IF Oil Discovery Update Presentation 1 st June 2009 1 1 st June 2009
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, 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. Recipients of the Presentation are advised to read the admission document dated 1 December 2004 issued by the Group (as supplemented by subsequent prospectuses issued by the Company and subsequent announcements by the Company to Regulatory Information Services) for a more complete discussion of the factors that could affect future performance and the industry in which the Group operates. 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 1 st June 2009
Presenters • Kevin Hart, CEO Kevin Hart • Ed Willett, Exploration Director Ed Willett 3 1 st June 2009
4 4 4 Executive Summary Kevin Hart, CEO 1 st June 2009
Executive Summary • TRACS report independently supports Bowleven’s view of IF field potential. • Further appraisal warranted. • High likelihood of commercial development. • Rig tenders issued. • Project sanction possible by mid-2010 with first oil in j p y late 2011 assuming FPSO concept. 5 1 st June 2009
Highlights of CPR • IF Oil Discovery CPR completed by TRACS International Consultancy Ltd. • STOIIP and Contingent Resources are assessed as: 1C 2C 3C Total STOIIP mmbbl 101.2 194.5 274.1 Oil Contingent Resources mmbbl 23.9 53.1 94.3 • NPV (10%) is assessed as: 1C 2C 3C Bowleven NPV (10%) mmUS$ 10.6 556.3 1038.3 Nymex crude oil (light) forward curve to 2017 and 1.8% inflation p.a. applied thereafter. • Probability of Commercial Success estimated as 65%. 6 1 st June 2009
MLHP-7 IF Field – Bowleven Current View • Structure now defined as a simple 4-way dip closure. STOIIP mmbbl P90 P50 P10 Mean Total 131 206 335 225 Contingent Resource P90 P50 P10 Mean Total 44 76 130 82 • Recovery factors 30-40-55%. • Anticipated ultimate development likely to incorporate FPSO resulting in significant CAPEX savings. • Development design will facilitate further future on- block field integration (IE, IM, etc.). • Highly attractive project economics. IF-1r well DST Flare 7 1 st June 2009
8 8 8 Exploration Director IF Oil CPR Presentation Ed Willett, 1 st June 2009
Cameroon Acreage Position Bomono Permit 100% • OLHP 1 & 2 • 2,328 km² • PSC signed 12 Dec 2007 IF Oil Discovery • First term ends 11 Dec 2012 • 500km seismic & one well commitment commitment Etinde Permit 100% • MLHP 5,6 & 7 • 2,314 km² • Etinde PSC signed on 22 Dec 2008 • Exploration period extended by three years from date of signing • 200km² 3D seismic and one well commitment 9 1 st June 2009
MLHP-7 IF Field – CPR May 2009 Competent Persons Report: • TRACS International Consultancy Ltd were commissioned by Bowleven Plc to conduct an independent third party review and audit of the IF Oil Discovery. • The CPR process included a complete assessment of: • Seismic interpretation • Petrophysics • Mapping and Volumetric Calculations • Fluid data (MDT and DST) • Production Tests • Recovery Factors • Field Development Plan • Reserves & Resources Calculations • Resource Valuation • CPR completed May 2009. Trident IV Jack-up on IF-1r location Summer 2008. 10 1 st June 2009
MLHP-7 IF Field – CPR May 2009 Evaluation Methodology High Case Competent Persons Report: • The CPR assumes that the proven field area (IF-1r locale) is insufficient for Appraisal commercial development and an p Mid Case Mid Case Appraise Appraise POS 65% POS 65% Successful appraisal program is required. • Overall probability of commercial success is evaluated as 65%. Low Case IF-1r Discovery 11 1 st June 2009
MLHP-7 IF Field – CPR May 2009 Evaluation Methodology High Case Appraisal Mid Case Mid Case Appraise Appraise POS 65% POS 65% Successful Low Case • The CPR provides an unrisked assessment of the IF Field and gives a range of high, mid and low case outcomes. IF-1r Discovery 12 1 st June 2009
MLHP-7 IF Field – CPR May 2009 GRV Derivation - Structural Interpretation IF-1R Bowleven Structure (Mar ‘09) (based on Green pick) Poor Data Zone ?Gas Chimney High Case Areal Extent High case • Both Bowleven and TRACS map sets identify an • High and Mid cases defined by seismic interpretation. independent 4-way dip closure updip to the SE of the • Low Case GRV derived by structural IF-1r discovery well. compartmentalisation and more pessimistic time-depth conversion than encountered in IF-1r. 13 1 st June 2009
MLHP-7 IF Field – CPR May 2009 GRV Derivation - Structural Interpretation IF-1R TRACS Structure Map (May ‘09) Bowleven Structure (Mar ‘09) (based on Yellow pick) (based on Green pick) Poor Data Zone ?Gas Chimney Mid case High case Mid Case Areal Extent (Includes Low Case Areal Extent) • Both Bowleven and TRACS map sets identify an • High and Mid cases defined by seismic interpretation. independent 4-way dip closure updip to the SE of the • Low Case GRV derived by structural IF-1r discovery well. compartmentalisation and more pessimistic time-depth conversion than encountered in IF-1r. 14 1 st June 2009
MLHP-7 IF Field – CPR May 2009 N:G Derivation – Reservoir Zonation TRACS CPI log with Reservoir Zonation Rhobz-TNph-DT GR Res Vclay Phie Shale Ave. 3371 bopd, DST 1 Peak 4184bopd Thin Beds ½” choke OWC 6548ftMD ft) 98%recovery TRACS CPR Top Amalgamated Core Sands pick. Core (455f Sand 1 • Reservoir zonation used to define Gross Rock Volume and N:G for Sand 2 input into STOIIP calculations. Shale • Alternative volumetric cases (high, mid, low) based on uncertainties in: • seismic/structural interpretation, Sand 3 • depth conversion • reservoir continuation updip into the crestal areas. 15 1 st June 2009
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