fogl agm 2015 presentation
DESCRIPTION
Falkland oil and Gas AGM 2015TRANSCRIPT
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AGM Presentation 10 June 2015
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Disclaimer
FALKLAND OIL AND GAS LIMITED
DISCLAIMER
This presentation is not and is not intended to be a prospectus and does not or is not intended to constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities in Falkland Oil and Gas Limited (the "Company") in any jurisdiction. It shall not form the basis of, or be relied on in connection with, or act as invitation or inducement to enter into, any contract or commitment whatsoever. No offer of securities is being or will be made in circumstances which would require a prospectus or similar document to be approved.
While the information contained in this presentation, which does not purport to be comprehensive, is believed to be accurate, neither the Company nor any other person has conducted any investigation into or verified such information. No representation or warranty, express or implied, is or will be given by the Company or its directors, officers, employees or advisers or any other person as to the accuracy, completeness or fairness of this presentation and, so far as permitted by law and except in the case of fraud, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency of any of the information contained in this presentation or for any errors, opinions, omissions or misstatements, negligent or otherwise relating to this presentation. Each recipient must conduct its own independent investigation and analysis of the Company and of the information contained in this presentation and bear all the costs of doing so.
This presentation may include certain "forward looking" statements which are based on expectations, projections and forecasts relating to the future performance of the Company. Such statements, projections and forecasts, which are intended as a guide only, represent the Company's own assessment and interpretation of information available to it at the date of this presentation and reflect significant assumptions and subjective judgements by the Company. A number of factors could cause actual results to differ materially from the potential results discussed in such forward looking statements, estimates and forecasts, including (but not limited to) changes in general economic and market conditions and all other risk factors (whether political, regulatory or otherwise) associated with offshore exploration, development and production. In all cases, recipients should conduct their own investigation and analysis of the information contained in this presentation. No representation or warranty is made or assurance given that the statements, projections and forecasts contained in this presentation will be borne out in practice or that the Company will perform as projected and the Company does not assume responsibility for verifying any of such statements, projections or forecasts. Neither the Company nor any persons shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this presentation.
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No person has approved (for the purposes of section 21 of the Financial Services and Markets Act 2000 (the FSMA)) the contents of, or any part of, this presentation. This presentation is only directed at persons who have professional experience in matters relating to investments and who: a) in relation to persons resident in the UK, fall within the exemptions contained in Articles 19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (including certain investment professionals, high net worth companies, unincorporated associations or partnerships and the trustees of high value trusts); or b) in relation to U.S. Persons (as defined in Rule 902 of Regulation S under the U.S. Securities Act of 1933, as amended (the Securities Act)), are an accredited investor within the meaning of Rule 501 of Regulation D under the Securities Act; or c) are otherwise permitted by the laws of the jurisdiction in which they are resident to receive them; and d) in relation to persons in member states of the European Economic Area (EEA), are a professional client or an "eligible counterparty" within the meaning of Article 4 (1)(II) and 24(2), (3) and (4), respectively, of MiFID as MiFID is implemented into national law of the relevant EEA state.
Persons falling within one of the categories of persons described above must comply with the terms of this disclaimer and they will conduct their own analyses or other verification of the data set out in this presentation and bear the responsibility for all or any costs incurred in doing so. Persons who do not fall within one of the categories of persons described above should not rely on this presentation nor take any action upon it.
Neither this presentation nor any copy of it may be taken or transmitted into the United States of America or its territories or possessions (the "United States"), or distributed, directly or indirectly, in the United States, or to any U.S. Person as defined in Regulation S under the Securities Act, including U.S. resident corporations, or other entities organized under the laws of the United States or any state thereof or non-U.S. branches or agencies of such corporations or entities or into Canada, Australia, Japan, New Zealand, the Republic of Ireland, or the Republic of South Africa, except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States or other national securities laws.
