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Preliminary Results Presentation For the year ended 30 June 2013
Interim Results Presentation For six months ended 31 December 2013
31 March 2014 Interim Results 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.
‘Bowleven’, ‘EurOil’ and the Bowleven logo are trade marks of Bowleven plc and copyright in the content of this document is owned by Bowleven plc. They
should not be used without permission.
31 March 2014 Interim Results Presentation 3
Presentation Agenda
• Overview
• Etinde Development
• Exploration
• Finance
• Outlook & Conclusion
• Q & A
• Appendix
oil & gas
Overview
31 March 2014 Interim Results Presentation 5
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 – Focus on 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.”
31 March 2014 Interim Results Presentation 6
Asset Overview
Cameroon Kenya Zambia
• 2 permits covering 4,644km².
• P50 contingent resource base 263
mmboe* (net).
• Etinde (Shallow Offshore):
appraisal/development &
substantial prospective resource.
• Bomono (Onshore): Exploration
• Block 11B onshore Kenya covering
~14,200km².
• Early stage exploration.
• Blocks 25, 28 & 29 covering
~16,250km²
• Application for further two blocks
pending.
• Early stage exploration.
* Source: 2013 Annual Report. Operator’s volumetrics (excludes IF volumes pending external review).
Acreage: 2,328km2
Onshore
Equity Interest:
100%
Operator:
Bowleven Group
Bomono Permit
Acreage: 2,316km2
Shallow Offshore
Equity Interest:
75% (CAMOP 25%)
Operator:
Bowleven Group
Etinde Permit
Cameroon
Nigeria
Kenya
Ethiopia South Sudan
State back-in rights: Etinde 20%, Bomono 10% (at grant
of exploitation licence).
Acreage: ~14,200km2
Onshore
Effective Equity Interest: 35%
(Adamantine 50%)
Operator:
Adamantine
Block 11B
31 March 2014 Interim Results Presentation 7
* FID: Final Investment Decision
†
• Etinde Exploitation Authorisation Application (EEAA) submitted to
Cameroon authorities – award anticipated shortly.
• Gas sales agreement (GSA) with fertiliser plant well advanced
(20 year supply).
• Signature of GSA will align Bowleven and fertiliser plant
schedules, and provide clear path to FID.
• Strategic alliance with Petrofac provides access to potential
development finance (up to $500 million); $60m IM-5
reimbursement at FID.
Subsequent Stages
• EEAA includes wider development plans, including LNG.
• Intra Isongo reservoir interval encountered at IM-5 highlighted
significant upside potential.
• Momentum building on GDF Suez/SNH led Cameroon LNG
scheme – additional development potential. Advancing towards
FEED award.
Group Update Etinde - continued progress
Stage I - Fertiliser
31 March 2014 Interim Results Presentation 8
• Exploration programme advancing:
– Bomono two well programme planned H2 2014.
– Kenya FTG highlights various basin potential. 2D seismic
tender at advanced stage.
– Awarded 3 blocks in Zambia; 2 blocks pending.
• Financing flexibility:
– Cash end Feb 2014 ~$34 million.
– Advanced negotiations with industry sources and finance
providers for pre-FID funding.
– Petrofac: provides access to development funding and $60
million at FID.
– Farm-out discussions ongoing on Etinde and Bomono.
Group Update Exploration & Financing Flexibility
oil & gas
Etinde Development
31 March 2014 Interim Results Presentation 10
Etinde Resource Base
• Oil, condensate and wet gas.
• P50 contingent resources increased 30%* in 2013.
• EEAA submitted to Cameroon authorities; award anticipated
shortly.
‒ Phased development approach.
‒ Initial gas offtake: Ferrostaal fertiliser plant.
‒ Full field development concepts - LNG schemes.
Net Contingent Resources*
P90 P50 P10 Mean
Gas (bscf) 378 831 2,649 1,177
Condensate (mmbbls) 33 80 230 104
LPGs (mmbbls) 11 21 32 22
Oil (mmbbls) 5 24 113 49
Total BOE (mmboe) 112 263 816 372
Significant Hydrocarbon Volumes
• Results of IM-5 well resulted in a substantial increase in
contingent resources.
• IF field volumes removed from contingent resources -
TRACS external review nearing completion (internal review
underway).
* Source: 2013 Annual Report. Operator’s volumetrics (excludes IF volumes pending external review).
31 March 2014 Interim Results Presentation 11
Field Development Plan Flexibility for future expansion
• ‘Hub and Spoke’ wells – facilities system.
‒ Unmanned offshore platforms, processing onshore.
• Oil, condensate and wet gas to onshore hub.
• Liquids stripping and NGL extraction at hub.
• Supply dry gas to fertiliser plant.
• Liquids marketable internationally.
