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2013 Full Year Results Presentation
Thursday, 27 March 2014
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2 | 2013 Full Year Results Presentation
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Agenda
Strategy
4
Financial results
7
Portfolio management
14
Production growth
17
Reserves growth
22
Conclusions
29
Appendix
31
3 | 2013 Full Year Results Presentation
Strategy
Osman Shahenshah
Shareholder
value
4 | 2013 Full Year Results Presentation
A year of unprecedented results
2013 – Record financial results
• Net production at top end of
guidance 47,112 boepd
• Revenue of US$1.6bn and cash
flow from operations of US$1.2bn
2014 – Targeting low-risk
reserves growth
• Ogo: 3rd largest global discovery
in 2013 – forward programme
underway
• Building on strong track record
of delivery
• Significant upside to 2P around
existing assets
2014 – Allocating capital to
highest cash return projects
Next 5 years – double-digit CAGR
production growth
• Okoro continues to outperform
• From within existing portfolio of assets
• Ebok completely de-risked
5 | 2013 Full Year Results Presentation
Strategy – Afren’s value drivers
TODAY
Market Cap
US$2.6bn
Asset value upside
Early access in
‘hot’ industry
postcodes –
Nigeria, Kurdistan,
East Africa
Growing reserves
Significant
resource potential
adjacent to existing
production
2006
AIM listing
2005
AIM listing
Market Cap
US$73m
Initial Okoro
Development
6 | 2013 Full Year Results Presentation
High margin
cashflow generation
Foundation of
strong producing
assets
Financial results
Darra Comyn
Shareholder
value
7 | 2013 Full Year Results Presentation
2013 financial results summary
Record financial performance
Strong cash flow generation from quality producing assets
US$m
2013
20122
Change
Revenue
1,644
1,571
+5%
Gross profit
643
791
-19%
Profit for the year
475
189
151%
Normalised profit before tax1
483
637
-24%
Basic earnings per share (cents/share)
43.8
18.6
+135%
Capital investment3
716
521
+37%
1,216
974
+25%
739
561
+32%
Net cash from operating activities
Net debt
(1) Excludes the effect of one-off and non-cash items, including impairments, share of joint venture losses, share-based payments and certain
financing and foreign exchange costs
(2) Restated as a result of the adoption of IFRS 10 and IFRS 11
(3) Excluding capitalised interest, partner settlements and office capex
8 | 2013 Full Year Results Presentation
Profit for the year
2012 to 2013 profit comparison
700
600
72
500
US$m
400
300
33
106
537
7
513
37
200
38
119
100
0
187
End 2012
Revenue
- volume
Revenue
- price
9 | 2013 Full Year Results Presentation
Operating costs
Royalties
DD&A
Other
costs/provisions
51
40
Finance
costs/hedging
Disposed assets
-
-
Tax
-
Exploration write
off
End 2013
Tax update
• US$419m in taxes and royalties of which US$400m was paid in Nigeria in 2013
(2012 - US$233m)
• Income tax credit of US$157m reflects reversal of prior years’ deferred and
current tax provisions
• Ebok tax exemption: June 2011 to May 2016
• Post June 2016 reset to first oil
• Accelerated capex on Ebok in 2014 and 2015
• Continuing to pay corporate taxes, indirect taxes, royalties and other levies in
Nigeria
10 | 2013 Full Year Results Presentation
Sources and uses of funds
End 2013 cash balance of US$390m
1,800
1,600
1,400
735
US$m
1,200
1,005
1,000
800
59
446
600
291
265
400
599
390
200
0
End 2012
Operating cash flow
before working
capital
11 | 2013 Full Year Results Presentation
Investment
activities
Acquisitions
Working capital and
other movements
Tax
Capital repayment
and debt servicing
End 2013
Financial flexibility
Extended debt maturity profile and lower cost of debt
End 2013 US$m
End 2012 US$m
Rate
Repayment due
2016 senior secured notes
253
500
11.5%
2016
2019 senior secured notes
250
300
10.25%
2019
2020 senior secured notes
360
-
6.625%
2020
Bank facilities
290
287
LIBOR +4.25%/7%
From 2015
-
103
LIBOR +4.5%
Repaid in 2013
1,129
1,160
Cash at bank
390
599
Net debt
739
561
Afren net debt
