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Preliminary Results PresentationFor the year ended 30 June 2013Shareholders’ Regional Meeting23 September 2014
Ladenburg Thalmann Africa Upstream Conference
10 March 2015
10 March 2015 Ladenburg Thalmann Africa Upstream Conference 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 USA, Canada, 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"); (iii) any offer for the sale, purchase or
subscription of any Shares; or (iv) any directed selling effort in respect of any Shares.
Cautionary note for US investors
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 United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or formation tests to be economically and legally producible under existing economic and
operating conditions. The Company is not required to make filings with the SEC and this presentation includes information on "volumes initially in place",
"STOIIP“, "resources" and other similar terms. Such terms do not refer to and are not reserves and US investors are cautioned accordingly.
Cautionary note for Canadian investors
No securities commission or similar authority in Canada has reviewed or in any way passed upon this presentation or the merits of the Shares, and any
representation to the contrary is an offence.
Forward-looking statements
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. 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.
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Company Overview
• 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.”
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Onshore extension of
Douala Basin.
Series of structural
prospects.
Two well exploration drilling
programme planned.
Asset Overview - Balanced Portfolio
DevelopmentEarly Stage Exploration
.
DevelopmentEarly Stage Exploration
BomonoCameroon
Block 11BKenya
EtindeCameroon
3 blocks covering
~16,250k 3 blocks
covering ~16,250km²
m²
3 blocks covering
~16,250km²
Blocks 25, 28 & 29 Zambia
Exploitation Authorisation
over MLHP-7.
Gas sales agreement
(GSA) negotiations well
advanced.
Farm-out to
LUKOIL/NewAge.
Two well appraisal drilling
programme on Intra
Isongo planned.
Three blocks covering
~16,250km².
Application for further two
blocks pending.
Early stage exploration.
Block 11B onshore Kenya
covering ~14,200km².
New hydrocarbon
province.
FTG survey completed.
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• Farm-out of 40% interest (post government back in) in Etinde
to LUKOIL and NewAge.
• All conditions to farm-out now satisfied – completion/cash
consideration to follow ~ mid March 15.
• Consideration:
~$170 million cash at completion.
$40 million (net) carry for two appraisal wells.
$40 million staged deferred cash payment.
• Revised participating interests: Bowleven 20%, LUKOIL 30%,
NewAge 30%, SNH 20%.
• Operatorship to transfer to NewAge.
• Key benefits of transaction:
Strengthened balance sheet.
Accelerated appraisal drilling programme.
Value added partner with significant experience and
expertise.
Etinde Farm-out Transaction
Transaction Overview
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Etinde Development
*Offshore processing concept being contemplated subject to cost/benefit review.
**Operator’s estimates
**IM-5 Well Results
• Condensate-rich gas flowed
on test.
• Combined max. flow rates:
60mmscfd & 7,819 bcpd
(Total>17,800 boepd).
Upper Isongo
32m (net) encountered; wet as
prognosed pre-drill.
Intra Isongo
Log evaluated net pay of
approximately 70m.
Intra Isongo DST
Tested >10,800 boepd from
29m net pay.
(37mmscfd & 4,664 bcpd)
Middle Isongo
Log evaluated net pay of
approximately 25m.
Middle Isongo DST
Tested >7,000 boepd from
14m net pay.
(23mmscfd & 3,155 bcpd)
IM-5
Upper Isongo
Intra Isongo
Middle Isongo
• Exploitation Authorisation (EA) awarded July 2014.
• EA gives development and exploitation rights over block
MLHP-7 for an initial period of 20 years.
• ‘Hub and Spoke’ development concept:
Oil, condensate and wet gas to onshore hub*.
Liquids stripping and NGL extraction at hub.
Liquids marketable internationally.
• IM field (Intra Isongo) to deliver first phase of liquids & gas.
• Initial dry gas sales to fertiliser plant.
• IM-5 well confirmed sufficient gas volumes to support fertiliser
plant.
• Significant upside potential – additional offtake solutions being
considered including CLNG.
• Shape and timing of development will be influenced by new
partner/operator.
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Etinde Development
Stage 1 - Fertiliser
• Sufficient gas volumes to support fertiliser plant.
• Dry gas to fertiliser plant: 70mmscfd.
• Gas sales agreement (GSA) negotiations well advanced
(20 year supply).
• Initial liquids production: ~ 14k-16k boepd* (inc LPGs).
• Represents a committed total gas volume of approximately
500bcf and expected liquids production of approximately
100mmboe.
