2007 Interim Results Presentation 20th September 2007
Forward looking statements This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties. A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by these forward-looking statements. Page 3 | 2007 Interim Results Presentation
Highlights Page 4 | 2007 Interim Results Presentation
Highlights • Rising production • 1H production up 5% from 2H 2006 Daily Production (boepd) 80000 All projects earlier profile – on track to with current run rate of 37,000 boepd All projects later 70000 Base producing fields 60000 50000 meet targets • 50,000 boepd by end 2010 and rising 40000 30000 20000 10000 0 2008 2009 2010 2011 • Steady progress in • Zamzama Phase 2 startup defining development • Progress on Gas sales in Indonesia projects • Engineering & project planning progressing in Vietnam, Indonesia & Norway • Completion of • 42 mmboe of reserves and acquisitions in UK resources added at ~$2.0/bbl and Indonesia • Scott acquisition will have one year payback • Continuing to build • Testing in India high impact • Anne well to spud in September 2007 exploration pipeline • Norway, Congo and Vietnam wells planned for 2008 and 2009 Page 5 | 2007 Interim Results Presentation
Regional strategies Asia Middle East / Pakistan • Optimise Natuna • Continuing growth in Sea position Pakistan gas business • Build new core areas • Seeking new in Vietnam and North exploration plays in Sumatra Pakistan • Fully exploit • Progressing new JV in exploration play in the region Vietnam North Sea West Africa • Add to existing • Pursue high impact producing fields exploration in Congo • Exploit Norwegian and elsewhere development projects • Exit Mauritanian • Pursue high impact position exploration Page 6 | 2007 Interim Results Presentation
Exploration strategy • Drill up programme of high impact new plays (Congo) • Fully exploit plays as follow-ons to success (Vietnam) • Maintain focus on new areas for future drilling (Eastern Indonesia, Barents Sea) • Through commercial activity, ensure operating cash flow more than twice covers exploration spend Page 7 | 2007 Interim Results Presentation
Financial results Page 8 | 2007 Interim Results Presentation
Financial performance 108.8 82.8 Reduced by exploration write- 69.7 • Operating profit down and non-cash charges 155.2 147.6 143.3 Strong underlying cashflows • Operating cashflow driven by rising production before working capital and high prices 6.9 6.5 Underlying costs stable at 5.0 • Operating costs $6.90/bbl (including certain one-off items) 43.8 Maintained balance sheet • Balance sheet strength pre-funding -24.1 -26.2 investment programme Page 9 | 2007 Interim Results Presentation
Production kboepd (net) kboepd (net) 1H 2007 FY 2006 North Sea 8.3 6.9 Wytch Farm 3.0 3.2 Scott 1.9 0.4 Kyle 2.2 2.0 Others 1.2 1.3 Asia 11.8 11.6 Anoa 7.9 7.9 Kakap 3.9 3.7 Pakistan 12.5 12.1 Qadirpur 4.0 3.9 Bhit 2.9 2.9 Zamzama 4.3 4.1 Kadanwari 1.3 1.2 West Africa 1.4 2.4 Chinguetti 1.4 2.4 Total production 34.1 33.0 Page 10 | 2007 Interim Results Presentation
Scott acquisition Scott Economics • Pre-emption purchase price $60m • Adjusted final price (including inventory of $26m) $53m • After-tax cash flow (May 19th-August 31st) $38m • Anticipate cash pay-back within 12 months Scott Field of acquisition Company Before After Premier 1.79% 21.84% • Further in-fill drilling opportunities Nexen 40.99% 41.89% Petro-Canada 20.64% 20.64% • Expected field life 2020 Hess 20.95% 0.00% ExxonMobil 10.47% 10.47% Maersk 5.16% 5.16% Page 11 | 2007 Interim Results Presentation
Production and income statement 12 months to 6 months to 6 months to 31 Dec 2006 30 June 2006 30 June 2007 Highlights Working Interest Production (mboepd) 34.1 33.0 32.5 3% premium to Brent oil prices Realised oil price ($/bbl) 65.00 64.90 66.50 Realised gas price ($/mcf) 5.03 5.11 5.26 $m $m $m Sales and other operating revenues 239.4 358.8 196.2 Cost of sales (114.4) (126.6) (65.6) Gross profit 125.0 232.2 130.6 Exploration/New Business (34.4) (37.1) (13.8) Including Guinea Bissau writeoff of $25.7 million General and administration costs (7.8) (16.6) (8.0) Operating profit 82.8 178.5 108.8 Financial Items (14.3) (5.7) (18.5) Non cash mark to market hedging loss of $9.9m Profit before taxation 68.5 172.8 90.3 Taxation (48.0) (86.7) (53.7) 50% effective rate on profits pre- Profit after tax 20.5 86.1 36.6 exploration writeoff Profit/loss from discontinued operations - - (2.9) Mauritanian assets maintained at fair value estimate of $83.5m Profit for the period 20.5 (18.5) 33.7 Page 12 | 2007 Interim Results Presentation
