sustained strong cash flow generation major …...production & reserves 4 2012: sustained strong...
TRANSCRIPT
EnQuest 2012 Results
Presentation Title 0
Sustained Strong Cash Flow Generation
Major Project Execution On Track
Overview CEO, Amjad Bseisu
Financials CFO, Jonathan Swinney
Business performance CEO, Amjad Bseisu
& major projects Co-founder & Strategy Adviser,
Nigel Hares
Operations General Manager, Technical
Andrew Thomson
Summary Amjad Bseisu
Agenda
2012 production above guidance mid-point, due to
successful execution of operations programme
Sustained strong cash flow and balance sheet
Excellent reserves record
300% replacement since EnQuest inception
262% replacement in 2012
reserves asset life of over 15 years
Major project execution on track
first oil from Alma/Galia scheduled for Q4 2013
2012 Kraken acquisition created game changing potential
Good levels of HSE&A performance have continued
Number of HIPO’s down from 4 to 1
Operations organisation developed at all levels, resources
continue to strengthen
Production guidance for 2013 is 22,000 to 27,000 Boepd,
reflecting third party shutdowns in Q1 2013
Repeatable strategy delivering success
2
Growth through the realisation of untapped potential Technical leadership in integrated development
3
Upgrading existing facilities
Newer technology, new seismic
Simplifying processes
Infill drilling, subsurface skill in identifying well targets
Agile, innovative and cost efficient solutions
Redesigning and upgrading ‘used’ facilities
Using existing infrastructure; tie-backs
Deploying technical and financial capacity too stretching for some previous owners
Integrated teams commercialising and developing discoveries
Low risk, low cost near field development and appraisal
Field life extensions
New developments
Heather/Broom
Thistle/Deveron
Maturing fields
Ex majors
Dons & Alma/Galia
Dormant fields
Ex majors &
licensing rounds
Kraken
Ex smaller
companies
Marginal field solutions
Proven depth in subsurface, engineering, execution and operations
Creating
development
value via:
Focused
on hubs
Production
& Reserves
4
2012: Sustained strong cash flow generation
Major project execution on track
Production of 22,802 Boepd in 2012
14 wells successfully drilled, $367m capital investment in producing fields
Good drilling and intervention work at Thistle/Deveron and the Dons
11.5% net 2P reserve increase to 128.5 MMboe, 262% replacement ratio
Alma/Galia development on track for First Oil in Q4 2013, $421.3m invested
Six wells batch drilled in 2012
FPSO modifications continuing
Farm out to KUFPEC completed
received $125m in cash on completion, $176m P&L gain on disposal
Proposed Kraken development on track for FDP in Q2 2013
EnQuest offered eleven licences in 27th UK licensing round
First steps outside UKCS: Norway & Malaysia
$594m cash flow from operations in 2012. Net cash of $90m at end of 2012
New credit facility for up to $900m arranged in Q1 2012
Profit after tax of $260m, $362m including impact of Alma farm out
EBITDA of $626m
Project
execution
&
Business
development
Financial
strength
Financials
Results summary
6
Year to 31 December
US dollars 2012 2011 Change %
Export production (Boepd) 22,802 23,698 (3.8)
Average realised price per barrel ($) 111.6 107.6 3.7
Revenue ($ million) 890 936 (4.9)
Cost of sales ($ million) 448 492 (8.9)
Production and transportation costs ($/per boe) 32.3 31.9 1.3
Depletion of oil & gas properties ($/per boe) 24.7 23.2 6.5
Gross profit ($ million) 441 444 (0.1)
Operating profit ($ million) 405 390 3.8
Profit after tax ($ million) 260 136 91.1
EBITDA* ($ million) 626 629 (0.5)
Reported earnings per share (cents) 46.2 7.6 507.9
* for definition basis, see results announcement
