14 production and development - lundin energy
TRANSCRIPT
Production and Development
WF10 033 01.08
Chris Bruijnzeels, Vice President Reservoir & ProductionJanuary 2008
14
WF8263 02.06
Resource Classification System
Society of Petroleum Engineers/World Petroleum Council Classi�cation
PRODUCTION
RESERVES
CONTINGENTRESOURCES
PROSPECTIVERESOURCES
Proved Proved &Probable
Proved, Prob.& Possible
Commercial
Discovered but no �rm investment decision
Exploration Prospectivity
1P 2P 3P
15
WF9974 01.08
2008 Proven & Probable Reserves
France (25.8)Netherlands (4.9)
Indonesia (16.1)
Tunisia (1.9)
UK (53.8)
Norway (57.0)
Russia (24.7)
Norway (57.0)
UK (53.8)
Indonesia (16.1)
France (25.8)Russia (24.7)
Total 184.2 MMboe
01.01.2007 176.4mmboe
- Produced (forecast) -12.4+ New reserves 18.4+ Acquisitions 1.8
01.01.2008 184.2
Reserves Replacement Ratio 148%
Increase in Reserves 12%
Oil 85.3%
Gas 14.7%
184.2
16
WF9974 01.08
Reserves Growth
0
20
40
60
80
100
120
140
160
180
200
2003 2004 2005 2006 2007
MM
boe
RussiaNorwayU.K.VenezuelaTunisiaIndonesiaNetherlandsFrance
2008
17
WF10014 01.08
-10.0 -5.0 0.0 5.0 10.0 15.0
France
Indonesia
Netherlands
Norway
Tunisia
U.K.
Russia
France
Indonesia
Netherlands
Norway
Tunisia
U.K.
Russia
MMBoe
Produced in 2007 Net Movement Acquisition
Reserves Changes
18
WF10014 01.08
Main Reserves Changes
UK Peik development moved from Contingent Resources to Reserves (4.8 MMBoe) Thistle South block infill drilling moved from Contingent Resources to Reserves (3.2 MMBoe)
Norway Peik development moved from Contingent Resources to Reserves (6.4 MMBoe) Alvheim (East Kameleon) moved from Contingent Resources to Reserves (3.9 MMBoe)
France Rheathian fields infill drilling moved from Contingent Resources to Reserves (2.4 MMBoe)
Russia First time audited by Gaffney, Cline and Associates. Reduction compared to pre-acquisition D&M* audited reserves (-3.8 MMBoe)
*DeGolyer and MacNaughton
19
WF9688 01.08
0
20
40
60
80
100
120
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mb
oep
d
excludes any exploration success or acquisitions
2P as at 1.1.2008
as at 1.1.2008Contingent Resources (CR)
Production Profile based upon 2008 Resource Position
Existing resources have the potential to triple existing production
20
WF10022 01.08
0
5,000
10,000
15,000
20,000
25,000
30,000
boepd boepd
35,000
40,000
45,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Q4Q1 Q2 Q3France
Netherlands
Indonesia
Russia
Tunisia
UK
Norway
Yearly Average : 36,500 boepd
2008 Production Forecast
21
WF10023 01.08
Norway - Alvheim delay to 1 April 2008
- 2007 study work and drilling delays resulted in lower expectations for 2008
- 2007 performance better than expected, leading to no requirement for additional water injection well in 2008
- Deferment of gaslift facilities on platform- Shutdown in 2008 related to redevelopment- Lower uptime assumption as result of the generator module �re
- Delay of Singa �rst gas from 2008 to 2009 Indonesia
United Kingdom
Broom
Thistle
Russia
6,200 boepd
1,100 boepd
1,800 boepd
2,900 boepd
3,000 boepd
2008 – Why not over 50,000 boepd?