• First production integrated with fertiliser timetable.
• Gross development capex†:
‒ Pre first production: estimated $650 million - $700
million (EEAA case).
‒ To be further refined during FEED.
* Operator projections. † Operator estimates (Class III & Class IV estimates).
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Etinde Development
Further Opportunity
• Further drilling planned to prove up additional resources.
• Additional gas offtake solutions being considered.
• EEAA includes full field development concepts - LNG.
• Momentum building behind Cameroon LNG (CLNG), led by
GDF Suez and SNH.
• Award of FEED anticipated Q1 2015.
• Gas supply capacity allocation discussions commenced for
supply of Etinde gas (subject to appraisal/development
drilling).
• Expanded joint venture will work together to realise
considerable resource and potential of Etinde acreage.
Indicative Supply Profile including CLNG
CLNG Illustrative pipeline route
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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
Intra Isongo Horizon
IM-5
1 Km
Gross 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
• Access through transaction to drill two appraisal wells. Drilling
expected to commence H2 2015.
• 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.
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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
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Bomono
Source: Operator
Operational Update
• Rig contract signed with Fortesa for two well
exploration programme.
• Rig onsite at Zingana location – drilling to
commence in due course.
Identification of Gas Sales Opportunities
• Ideally located adjacent to Douala City.
• Actis acquisition of AES/Sonel brings new
momentum to growth of the local power market.
• Talks initiated with potential power producers.
• Opportunity for rapid installation of gas-fired
generators at the well sites, with cabling to local
consumers.
• Early phase liquids trucked to Limbe refinery.
Seeps
Vintage 2D
Bowleven
2D
Acquisition
VOG: Gas and
condensate
production.
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Exploration Targets
Zingana-1 Moambe-1SW NE
Line No: BOM-10-106
Bo-03 (yellow) –
gas in B & C sds
‘B’ Sand twt
Structure Map
Zingana
Prospect
Moambe
Prospect
Oil Potential
• Focused on the deeper D&E sands.
• Zingana and Moambe targeting medium risk 50-100mbbl*
STOIIP pools (P50-Mean range) in each sand.
• Oil seep and borehole data encouraging for liquids; albeit
lower risk for gas/condensate.
Gas/Condensate
• Shallower B&C sands.
• Historic well data indicates high chance of success – 1953
wells tested gas in B and C sands near Zingana location.
• Two wells targeting 5-40bcf* GIIP pools (P90-P50 range) in
each sand, with associated condensate.
• If successful, subsequent appraisal to prove volume will be
fast-tracked, potentially by scaled early production system
(gas to power).
Cretaceous
• Deeper, higher pressure targets will not be tested by the
initial exploration programme.
• Potential for 2-3tcf (in place) but high pressure, high
temperature.
* Operator estimates.
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Kenya
Block 11B
Overview
Uganda
South SudanEthiopia
Kenya
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.
• 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.
• Operator applied for extension to first exploration phase of
licence to allow for acquisition, processing and evaluation of
2D seismic.
10 March 2015 Ladenburg Thalmann Africa Upstream Conference 14
Kenya Block 11B FTG Results
• 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.
• Greatly assisted in the design of
seismic programme.
Terrain Regional Gravity FTG dataset
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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
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Funding Overview – Current Portfolio Fully Funded
• Cash at end December 2014 ~$7 million, no debt.
• $30 million transaction bridge facility available for
utilisation pending farm-out completion.
• Consideration from LUKOIL/NewAge farm-out:
~$170 million cash at completion (including ~$5
million working capital adjustment).
$40 million (net) carry for two appraisal wells.
$40 million deferred cash payment.
• Potential for development funding at FID. Options include
project debt, development bank finance and mezzanine
finance.
• Fortesa farm-in to Bomono.
• Discussions ongoing regarding further Bomono farm-
down.
• First Oil strategic partnership provides funding towards
exploration activity in Kenya.
Equity
Placing
First
Production
Use of Transaction Proceeds
Proceeds (~$250m)
• $170m at completion
• $40m carry - 2 appraisal wells
• $15m on completion of
appraisal wells
• $25m at FID
Use of Transaction Proceeds – Disciplined Capital Approach
Etinde Expenditure (~$110m)
• $40m - two appraisal wells
• $140m – share of Etinde
development expenditure
(likely 50% “equity” and
50% debt funding)
Financing Flexibility (~$140m)
• Petrofac fee ($9m)
• Bomono – exploration &
appraisal
• Kenya phase 2?