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Pure Play Falklands Explorer
Largest Falkland Islands license holder (> 40,000km2)
Material interest in all licenses (> 40%)
Exploring in the North, South and East basins
Active 2015 drilling programme
Four key wells: Zebedee, Isobel Deep, Humpback & Jayne East
Eirik Raude commenced drilling on 6 March 2015
Two wells completed to date
Two oil discoveries to date: Zebedee and Isobel Deep
Strong Business Track Record & Experienced Management Team
Successful acquisition of Desire Petroleum in 2013
Farm-outs completed with BHP, Noble Energy, Edison, Premier Oil and Rockhopper Exploration
The Leading Falklands Explorer
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2015 Drilling Programme
Prospect
Name
FOGL WI
(%)
FOGL
Paying
interest (%)
Q1 Q2 Q3 Q4
North Falkland Basin
Zebedee 40.0% 40.0%
Isobel Deep 40.0% 0.0%
Jayne East 40.0% 0.0%
South and East Falkland Basin
Humpback 52.5% 27.5%
2015
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Interests in six licences
PL004b (FOGL 40% ) contains Sea Lion southern extension
Material exploration prospects in PL004a,b,c and PL005:
Zebedee
Jayne East
Isobel/Elaine fan complex
Susan
Helen
FOGLs North Falkland Basin Licences
Jayne East
Elaine
Isobel
Zebedee
Susan
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The Sea Lion field straddles PL032 & PL004b
FOGL estimate that >40% of the Sea Lion Complex resources lie within PL004b
Premier are proposing a two phased development concept, targeting the northern area first
Unitisation discussions took place in 2014 between PL032 & PL004b licencees, FIG and its advisers (BGS & DECC). Currently these are on hold during 2015 drilling programme
*FOGL estimate that the 14/15-4a and 14/15b-5 (Zebedee) wells have demonstrated over 250mmbbls of
oil resources lying within PL004b
Sea Lion Complex
*Preliminary FOGL management estimate of gross mid case contingent resources
PL032
PL004b
Phase 1a
development area
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14/15b-5: Zebedee Oil Discovery
Total hydrocarbon net pay of 45 metres
Hector: 17.5 metres of net gas pay,
Possible significant upside in Hector oil rim
FOGL estimate c.18~32 mmbbls oil within Hector oil rim
Zebedee : 25.0 metres of net oil pay, excellent reservoir
FOGL estimate c.75 mmbbls oil within Zebedee sand
Beverley: 2.5 metres of net oil pay
FOGL estimate c.20 mmbbls oil within Beverley oil rim
Pressure measurements in the Zebedee reservoir plot on the same gradient as the Sea Lion field.
Very likely that the Zebedee reservoir is in pressure communication with, and has the same oil-water contact as Sea Lion.
Good oil shows in a number of the deeper F3 targets, but at this location the sands were not well developed.
Significant increase in Sea Lion Complex Resources within PL004b
Preliminary FOGL management estimate of gross mid case contingent resources
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Zebedee/Casper South
One sand or two?
In pressure communication
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9
?
?
?
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?
Hector Reservoir
Spectral Decomposition Amplitude extraction
Top Hector
GOC OWC?
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Beverley results demonstrate presence of oil rim
GOC OWC
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PL032 310 55%
PL004b 256 45%
Sea Lion Complex: Material Resources within PL004b
Preliminary FOGL management estimate of mid case contingent & prospective resources
85 117
Contingent
Resources split
32
*
* GCA estimate 2012
FOGL share
102
18%
PL004b Mid Case Gross Contingent
& Prospective Resources
38
45
60
75
20
18
256
0
50
100
150
200
250
300
SLMC Casper Casper South Zebedee Beverley Oil Hector Oil Jayne East Sea LionComplex
Resources inPL004b
mm
bb
ls
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Isobel/Elaine fan complex
Courtesy Rockhopper Exploration
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14/20-1: Isobel Deep Oil Discovery
De-risking another Sea Lion scale fan-complex
Well drilled to 2527metres, did not reach planned TD
Penetrated c. 24m into Isobel Deep (F3) sand
Oil recovered to surface (with drilling fluid)
Over-pressured reservoir
Well suspended
Opens up new play
Significantly de-risks entire Isobel/Elaine fan complex
Lowers risk on FOGL 100% prospects Susan & Helen in PL005
Next steps: Re-enter/side-track or re-drill well
Under the terms of the farm-out agreement FOGL is fully carried for any re-drill or side-track of the Isobel Deep well
Isobel Deep upper sand
Isobel Deep lower sand
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Isobel Deep fan system
Spectral Decomposition
Amplitude extraction
Isobel Complex
Isobel
Complex
A
B
A
B
A
B
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Isobel
Deep
Isobel/Elaine fan complex
Isobel
Shallow
Elaine
South
Elaine
North
Isobel Deep
Well location
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Well will test five potential reservoir levels across the F2 and F3 sequences
In success case can be tied back to Sea Lion
Key geological risk is the updip seal
FOGL interest (paying interest zero)
40%
Gross Prospective
Resources 85mmbbl(1)
Net Prospective
Resources 34mmbbl
Spud Date Q3 2015
Operator Premier Oil (36%)
Partners Rockhopper (24%)
(1) Mid case unrisked gross prospective resources based on FOGL management estimates
PL004c: Jayne East
High Impact, near field well
Jayne East Location
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Diomedea Fan Complex
FISA 3D survey
Cretaceous Fault Blocks
FIST 3D survey
Hersilia Fan Complex
FINA 3D survey
FOGLs South & East Basin Licences
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Prospect selection for Noble operated wells
First Well
Humpback prospect (in the Diomedea Fan Complex)
Second well
Well postponed pending Humpback results and completion of technical evaluation
Humpback results will guide choice of follow-up drilling.