22
2008 Development Capital Expenditure
WF10024 01.08
UK, 169
Norway, 116 Russia, 28
France, 21
Indonesia, 31
Netherlands,10
2008 Forecast 375 MMUSD
23
2008 Projects - Norway Alvheim
WF10025 01.08
Alvheim (WI 15%)FPSO status
Sail away from Haugesund FebruaryDeep water testing in Amoy�orden during FebruaryO�shore installation and hook up in MarchOn stream end Q1 2008
2006-2007 drillingDrilled and completed 4 Kneler and 2 Boa wells (one Multi Lateral)Drilled and completed 2 water disposal wellsDrilled KN5 and KAM2 to top reservoir
2008 DrillingRedrill KN3 due to casing integrity problemDrill and complete 1 Kneler, 1 Boa and 2 Kameleon wells (three Multi Laterals)
2010 DrillingDrill and complete 1 Kameleon and 2 East Kameleon wells (one to three Multi Laterals)
24
2008 Projects – Norway Alvheim
WF10029 01.08
BOA 12
Kameleon
East Kameleon
Kneler
Boa
KameleonKameleonKameleonKameleonKameleonKameleonKameleonKameleon
East KameleonEast KameleonEast KameleonEast KameleonEast KameleonEast KameleonEast KameleonEast KameleonEast KameleonEast KameleonEast KameleonEast Kameleon
KnelerKnelerKnelerKnelerKnelerKneler
BoaBoaBoaBOA 11
BOA 09
KAM 03
KAM 02
EKAM 01
EKAM 02
KN 02
KN 05
KN 03
KN 06
KN 07
KAM 01
Drilled Development WellsPhase 1 TargetsPhase 2 Targets
25
2008 Projects - Norway Volund
WF10026 01.08
Volund (WI 35%)
2008 Work Programme
Subsea facilitiesLong lead well items
2009 Drilling1 water injector, 3 producers
First production 2nd half 2009
0025
0024
009
4b
7b
7d
9a
6b
9c
9b
4h
4gUP
19
6aUP
6aLW
15b
15aLW
4c
14c
15c
7a
15aF1
4gLW
4fUP
4fLW
14aLW
4a
9e
15aUP14aUP
HEIMDAL
GEKKO
ALVHEIM
ALVHEIM
ALVHEIM
VOLUND
PEIK (UK)
PEIK (NORWAY)
6
5
8
7
5
4
3
1
7
65
3
2
1
43
2
1
3Z
2A
7a7a
15aF115aF115aF1
15aUP14aUP
PEIK (UK)PEIK (UK)PEIK (UK)
Lundin Licences
Oil Field
Gas Condensate Field
0 2.5 5
Kilometers
Volund
PL088Pl088BS
9/15a
PL413
PL340
9/15c
PL203
PL036c
PL150
26
WF10031 01.08
2008 Projects – Alvheim/Volund drilling schedule
Water disposalDrill Centre
Drilling Rig
KnelerDrill Centre A
KnelerDrill Centre B
BoaDrill Centre
East KameleonDrill Centre
MarathonOperated
Alvheim area
J F S O N DM A AM J J2006 2007 2008 2009 2010
J F S O N DM A AM J J J F S O N DM A AM J J J F S O N DM A AM J J J F S O N DM A AM J J
Deep Sea Bergen Songa Dee
KN06
Kneler 7 D&C wellsincl 2 KN05 pilot holes,
KN05 & KAM02 MLT set 30” & 18-5/8” casing
KAM 2 pilot hole
Drill & Comp.KN05 and dual
lateral wellKAM02
Drill & Comp.BOA12 and dual
lateral wellBOA09
Drill & Comp.dual lateral well
BOA11 and KAM01
EKAM
01
& 02
Volu
nd W
I
Volu
nd P
rod
1
Volu
nd P
rod
2
Volu
nd P
rod
3
KAM
03
Flex
KN02
KN03
KN02
&03
KN06
com
pKN
03 co
mp
KN04
H(K
N02H
redr
ill)
First Oil - End March 2008
27
WF10049 01.08
Thistle Redevelopment
STOIIP 846 MMstb
Produced 428.4 MMstb 50.6% Recovery Factor
Certified 2P reserves 17.4 MMstb
Contingent Resources 18.9 MMstb
2P Ultimate Recovery of 52.7%
2P + CR Ultimate Recovery of 55%
Is there additional upside?
OWC
DeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveronDeveron
28
WF10051 01.08
2P Investment
Facilities investment for 2P reserves is not attractive ....
