Interim Results Presentation (six months ended 31 December 2009) 29 March 2010
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 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. 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. Investor/Analyst Interim Results Presentation – 29 March 2010 2
Presentation Agenda • Opening Remarks Kevin Hart, CEO • Asset Overview • Financial Overview • Outlook and Closing Remarks Ed Willett, Exploration Director • Open Questions John Brown, Finance Director Investor/Analyst Interim Results Presentation – 29 March 2010 3
Opening Remarks 4
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.” Cameroon Gabon Strategy – Regional Focus on West Africa Strategy focused on creating and realising value through • material exploration success. Seek value adding partnerships as appropriate. • Fostering strong external partnerships and in-country • relationships. Strong technical and management teams with successful • track record. Investor/Analyst Interim Results Presentation – 29 March 2010 5
Company Overview Two key operating areas: Cameroon and Gabon Company Assets 7 Blocks (5 in Cameroon and 2 in Gabon). • 4 offshore shallow water, 3 onshore. • 6 operated, 1 non operated. • JDZ Overall P50 contingent resource base 217 mmboe* (net). • Extensive 3D & 2D seismic database. • Substantial prospect inventory developed across portfolio. • São Tomé & Principe Extensive 2010 drilling & seismic work programmes • planned. Equatorial Guinea * Source: Interim Report & Accounts 2009 (pre assignment of 25% Etinde † to Vitol; † Etinde Permit comprises MLHP 5,6 & 7; Bowleven 100% operator pending approval of 25% assignment to Vitol post assignment figure 165 mmboe) Investor/Analyst Interim Results Presentation – 29 March 2010 6
Company Overview Two key operating areas: Cameroon and Gabon Asset Strategy for 2010 To move resources to reserves on Etinde Permit (IE and IF • appraisal wells); targeting transfer of >100mmboe (gross). JDZ High impact exploration drilling on Etinde Permit (including • Miocene and Cretaceous-Turonian plays, offshore shallow water). Exploration activity on Bomono. • São Tomé & Principe Financial Strength Group cash at 31 December 2009 $110 million, no debt. • Vitol initial carry ($100 million gross) provides funding flexibility. • More than fully funded for 2010 work programme. • Prospect of additional funds if Vitol exercises option ($100 million • gross carry and $25 million cash). Equatorial Guinea † Etinde Permit comprises MLHP 5,6 & 7; Bowleven 100% operator pending approval of 25% assignment to Vitol Investor/Analyst Interim Results Presentation – 29 March 2010 7
2010 Corporate Highlights Corporate • Etinde farm-out transaction with Vitol E&P Limited (Vitol) approved by SNH and Ministry. Presidential decree awaited. • Group cash balance at 31 December 2009 approximately $110 million, no debt. • Vitol initial carry ($100 million gross) provides additional flexibility. • More than fully funded for planned 2010 work programme; with the prospect of additional funds should Vitol exercise its option. • Initialed SPA for the disposal of Group’s entire interest in EOV Permit; government acknowledgement pending . Investor/Analyst Interim Results Presentation – 29 March 2010 8
Operational Highlights Resource Base • P50 contingent resources for the Group 217 mmboe (gross). • IE/IF appraisal drilling on Etinde targeting transfer of > 100 mmboe (gross) from resources to reserves. Etinde Exploration and Appraisal • Jack-up rig contracted for Etinde drilling campaign of up to four wells; long lead items secured. • Drilling to commence beginning May 2010 with appraisal well on IE gas/condensate field. • MLHP-5 exploration well to follow, targeting multiple stacked objectives, including Cretaceous target. • Cretaceous prospect estimated to have unrisked P90 to P10 oil in place of 104 million to 3.7 billion barrels. • Scheduled IF oil appraisal well; timing and location dependent on seismic programme. • Acquisition of marine 3D seismic over Etinde to commence May 2010. Bomono Exploration • Acquisition of 2D seismic over Bomono, onshore Cameroon, commenced March 2010. Investor/Analyst Interim Results Presentation – 29 March 2010 9
2010 Etinde Drilling and Seismic Campaign Programme with potential to transform company • Jack-up rig secured on 2 firm and up to 2 contingent wells (day rate $90k). MLHP 7 current 3D • Rig currently warm-stacked in Limbé. 575km ² 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 IE-3 MLHP-5 Etinde Etinde IE ‐ 3 Limbé IF-2 MLHP 5 Proposed Preparation Appr. Expl. Well Drilling TZ 3D OBC 300km ² Appr. (firm) (firm) TBC IF ‐ 2 IF Multi ‐ Azimuthal 3D 128km ² • 3D seismic reprocessing ongoing. MLHP 6 & 7 • Contract awarded for the 3D marine streamer seismic (total Proposed 3D 417km ² 675km²). MLHP ‐ 5 Expl. • Tender initiated for MLHP-5 TZ survey. 2010 MLHP 5 & 6 MLHP 5 Proposed current 3D 812km ² 3D 130km ² Q1 Q2 Q3 Q4 Marine Reprocessing MLHP 5 3D Etinde Seismic Streamer MLHP 7 3D OBC 3Ds • Etinde PSC covers an area of 2,316 km². • 3 year exploration period, expiring December 2011. Investor/Analyst Interim Results Presentation – 29 March 2010 10
Asset Overview Cameroon 11
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