Unless otherwise stated all figures are before exceptional items and depletion of fair value
uplift and are in US dollars
Summary income statement
7
Year to 31 December
2012 2012 2012 2011
US dollars Business
performance
$m’s
Exceptional
items
$m’s
Reported
$m’s
Reported
$m’s
Revenue 889.5 - 889.5 936.0
Cost of sales (448.2) (10.2) (458.4) (508.8)
Gross profit 441.3 (10.2) 431.1 427.2
Exploration and evaluation expenses (23.2) - (23.2) (37.0)
General and administration expenses (6.7) - (6.7) (13.8)
Impairment of oil and gas assets - (143.9) (143.9) -
Gain on disposal of property, plant & equipment - 175.9 175.9 -
Net other expenses (6.3) (4.4) (10.8) 1.1
Profit/(loss) from operations before tax and
finance income/(costs)
405.1 17.4 422.5 377.5
Net finance costs (19.1) - (19.1) (14.7)
Profit/(loss) before tax 386.0 17.4 403.4 362.8
Income tax (126.3) 85.2 (41.2) (301.8)
Profit/(loss) after tax 259.7 102.6 362.2 61.0
Earnings per share (cents ) 33.1 46.2 7.6
Capital expenditure $803m
8
Year to 31 December 2012
US$m
421*
* Net of 35% disposed via farm out
** $87m is the carry element
9
Reconciliation of capital expenditure
803
967
842
143
87 128
20
125
500
550
600
650
700
750
800
850
900
950
1000
Tangible Oil &gas assetadditions
Add back farmout
Less: Carryadditions (non-
cash)
E&E additions Other Cash outflow oncapex
Alma/Galia Farmout proceeds
Cash outflow oncapex (net of
farm out)
US
$ m
illio
n
Financing & other
(excludes borrowings) Cash flow
from operations Capex
Cash & equivalents less
borrowings at
31 December 2012
Strong financial position, $900m credit facility and £145m retail bond
Cash & equivalents less
borrowings at
1 January 2012
US$m
Cash flow Year to 31 December 2012
10
Finance outlook
Full Year 2013
Current capex expectations of around $750m
Production and transportation costs expected to be in the range $310m to $340m
Depletion anticipated to be approximately $28 per bbl, dependent upon production mix
G&A range between $10m to $15m
Finance costs expected to be in the region of $35m
Tax
Effective rate expected to be approximately 60%
No significant cash tax expected to be paid until beyond 2014
11
Business performance
and major projects
Three years of strong cash flow generation
13
300% reserve replacement ratio
Net 2P reserves
start 2010
80.5
MMboe
Production
2010 to 2012
(24.0)
MMboe
Additions to
reserves
2010 to 2012
Net 2P reserves
start 2013
72.0
MMboe
128.5
MMboe
Reserves 2010 - 2012 Cash flow 2010 - 2012
Dec 09
Net cash
Dec 12
Net cash
Cash flow From operations
Capex
$8m Tax,
Finance,
Other
$1.5bn
$90m
$(0.1)bn
$(1.3)bn
14
Kraken
From zero to 60%
Kildrummy
Increased to 60%
West Don
Increased to 63.5%
Cairngorm
Increased to 100%
Expanding our asset base in 2012 and 2013 With a rich discovery ‘hopper’
Alba
From zero to 8%
SW Heather (55%)
Ongoing evaluation
Cairngorm (100% )
Appraisal well 2013
Kildrummy (60%)
Reviewing
development options Crathes / Scolty (40%)
Reviewing development
options
Kraken (60%)
Appraisal well 2013
Business development Acquisition of 8% of Alba & Entry into Malaysia
15
▪ Adding reserves and producing barrels and further
diversifying EnQuest’s asset base
▪ Base consideration is £18.75m, plus a deferred £0.5m
▪ Net 2P reserves of 5.9 MMboe to be added
▪ Alba produces heavy oil from Eocene turbidite
sandstones in block 16/26 in the UK North Sea
A low cost entry point
Two oil discoveries, Bambazon and Tiga Papan
Exploration opportunity and upside
EnQuest 42.5%, with Lundin (Op) and Petronas Carigali
Blocks SB307 and SB308 (6,200km²) Sabah
An exploration / appraisal well to be drilled in late 2013
16
Thistle Late Life
Extension projects Power & Electricity Upgrade Project
Required to provide reliable power and
remove electrical equipment obsolescence
Process Simplification Project