Production
0
1
2
3
4
5
6
7
8
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
MB
oepd
2P
Drilling*
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Facilities*
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
* Pre tax costs
Total drilling investment: USD 50 MM
Total facilities investment: USD 160 MM
29
WF10051 01.08
Long Term Investment Plan
2P CR
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Drilling
Facilities
0
2
4
6
8
10
12
14
MB
oepd
Production
... investing to capture Thistle’s upside potential
* Pre tax costs
Total Facilities CR investment: USD 80 MM
Total Drilling CR investment: USD 160 MM
Lifting costs for contingent resources negligible
30
WF10052b 01.08
Thistle’s Future
Acquired new 3D seismic in 2007
Investment in drilling facilities in 2007/08
Workovers in 2008
Subsurface studies in 2008 ongoing Integrate seismic and update models De�ne contingent resource in�ll targets Move contingent resources into reserves (already moved 3.2 MMBoe in 2007)
Start infill drilling in 2009
Attract third party business
31
2008 Projects - Others
WF10027a 01.08
Netherlands (10.5 MMUSD)K5F development (WI 2.03%) Tie in of two development wellsK6GT in�ll (WI 3.841%) Two in�ll wellsK4A3 in�ll (WI 2.03%) One in�ll wellL4pn (WI 4.34%) Pipeline replacement
Russia (28.4 MMUSD)KalmEastern (WI 51%) 4 development wells plus facilities
OilGazTet (WI 50%) facilities
Komi assets (WI 50%) 6 development wells plus facilities
32
2008 Projects - Others
WF10027b 01.08
France (21.8 MMUSD)Les Mimosas development (WI 50%) Water injection wellSoudron development (WI 100%) Deepen water injectorVert La Gravelle (WI 100%) Drill water injectorGrandville Complete water injector
Indonesia (31.9 MMUSD)Singa Development (WI 25.88%) 2 Development wells plus facilities
Salawati Basin (WI 25.94%) 8 Development wellsSalawati Island (WI 14.51%) 2 Development wells
33
WF10015 01.08
Contingent Resources - Existing Discoveries
to R
eser
ves
Norway, 45.1
UK, 54.7
France, 12.4
Others, 20.8
Others, 13.0
133.0 MMboe net Lundin Petroleum
Norway, 105.4
UK, 60.3
- Thistle Infill- Heather Infill- Heather Triassic- SW Heather- Broom Infill- Scolty
- Luno- Greater Alvheim Area- Nemo- Pi South- SE Tor
France, 9.6
188.3 MMboe net Lundin Petroleum
2007
DiscoveriesLuno, Scolty
+70 MMboe
20 MMboe
2008
34
WF10016 01.08
Contingent Resource Movement
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0
Norway - Alvheim
Norway - PL292
Norway - PL148
Norway - PL006
Norway - Luno
Norway - Others
Peik
UK - Heather
UK - Thistle
UK - Broom
UK - Heather Triassic
UK - SW Heather
UK - P9/10b
UK - Scolty
Tunisia
France
Indonesia
Congo
MMBoe
2007 2008
2007 Viodo Development
4.4 MMBoe Blora block relinquishment, 2.6 MMBoe TBC and KOI developments
2.4 MMBoe from CR to Reserves
Birsa full field development
2007 Discovery
Peik Acquisition
3.2 MMBoe from CR to Reserves
11.2 MMBoe from CR to Reserves
2007 Discovery
3.9 MMBoe from CR to Reserves, 4.1 MMBoe of additional resources identified
35
WF9434 01.08
027 028 029
020 021 022
013 014 015
007 008
002
006
003
009
001
030
00090008
001800170016
0026
0025
0027
00310030
0002
0007
016
0032
0003
A
5604
5504
0015
0001
023
0024
5603
5503
031
BergenSullom Voe
UNITED KINGDOM
NORWAY
0 100KM
OperatedNon Operated
PL148
PL338
PL203002400240024
PL340
PL292P1107
PL006c
Peik
9/10b
PL006c:South East Tor
75% interest (operator)gross resources: 22.5 mmboeappraisal drilling in 2008
PL148 7/7-2:Nemo
50% interest (operator)gross resources: 20.6 mmboeappraisal drilling ongoing
PL292:Pi South
