHP 5 allows ready access to both Tertiary and Cretaceous fairways from a shallow water location.
• Potential exploration prospectivity on MLHP 6; previously discounted, no existing seismic coverage.
• Further seismic acquisition planned over MLHP 5 & 6.
• Exploration well planned 2010.
** As per 2009 interim presentation
D-1r mean discovered resource
72bcf WGIIP*
4mmbbls NGL
*includes NGLs, which comprise condensate and LPGs.
A well in MLHP 5 could materially transform the acreage.
MLHP 5 & 6 Forward Plan 2010
• Prospect and lead inventory matured on existing 3D coverage.
• High impact exploration well(s) planned for 2010.
• Acquire additional c.450km² 3D seismic data on MLHP 5 in 2010 to infill gaps within the existing data.
• MLHP 6 & 7 c.500km² 3D seismic planned for 2010 to enable full assessment of Etinde prospectivity.
• Tendering process for seismic crews underway.
MLHP 7 current 3D 575km²
MLHP 5 & 6 current 3D 812km²
MLHP 5 Proposed 3D 150km²
23Preliminary Results 2009 Presentation
2009 2010
Q4 Q1 Q2 Q3
EtindeSeismic
Reprocessing MLHP 7 3D
MLHP 6 & 7 3D
MLHP 5 3D program
MLHP 5 Proposed 3D OBC 300km²
2009 2010 2011
Q4 Q1 Q2 Q3 Q4 Q1 Q2
EtindeDrilling
Preparation IE-3 MLHP 5 IF-2 Etinde WellAppr. Expl. Appr. TBC
24
Cameroon
Bomono Overview
Bomono Overview
Preliminary Results 2009 Presentation 30
Commitments
Asset Overview
Bomono
• 100% Bowleven.
• Composed of two blocks covering an area of 2328km².
• 5 year first term, expiring December 2012.
• 500km 2D seismic data (320Km 2D planned for Q1 2010).
• 1 well (to be drilled 2011/2012).
• Highly prospective acreage within a proven active hydrocarbon system.
• Readily accessible local gas market (Douala City in OLHP 2).
• Unique situation to access the prolific West African Turonian play onshore in a combination of structural and stratigraphic traps.
• Initial technical evaluation highlights multiple prospects with individual sizes ranging from 10 to 250mmbbls Mean STOIIP.
• Q1 2010 acquisition 320km 2D seismic.
• Tender process completed; contract awarded. 2009 2010 2011
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Bomono Seismic Preparation 2D Seismic Acquisition,
Processing & Interpretation(Additional 2D or
Drilling)
Planned 2D acquisition
Existing 2D
26
Gabon
Epaemeno Overview
Basement
Basement
Epaemeno Overview
Commitments
Asset Overview
Epaemeno
• 50% Bowleven, 50% farm-out completed April 2007.
• Second exploration term expires August 2010 with third term expiry August 2013.
• Commitment 2D seismic data acquired in Q1/Q2 2009.
• 1 well with 50% relinquishment at the end of the second term.
27Preliminary Results 2009 Presentation
2009 2010 2011
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Epaemeno Drilling
Technical preparation
ahead of 2010 dry season.
Site Preparation EPA Well 50% Block Relinquishment
End August 2010
Dentale Prospects
Tsiengui (145MMbbl)
Koula (75MMbbl)
Avocette (265MMbbl)Obangue (55MMbbl)
Onal (180MMbbl)
Omko-1 (20MMbbl)
2P STOIIP source: IHS Energy
Rembo Kotto (60MMbbl)
Assewe (18MMbbl)
Dentale Basin
Topo Graben
• Bowleven has been acting as technical operator under a TSA.
• Sub-salt fields and discoveries to the east and south of the block.
• 2010 to focus drilling on significant prospect inventory established following interpretation of 2D seismic.
• Prospect volumetric range 10 to 350mmbbls Mean STOIIP consistent with field sizes in the region.
• Technical evaluation and prospect inventory complete and highlights a number of significant prospects on the margins of the Dentale Sub-basin.
28
Gabon
East Orovinyare Overview
East Orovinyare
Commitments
Asset Overview
East Orovinyare
• 100% Bowleven.
• PSC signed in February 2004.
• Shallow water.
• Block contains the EOV oil field.
• No further commitments.
• Exploitation licence containing an oil field (EOV).
• Production facilities principally complete in Louisiana; awaiting relocation to platform site.
• EOV development project sanction deferred pending further drilling to enhance resource base on block.
• Additional exploration upside remains untested within the block including the North West Kowe prospect.