Simplify process, reduce non essential equipment to
only that required for LLX operations
Controls and Safety Systems
Remove 1970s obsolete systems
and replace with new
Topsides Structural
Integrity Projects
Required to upgrade access ways,
accommodation and secondary steel
work for another 15 years operations
Jacket Integrity Project
Modifications required to ensure jacket
protection for another 15 years
Restarted
drilling in
2010
Deveron
Thistle
Platform
Dons Area
Alma/Galia
2012
Field Development Plan approvals
Successful batch drilling of six wells
The three that had reached the reservoir
all met or exceeded expectations
Purchase and re-fit of EnQuest Producer
FPSO modifications well underway
Other key project elements proceeded well
Most of subsea infrastructure work completed
2013
Announced increase in scope and specification
Extending vessel and field life, optimising operating costs
Enabling a potential second phase of development
Gross capex of $1.3bn, including contingency
Gross reserves increased from 29 MMboe to 34 MMboe
17
On track for first oil in Q4 2013
Kraken on track for FDP submission in Q2 2013 Reserves, resources, appraisal well
EnQuest acquired a 60% W.I. in 2012
A conventional rather than a heavy oil
development
EnQuest formally assumed operatorship in
September 2012 and is working with partners to
deliver FDP in H1 2013, with first oil targeted for
2016
20 MMboe added to EnQuest’s net 2P reserves
for the 20% of Kraken on which EnQuest has no
‘carry’ obligations
40 MMboe can be booked following FDP
submission and approval, for 40% equity
A 2013 appraisal well will be drilled, to provide
additional information for the proposed main
field development
18
Operations
2012 Production results by hub Above mid-point of guidance
Net production (Boepd)
20
▲ New wells A58 & A59
▲ Improved water injection
▲ Electrical submersible pumps
▼ Pipeline shutdown
▼ Natural decline of S5
▼ Pipeline shutdown
▲ New well S11, W5, S10y
▲ West Don +18.5% WI
▼ Natural decline, BR2
▼ Pipeline shutdown
▲ Good plant management,
high production efficiency
5,436
12,770
5,492
23,698
8,058
10,992
3,752
22,802
Thistle/Deveron The Dons Heather/Broom Total
2011 2012
Thistle / Deveron
21
2012
A58 (Dev-P1) well completed and on production,
productivity at the higher end of pre-drill estimates
150,000 bwpd water injection
10 day pipeline outage
Area 6-P1 (ESP) production well
Heavy lift late August, 30 MW generator to start full
operation in early 2013
Field life extension project is moving ahead
Brownfield allowance
Offshore drilling team achieved 5 years without a
lost time injury
2013
Workover of A53/60 injector well
Start of new turbine power generator
Drilling West Fault Block producer
Next phase of life extension project Legend
Future Development
Drilled in 2011 / 2012
Producing A55
A56
A57
A16 w/o
A13 w/o
A53
A58
A56 w/o
A59
WFB – P1
NFB – I1
Area6 – I1
A22 w/o
Dev – P2
Dev – I1
WFB – P2
22
Dons/Conrie
22
Legend
Legend
Drilled in 2012
Water Injector
Producing
S10Y
S5
S2Z
S4
S3Z
S6
S9
S8Z S11
2013 Development
Conrie – S7
Don Southwest and Conrie Drilling Plan
W4
W2
W1
W3Z
W6
W5
West Don Drilling Plan
2012
Don South West
S10 drilled, on production as expected
S11 drilled, continues to perform well
S2Z workover successful
West Don
W2 abandoned ahead of plan
W5 (sidetrack of W2) drilled & on
production
W1 workover successful
W6 injector drilled and completed as
expected
10 day 3rd party export outage
2013
W6 injector tied in and brought online in Q1
Facilities upgrade programme
Currently drilling Don SW Area 6 producer to
be followed by injector in 2Q, both due online
in Q3
22
DS
OB
Dons/Conrie
Heather / Broom
23
2012
• Anticipated natural decline in BR2
• Increase in Heather production, as a result of