Current options being evaluated:
Diomedea Fan Complex
Side-track on Humpback (success case)
Fault Block Area
Scharnhorst North
Hersilia Fan Complex
Starfish
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The Darwin exploration well discovered gas and a rich condensate in good quality Cretaceous sands
Seismic amplitude responses indicate the possibility of different hydrocarbon phases, including oil
Potential drilling candidate:
Scharnhorst North: 355 mmbbls*
Seismic interpretation is on-going
Cretaceous Fault Blocks (FOGL 52.5%)
Fault Block play shown on an amplitude map generated from the new 3D seismic data
* Mid case gross prospective resources
(un-risked) based on FOGL management estimates
Scharnhorst North
Seismic amplitude map over
Scharnhorst North
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Multiple material prospects identified on 3D seismic
Mid Cretaceous Fan Play:
Starfish: 402 mmbbls*
Bullfish:
Shearwater:
Fulmar:
Toothfish:
Hoki:
Jurassic Fault Block Play
Endurance:
Endeavour:
Cooper:
Seismic interpretation is on-going
Hersilia Fan Complex (FOGL 40%)
* Mid case gross prospective resources (un-risked) based on FOGL management estimates
> 2 billion boe*
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Diomedea area comprises a large system of deepwater channels & fans
Multiple material prospects identified on 3D seismic
Main hydrocarbons in place expected to be oil
Six potential drilling targets identified (> 1.7bn bbl gross prospective resources (1))
Significant follow-on potential in the event of success at Humpback
Current prospect inventory :
Humpback: 510 mmbbls*
Stingray: 266 mmbbls*
Finback: 232 mmbbls*
Caperea: 225 mmbbls*
Minke: 240 mmbbls*
Bowhead: 275mmbbls*
Diomedea Fan Complex (FOGL 52.5%)
Prospects and Leads map
* Mid case gross prospective resources (un-risked) based on FOGL management estimates
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Diomedea Fan Complex: Humpback
WI (%) / PI (%) 52.5% / 27.5%
Gross Prospective
Resources 510mmbbl(1)
Net Prospective
Resources 268mmbbl
Spud Date June 2015
Operator Noble Energy (35%)
Partners Edison (12.5%)
(1) Mid case unrisked gross prospective resources based on FOGL management estimates
Potential high impact play opener, with multiple follow-on prospectivity
Humpback comprises a system of stacked slope-channel reservoirs
Located up-slope from mature oil source kitchen
Up-dip seal mapped on 3D
Potential world-class prospect with stacked reservoir objectives
The first well targets the Humpback channel and
Stingray is a possible follow-up
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The 2015 drilling campaign commenced on 6 March 2015
Four well drilling programme targeting over 1.1 billion barrels of gross prospective resources
Two oil discoveries in NFB so far..
Zebedee: Significant increase to Sea Lion Complex resources within PL004b (FOGL 40%)
Isobel Deep: Exciting play opening well in Isobel/Elaine fan complex
Humpback in SFB next up
Jayne East to follow in Q3
Summary