interim results presentation preliminary results presentation€¦ · 31 march 2014 interim results...

Preliminary Results Presentation For the year ended 30 June 2013

Interim Results Presentation For six months ended 31 December 2013

31 March 2014 Interim Results Presentation 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 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

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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.


Presentation Agenda

• Overview

• Etinde Development

• Exploration

• Finance

• Outlook & Conclusion

• Q & A

• Appendix

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.”


Asset Overview

Cameroon Kenya Zambia

• 2 permits covering 4,644km².

• P50 contingent resource base 263

mmboe* (net).

• Etinde (Shallow Offshore):

appraisal/development &

substantial prospective resource.

• Bomono (Onshore): Exploration

• Block 11B onshore Kenya covering

~14,200km².

• Early stage exploration.

• Blocks 25, 28 & 29 covering

~16,250km²

• Application for further two blocks

pending.

• Early stage exploration.

* Source: 2013 Annual Report. Operator’s volumetrics (excludes IF volumes pending external review).

Acreage: 2,328km2

Onshore

Equity Interest:

100%

Operator:

Bowleven Group

Bomono Permit

Acreage: 2,316km2

Shallow Offshore

Equity Interest:

75% (CAMOP 25%)

Operator:

Bowleven Group

Etinde Permit

Cameroon

Nigeria

Kenya

Ethiopia South Sudan

State back-in rights: Etinde 20%, Bomono 10% (at grant

of exploitation licence).

Acreage: ~14,200km2

Onshore

Effective Equity Interest: 35%

(Adamantine 50%)

Operator:

Adamantine

Block 11B


* FID: Final Investment Decision

†

• Etinde Exploitation Authorisation Application (EEAA) submitted to

Cameroon authorities – award anticipated shortly.

• Gas sales agreement (GSA) with fertiliser plant well advanced

(20 year supply).

• Signature of GSA will align Bowleven and fertiliser plant

schedules, and provide clear path to FID.

• Strategic alliance with Petrofac provides access to potential

development finance (up to $500 million); $60m IM-5

reimbursement at FID.

Subsequent Stages

• EEAA includes wider development plans, including LNG.

• Intra Isongo reservoir interval encountered at IM-5 highlighted

significant upside potential.

• Momentum building on GDF Suez/SNH led Cameroon LNG

scheme – additional development potential. Advancing towards

FEED award.

Group Update Etinde - continued progress

Stage I - Fertiliser


• Exploration programme advancing:

– Bomono two well programme planned H2 2014.

– Kenya FTG highlights various basin potential. 2D seismic

tender at advanced stage.

– Awarded 3 blocks in Zambia; 2 blocks pending.

• Financing flexibility:

– Cash end Feb 2014 ~$34 million.

– Advanced negotiations with industry sources and finance

providers for pre-FID funding.

– Petrofac: provides access to development funding and $60

million at FID.

– Farm-out discussions ongoing on Etinde and Bomono.

Group Update Exploration & Financing Flexibility

oil & gas

Etinde Development


Etinde Resource Base

• Oil, condensate and wet gas.

• P50 contingent resources increased 30%* in 2013.

• EEAA submitted to Cameroon authorities; award anticipated

shortly.

‒ Phased development approach.

‒ Initial gas offtake: Ferrostaal fertiliser plant.

‒ Full field development concepts - LNG schemes.

Net Contingent Resources*

P90 P50 P10 Mean

Gas (bscf) 378 831 2,649 1,177

Condensate (mmbbls) 33 80 230 104

LPGs (mmbbls) 11 21 32 22

Oil (mmbbls) 5 24 113 49

Total BOE (mmboe) 112 263 816 372

Significant Hydrocarbon Volumes

• Results of IM-5 well resulted in a substantial increase in

contingent resources.

• IF field volumes removed from contingent resources -

TRACS external review nearing completion (internal review

underway).

* Source: 2013 Annual Report. Operator’s volumetrics (excludes IF volumes pending external review).


Field Development Plan Flexibility for future expansion

• ‘Hub and Spoke’ wells – facilities system.

‒ Unmanned offshore platforms, processing onshore.

• Oil, condensate and wet gas to onshore hub.

• Liquids stripping and NGL extraction at hub.

• Supply dry gas to fertiliser plant.

• Liquids marketable internationally.

• Full field development concept – LNG schemes.

Liquids focused - gas enabled

* Operator projections.

Stage I - Key Statistics

• Sufficient gas volumes to support fertiliser plant.