40% interestgross resources: 10.9 mmboePi North prospect drilling in Q1 2008
PL340 15% interestgross resources: 11.0 mmboedrilling Marihone prospect in 2008
PL338Luno
50% interest (operator)gross resources: 65-190 mmboeappraisal drilling in 2008
* Excludes in�ll drilling within existing �elds
P1107:Scolty
40% interest (operator)gross resources: ~10 mmboedrilling amplitude anomaly prospect (Torphins) in 2008
PL203Gekko/Kobra
15% interestgross resources: ~36.6 mmboe
P090 (9/10b)9/10b discovery
85% interestgross resources: ~11.9 mmboe
Net Contingent Resources: 119 MMBOE
UK / Norwegian Undeveloped Discoveries*
36
WF10017 01.08
2008 Contingent Resource Work Programme
Norway Appraisal Drilling PL338 (Luno) PL006C (SE Tor) PL148 (Nemo)
Thistle and Heather Development studies New 3D seismic Update reservoir model Define infill targets
Exploration near contingent resources UK - Torphin exploration near Scolty discovery Norway – Pi North Exploration near Pi South PL292 discovery Norway – Marihone Exploration near PL340 discovery Congo – Exploration near Viodo discovery
France Ongoing development studies
37
WF10018 01.08
PL409
PL410
PL304
PL359
PL167
PL167 B
001001001660010010010015
00200250024
89a
6b
7b
5b
4a
3a
2b
4b
2a
1e
2
5a
10c
3e3dd
11g
3
6e
9
77777aaaaa
1c
1d11fff
11b
5b
6ddd
3f
8c
1g
3c
3b
1h
5e
6a
10f
8a
8b
6b
1a
12
1b
101010aaaaaa
8ddd
2828
1111
7c
3333333bbbb
101010ee
111111jjj
2929bbb282828bb29b2929b29
9ccc99dd
88ccc
101010PL167 B10PL167 BPL167 B10PL167 BPL167 B10PL167 BdddddPL167 BdPL167 BPL167 BdPL167 BPL167 BdPL167 BPL167 BdPL167 B
1111j11j cc
5555ffff
GUDRUN
GLITNE
HANZ
VOLVE
0024/12 (Area 3)GRANE
SLEIPNER WEST
SLEIPNER EAST + LOKE
DAGNY
GUNGNE
BRAE EAST
SIGYN
LUNO PROSPECT
9bb0 5 10
Kilometers
Oil fieldGas Condensate field
Luno Discovery - PL338
Lundin Petroleum interest: 50% (Operator) Revus 30%, RWE 20%
Discovery 16/1-8 Light oil in Jurassic reservoirUpside in TriassicLargest discovery in Norwegian North Sea in the last decadeNew play concept proven
Contingent Gross Resources
Discovered in 2007
Discovery MMBOE
13357?
1229a28aa
0024/12 (Area 3)0024/12 (Area 3)Lundin Petroleum OperatorLundin Petroleum Partner
PL338
Luno Jurassic (mean)Luno Jurassic upsideLuno Triassic upside
38
WF10018 01.08
Drill and test delineationwell 16/1-10 Q2/Q3 2008
Drill second delineationwell 16/1-11 andtest 16/1-8 in 2008/9
Decide on commerciality end 2008
Initiate a Plan for Developmentand Operation in 2009
Forward Plan Luno discoverywell 16/1-8 16/1-4
16/1-5
Luno discoverywell 16/1-8 16/1-4
16/1-5
Jurassic reservoir
Triassic reservoir
Appraisal 1
Appraisal 2
Appraisal programme to commence in 2008 to - appraise lateral extent and quality of Jurassic reservoir (Appraisal -1) - appraise Triassic potential (Appraisal -2)
A rig slot has been secured to beginappraisal programme in 2008
Existing wellsNew well
New well
Luno Discovery - PL338
39
WF9828a 11.07
Norway - Luno Regional
16/1-4
16/1-5
16/1-8
Utsirahigh south
PL338
PL304
PL167
PL359
PL410
Luno discoverywell
0 KM 10
Lundin 70%(operator)
Lundin 100%(operator)
Lundin 20%
Lundin 50%(operator)
Lundin 60%(operator)
Applied for and awarded additionalacreage in area on the assumption thatthe new Luno play concept worked
40
WF9920 01.08
Southern North Sea - PL148
Lundin Petroleum interest: 50% (operator) Noreco 20 %, Talisman 30%
Contingent Gross Resources
Field MMBOE
Nemo
Nemo additional upside
20.6
12.4
98
3
030
00000022
0008 00099
000000000333
0007
000116
13
89879
9
6
12
1110
12
7
4a
8b
3a
6a
9b
1
7b
7a
5b
2b
4a
4
12b
5 5 6 4
3a
8
1b
7b
11c
8