Cashflow 6 months to 12 months to 6 months to 30 June 2007 31 Dec 2006 30 June 2006 $m $m $m Operating cash flow 143.3 302.8 147.6 Before working capital movements Working capital movements (22.3) 58.2 76.9 Cargo proceeds of $42.0m received on 3 July Taxation paid (34.3) (116.2) (50.0) Net cash from operating activities 86.7 244.8 174.5 Expenditures ($m) Capital expenditure (188.5) (156.5) (95.9) 2007 2006 Pre licence exploration costs (7.9) (19.2) (6.8) Exploration 61.0 39.9 Development 37.9 39.0 Net cash flow before financing (109.7) 69.1 71.8 Acquisitions 89.6 17.0 188.5 95.9 Page 13 | 2007 Interim Results Presentation
Balance sheet As at As at As at 30 Jun 2007 31 Dec 2006 30 Jun 2006 $m $m $m Cash and equivalents 240.8 40.9 43.8 Invested at an average 5.28% Bank debt (68.0) - - Convertible Bonds (196.9) - - $250 million issue in May at 2.875% coupon, $51.9 million Net (debt)/cash (24.1) 40.9 43.8 attributed to equity reserve Net assets 582.5 449.1 412.4 Balance sheet gearing 4.6% - - Undrawn facilities 207.0 275.0 275.0 Page 14 | 2007 Interim Results Presentation
Development update Page 15 | 2007 Interim Results Presentation
Middle East – Pakistan – Producing fields The historical picture of reliable Pakistan Production Graph production growth looks set to continue: (boepd net) 20000 • Zamzama Phase-2 first production is imminent Further potential – Incremental 150 mmscfd of production capacity 18000 Development projects Producing fields (including development drilling) – On time and on budget 16000 • Badhra first production at year end 14000 – Initial development of 30 mmscfd 12000 • Qadirpur capacity expansion in April 2008 10000 2006 2007 2008 2009 2010 – Plant capacity increasing from 500 to 600 mmscfd • Qadirpur Power Generation Project in 2009 – Further 70 mmscfd of gas to a new power station • Further potential projects exist with Badhra extension and Qadirpur Deep Page 16 | 2007 Interim Results Presentation
Other key producing fields Scott • In 2006/7 a successful infill drilling campaign reinvigorated production – Production increased from 18 to 35 kboepd gross – Added 11 mmbbls reserves at $10/barrel • After further study work a new campaign is being planned for late 2008/9 • Upgrades to power generation and water injection will increase production Kyle • Completion of the gas lift project has significantly increased production Page 17 | 2007 Interim Results Presentation
Asia – Vietnam – Blackbird / Dua • First production targeted for 2010 but 2009 may be possible • Market survey of FPSOs completed • Development team in place in Ho Chi Minh • Reservoir studies and development cost estimating are ongoing • Gas options under review 2007 2008 2009 2010 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 RAR FDP First Production PV Approvals FPSO Specify Tender Convert Install Wellhead Platforms Specify Tender EPCI - Blackbird Install - Blackbird EPCI – Dua Drilling Drill Blackbird Wells Tieback Blackbird Wells Drill Dua Wells Page 18 | 2007 Interim Results Presentation
Asia – Indonesia – West Natuna Block A GSA 2 • Confident of Indonesian ministerial approval to export gas • A further expansion of the Jurong Petrochemical complex has been announced • Evaluating the possibility of an offer from Sembgas (GSA1 Buyer) as an additional buyer to ExxonMobil • Development planning continues – Pre-FEED work is ongoing • First production target of Q4 2010 Page 19 | 2007 Interim Results Presentation
Asia – Indonesia – North Sumatra Block A • Targeting POD approval at end of October – Gas sales negotiations with PIM (fertilizer manufacturer) are progressing – POD has been submitted to BPMigas for review – Tendering process for FEED is underway • First production targeted for Q4 2010 • Early production project of 15 mmscfd to an IPP for late 2009 • Study work on re-development of the old oil fields has commenced Page 20 | 2007 Interim Results Presentation
Recommend
More recommend
