excellence in oil & gas summit –sydney building a growth ... · jv partners: cnooc, horizon,...

Roc Oil Company Limited Roc Oil Company Limited Company Overview page 1

Mr Anthony Neilson - CFO

Company updateExcellence in Oil & Gas Summit – Sydney

Building a growth business in

South East Asia and China

Mr Anthony Neilson - CFO

Successful oil appraisal at Bentara field; Balai Cluster (Malaysia)


Company profile

356.2

203.9

235.3 285.8

242.1

08 09 10 11 12

Sales revenue (US$M)

24.0

2P Reserves (mmboe)

ASX-listed upstream company since 1999

• over 180 employees• offices in Sydney, Perth, Beijing and Kuala Lumpur• 683.2 million shares on issue • operated 22,500 boepd in 2012

FY2012 financial & operational summary

• net production of 2.4 mmboe (6,445 boepd)• 2P reserves of 15.0 MMBOE at end of 2012• 100% 2P reserve replacement in 2012• sales revenue of US$242.1 million

24.0

13.9 16.2

15.1

15.0

08 09 10 11 12

4.0

3.7

2.7

2.7

2.4

08 09 10 11 12

Production (mmboe)

• sales revenue of US$242.1 million• net profit of US$61.0 million• production costs of US$15.1/boe• net cash at end of 2012 of US$56.8 million• no debt; available debt facility of US$91m

successful exploration, appraisal and development activities

throughout 2012

• Oil discoveries in Beibu Gulf (China) • Successful appraisal drilling at first two wells for Balai Cluster (Malaysia)• Pre-development activities in Balai Cluster continuing• Beibu Gulf development is nearing completion with first oil targeted during 1Q13

proactive operational safety culture

• process and operational safety a priority• proactive and visible leadership• HSE metrics remain ahead of industry averages


HSE performanceHealth & Safety

• Development of the ROC Asset Integrity Management

system continued within all operations

• Zhao Dong achieved two years without an LTI

• LTIFR was 0.6 versus the APPEA five-year average of 1.3

Environment

• Zero significant environmental incidents reported (>1

APPEA five-year rolling average (1.3)

0

1

2

Jan Jun Dec

2012 LTIFR

• Zero significant environmental incidents reported (>1

barrel)

• 16% decrease in greenhouse gas emissions and a 58%

reduction in total flared gas compared to 2011

Community

• Engage with communities at all stages of projects

• Support for local communities with underlying focus on

educational partnerships

• Seek to provide work experiences and employment

opportunities where possible

0

1

2

3

4

5

6

7

8

9

10

Jan Jun Dec

2012 TRIFR

2012 TRIFR 12 month rolling average TRIFR

2012 LTIFR 12month rolling average LTIFR

LTIFR: lost time injury frequency rate

TRIFR: total recordable injury frequency rate


Reserves summary

15.0

43.6

2P Reserves

Africa

UK

Australia

China

43.6 mmboe

22.9 mmboe

22.943.6

• 100% reserve replacement in 2012 of +2.4 mmboe maintains 2P reserves at 15.0mmboe• 2C contingent resources are 22.9 mmboe• Best estimate prospective resources (risked) of 43.6 mmboe

1. The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

2P Reserves 2C Resources

15.0 mmboe

Best Estimate (Risked)

Prospective Resource1

2C Resources

Best Estimate (Risked) Prospective

Resource1


competitive advantages for a mid-sized company

13 years of operational experience• ~22,500 BOPD ROC-operated production in China and

Australia

• development and appraisal in China, Malaysia and Australia

• exploration experience in China, Australia, NZ and Africa

respected technical capabilities• full asset-cycle operator and extensive explorer

• integrated upstream service provider

• sustainability – asset integrity management

• strong focus on HSE

established industry relationships• with national oil companies such as PetroChina,

CNOOC and PETRONAS

• industry partners including Dialog (Malaysia), AWE, Beach Energy, Itochu, Sojitz and Horizon Oil


Distinct competitive position

� regional focus in areas with world class proven basin potential

� attractive appraisal and development portfolio

� profitable and diverse oil producing assets delivering low risk revenue and free cash flow

� significant near field and transformational exploration potential within current � significant near field and transformational exploration potential within current portfolio and business development initiatives