well work activity including 3 conversions to
injection
• Lost 20 days production due to 3rd party
export outage (Ninian)
• Significant progress on rig re-activation
• Seismic survey gathered
2013
• Complete rig re-activation, commence drilling
Q3 2013
• H47 well workover, due onstream Q4 2013
Brownfield life extension project
Two year drilling campaign and
complementary facilities upgrade
9 targets for initial programme, with 14
MMboe reserves
2/0
5-
15
2/05-21
(BW3) 2/0
5-6 2/0
5-5 2/05-23
(BR4)
2/0
5-
17 2/05-
19Y 2/05-25
(BR2)
2/05-20
(BX5)
2/05-22Z
(BW6)
2/05-20
(BR1)
2/05-27
(BR8)
Legen
d
Water
Injector
Exploration /
Future
Producing
Legend
Drilling Programme
2012 Re-instatement
Water Injector
H07
H37 H47
H40
H46
Spangles
Furzey
Viking
Erica
Else
Rosea
H49 H20
H63 H56
H60
H38
H41
H61Z
H42 H33
H62Y
Producing
Heather/Broom
2013 EnQuest outline programme Three drilling strings (two platform rigs, one mobile rig)
Q1 Q2 Q3 Q4
Thistle Drilling (1 well)
Heather Producer workover
Dons Drilling (3 wells)
Alma/Galia 3 production well completions, 1 injector well First oil
Kraken FDP submission
Exploration/ Kraken Cairngorm Sabah
Appraisal
24
Summary
Operations &
developments
14 well drilling programme, $803m capital investment
Production of 22,802 Boepd
Alma/Galia development on track for first oil in Q4 2013
Kraken development on track for FDP submission in Q2 2013
Taken first preparatory steps outside the UKCS: Norway & Malaysia
Acquisition of 8% of Alba producing oil field agreed
Organisation Operations organisation developed at all levels, resources continue to
strengthen
Number of employees now almost four times level at IPO
EnQuest has a powerful development capability
Finance EPS from 7.6 cents to 46.2 cents per share
Revenue of $890m generated strong $594m cash flow from operations
Net cash of $90m
$900m credit facility and £145m retail bond
2012 Results summary Production and project execution on track
26
27
Outlook Demonstrating the sustainability of EnQuest’s growth
Production
2013 guidance range between 22,000 Boepd and 27,000 Boepd
12 wells being delivered in 2013
including three production wells on existing fields and three on Alma/Galia
plus three exploration/appraisal wells
Current group capex of $750m, including $350m on Alma/Galia
$75 m predevelopment expenditure on Kraken
Major
projects
on track
First oil from the Alma/Galia development is on schedule for first oil in Q4 2013
Proposed Kraken development on track for FDP submission in Q2 2013
Excellent execution capability
Financial
strength
Strong balance sheet
Net cash of $90m
Credit facility of up to $900m, only $35m drawn at year end
£145m retail bond, 9 year maturity
Dons Northern Producer
Alma/Galia EnQuest Producer Heather/Broom
Thistle/Deveron
Q&A
28
Licence Block / Sub area Name
P902 2/4a Broom
P242 2/5 Broom/Heather
P1077 9/2b & 9/2c Kraken
P213 16/26 Alba
P1200 211/13b West Don
P236 211/18a West Don, Don SW,
Conrie, Thistle & Deveron
P475 211/19a Thistle
P1765 30/24c & 25c Alma
P1825 30/24b Galia
P242 2/5 SW Heather
P090 9/15a Peik
P209 9/28a Crawford / Porter
P1214 & P 1892 16/2b & 16/3d Cairngorm
P1107 21/8a Scolty / Torphins
P1617 21/12c & 13a Crathes
P1790 21/27a & 28/2c Pilot
P250, P585 &
P220
15/12b, 15/17a &
15/17n Kildrummy
P1487 211/1a, 2a & 3a
P1269 211/18c
P1463 14/30a
P1751 3/1c
P1608 3/11a
P1753 3/17
P1582 20/15a
P1618 21/13c
P1573 & P1574 3/22a & 3/26
P1575 9/6a & 9/7b
27th
Round Awards
2/4b
2/10a, 3/6 & 3/11c
8/5 & 9/1b
9/2d
15/17c
21/7a
21/17b
21/26 (part), 21/27c,
28/2b (part) & 28/3
(split)
22/11b
14/30c
20/14, 20/19 & 20/20
EnQuest’s North Sea assets - end 2012 Includes Alba acquisition announced in 2013 and UK 27th round offers
29
10,15013,613
21,07423,698 22,802
22,000
Over 33,0002
5,000
