Cairn in Senegal Creating an Emerging Oil Basin on the Frontier Eric - PowerPoint PPT Presentation

Cairn in Senegal Creating an Emerging Oil Basin on the Frontier Eric Hathon, Exploration Director – 23 rd October, 2017

Disclaimer These materia ials ls contain in forw rward-lo lookin ing statements ts regardin ing Cair irn, our corporate pla lans, future fin inancia ial conditio ion, futu ture results ts of of operations, s, futu ture busin iness pla lans and and str trategies. All ll such forw rward-lo lookin ing statements ts are based on on our management's 's assumptio ions and and beliefs in in th the light of of in information availa lable to to them at at th this is tim ime. These forw rward-lo lookin ing statements ts are, by by th their ir nature, subject to to signif ific icant ris isks and and uncertainties and and actu tual results ts, performance and and achievements ts may be be materia ially ly different from th those expressed in in such statements ts. Factors th that may cause actu tual results ts, performance or or achievements to to differ from expectati tions in inclu lude, but but are not li limited to, regula latory ry changes, s, futu ture levels ls of of in industry ry product supply ly, demand and and pric icin ing, weath ther and and weath ther rela lated im impacts ts, wars rs and and acts ts of of terroris ism, develo lopment and and use use of of technolo logy, acts ts of of competitors and and ot other chan changes to to bus busin iness con onditio ions. Cair irn undertakes no no oblig igati tion to to revis ise any such forw rward-lo lookin ing statements ts to to reflect any changes in in Cair irn's 's expectations wit ith reg regard thereto or or an any chan change in in ci circumstances or or events aft after the dat date here hereof. 2 Cairn in Senegal, Cape Town, October 2017

Cairn Energy Creating Growth Through Exploration Growing and diversifying the portfolio Focused on key value drivers in the Exploration Arena  Mature basins Barents Sea NORWAY NO  UK and Norwegian North Sea UK UK  Emerging basins IRE RELAND  Senegal, Barents Sea, Mexico  Frontier basins ME MEXI XICO  I reland, Morocco Enhancing portfolio mix-critical success factors MOR MOROC OCCO  Clear path to commerciality SEN ENEGAL  Compelling commercial, subsurface and above ground risk  Minimise cycle time to first production  Operatorship and outstanding strategic partners 3 Cairn in Senegal, Cape Town, October 2017

Cairn in Senegal Moving a Frontier basin to an Emerging Oil Play  Strong belief in the potential of offshore Senegal  Drilled first deep water wells offshore Senegal 2014  Two basin opening discoveries, FAN-1 and SNE-1 SENEGAL  Eleven successful E&A wells drilled 2014-2017 Block Area ~7,100 km 2  Established a new hydrocarbon basin, attracting the Water Depth: Senegal 100 – 2,000m DAKAR attention of the global industry  Three phase drilling programme generated an increasing resource base of up to one billion barrels recoverable  Foundation for multi field, multi phase development plan SNE NORTH-1 Cairn (Operator) 40%  Progressing to first oil between 2021-2023 FAN-1 Woodside 35% FAR 15% and SNE-2 Petrosen 10% BEL-1 Current Licences VR-1 SNE-1 Oil Discovery SNE-6 Gas Cap SNE-3 Prospects and Leads SNE-4 30km Area FAN SOUTH-1 SNE-5 4 Cairn in Senegal, Cape Town, October 2017

Cairn in Senegal Sharing Benefits in Senegal  Sustainable oil production will greatly benefit the people of Senegal  Multi-million dollar investment since 2014  Opened an office and built a team in Dakar  Created major supply base in Dakar port  Maximizing local participation including employment and working with local suppliers  Developing capacity through training and education in key parts of operations  Supporting social investment – local entrepreneurship, helping women in rural communities, supporting local business 5 Cairn in Senegal, Cape Town, October 2017

Cairn in Senegal Social Investment in Senegal  Supporting economic growth and good governance  Training and development - HSE culture  Capacity building >200 institutional stakeholders participating  Promoting local participation  Senegalese Petroleum Institute development  Local supply chain preparation  Social Investment  Education and community development over three years  The Hunger Project – working with 7 fishing communities around Yenne 6 Cairn in Senegal, Cape Town, October 2017