• Full field development concept – LNG schemes.
Liquids focused - gas enabled
* Operator projections.
Stage I - Key Statistics
• Sufficient gas volumes to support fertiliser plant.
• Dry gas to fertiliser plant: 70mmscfd.
• Initial liquids production: ~ 14k-16k boepd* (inc LPGs).
• First production integrated with fertiliser timetable.
• Initially IM (Intra Isongo).
• Gross development capex†:
‒ Pre first production: estimated $650 million - $700 million
(EEAA case).
‒ To be further refined during FEED.
† Operator estimates (Class III & Class IV estimates).
31 March 2014 Interim Results Presentation 12
Detailed Engineering
Platform Fabrication
Installation, Pipelines & Hook-up
Production Drilling
Well Planning & Support
Procurement
Fertiliser Plant
(Ferrostaal & Partners)
6mths 12mths 18mths 24mths 30mths
6mths 12mths 18mths 24mths 30mths
FID
First
Production
Integrated offshore and onshore facilities development illustrative timeline – FID to first production.
Hub and Spoke Development Stage I – Illustrative Timeline
31 March 2014 Interim Results Presentation 13
Full Field Development
• EEAA includes full field development concepts - LNG.
• Intra Isongo reservoir interval encountered at IM-5
highlighted significant upside potential.
• Drilling programme to be designed to prove up additional
resources.
• Wider plans integrate significant in-place volumes
discovered across MLHP-5 (Sapele) and potential on
MLHP-6.
• Momentum building behind Cameroon LNG (CLNG).
Beyond Fertiliser
Intra Isongo Reservoir Model
Indicative Supply Profile including CLNG
31 March 2014 Interim Results Presentation 14
Cameroon LNG (CLNG) Project
Full Field Development
• Countrywide gas aggregation scheme, led by GDF Suez
and SNH.
• Planned onshore facility at Kribi, with gas pipeline through
Rio del Rey and Douala basins.
• First LNG train – planned 3.5 mtpa capacity.
• Advancing towards FEED award.
• First LNG cargo envisaged 2019/20.
Bowleven Allocation - CLNG
• Gas supply capacity allocation discussions commenced for
supply of Etinde gas (subject to appraisal/development
drilling).
• Provisional allocation (H2 2014) will support FEED award.
31 March 2014 Interim Results Presentation 15
Intra Isongo Potential
Material Upside
*Operator’s estimates. Volumes are presented as gross figures.
The WGIIP figures include NGLs, which comprise condensate and LPGs.
Volumes have been derived on a probabilistic basis but totals have been arithmetically summed.
Totalling anything other than mean is statistically incorrect and is provided for illustrative purposes only.
Greater Interval Sand
‘Greater Interval Sand
IM-5
1 Km
Unrisked In-Place Prospect Volumes*
WGIIP (bcf) P90 P50 P10 Mean
Intra Isongo discovery horizon 303 678 1,530 822
Greater interval 296 630 1,413 769
TOTAL (bcf) 599 1,308 2,943 1,591
CIIP (mmbbl) P90 P50 P10 Mean
Intra Isongo discovery horizon 48 114 269 141
Greater interval 47 107 248 132
TOTAL (mmbbl) 95 221 517 273
Source: Operator
• IM-5 well has considerably de-risked the Isongo play.
• Seismic response correlates with thick, reservoir quality
sands.
• A number of amplitude based prospects are defined at the
same horizon as the Intra Isongo discovery.
• Further prospects also defined in the intervals immediately
above and below Intra Isongo horizon - “greater interval”.
• IE-3 well tested gas condensate and oil from 4 intervals
equivalent to the Intra Isongo interval.
Intra Isongo
Indicative appraisal
~150m down-dip
Indicative appraisal
~200m down-dip
Middle
Intra
Upper
31 March 2014 Interim Results Presentation 16
Intra Isongo Potential
• Amplitude response indicates sandstone
distribution.
• Depositional systems revealed, wide extent.
• Relationship with IE / ID field discoveries
being examined.
• Hydrocarbon fluid samples at IM3 / IM5.
Intra Isongo
oil & gas
Exploration
31 March 2014 Interim Results Presentation 18
• 6 deep wells and c.10 shallow wells drilled in the 1950’s.
• Wells and onshore oil seeps prove active, Upper Cretaceous
sourced hydrocarbon system.
• Total 500km 2D seismic acquired and legacy 2D data
reprocessed by Bowleven.
• Tertiary structural traps matured to drill-ready status.
• High potential Cretaceous stratigraphic leads recognised.
Bomono Overview
Bowleven
2D
Acquisition
Vintage 2D
VOG: Gas and
condensate
production.