2008 2009 2010 2011 2012 2013 2014
30
Average net production (Boepd)
1 Compound annual growth rate
2 To be updated following Alma/Galia results
Guidance Range
On Track To Deliver Approximately 20% CAGR1 Between 2009 and 2014, based only on net 2P profiles
30
Income Statement
31
Year to 31 December
2012 2011
US dollars
Business
performance
$000’s
Exceptionals,
Depletion of
fair value
uplift
$000’s $000’s $000’s
Revenue 889.5 - 889.5 936.0
Cost of sales (448.2) (10.2) (458.4) (508.8)
Gross profit 441.3 (10.2) 431.1 427.2
Exploration and evaluation expenses (23.2) - (23.2) (37.0)
Gain on disposal of asset held for sale - - - 8.6
Impairment on investments - (4.4) (4.4) (12.5)
Impairment of oil and gas assets - (143.9) (143.9) -
Gain on disposal of property, plant and equipment - 175.9 175.9 -
Well abandonment - - - 8.2
General and administration expenses (6.7) - (6.7) (13.8)
Other income 2.0 - 2.0 5.0
Other expenses (8.3) - (8.3) (8.4)
Profit/(loss) from operations before tax and finance income/(costs) 405.1 17.4 422.5 377.5
Finance costs (21.2) - (21.2) (18.6)
Finance income 2.1 - 2.1 4.0
Profit/(loss) before tax 386.0 17.4 403.4 362.8
Income tax (126.3) 85.2 (41.2) (301.8)
Profit/(loss) for the period attributable to owners of the parent 259.7 102.6 362.2 61.0
Other comprehensive income for the period, after tax (Cash flow hedges) 2.6 (2.6)
Total comprehensive income for the period, attributable to owners of the parent 364.8 58.4
Earnings per share (cents)
Basic 33.1 46.2 7.6
Balance Sheet As at 31 December
US dollars 2012
$000’s
2011
$000’s
ASSETS Property, plant and equipment 1,816.6 1,274.0
Non-current assets Goodwill 107.8 107.8
Intangible oil and gas assets 97.5 24.3
Asset held for sale - 1.3
Investments 2.3 6.7
Deferred tax asset 23.1 12.6
Other financial assets 19.4 -
2,066.7 1,426.3
Current assets Inventories 15.3 11.8
Trade and other receivables 239.4 126.6
Income tax receivable 2.0 2.6
Cash and short term deposits 124.5 378.9
Other financial assets 96.8 2.5
478.0 522.4
TOTAL ASSETS 2,544.8 1,948.7
EQUITY AND LIABILITIES Share capital 113.4 113.4
Equity Merger reserve 662.9 662.9
Cash flow hedge reserve (0.0) (2.6)
Share based payment reserve (11.1) (6.0)
Retained earnings 528.7 166.5
TOTAL EQUITY 1,293.9 934.2
Non-current liabilities Borrowings 34.6 -
Obligations under finance leases 0.1 -
Provisions 233.0 181.2
Other financial liabilities - 0.3
Deferred tax liabilities 632.2 590.0
899.9 771.6
Current liabilities 351.0 242.9
TOTAL LIABILITIES 1,250.9 1,014.5
TOTAL EQUITY AND LIABILITIES 2,544.8 1,948.7
32
Group taxation position
33
No cash tax is expected to be paid on operational
activities until beyond 2014
UK tax losses $m’s
Recognised at 31 December 2011 180
2012 net taxable losses 198
RFES
Acquisitions
42
19
Prior year true up 41
Leasing structures 124
Tax losses at 31 December 2012 604
Additional unrecognised losses end
2012
55
ETR % $m’s
Profit before tax 403
UK corporation tax rate 62 250
PRT 5 19
North Sea Tax Reliefs (8) (30)
Leasing structures (19) (77)
Decommissioning relief
restriction 4 15
Other Items (1) (2)
Prior year true up (6) (25)
2012 underlying tax
charge 37 150
Non-taxable gain on
farm out (27) (109)
2012 actual tax charge 10 41
Track Record of Sustainable Delivery and Growth
Reserve replacement ratio of 300% over three years
80.5
88.5
35.1 115.2
21.5 128.51
(7.4)
(8.4)
(8.2)
Net 2Preserves start
of 2010
Production2010
Reserveadditions 2010
Net 2Preserves start
of 2011
Production2011
Reserveadditions 2011
Net 2Preserves start
of 2012
Production2012
Reserveadditions 2012
Net 2Preserves start
of 2013
15.4
MMboe Full year 2010 Full year 2011
34
Full year 2012
Largest UK Independent Producer in the UK North Sea
Government data (DECC) for UK North sea independent producers
35