11a
4
10b
3b
21
5c
21
10
16
2a
5b1315
2UP
25
10
2b
26
2LW
5a
30
28a
7a
25a
32
10b
8c
10a
24b
27c
7b
23a24a
7a
19b
6b
23b
9a
28b
11c
30
27b
5c
30
19a
21
20b
17b
15
16
25
4b
7b
5e
8aUP
18W
11b
26c
5b
30a
29b
20c
4c
28N32a31a
1c1aF1
6LW
30b
12a
11a
20a
5b
5bLW
17a
7d
20a
2b
26c
9a
29
14
1g
23a
31a
4b
27c
12b
7a
20b
16f
5a
4d
4LW
20a
29c
27a
1d
10a
0 40KM
PL148PL335
PL400
PL398sPL440s
PL006C
4 6LW5bLW 4LW
Lundin Petroleum OperatorLundin Petroleum Partner
UKUKUKUKUKUKUKUKUK
DENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARK28a
DENMARK28a27c
DENMARK27c
26cDENMARK26c
NorwayNorwayNorwayNorwayNorwayNorway11cNorway11c
Nemo discovery
41
WF9920 01.08
Southern North Sea - PL148 - Nemo
PL148 - Nemo Net Production to LundinNet Production (mbopd)
0123456789
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
(mbo
pd)
Gas ProductionOil Production
7/7-2 Statoil 1992, oil down to DST 5000 bbl/d, 36 API, Pressure 626 bar @3310 m SS
7/7-3 Statoil 1993, only shows (water up to)
Contingent gross resources 20.6 MMboe with additional upside
Upside volumes 12.4 MMboe
Planned appraisal well position to prove up significant upside: OWC, reservoir thickness/quality
Mærsk Giant rig commenced drilling on 15th December 2007
Nemo Discovery
-3500
-3525-3500
-3800-3750-3700-3650-3600-3550-3500-3450-3400-3350-3300
Depth
0 500 1000 1500 2000 2500m
1:63457
-
ODT -3323
PL148
TOP GYDA RESERVOIR MAP
Trias
sic Po
d
P1
I1
7/7 2
7/7-3
42
WF9915 11.07
Southern North Sea - PL006C
Lundin Petroleum interest: 75% (Operator) Noreco 25%
InfoDiscovery well 2/5-3 (1972) found lightoil in two formationsEach formation tested rates in excessof 4,300 bbl/d
Contingent Gross Resources
Discovery MMBOE
22.55.6
030
00000022
0008 00099
000000000333
0007
000116
13
89879
9
6
12
1110
12
7
4a
8b
3a
6a
9b
1
7b
7a
5b
2b
4a
4
12b
5 5 6 4
3a
8
1b
7b
11c
8
11a
4
10b
3b
21
5c
21
10
16
2a
5b1315
2UP
25
10
2b
26
2LW
5a
30
28a
7a
25a
32
10b
8c
10a
24b
27c
7b
23a24a
7a
19b
6b
23b
9a
28b
11c
30
27b
5c
30
19a
21
20b
17b
15
16
25
4b
7b
5e
8aUP
18W
11b
26c
5b
30a
29b
20c
4c
28N32a31a
1c1aF1
6LW
30b
12a
11a
20a
5b
5bLW
17a
7d
20a
2b
26c
9a
29
14
1g
23a
31a
4b
27c
12b
7a
20b
16f
5a
4d
4LW
20a
29c
27a
1d
10a
0 40KMPL148
PL335
PL400
PL440sPL398s
Lundin Petroleum OperatorLundin Petroleum Partner
UKUKUKUKUKUKUKUKUK
DENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARKDENMARK28bDENMARK28b26cDENMARK26c
NorwayNorwayNorwayNorwayNorwayNorway11cNorway11c
6a
4a4a4aPL006c
SE TorSE Tor additional upside
43
WF9915 11.07
Possible tie in points for South East Tor arethe Tor field, the Ekofisk field (and the Valhall field)
Licence plan to drill well with side track(exploration and appraisal targets) in order toprove most likely reserves and potential upside
Contract with Mærsk Gallant
Expected start drilling: December 2008
Forward Plan
Southern North Sea - PL006C - SE Tor
PL398 SPL440S
PL006c0002
5603
0001
030
031
6
9
8a7a
5b
4a
3
10
6a
1b
8c
3a2LW
25a
30
5c
30
4b
7c
31a
4e
7d
5f
9c
1a
27c
5a
4d
21b
9b
11d
11c
11b
28b
2UP
4c
11a
9a
26b32a
6aF1
27b
26bF1
12
28a
28c
1aF1
7e
26
27a
7b
27b26f
20b
26g
32b
31b
24
21a
20a
26c
TOMMELITEN ALPHA
TOMMELITEN GAMMA
TJALVE
0002/07 (Area 22)
0002/02 (Area 1)
VALHALL
0002/05 (Area 11)
HOD
EKOFISK PHILLIPS0002/05 (Area 4)
GYDA 0002/02 (Area 5)
FREJA
0002/06 (Area 5)
FLORA
0002/07 (Area 19)
ANGUS
EKOFISK NON PHILLIPS
FREJA
0002/04 (Area 10)
0002/07 (Area 29)
0002/01 (Area 11)
031/26 (Area 8)
0 5 102.5
Kilometers
5bEKOFISK NON PHILLIPSSouth East Tor
Target 2
Target 1
New well
9km
15km
30km
9km
15km
30kmExisting wells
44