� established partnerships and good working relationships with NOC partners

� management team with track record of delivery

� commercial landscape in core regions changing to encourage further investment to support domestic production


core focus on SE Asia China and Australiaestablished hydrocarbon provinces

• leverage ROC’s marginal/mature field operations skills

• established infrastructure and markets

competitive cost structure

• continental shelf or onshore

• near field tie in and accelerated production potential

• established and competitive oil field services

significant exploration potential

• high quality hydrocarbon basins

• commercial environment encouraging new exploration

• time lines from discovery to production attractive

non-operated production assets in North Sea, UK (Blane and Enoch fields)


Malaysia entry

Risk Service Contract (RSC) for “Balai Cluster” fields

• A cluster of four discovered oil and gas fields; Balai, Bentara, West Acis and Spaoh

• Contractor group interests are ROC 48%, Dialog 32% and PETRONAS Carigali 20%

• An incorporated joint venture company (BC Petroleum) is operating and managing the RSC

• Vote of confidence in ROC’s proven abilities as an operator of small fields

• Project financing secured for significant portion of the pre-development costs

ROC worked productively with its partners PETRONAS and DIALOG Group throughout the ROC worked productively with its partners PETRONAS and DIALOG Group throughout the process

Malaysia entry was a key step in pursuing ROC’s strategy to grow the business in SE Asia

• Pre-development phase commenced in 2H 2011

• On the successful completion of the pre-development phase and agreement on the project viability of the fields, BC Petroleum will submit a field development plan

ROC is pursuing further Malaysian growth opportunities in addition to the Balai Cluster

• Appraisal and development opportunities, including further RSCs

• Mature field rejuvenation projects

• Shallow water exploration

• Primary focus upon opportunities with potential synergies with the Balai Cluster


Malaysia pre development and appraisal activity

Balai Cluster Risk Service Contract, offshore Sarawak, Malaysia (ROC: 48%)

• Pre-development work progressed with facility installation completed during 2012

• Appraisal drilling commenced in 3Q12; hydrocarbons confirmed at first two wells (Bentara and Balai)

• Pre-development phase is expected to be completed by 3Q13

• On successful completion of pre-development and decision as to economic viability, the project will progress to the development phase

• Cost of pre-development work undertaken by BCP in accordance with the agreed scope of work and subject to the RSC, is reimbursable up to an agreed amountreimbursable up to an agreed amount

• Project financing to assist in funding of the pre-development phase was secured in May 2012, with a debt facility for US$162m

Drilling activities over wellhead platform Early Production Vessel conversion activitiesFacility installation


Location: Offshore Bohai Bay, China

Working Interest: • C&D (+ERA) 24.5%• Zhanghai & Chenghai Blocks 39.2%• C4 Field 11.575% (unitised)

Operator: ROC

JV partners: PetroChina and Sinochem

Development: • 4 linked platforms• Two for drilling & accommodation• Two for production & processing

China - Zhao Dong oil fields

• Two for production & processing• C4 platforms connected by pipelines• Oil & gas pipelines are both commissioned

2P Reserves:(at 31 Dec 2012)

5.6 mmboe net to ROC37% of 2P Reserves

2012 production: 20,213 boepd4,352 boepd net to ROC68% of total ROC production

2012 activity: Drilling programme of 18 wells (14 producers, 3 injectors and 1 appraisal well) in 2012.

A second appraisal well (H-2) in the Zhanghai Block was drilled in December, with weather forcing the suspension of operations prior to conclusive testing results. Initial results indicated the well was below pre-drill expectations.


China – Beibu Gulf developmentLocation: Offshore Beibu Gulf, China

Working interest:

19.6%

Operator: CNOOC

JV partners: CNOOC, Horizon, Majuko

Development: � Two unmanned platforms� 11 development wells� Pipeline to CNOOC processing � Pipeline to CNOOC processing

platform

2P Reserves:(at 31 Dec 2012)

5.4 mmboe net to ROC36% of 2P Reserves

Production: The operator anticipates first oil during 1Q13, with ramp up to plateau production during 2H13

2012 activity: The Beibu Gulf development project continued on schedule and within budget during the year. All government approvals were received during 2012 and the facilities were nearing completion at year end. Final hook-up and commissioning work commenced in December.