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
EnQuest Tullow Oil Premier Oil Valiant Ithaca First Oil Fairfield Endeavour Faroe Pet
To
tal P
rod
ucti
on
in
Ma
ss
un
its (
ton
nes
)
Total Production for the year ending November 2012
Thistle, Conrie and The Dons Infrastructure
36
Heather / Broom Infrastructure
37
Development Scheme Option Prior To EnQuest’s Operatorship
38
Kraken on track for FDP submission in Q2 2013
38
Cairngorm Well Block 16/3d
39
16/2b
16/3d
NW SE
Flank Well
1
2
Alma/Galia Project on schedule for Q4 2013 start up
40
Alma Subsurface
-9600
-9575
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0
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5
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650
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5
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5
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0
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0
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5
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5
-9275
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-9250
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0
-9250
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5
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-9125
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5
-9125
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-9000
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0
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0
-9125
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-9100
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-9100
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-9100
-9100
-910
0
-9100
-9500
-9500
-9500
-950
0
-9500
-9500
-9500
-9500
-9475
-947
5
-9475
-947
5
-9475
-9475
-9475
-947
5
-9450
-945
0
-9450
-9450
-9450
-9450
-9450
-9450
-9425
-9425
-9425
-9425
-9425
-942
5
-9425
-9425
-9400
-9400
-9400
-9400
-9400
-9400
-9400
-9400
-8975
-8975
-8975
-8975
-8975
-8975
-8975
-89
75
-9250
-9375
-9375
-9375
-9375
-9375
-93
75
-9375
-9375
-9075
-907
5
-9075
-9075
-9075
-9075
-9075
-9075
-9075
-9075
-9350-9325
-9300-9650
-9650
-9625
-9625
-9600
-9600
-9025
-9025
-9025
-9025
-9025
-9025
-9025
-902
5
-902
5
-9025
-8950
-8950
-8950
-8950
-8950
-8950
-89
50
-8925
-8925
-8925
-8925
-8925
-8925
-8925
-8900
-8900
-8900
-8900
-8900
-8900
-8875
-8875
-8875
-887
5
-8850
-8850
-8850
-88
50
-8825
-8825
-8825
-88
25
-93
75
-8800
-8800
-8800
-9375
-9675
-9675
-8775
-8775
-8775
-8625
-9400
-8750
-8750
-8750
-8675
-8675
-8725
-8725
-8725
-92
75
-8600
-9750
-9750
-9725
-9725
-9700
-9700
-9775
-9775
-9800
-9800
-8700
-8700
-8700
-9825
-9825
-8650
-8650
-9850
-9850
-9875
-987
5
-9900
-990
0
-9925
-992
5
-9975-9950
-10000-10025
-10075
-10050
-10100
-10150
-10125
-10175-10200
-10250-10225
-10275
-10325-10300
-10350
-10425
-10400-10375
-10500-10475-10450
-10525
30/24-01
30/24b-T4z
30/24b-T1z
30/24b-T1
30/25a-02
30/24b-T3
30/24b-T2
30/24-39
30/24-37
30/24-34
30/24-31
30/24-28
30/24-26
30/24-25
30/24-20Z
30/24-18
30/24-16
30/24-14
30/24-13
30/24-12
30/24-11
30/24-10
30/24-09
30/24-08
30/24-06
30/24-05
30/24-03
30/24-02
-9023
-8758
-8988
-9139
-9421
-8956
-8975
-8980
-8998
-8888
-9107
-8976
-9073
-8998
-8990
-9285
-9033
-9108
-8880
-8986
-8887
-8981
-8621
-8993
-8896
-8965
484000 484400 484800 485200 485600 486000 486400 486800 487200 487600 488000 488400
484000 484400 484800 485200 485600 486000 486400 486800 487200 487600 488000 488400
62
24
00
06
22
44
00
62
24
80
06
22
52
00
62
25
60
06
22
60
00
62
26
40
06
22
68
00
62
27
20
06
22
76
00
62
28
00
06
22
84
00
62
28
80
06
22
92
00
62
24
00
06
22
44
00
62
24
80
06
22
52
00
62
25
60
06
22
60
00
62
26
40
06
22
68
00
62
27
20
06
22
76
00
62
28
00
06
