november 2012 preliminary results presentation...

NOVEMBER 2012 Preliminary Results Presentation 1


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.


Presentation Agenda

• Overview

• Etinde Development – Stage I

• Etinde Development – Stage II

• Cameroon – Further Prospectivity

• Kenya

• Financial Overview

• Outlook & Conclusion

• Q&A

oil & gas

Overview


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.”


Company Asset Base

• 5 blocks in Cameroon covering 4,644km².

• 3 offshore shallow water, 2 onshore; all operated.

• Multiple hydrocarbon discoveries.

• P50 contingent resource base 203 mmboe* (net).

• Phased Hub & Spoke development planned.

• Continued exploration of the Douala Basin.

Cameroon

• Block 11B onshore Kenya covering ~14,000km².

• Early stage exploration; Airborne geophysical survey and 2D

seismic acquisition.

• Operated by Adamantine Energy, technical support provided by

Bowleven under a TSA.

* Source: Preliminary Results Announcement 6 Nov 2012. Operator’s volumetrics.

Kenya

Kenya

Ethiopia

State back-in rights: Etinde 20%, Bomono 10% (at grant of exploitation licence).

Acreage: 2,316km2

Shallow Offshore

Equity Interest:

75% (Vitol 25%)

Operator:

Bowleven Group

Etinde Permit

Acreage: 2,328km2

Onshore

Equity Interest:

100%

Operator:

Bowleven Group

Bomono Permit

Nigeria

Cameroon

Acreage: ~14,000km2

Onshore

Equity Interest: 50%

(Adamantine 50%)

Operator:

Adamantine

Block 11B

South Sudan


Progress Report

†

Resources to Reserves: The Path to FID*

• Etinde: Ongoing evaluation of Douala Basin prospectivity.

• Bomono: Drilling to commence in 2013 (timing subject to rig

availability).

• Bomono: Farm-out discussions at advanced stage.

• Kenya: Work programme commencing.

Exploration Strategy

Resources to Reserves

Exploring the

Douala Basin

New Frontiers

(Kenya)

* FID: Final Investment Decision ‡MOU: Memorandum of Understanding

Submission of draft Etinde Exploitation Authorisation

Application (EEAA).

Agreement of Fertiliser MOU‡.

Gas sales term sheet nearing finalisation - pending pricing

mechanism.

Access potential development financing - Petrofac

announcement.

Drilling programme commenced with appraisal/development

drilling ongoing at IM-5.

FID targeted for H2 2013 subject to:

• EEAA approval.

• Gas Sales Agreement.

• Access to development capital secured.


Petrofac Strategic Alliance

• Extensive development experience.

• Provides access to expertise, purchasing power and personnel

(including engineering, design, project management,

procurement and training).

• Provides up to $500 million for Stage I development; initial

capital investment at FID.

• Potential for up to $60 million of Bowleven’s IM-5 costs at FID.

• Petrofac entitled to share of Bowleven cost and profit oil.

• High level basis of development design agreed.

• Extensive technical and commercial due diligence completed.

• Conditional on Bowleven shareholder approval.

Highlights

Timetable

• Circular expected to be posted to Bowleven shareholders no

later than 23 November 2012.

• Initial capital investment at FID; currently anticipated H2 2013.

Purchasing Power

Project

Management


Petrofac Commercial Structure

• 80% of Euroil’s entitlement to cost oil until 130% of amount

invested has been repaid.

• X% of Euroil’s entitlement to profit oil (set at FID) to provide a

money multiple of 2.125 of amount invested, subject to not less

than 20% IRR.

• On Petrofac achieving money multiple of 2.125 and IRR 20%:

X% set at 10% ($500 million case) or 6% ($300 million case).

• On Petrofac achieving money multiple of 2.3 and IRR 20%:

X% set at 5% ($500 million case) or 3% ($300 million case).

• Petrofac’s remuneration ultimately capped at maximum of 50% of

Euroil’s project NPV.

Basis of Petrofac’s Remuneration

Commercial Structure

• Structure provides potential for $300 million or $500 million of

capital.

• Petrofac to be remunerated from Euroil’s share of the Etinde

project cashflows.

Onshore Hub

Offshore

Infrastructure

$300 / $500

million

Share of cost

& profit oil


Progression to Development

Development Overview

FID

EEAA

Fertiliser FID

(Ferrostaal, SNH,

Proman, Helm)

Finance

Gas Sales

• All processing onshore; unmanned offshore platforms.

• Stage I - fields on MLHP-7.

• Stage II - discoveries on MLHP-5 (Sapele).

• FID target H2 2013.

• First production anticipated 2016; integrated with fertiliser

timetable

• Significant flexibility for future expansion.

Phased Approach

oil & gas

Etinde Development – Stage I


Etinde Existing Discoveries Overview of Gross Unrisked Mean Volumes In place*

Deep Omicron fairway

*Operator’s estimates.

IC

IF

IE

IM

Manyikebi

Sapele-3

Sapele-2

Sapele-1/ST

SNA-1X

D-Discovery


Hub and Spoke Development Flexibility for future expansion

• All processing onshore; unmanned offshore platforms.

