Capital Markets Day 24 th January 2012
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 liqu idity, 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 t he 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 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. 2 24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION
Presentation Agenda • Overview • Value Realisation • Development & Operations • Economics & Funding • Interim Q&A’s • Asset Overview (Resources) • Exploration • Outlook & Conclusion • Q&A 3 24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION
oil & gas Overview
Company Overview Company Assets • 5 Blocks in Cameroon covering 4,644km². • 3 offshore shallow water, 2 onshore; all operated. Nigeria • Overall P50 contingent resource base 217 mmboe* (net). • Extensive 3D & 2D seismic database; expanded significantly during 2010/2011 (Bomono & Etinde). • Substantial prospect inventory continually being developed across portfolio. • Offshore Bowleven (operator) 75% Etinde Permit (25% Vitol). Cameroon • Onshore Bowleven (operator) 100% Bomono Permit. • SNH back-in rights 20% (Etinde) and 10% (Bomono) at grant of exploitation licence. Equatorial Guinea * Source: Annual Report for 2011. Operator’s volumetrics. Volumetrics update post Sapele-3 pending, excludes EOV. 5 24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION
Vision & Strategy Vision “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.” Strategy – Regional Focus on West Africa • 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. 6 24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION
Company Overview Bowleven – Finding Resources & Securing Acreage • Current team has drilled 8 wells since joining in early 2007. • Busiest and most successful Operator in Cameroon. Succeeded in opening up Douala Basin and discovering oil on acreage previously considered as gas prone. • Multiple discoveries made – all wells encountered hydrocarbons. • Wells have been targeted to maximise value – oils and rich gas. † • Drill locations have also been considered in context of the desire to maximise the area of retained prospective acreage. • Extensive additional 3D seismic acquired (Block 6, 4C OBC etc). 7 24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION
Etinde Drilling History Track Record – Wells and Resources 2007 2008 2009 2010 2011 Sapele-1 (Feb 2011) • IE-2z (March 2007) Vitol 100% Drilling success rate. 33-43m Net Pay Tested 8,800boepd farm-in • Focus on liquids. Sapele-1 ST (June 2011) 55m Net Pay Tested 3,101boepd D-1R (July 2007) • Gross resources up 166% since 2006. 19m Net Pay Tested 5,655boepd IF-1R (August 2008) IE-3 (August 2010) Sapele-2 (Aug 2011) Operator’s estimates, excludes Sapele -3 and 11m Net Pay • Tested 3,812boepd Tested 22,909boepd Tested 3,119boepd Alpha-Epsilon System: 61m oil column from 5 zones 35m Net Pay 40m Net Pay Sapele-3 (Oct 2011) Etinde P50 Gross Resource 19m Net Pay IM IC Manyikebi IE mmboe IF Deep Omicron Fairway SNA-1X Sapele-3 Sapele-1/1ST D-1R Sapele-2 20km 8 24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION
Key Events for 2012-2013 Mobilise for Commercialisation Etinde • Target to sign MOUs for up to 80mmcf of dry gas sales by end H1 2012. • Draft Etinde Exploitation Application on track for submission on 31 st March 2012. • Rig due to be delivered following completion of operations for † Noble Energy. Anticipated around middle of year. • 2-4 well offshore appraisal and development drilling programme commencing with IM well. • Project financing - discussions already commenced. • Gas Sales Agreements, FID and finalisation of debt finance targeted for 2013. Bomono • Drilling campaign scheduled to commence mid 2012. 9 24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION
Strong Management Team Kevin Hart Philip Tracy Ed Willett John Brown Peter Wilson Chief Tabetando CEO Interim Operations Exploration Director Chairman EurOil Finance Director Director/General Director Counsel • Management team with track record of finding, financing and delivering oil and gas projects to market. • Excellent in-country relationships through EurOil with appropriate ministries and SNH. • Bowleven and Vitol JV well-aligned in objective of exploiting gas and liquids in the Etinde Permit, as a matter of priority. • Development project to be EurOil driven with Bowleven and Vitol to contribute management and technical expertise. • Bowleven now positioned to deliver home-grown production and cashflow in 2015. 10 24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION
oil & gas Value Realisation
Gas Handling – The Key to Monetising Resources • Etinde resources are predominately gas-associated liquids. • In order to realise the value of Bowleven’s existing discoveries, finding a solution for the associated gas is key. • In common with nearly all African countries, Cameroon has only a small but rapidly expanding market for gas. • Until very recently Cameroon Government had a strong preference for any Cameroon gas, including Etinde gas, to be earmarked for use in aggregated LNG (GdF) scheme. • Whilst gas sales to a third party is clearly preferable it is not a pre- requisite to development as alternative “in house” solutions exist. • Commercialising gas is a key objective of the work programme that has been agreed by the JV for 2012. • Production will provide the cashflow base for ongoing development – plus further exploitation of the existing extensive prospect inventory. 12 24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION
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