Beibu Gulf exploration and development on track and deliveringDevelopment: WZ 6-12 and WZ 12-8 West Oil Field Development (ROC: 19.6%)

• development of field is underway with facilities progressing on schedule (89% complete at 21 November 2012)

• first oil production target Q1 2013

• development drilling programme commenced 4Q 2012

• ramp-up to plateau production during first half 2013• ramp-up to plateau production during first half 2013

Exploration and appraisal: WZ 6-12 and WZ 12-8 West Oil Field Development, Beibu Gulf, Offshore China (ROC: 40% & Operator)

• Successful exploration drilling of three near-field exploration/appraisal wells complete

• potential to add incremental reserves to development

• with commercial success the wells can be included as additional production wells delivering early reserve upside for the Beibu Gulf project

labelBeibu Gulf Drilling

PUQB Platform installation


Exploration potential Block 09/05 (Bohai Bay, off-shore China)

• ROC awarded 100% of the Bohai 09/05 Block in May 2012. 335 sqkm block located in China’s most prolific offshore oil basin, Bohai Bay

• Material progress in building a low risk/high potential regional exploration portfolio; farm-out process underway

• Located 15km north from ROC’s Zhao Dong blocks

• Initial three year exploration period includes the acquisition of • Initial three year exploration period includes the acquisition of 150sqkm of 3D seismic and two exploration wells

• ROC has identified best estimate risked prospective resources of approximately 34 mmboe to date

• ROC is conducting a farmdown process for some of its interest in the block

South East Asia & China

• Myanmar: exploration, appraisal, re-development and development opportunities align with ROC’s distinct competitive advantages

ROC is actively targeting opportunities throughout China and SE Asia that will add value to the asset portfolio


2013 – focus and growth

• Dedication to HSE and Asset Integrity Management

• Continued reserve replacement and resource growth

Deliver Existing Production

Focus on existing assets and optimise production

performance

Maximise Near-Field Opportunities

Focus on delivery of opportunities near to existing

fields and basins

Develop Opportunities in New Ventures

Utilise operator and current skills to deliver new

opportunities in focus regions

Grow through Exploration and

AcquisitionsSelectively identify and pursue growth assets

• Continued reserve replacement and resource growth

• Optimise production performance from existing assets

• Secure additional acreage in key focus areas

• Leverage proven capabilities and existing relationships to secure new assets within focus regions

• Continued fiscal discipline to drive profitability and further value from the business

• Complete Balai Cluster pre development and determine feasibility. Additional equity will be contributed by ROC to BCP in 2013 to complete pre development activities and assess economic viability


2013 & 2014 activity2013 2014

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Exploration activity

Block H Well1

(EG)

Bohai Bay 09/05 seismic

Bohai Bay 09/052

Appraisal activity Balai Cluster pre development activityAppraisal activity Balai Cluster pre development activity

Zhao Dong (Zhanghai)

Development activity Balai Cluster development activity3

Beibu Gulf development activity

Zhao Dong development drilling programme

Production milestones Beibu Gulf production online

Balai Cluster oil production3

1. Well timing is subject to rig availability; White Rose has an option to acquire ROC’s interest in Block H for US$16.1m prior to spud of any well2. Timing of exploration drilling subject to seismic 3. Dependent on declaration of economic viability for Balai Cluster fields following pre-development


For further information:

David Slack-SmithGeneral Manager Investor Relations & Corporate Affairs+61 2 8023 [email protected]

www.rocoil.com.au

The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investmentdecisions investors should rely on their own examination of ROC and consult with their own legal, tax, business and/or financial advisers inconnection with any acquisition of securities.

The information contained in this presentation has been prepared in good faith by ROC. However, no representation or warranty expressed orimplied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information containedin this presentation. To the maximum extent permitted by law, ROC, its directors, officers, employees and agents disclaim liability for any loss ordamage which may be suffered by any person through the use or reliance on anything contained in or omitted from this presentation.

Certain information in this presentation refers to the intentions of ROC, but these are not intended to be forecasts, forward looking statements orstatements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future aresubject to risks, uncertainties and other factors that may cause ROC's actual results, performance or achievements to differ from those referred toin this presentation. Accordingly, ROC, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence ofthe events referred to in this presentation will actually occur as contemplated.

The reserve and resource information contained in this presentation is based on information compiled by Bill Billingsley, ROC's Chief ReservoirEngineer, who is a full time employee of the Company. Mr Billingsley BSc (Chem) MSc (Petroleum Engineering) DIC (Imperial College), amember of the Society of Petroleum Engineers, has more than 17 years relevant experience within the industry and consents to the information inthe form and context in which it appears.

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