• Stage I - fields on MLHP-7.

• Stage II - discoveries on MLHP-5 (Sapele).

• Significant flexibility for future expansion.

• Hub location to be optimised to maximise synergies with

fertiliser plant.

• First production anticipated 2016; integrated with fertiliser

timetable

• Offshore (wells and other infrastructure): ~$600 million.

• Onshore (processing & NGLs plant): ~$300 million.

• Development costs subject to phasing and cost

optimisation. To be further refined during FEED.

Stage I Development Cost Target (Gross): ~$900 million

Phased Approach

• Oil, condensate and wet gas to hub.

• Liquids stripping and NGL extraction onshore.

• 70mmscfd dry gas to fertiliser plant.

• Initial liquids production ~ 15k-20k boepd* (including LPG’s).

• Initially IE/IM fields; level of IF contribution under evaluation.

Liquids Focussed

* Operator projections, currently excludes IF.


Etinde Development – Key FID Requirements

• Petrofac provides up to $500 million for Stage I development;

initial capital investment at FID.

Funding

†

• Draft EEAA submitted to Cameroon authorities; 3 workshops

held.

• EEAA covers a substantial part of Etinde Permit.

• Final EEAA submission due prior to end of current exploration

period (21 December 2012).

Etinde Exploitation Authorisation Application

• Ferrostaal Fertiliser Plant:

− MOU: Supply 70mmscfd dry gas for min.10 years.

− Term sheet nearing finalisation - pending pricing

mechanism.

− All parties targeting approval end 2012.

• Additional gas off take solutions also being considered.

Gas Sales Agreements


Drilling Update

• IM-5 drilling operations ongoing.

• Primary objective: determine reservoir, fluid properties and

gas composition of Middle Isongo.

• Secondary objective: explore potential of Intra Isongo.

• Upper Isongo expected to be water-bearing at this location.

• Designed to be suspended as a producer.

• Mechanical difficulties during drilling operations; re-drill of

hole section.

• Update expected mid January 2013.

Etinde Appraisal/Development Drilling

Forward Plan

IM-5

(Currently

drilling)

IM-3

Middle Isongo

Intra-Isongo

• Assess requirements for further drilling post IM-5.

• Rig to move to Glencore (Cameroon) on completion of IM-5

operations, enabling evaluation process.

• Discussions ongoing for rig return (if required).

Upper Isongo

IM-3 (Gas

Condensate

Discovery)

Middle Isongo

Net Pay 37m


Integrated Development Gantt Chart – Stage I

oil & gas

Etinde Development – Stage II


• Hydrocarbons discovered at multiple stratigraphic levels.

• Significant in-place volumes discovered across MLHP-5 by

the Sapele and D-1R wells.

• Extensive stratigraphically trapped accumulations.

• Sapele recoverable reserves ultimately determined by

number of wells, completion type and reservoir connectivity.

• Stage II development anticipates unmanned offshore

platforms integrated with onshore hub facility constructed in

Stage I.

• Utilisation of Stage I hub facilitates sanction of future tie-ins.

Sapele & D-1R

Hub and Spoke Development Stage II (MLHP-5)


Stage II (MLHP-5) Sapele – Deep Omicron Oil Fairway

Independent Volume Assessment

• Third party assessment carried out by Sproule.

• Methodology:

• Bowleven - fairway slab model.

• Sproule - discrete geobodies.

• Advanced 3D interpretation carried out, high graded future

drilling targets identified.

• Results validate Bowleven’s in-place fairway volumes.

• Sproule report available on website - www.bowleven.com

Independent Volume Assessment

In-Place Volumes

Mean

Bowleven‡ Sproule*

Total mmboe 1197 1208 ‡ Operator’s volumetrics.

*Aggregated discovered and undiscovered volumes.

oil & gas

Cameroon – Further Prospectivity


Cameroon Overview Further Prospectivity

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.


Etinde - Further Prospectivity

MLHP-6

MLHP-5

• EEAA envisages additional exploration in exploitation area.

• Extensive deeper prospectivity at Paleocene and Cretaceous

levels. Hydrocarbons encountered with Sapele-1 and Sapele-3.

• Palaeocene Alpha-Epsilon system Mean GIIP 1819bcf*.

• Cretaceous Mean Dry GIIP 1029bcf*.

• Evaluation of prospectivity ongoing.

• Highly prospective acreage given its position between proven

active hydrocarbon systems.

• Variety of play types to explore for, Bowleven has 3D seismic

dataset.

• Acreage will be considered under separate exploration

licence.

*Operator’s volumetrics.

20km


• 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.

• Total 500km 2D seismic acquired by Bowleven.

• New 2D data integrated into existing vintage dataset and now

defines a series of structural prospects.

Bomono Overview

Bowleven

2D

Acquisition

Vintage 2D

VOG: Gas and

condensate production

commenced Dec 2011.

Douala

10km

Seeps

Historical

Plio-Pleistocene

Miocene

Eocene

Cretaceous

2.5km


Bomono Exploration

Well Operations

Future

• Exploration well location selected, planning for immediate

follow-up appraisal wells.