• Advanced discussions ongoing on EOV.
29Preliminary Results 2009 Presentation
30
Financial Overview
2009 Year End Results Summary
• Loss of $10.2 million in year (2008: loss of $10.9 million).
• Loss reported after EOV impairment of $50 million, and unrealised finance income of $50 million.
• Net assets of $426 million at year end.
• $70 million invested in fixed assets.
• Net cash resources of $130 million at 30 June 2009.
• Access to substantial additional finance post year end with Vitol farm-out.
Preliminary Results 2009 Presentation 31
2009 Year End – Funds Summary
Cash increase
$27m
• Net cash at 30 June 2009 - $130 million
Foreign exchange
movement on cash
balances
$8m
32Preliminary Results 2009 Presentation
Current Estimated Expenditure
$30 - $35m¹
$95 - $110m¹²
$14 - $16m
$6 - $9m*
Principal 2010 Work Programme Expenditure
Preliminary Results 2009 Presentation 33
*Net to Bowleven.¹Includes work programme for Etinde proposed by Bowleven and Vitol after government approval for transaction is received.²Budget for 3 well programme including testing, 4th Etinde well budget not included as location and target tbc.³Vitol will fund an initial $100 million gross exploration/appraisal work programme on Etinde in return for a 25% stake in the permit.
Total $145 - $170m .
2009 2010 2011
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Epaemeno Drilling Preparation Site
Preparation EPA Well 50% Block RelinquishmentEnd August 2010
Bomono Seismic Preparation 2D Seismic Acquisition Additional 2D or
Drilling
EtindeDrilling Preparation 3 Well Programme
4th
Etinde well (tbc)
EtindeSeismic
Repro. MLHP 7 3D
MLHP 5, 6 & 7 3D Surveys
Bowleven Net (After Carry)³ ~$40 - $60m .
• Initial estimates, to be updated post-tender process.
• Excludes internal corporate costs etc.
Etinde$125-$145m
Other$20-$25m
Included in estimate.
Excluded from estimate
Funding Overview
• Net cash at 30th June 2009 $130 million
• Current cash circa $120 million.
• Etinde farm-out to Vitol provides $100 million funding of gross work programme for 25% interest.
• Vitol have an option to acquire further 25% for further $100m work programme and $25m cash to be invested in Etinde.
• EOV field – advanced discussions ongoing on EOV.
• Moving from resources to reserves.
• Significant financing flexibility.
Preliminary Results 2009 Presentation 34
35
Outlook & Closing Remarks
2010 Overview and Objectives
Preliminary Results 2009 Presentation 36
• Continuous exploration/appraisal programme with up to four wells on Etinde to commence H1 2010, including:
• IE and IF appraisal wells to confirm commercial viability.
• High impact MLHP 5 exploration well to pursue Cretaceous oil play.
• Fourth well, target to be confirmed during 2010 work programme.
• Extensive 3D seismic acquisition and reprocessing on Etinde.
• Progress IE and IF development projects to sanction; aim to upgrade resources to reserves.
• Drilling on Epaemeno planned with operator, Addax, in H2 2010.
• Commence Bomono 2D seismic in Q4 2009.
• Continue to review farm-out opportunities to optimise exploitation of acreage.
2010 Work Programme
• MLHP 7 appraisal well on the IF oil field.
• MLHP 7 appraisal well on the IE gas-condensate field.
• MLHP 5 high impact exploration well.
• Epaemeno onshore exploration well.
Preliminary Results 2009 Presentation 37
2010 Seismic Programme
2010 Drilling Programme
• MLHP 7 3D seismic re-processing.
• 3D streamer survey over MLHP 6 and MLHP 7 (including IF).
• MLHP 5 3D shallow water seismic survey.
• 2D survey over Bomono.
2010 Other Events
• 50% relinquishment of Epaemeno.
• Vitol option exercise date (25% Etinde) 30th Sept 2010.
2009 2010 2011
Q4 Q1 Q2 Q3 Q4 Q1 Q2
Epaemeno Drilling Preparation Site
Preparation EPA Well 50% Block RelinquishmentEnd August 2010
Bomono Seismic Preparation 2D Seismic Acquisition (Additional 2D or
Drilling)
EtindeDrilling Preparation IE-3 MLHP 5 IF-2 Etinde Well
EtindeSeismic
Repro. MLHP 7 3D
MLHP 5, 6 & 7 3D Surveys
43
Analyst Contacts
Principal Contact:Kerry CrawfordTel: 0131 524 [email protected]
Kevin Hart – Tel: 0131 524 5678John Brown – Tel: 0131 524 5678
38