22
84
00
62
28
80
06
22
92
00
0 200 400 600 800 1000m
1:20000
-10600-10500-10400-10300-10200-10100-10000-9900-9800-9700-9600-9500-9400-9300-9200-9100-9000-8900-8800-8700-8600
Depth
Country
Block
License
Model name
Horizon name
Scale
Contour inc
User name
Date
Signature
UKCS
30/24
1:20000
25
marty.haynes
04/25/2011
Top Devonian Depth
41
Alma Seismic
SW 30/24-2 30/24-1 3 0/24-5 30/24-3 30/25a-2 NE
42
Alma
Reinterpretation of
Seismic
Petrophysics
Layering
Re Build of models
Static
Simulation
Integrated Team
ESP design
Well Trajectories
Extensive In-House Subsurface Work
43
Alma Development Wells Trajectory Schematic
Development wells optimised to
target:
▪ All key reservoir zones (no
comingling)
▪ Stand-off from FWL in key
producing zones
▪ Optimise wells to get max length
in Devonian
4 Types of well to drill and complete:
▪ Zechstein Producers x2
▪ Rotliegends Producer x1
▪ Devonian Producers x 3
▪ Zechstein/Rotliegends Water
Injectors x 2
-8800
-8900
-8850
-885
0
-875
0
-8750
-8700
-8650
-8600
-880
0
-900
0 -895
0
-8900
-8850
-900
0
-900
0
-8950
-9050
-9100
-9000
-8950
-895
0
-895
0
-940
0
-935
0
-930
0
-925
0
-9200
-9150
-9250
-910
0
-905
0
-9000
-9050
-895
0
-8950
-8900
-9500
-9550
-9500
-9500
-945
0
-955
0
-950
0
-9500
-950
0
-9500
-950
0
-9450
-945
0
-9500 -935
0
-9300
-9500
-9400
-9250
-925
0
-9200
-920
0-915
0
-9100
-945
0
-935
0
-950
0
-940
0
-930
0-9
250
-9050
-9000
-9500
-9100
-955
0
-910
0
-9650
-9600
-9600
-955
0
-9800
-955
0-9
500
-950
0
-945
0
-10200
-10350
-9600
-9550
-9400
-940
0
-10400
-950
0 -945
0
-9900
-10300-10250
-101
00
-10150
-965
0
-10050
-960
0-9950
-955
0
-9850 -9500
-9450
-10000
-9750
-9700
-9800
-9400 -9350
-9300
-9250
-950
0
-9300
-895
0
-9350
-925
0
-915
0
-9100
-9050
-9000
-9250
-9350
-9400
-9300
-920
0
-940
0
-935
0
-9350
-9450
-945
0
-9250
-910
0
-9050
30/24b-T4z
30/24b-T1z
30/24b-T1
30/25a-02
30/24b-T3
30/24b-T2
30/24-39
30/24-37
30/24-34
30/24-31
30/24-28
30/24-26
30/24-25
30/24-20Z
30/24-18
30/24-16
30/24-14
30/24-13
30/24-12
30/24-11
30/24-10
30/24-0930/24-08
30/24-06
30/24-05
30/24-03
30/24-02
484000 484400 484800 485200 485600 486000 486400 486800 487200 487600 488000 488400
484000 484400 484800 485200 485600 486000 486400 486800 487200 487600 488000 488400
6224
000
6224
400
6224
800
6225
200
6225
600
6226
000
6226
400
6226
800
6227
200
6227
600
6228
000
6228
400
6228
800
6229
200
62240006224400
62248006225200
62256006226000
62264006226800
62272006227600
62280006228400
62288006229200
0 200 400 600 800 1000m
1:20000
CNE Zech
C Dev (B06)
CS Zech
CS Dev
C Rot
C Dev
44
1
9
2
1
29
22
15
17 08
23
33
3
0
30Z
30Y 04
Galia East
outline
Galia
Main
outline
Galia STOIIP & Reserves
Galia Main
Well Sampled 30/24-15
Bubble Point Pressure 1900 psia
Differential Gas-Oil Ratio 631 scf/stb
Formation Volume Factor 1.33 b/stb
Oil Viscosity 0.49 Degrees
API Gravity 38 Degrees F
Reservoir Temperature 260
Only 50% Water Cut
45
Forward Looking Statements
This presentation may contain certain forward looking statements with respect to EnQuest’s
expectation and plans, strategy, management’s objectives, future performance, production,
costs, revenues and other trend information. These statements and forecasts involve risk
and uncertainty because they relate to events and depend upon circumstances that may
occur in the future. There are a number of factors which could cause actual results or
developments to differ materially from those expressed or implied by these forward looking
statements and forecasts. The statements have been made with reference to forecast
price changes, economic conditions and the current regulatory environment. Nothing in this
presentation should be construed as a profit forecast. Past share performance cannot be
relied on as a guide to future performance.