• Zingana-1 Prospect - site preparation/civils nearing

completion.

• Drilling (up to 2 wells) to commence in 2013 (timing subject to

rig availability).

• Etinde hub facilities provide additional flexibility in event of

further discoveries.

Prospect

Unrisked Mean

HIIP

Oil mmbbls Associated

Gas bcf Gas bcf

Condensate

mmbbls

Tertiary D & E

Sands. 302 224

Tertiary B & C

Sands. 197 4

Permit Status

• SNH support our proposal to enter next 2 year exploration

phase; Special OCM November 2012.

• Farm-out discussions at an advanced stage.

Zingana-1

(Proposed Well)

B & C Sands

D & E Sands

oil & gas

Kenya


Kenya

Upcoming Work Programme

• Anticipated 2013 activity:

− Airborne geophysical survey - Q1/Q2.

− Acquisition of 500km 2D seismic - Q2-Q3.

Geology

• In region of Tertiary and Cretaceous rift basin intersection

(East African Rift and Cretaceous).

• 4 basins identified in block.

• Existing data suggests basins similar form to Lockichar Basin

(Ngamia-1).

• Significant acreage ~14,000km2.

• Bowleven farm-in Sept 2012 – 50% equity interest.

• Initial 2 year exploration period work programme.

• Operated by Adamantine Energy, technical support provided

by Bowleven under a TSA.

Block 11B

Block

11B

Ngamia-1 Twiga South-1

Paipai-1

■Cretaceous

■Tertiary


Kenya Block 11B

• Existing vintage seismic and gravity data confirm presence of multiple basins

and structural features closely analogous to successful discoveries to the south.

oil & gas

Financial Overview


2012 Year End Results Summary

• Loss of $13.1 million in year (2011: $76.8 million including

$41.7 million exploration costs).

• Loss includes:

• $96.4 million cash invested in oil and gas activities, primarily on

drilling activity on Etinde Permit.

• Net proceeds of $123 million from equity issue.

• Net proceeds of $38.6 million from disposal of GGPC Gabon

(EOV) Limited.

• Net assets of $579 million at 30 June 2012, cash $142 million.

• Administrative expenses of $9.5 million.

• Exploration costs of $3.6 million relating to

relinquishment of the Epaemeno acreage.

• Loss on disposal of GGPC Gabon (EOV) Ltd of $3.2

million.


Funding Overview

• Cash $142 million and no debt at 30 June 2012.

• Cash balance at end October 2012 approximately $120 million.

• Petrofac provides up to $500 million for Stage I development;

initial capital investment at FID.

• High equity interest in Etinde & Bomono provides opportunity to

introduce additional farm-in partners if appropriate.

• Talks with preferred bidder on Bomono farm-out progressing,

expect to cover intended work programme.

Significant financing flexibility.

oil & gas

Outlook & Conclusion


Outlook & Conclusion

• Ongoing evaluation of the Douala Basin prospectivity.

• Bomono drilling targeting both Tertiary and Cretaceous

prospectivity.

• Commencing exploration activities over new Kenya acreage.

Exploration

†

• Progressing development activities for hub and spoke

development, including pre FEED/FEED work.

• Etinde FID targeted for H2 2013 ensuring:

• EEAA approval.

• Gas Sales Agreement finalisation.

• Access to finance for the development.

• Appraisal/development drilling on MLHP-7.

Resources to Reserves: The Path to Development

oil & gas

Q & A

oil & gas

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

[email protected]

oil & gas

Appendix


Contents

• Petrofac’s Percentage Share (X%)

• Maximising Liquids Value


Petrofac’s percentage share (X%) of Euroil’s profit oil/profit gas

Gate 1:

Question 1: Is PFC NPV < 50% of original BLVN NPV?

Answer 1: Yes No

Gate 2:

Question 2: Is IRR => 20%?

Answer 2: Yes No

Gate 3:

Question 3: Is PFC NPV < 50% of original BLVN NPV?

Answer 3: Yes No

Basis of 'X'%*

* - Following commencement of production, 'X'% adjusted at the following points:

- Immediately upon PFC achieving later of 2.125 money multiple and 20% IRR: X = 10% ($500m case), X = 6% ($300m case)

- Immediately upon PFC achieving later of 2.3 money multiple and 20% IRR: X = 5% ($500m case), X = 3% ($300m case)

^ - 50% NPV10 subject to PFC achieving a minimum IRR of 15% on FID Investment Case and not less than 0% IRR on P90 downside case.

All NPV's post tax.

2.125 Money Multiple* 20% IRR* 50% NPV10 ^

Calculate NPV to PFC based on money multiple of 2.125

No adjustment requiredAdjust 'X'% downwards

to obtain 50% NPV

No further adjustmentAdjust 'X'% upwards to obtain

20% IRR


C5’s Cond.

ML

HP

-7

ML

HP

-5

Fu

rth

er

Dis

c.

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

Led

Alte

rnativ

e In

-House S

olu

tions

november 2012 preliminary results presentation...

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