Douala
Seeps
Historical
Source: Operator
Source: Operator
31 March 2014 Interim Results Presentation 19
Cretaceous
Tertiary
Bomono Exploration
Zingana
Prospect
Unrisked Mean
HIIP*
Oil mmbbls Associated
Gas bcf Gas bcf
Condensate
mmbbls
Tertiary D & E
Sands. 302 224
Tertiary B & C
Sands. 196 7
Zingana-1
Source: Operator
*Operator estimates.
D & E sands
B & C sands
Zingana-1
2km
Moambe-1
Moambe
Prospect
Unrisked Mean
HIIP*
Oil mmbbls Associated
Gas bcf Gas bcf
Condensate
mmbbls
Tertiary D & E
Sands. 176 80
Tertiary B & C
Sands. 153 4
Zingana
Prospect
Moambe
Prospect
31 March 2014 Interim Results Presentation 20
Bomono Operational Status
Civil Engineering
Rig Update
• Rig negotiations advanced; two well programme
planned H2 2014.
• Several farm-out negotiations advancing.
• Zingana pad complete.
• Access routes complete.
• Moambe pad construction preparation commencing.
• Drilling camp construction underway.
Potential Commercialisation Routes
• Gas to existing power stations (currently engineered
for expensive fuel oil).
• Gas to new build combined cycle power station.
• On-site gas to electricity (GTE) conversion facility.
• Accessible local gas market (Douala City) or tie in to
Etinde ‘hub’ development.
31 March 2014 Interim Results Presentation 21
Block
11B
■Cretaceous
■Tertiary
Kenya
Kenya
Uganda
South
Sudan
Ethiopia
Block 11B
• New hydrocarbon province.
• Multiple oil discoveries to the south (Lokichar Basin).
• High level of industry activity – multi-well drilling campaigns
ongoing and infrastructure planning underway (including
pipeline pre-FEED study) e.g. Tullow Oil, Africa Oil.
Overview
Source: Bowleven
• Significant acreage ~14,200km2 in highly prospective East
African Rift system.
• Intersection of Tertiary and Cretaceous rift systems.
• Existing data suggests basins similar form to Lokichar Basin.
• Block-wide high density airborne gravity gradient survey
(FTG) now complete.
• Multiple basins identified from FTG survey.
• Tendering for 500km 2D seismic at advanced stage. Seismic
acquisition envisaged H2 2014.
31 March 2014 Interim Results Presentation 22
Kenya
Block 11B
Overview
Uganda
South Sudan Ethiopia
Kenya
Block 11B
Potential pipeline routes
■Cretaceous
■Tertiary
Source: Bowleven
• New hydrocarbon province.
• Multiple oil discoveries to the south (Lokichar Basin).
• High level of industry activity – multi-well drilling campaigns
ongoing and infrastructure planning underway (including
pipeline pre-FEED study) e.g. Tullow Oil, Africa Oil.
Sabisa
Oil shows
2 wells planned
Tullow Oil /
Africa Oil (2014)
2 wells planned
Tullow Oil /
Africa Oil (2014)
2 wells planned
Tullow Oil /
Africa Oil (2014)
1000 km 2D seismic
EHRC / CEPSA
(date TBC)
500 km 2D seismic
Adamantine Energy/
Bowleven
(2014)
Lokichar Basin
Multiple oil
discoveries (Tullow
Oil / Africa Oil)
• Significant acreage ~14,200km2 in highly prospective East
African Rift system.
• Intersection of Tertiary and Cretaceous rift systems.
• Existing data suggests basins similar form to Lokichar Basin.
• Block-wide high density airborne gravity gradient survey
(FTG) now complete.
• Multiple basins identified from FTG survey.
• Tendering for 500km 2D seismic at advanced stage. Seismic
acquisition envisaged H2 2014.
31 March 2014 Interim Results Presentation 23
Kenya Block 11B FTG Results
• FTG reveals five basins.
• NE gravity low possible sub-basin to
the South Omo Basin.
• 2014 field work and interpreted FTG
results has greatly increased the
geological understanding of the area.
Terrain
31 March 2014 Interim Results Presentation 24
Kenya Block 11B FTG Results
• FTG reveals five basins.
• NE gravity low possible sub-basin to
the South Omo Basin.
• 2014 field work and interpreted FTG
results has greatly increased the
geological understanding of the area.
Regional Gravity
31 March 2014 Interim Results Presentation 25
Kenya Block 11B FTG Results
• FTG reveals five basins.
• NE gravity low possible sub-basin to
the South Omo Basin.
• 2014 field work and interpreted FTG
results has greatly increased the
geological understanding of the area.
FTG dataset
31 March 2014 Interim Results Presentation 26
Kenya Block 11B Geological Fieldwork
31 March 2014 Interim Results Presentation 27
Zambia
• Karoo basins extensive, large and underexplored.