Cairn in Senegal Discovering a New Oil Frontier Timeline 2013 Cairn farms in as operator with 65% WI from FAR Limited Cairn farms down 25% to ConocoPhillips 2014 Phase 1 exploration - FAN-1 and SNE-1 discovery wells Cairn opens offices in Dakar 2015 Joint venture submit 3 year evaluation plan to Government of Senegal 2016 Phase 2 E&A 4 well campaign- demonstrates scale of SNE Woodside acquire ConocoPhillips 35% working interest 2017 Phase 3 campaign with a further 5 E&A wells drilled Complete SNE Field appraisal, return to basinal play Extended well testing in S400 reservoir 2018 Submit Evaluation and Exploitation Plans to the Government FEED commencing with FID targeted before the end of 2018 Transfer of Operatorship for development phase to Woodside 7 Cairn in Senegal, Cape Town, October 2017

Cairn in Senegal Geology of Cretaceous SNE and FAN plays SNE-  SNE Field: Early Albian sandy pro-delta NORTH-1 FAN turbidite apron and delta-fed ramp FAN SNE NORTH-1 SOUTH-1  FAN- Late Albian axially reworked SNE Wells SNE contourites and gravity deposits BEL-1 Delta-front Delta-slope  FAN SOUTH: Albian base of slope FAN-1 R VR-1 turbidite fans shed off the shelf Contourite Drifts R FAN-1 SNE-1 Prodelta R R FAN SOUTH-1 R R Apron R Carbonate S R Platform R S Base of Slope Turbidite Fans S Syn-rift section 8 Cairn in Senegal, Cape Town, October 2017

Cairn in Senegal Third Phase of Drilling 2017 – World Class Delivery  Excellent HSE/CR Performance  0 Lost Work Days throughout the campaign  Five exploration and appraisal wells drilled  All five encountered hydrocarbons  Campaign schedule of 303 AFE days cut by 101 days  20% under AFE Budget for the 5 wells  Average time to TD reduced to 10 days  Top quartile performance for West African wells  In top 10% for SNE Field appraisal wells Per Rushmore West Africa data, deep water, vertical wells post-2013   Novel Extended Well Test Operation  85,000 bbl Crude Storage capacity in rig  No interruptions to flow periods-outstanding data set  No environmental release to sea 9 Cairn in Senegal, Cape Town, October 2017

Cairn in Senegal Third Phase of Drilling 2017-Exploration  3 appraisal targets and 3 exploration targets Block Area ~7,100 km 2 DAKAR Water Depth: 100 – 2,000m  Finished appraisal of SNE Field Senegal  VR-1 exploration ‘tail’ tested deeper carbonate play Capitaine Prospect  Oil shows in tight formation  FAN SOUTH-1 follow on to FAN-1 basin discovery  Recovered 31 ° API oil from Cretaceous interval Rufisque Offshore  Separate basinal accumulation SNE NORTH-1 Sangomar  SNE NORTH-1 further test of SNE field play Deep SNE North Offshore Discovery  Discovery separate accumulation to SNE Field FAN-1 Cairn (Operator) 40%  Gas and Condensate in S400 reservoir SNE-2 BEL-1 Woodside 35% FAR 15% and SNE-1 VR-1 Petrosen 10%  Oil in S500 reservoir below oil-water contact at Current Licences SNE-6 SNE Oil Discovery SNE-3 Gas Cap SNE-4 Prospects and Leads  Demonstrates potential for additional finds in FAN 30km Area basin SOUTH-1 Sangomar SNE-5 Offshore 10 Cairn in Senegal, Cape Town, October 2017

Cairn in Senegal Remaining Exploration Potential Around SNE Sangomar Deep Offshore Block DAKAR  SNE NORTH-1 40 – 80 mmboe (mean – P10) Gross Senegal Mean Contingent Resource*  Additional potential 65 – 130 mmboe (mean – P10) Gross Mean Prospective Resource* Capitaine Prospect Requires stratigraphic trap element to north  Target for future appraisal  Rufisque Offshore Block Rufisque Offshore  Maturing leads on newly processed 3D seismic  Capitaine prospect most attractive to-date SNE NORTH-1 Sangomar Regional focus for hydrocarbons  Deep SNE North Offshore Impact resource potential in shallow water Discovery  FAN-1  Would require standalone development Cairn (Operator) 40% SNE-2 BEL-1 Woodside 35% FAR 15% and Sangomar Offshore Block SNE-1 VR-1 Petrosen 10% Current Licences SNE-6 Oil Discovery  Multiple leads being matured SNE-3 Gas Cap SNE-4 Prospects and Leads  Within 30 km tie back distance of SNE FAN 30km Area SOUTH-1 Sangomar Lower commercial threshold SNE-5  Offshore * Cairn estimate 11 Cairn in Senegal, Cape Town, October 2017