• Dry gas to fertiliser plant: 70mmscfd.

• Initial liquids production: ~ 14k-16k boepd* (inc LPGs).

• First production integrated with fertiliser timetable.

• Initially IM (Intra Isongo).

• Gross development capex†:

‒ Pre first production: estimated $650 million - $700 million

(EEAA case).

‒ To be further refined during FEED.

† Operator estimates (Class III & Class IV estimates).


Detailed Engineering

Platform Fabrication

Installation, Pipelines & Hook-up

Production Drilling

Well Planning & Support

Procurement

Fertiliser Plant

(Ferrostaal & Partners)

6mths 12mths 18mths 24mths 30mths

6mths 12mths 18mths 24mths 30mths

FID

First

Production

Integrated offshore and onshore facilities development illustrative timeline – FID to first production.

Hub and Spoke Development Stage I – Illustrative Timeline


Full Field Development

• EEAA includes full field development concepts - LNG.

• Intra Isongo reservoir interval encountered at IM-5

highlighted significant upside potential.

• Drilling programme to be designed to prove up additional

resources.

• Wider plans integrate significant in-place volumes

discovered across MLHP-5 (Sapele) and potential on

MLHP-6.

• Momentum building behind Cameroon LNG (CLNG).

Beyond Fertiliser

Intra Isongo Reservoir Model

Indicative Supply Profile including CLNG


Cameroon LNG (CLNG) Project

Full Field Development

• Countrywide gas aggregation scheme, led by GDF Suez

and SNH.

• Planned onshore facility at Kribi, with gas pipeline through

Rio del Rey and Douala basins.

• First LNG train – planned 3.5 mtpa capacity.

• Advancing towards FEED award.

• First LNG cargo envisaged 2019/20.

Bowleven Allocation - CLNG

• Gas supply capacity allocation discussions commenced for

supply of Etinde gas (subject to appraisal/development

drilling).

• Provisional allocation (H2 2014) will support FEED award.


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

IM-5

1 Km

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

• 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.

Intra Isongo

Indicative appraisal

~150m down-dip

Indicative appraisal

~200m down-dip

Middle

Intra

Upper


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

oil & gas

Exploration


• 6 deep wells and c.10 shallow wells drilled in the 1950’s.

• Wells and onshore oil seeps prove active, Upper Cretaceous

sourced hydrocarbon system.

• Total 500km 2D seismic acquired and legacy 2D data

reprocessed by Bowleven.

• Tertiary structural traps matured to drill-ready status.

• High potential Cretaceous stratigraphic leads recognised.

Bomono Overview

Bowleven

2D

Acquisition

Vintage 2D

VOG: Gas and

condensate

production.

Douala

Seeps

Historical

Source: Operator

Source: Operator


Cretaceous

Tertiary

Bomono Exploration

Zingana

Prospect

Unrisked Mean

HIIP*

Oil mmbbls Associated

Gas bcf Gas bcf

Condensate

mmbbls

Tertiary D & E

Sands. 302 224

Tertiary B & C

Sands. 196 7

Zingana-1

Source: Operator

*Operator estimates.

D & E sands

B & C sands

Zingana-1

2km

Moambe-1

Moambe

Prospect

Unrisked Mean

HIIP*

Oil mmbbls Associated

Gas bcf Gas bcf

Condensate

mmbbls

Tertiary D & E

Sands. 176 80

Tertiary B & C

Sands. 153 4

Zingana

Prospect

Moambe

Prospect


Bomono Operational Status

Civil Engineering

Rig Update

• Rig negotiations advanced; two well programme

planned H2 2014.

• Several farm-out negotiations advancing.

• Zingana pad complete.

• Access routes complete.

• Moambe pad construction preparation commencing.

• Drilling camp construction underway.

Potential Commercialisation Routes

• Gas to existing power stations (currently engineered

for expensive fuel oil).

• Gas to new build combined cycle power station.

• On-site gas to electricity (GTE) conversion facility.

• Accessible local gas market (Douala City) or tie in to

Etinde ‘hub’ development.


Block

11B

■Cretaceous

■Tertiary

Kenya

Kenya

Uganda

South

Sudan

Ethiopia

Block 11B

• 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.

Overview

Source: Bowleven

• 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.

• Tendering for 500km 2D seismic at advanced stage. Seismic

acquisition envisaged H2 2014.


Kenya

Block 11B

Overview

Uganda

South Sudan Ethiopia

Kenya

Block 11B

Potential pipeline routes

■Cretaceous

■Tertiary

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.