• G&A
10 March 2015 Ladenburg Thalmann Africa Upstream Conference 17
Conclusion
• Strengthened balance sheet post completion of
Etinde farm-out.
• Balanced portfolio.
• Accelerated appraisal of the extensive Intra
Isongo reservoir interval.
• Expanded joint venture will work together to
realise considerable resource and potential of
Etinde acreage.
• Exploration and appraisal activities continuing.
Well-positioned to both fund our
share of Etinde’s ongoing
appraisal and development
programme and also to progress
the potential of our exploration
portfolio in Cameroon, Kenya and
Zambia.
oil & gas
Appendix
10 March 2015 Ladenburg Thalmann Africa Upstream Conference 19
Management Team
Kevin Hart, Chief Executive OfficerKevin Hart was Finance Director at Cairn Energy plc for over eight years, a role that incorporated board responsibility for financial,
commercial, legal, risk management and HR matters. Prior to this, he was a Senior Associate Director with Deutsche Morgan Grenfell
Group, specialising in oil and gas sector mergers and acquisitions. He is also a Non-Executive Director of Troy Income & Growth Trust, and
a trustee of the charity Columba 1400. He was appointed to the Bowleven Board in November 2006.
David Clarkson, Operations DirectorDavid Clarkson was appointed to the Bowleven Board in 2013. He previously worked for BP where he held a variety of senior executive
positions in the Upstream business, including leading major project developments in frontier locations and as Technical Vice President for
Projects & Engineering. David has a degree in Mechanical Engineering from the University of Strathclyde and is a Chartered Engineer and
Fellow of the Institution of Mechanical Engineers.
Ed Willett, Exploration DirectorEd Willett has worked in the oil and gas exploration business for 30 years and has extensive experience across a wide variety of petroleum
provinces. He started his career with Carless Exploration in the mid-1980s, working on UK onshore and UK continental shelf assets, before
joining Cairn Energy plc in 1989, where he held a variety of technical and management roles across Cairn’s entire portfolio. He was
appointed to the Bowleven Board in 2008.
Kerry Crawford, Finance DirectorKerry Crawford joined Bowleven in 2008 as Deputy Finance Director and Head of IR. She previously worked at Cairn Energy plc for 10
years, latterly in the role as Deputy Finance Director and Head of IR. She qualified and first worked as a Chartered Accountant at Ernst &
Young and is a member of The Institute of Chartered Accountants of Scotland. She is also an Associate Member of the Institute of
Corporate Treasurers. She was appointed Finance Director and member of the Bowleven Board in 2014.
Peter Wilson, Director / General CounselA Scottish qualified solicitor, Peter Wilson joined from McClure Naismith, Bowleven’s then legal advisers, where he was a partner in their
Edinburgh office specialising in corporate law. He is a Director, General Counsel and Company Secretary of Bowleven. Peter has been
advising Bowleven on contractual, legal and compliance matters since 1999. He was appointed to the Bowleven Board in 2005.
Chief Tabetando, Chairman of EurOilA Cameroonian citizen, Chief Tabetando is a qualified lawyer with an LLM degree from the University of London. Prior to joining Bowleven
he was senior partner and head of Chambers in one of Cameroon’s leading international law firms since 1975. He has over 12 years of
experience in the oil and gas industry in an executive role. He is presently Vice President of the Cameroon National Council of Monarchs.
He is a founding shareholder and Chairman of EurOil Limited. He was appointed to the Bowleven Board in 2001.
10 March 2015 Ladenburg Thalmann Africa Upstream Conference 20
• One of the world’s leading integrated oil and gas companies.
• Accounts for in excess of 2% of global output of crude oil.
• Market capitalisation of around $40 billion and listed on both the Russian and London stock exchange.
• Over 20 years of operating experience.
• Extensive experience in operating multi-tcf gas fields, developing and producing hydrocarbons (including the processing of
natural gas liquids).
• Majority of exploration and production activity is located in Russia but has interests in Sierra Leone, Cote d’Ivoire, Ghana,
Egypt, Saudi Arabia and Iraq amongst others.
• Privately-owned oil and gas exploration company.
• Operations in 7 countries and a portfolio of 21 oil and gas concessions covering 6 hydrocarbon basins.
• NewAge is currently producing from 2 fields and has 2 further development fields expected to commence production in 2015.
• CAMOP, a subsidiary undertaking of NewAge has held a 25% (20% post government back-in) equity interest in the Etinde
Permit since 2009.
Information on LUKOIL/NewAge
LUKOIL
NewAge
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