• Perceived as gas prone but have generated a lot of
oil (>20 billion bbl).
• Opportunity to acquire significant position while
industry focus on Tertiary rift system.
• Applied for multiple blocks in Zambian bid round (June
2013).
• Focus on Luangwa Valley Karoo rift basin.
• Grossly underexplored and no significant industry
activity since 1988.
Overview
Blocks
31 March 2014 Interim Results Presentation 28
Zambia
• Luangwa Valley Karoo basin total area ~42,000 km².
• Five blocks applied for: Three blocks awarded (25, 28
and 29) ~16,250km² and applications for two blocks
pending (26 and 27).
• Previous exploration 1980’s (Placid) acquired
3,000km 2D seismic and drilled 2 wells (primary
objectives were never reached).
• Thermally immature Coal measures are widely known
around the basin margins. It is considered that more
liquids rich, mature lacustrine source rocks could be
present deeper into the basin.
• Four year exploration period. Minimum committed
work programme estimated ~$500k.
Coal Occurrences
1980’s exploration well
Overview
oil & gas
Finance
31 March 2014 Interim Results Presentation 30
Interim Results Summary – six months to 31 December 2013
• Loss of $6.6 million in period (H1 2012: $9.4 million).
• $7.7 million cash invested in oil and gas activities, primarily on
pre-development activity on Etinde.
• Net assets of $591 million at 31 Dec 2013.
• Equity placing Nov 2013 raised ~$21m (net).
• Cash end Dec 2013 ~$38* million, end Feb 2014 ~$34 million*,
no debt.
* Includes a $5 million bank guarantee which will be released on completion of work programme on Block 11B, Kenya.
31 March 2014 Interim Results Presentation 31
Funding Overview
• Cash at end Feb 2014 ~$34 million*, no debt.
• G&A spend approx. $1.5m - $1.7 million (gross) per month.
• Advanced negotiations with industry sources and finance
providers for pre-FID funding.
• Several term sheets under consideration
• EA award facilitates funding access
• Petrofac provides access to up to $500 million for Stage I
development including $60 million IM-5 costs reimbursed at FID.
• Development funding available at FID. Options include project
debt, development bank finance and mezzanine finance.
• First Oil strategic partnership provides funding towards
exploration activity in Kenya.
• Discussions ongoing regarding potential farm-out of interests in
Etinde and Bomono (including drilling for equity).
Seeking further
flexibility Pre-FID
• Bridging loans with
industry/ finance
providers.
• Potential farm-outs
Equity
Placing FID First
Production
At FID
$60m reimbursement for
IM-5 well costs (Petrofac
Strategic Alliance)
Significant Financing Flexibility
Significant
cash flow
generated
Approaching FID opens
additional range of options
• Conventional project debt
• Mezzanine finance
• Development bank finance
• Potential farm-outs
Development Funding
Petrofac up to $500m (net)
(inc. initial $60m)
* Includes a $5 million bank guarantee which will be released on completion of work programme on Block 11B, Kenya.
Exploration Funding
First Oil strategic partnership
(Kenya)
oil & gas
Outlook & Conclusion
31 March 2014 Interim Results Presentation 33
Outlook & Conclusion
Resources to Reserves
African
Exploration
• Growing confidence levels around the delivery of the
combined fertiliser and upstream projects.
• Cameroon LNG scheme building momentum.
• Exploration activities continuing.
• Multiple funding sources maturing.
oil & gas
Q & A
oil & gas
Appendix
31 March 2014 Interim Results Presentation 36
Ferrostaal Fertiliser Project Structure
Source: Ferrostaal
Etinde
Gas
31 March 2014 Interim Results Presentation 37
Ferrostaal Fertiliser Partners
Source: Ferrostaal
31 March 2014 Interim Results Presentation 38
0
20
40
60
80
100
0
5
10
15
We
t Gas m
mcfd
Liq
uid
s -
kbo
ep
d
Ave Liquids Production (kboepd) Wet Gas Production (mmcfd)Petrofac
16%
Bowleven net84%
Bowleven NPV10 Split**
Gas18%
Liquids82%
Total Project Revenue*
Stage I Etinde Development Indicative project revenue, Bowleven NPV10split and production profile
Robust and attractive project
Simplified 20 year Production Profile‡
** Share of Bowleven NPV at $90/bbl
* Total project revenue at $90/bbl Total Liquids
92mmboe
Total Wet Gas
683 bcf
‡Operator’s illustrative projections for supply to fertiliser plant, assuming 20 year production profile.
Principal Contact:
Kerry Crawford
Tel: +44 131 524 5678
Kevin Hart
Tel: +44 131 524 5678
www.bowleven.com
Bowleven Plc.
The Cube
45 Leith Street
Edinburgh
EH1 3AT
United Kingdom
info@bowleven.com
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