Sabisa

Oil shows

2 wells planned

Tullow Oil /

Africa Oil (2014)

2 wells planned

Tullow Oil /

Africa Oil (2014)

2 wells planned

Tullow Oil /

Africa Oil (2014)

1000 km 2D seismic

EHRC / CEPSA

(date TBC)

500 km 2D seismic

Adamantine Energy/

Bowleven

(2014)

Lokichar Basin

Multiple oil

discoveries (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.

• Tendering for 500km 2D seismic at advanced stage. Seismic

acquisition envisaged H2 2014.


Kenya Block 11B FTG Results

• FTG reveals five basins.

• 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.

Terrain









Regional Gravity









FTG dataset


Kenya Block 11B Geological Fieldwork


Zambia

• Karoo basins extensive, large and underexplored.

• Perceived as gas prone but have generated a lot of

oil (>20 billion bbl).

• Opportunity to acquire significant position while

industry focus on Tertiary rift system.

• Applied for multiple blocks in Zambian bid round (June

2013).

• Focus on Luangwa Valley Karoo rift basin.

• Grossly underexplored and no significant industry

activity since 1988.

Overview

Blocks


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

oil & gas

Finance


Interim Results Summary – six months to 31 December 2013

• Loss of $6.6 million in period (H1 2012: $9.4 million).

• $7.7 million cash invested in oil and gas activities, primarily on

pre-development activity on Etinde.

• Net assets of $591 million at 31 Dec 2013.

• Equity placing Nov 2013 raised ~$21m (net).

• Cash end Dec 2013 ~$38* million, end Feb 2014 ~$34 million*,

no debt.

* Includes a $5 million bank guarantee which will be released on completion of work programme on Block 11B, Kenya.


Funding Overview

• Cash at end Feb 2014 ~$34 million*, no debt.

• G&A spend approx. $1.5m - $1.7 million (gross) per month.

• Advanced negotiations with industry sources and finance

providers for pre-FID funding.

• Several term sheets under consideration

• EA award facilitates funding access

• Petrofac provides access to up to $500 million for Stage I

development including $60 million IM-5 costs reimbursed at FID.

• Development funding available at FID. Options include project

debt, development bank finance and mezzanine finance.

• First Oil strategic partnership provides funding towards

exploration activity in Kenya.

• Discussions ongoing regarding potential farm-out of interests in

Etinde and Bomono (including drilling for equity).

Seeking further

flexibility Pre-FID

• Bridging loans with

industry/ finance

providers.

• Potential farm-outs

Equity

Placing FID First

Production

At FID

$60m reimbursement for

IM-5 well costs (Petrofac

Strategic Alliance)

Significant Financing Flexibility

Significant

cash flow

generated

Approaching FID opens

additional range of options

• Conventional project debt

• Mezzanine finance

• Development bank finance

• Potential farm-outs

Development Funding

Petrofac up to $500m (net)

(inc. initial $60m)

* Includes a $5 million bank guarantee which will be released on completion of work programme on Block 11B, Kenya.

Exploration Funding

First Oil strategic partnership

(Kenya)

oil & gas

Outlook & Conclusion


Outlook & Conclusion

Resources to Reserves

African

Exploration

• Growing confidence levels around the delivery of the

combined fertiliser and upstream projects.

• Cameroon LNG scheme building momentum.

• Exploration activities continuing.

• Multiple funding sources maturing.

oil & gas

Q & A

oil & gas

Appendix


Ferrostaal Fertiliser Project Structure

Source: Ferrostaal

Etinde

Gas


Ferrostaal Fertiliser Partners

Source: Ferrostaal


0

20

40

60

80

100

0

5

10

15

We

t Gas m

mcfd

Liq

uid

s -

kbo

ep

d

Ave Liquids Production (kboepd) Wet Gas Production (mmcfd)Petrofac

16%

Bowleven net84%

Bowleven NPV10 Split**

Gas18%

Liquids82%

Total Project Revenue*

Stage I Etinde Development Indicative project revenue, Bowleven NPV10split and production profile

Robust and attractive project

Simplified 20 year Production Profile‡

** Share of Bowleven NPV at $90/bbl

* Total project revenue at $90/bbl Total Liquids

92mmboe

Total Wet Gas

683 bcf

‡Operator’s illustrative projections for supply to fertiliser plant, assuming 20 year production profile.

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]

interim results presentation preliminary results presentation€¦ · 31 march 2014 interim results...

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