Other borrowings
Total debt*
* Includes capitalised borrowing costs of US$24 million (2012: US$30 million)
12 | 2013 Full Year Results Presentation
Capital expenditure
2014 capex allocated to highest cash return projects
FY 2013 capex spend
US$716 million
36%
64%
FY 2014E capex spend
US$845 million
24%
76%
Development
E&A drilling and seismic activity
13 | 2013 Full Year Results Presentation
Portfolio management
Galib Virani
Shareholder
value
14 | 2013 Full Year Results Presentation
Portfolio management
Track record of accretive acquisitions
30.0
• Focus on financial
Total entry and appraisal cost per bbl
discipline (track
record of acquiring
at <US$4/bbl)
25.0
22.0
• Highly efficient use
20.0
creation
• Exploration type
US$/bbl
of capital
• Demonstrable value
Consensus PV per bbl(1)
25.4
15.0
11.9
uplift with appraisal
type risk
10.0
• Additional upside on
5.0
9.6
7.4
2.0
existing 2P base
1.9
1.2
1.0
0.7
0.0
Okoro
(1) Source: Brokers research, Wood Mackenzie, Afren
15 | 2013 Full Year Results Presentation
Ebok
Okwok
OML 26 (FHN) Kurdistan reigion
of Iraq
Capital allocation to the highest cash return projects
Large opportunity set within our existing portfolio
• Okoro/Ebok/Okwok recovery upside
2P
Upside
• Ebok deep
• OML 115
• Okoro & FFD
• Ebok & NFB
Existing
Existing
developments
Developments
• Okwok Core
• OML 26
• Barda Rash light oil
Larger
Large scale
scale
developments
Developments
• Ogo
• Barda Rash heavy oil
Frontier
exploration
Internal cash flow
16 | 2013 Full Year Results Presentation
Industry
Production Growth
Iain Wright
Shareholder
value
17 | 2013 Full Year Results Presentation
Production growth
Moving forward with Okoro FFD
Okoro Further
Field
Development
Platform
Okoro Main
Platform
Ima Terminal
(Ailsa Craig 1
FSO)
18 | 2013 Full Year Results Presentation
Okoro
MOPU
Production growth
Ebok
• Production in period 34,910 bopd
(y-o-y increase +16%)
• Well performance and rates in line with
prognosis
• 5 new production and 2 injector wells
planned for 2014
Floating Platform Storage Offloading Vessel (FPSO)
19 | 2013 Full Year Results Presentation
Floating Platform Storage Offloading Vessel (FPSO)
A major production hub offshore south east Nigeria
Planned new infrastructure at Ebok CFB and Okwok
Offtake Tanker
Floating Storage
Offloading Vessel
Planned Okwok
Mobile Offshore
Production Unit
West Fault Block
Wellhead Platform extended for NFB
development
Ebok Mobile
Offshore
Production Unit
Central Fault
Block
Wellhead
Platform
Planned Okwok
Wellhead Platform
Planned Central
Fault
Block 2 Platform
20 | 2013 Full Year Results Presentation
Production growth
Self-funding double digit 5-year growth
• 2013 production of 59,926 boepd
Group net working interest production (boepd)
gross (47,112 boepd net) - at top end
of guidance
47,112
43,830
• 2014 guidance: 62,000 bopd gross
c.40,000
(c.40,000 bopd net)
– Cost recovery at Ebok
– CFB extension installation downtime
• Active work programme to produce
and develop remaining 2P reserves
19,284
• Contingent resources being matured
• High margin oil production self-
14,333
funding forward work programme
2010
21 | 2013 Full Year Results Presentation
2011
2012
2013
2014
Reserves Growth
Iain Wright
Shareholder
value
22 | 2013 Full Year Results Presentation
Reserves growth – Okoro track record
Continued outperformance at Okoro
90
• Reservoir and production out-
performance
80
70
• Significant further 2P recovery
upside expected
– in line with the original 3P
reserves case
mmbbls
• Recovery to date 32.5 mmbbls
60
50
40
30
20
10
0
1P
YE 2013
23 | 2013 Full Year Results Presentation
2P
YE 2008
3P
Cumulative gross
production to end 2013
Reserves growth – more to come
Significant remaining upside potential
500 mmbbls gross unrisked
resource potential
• Large remaining resource upside
OML 115 resources upside
205.5
• Only 30% of total area resource
potential reflected in 2P reserves
category
• Appraisal success at Okwok resulted
in additional 46.6 mmbbls of gross 2P
reserves
Ebok 2P
103.8
Okwok 2P
46.6
• Low-risk appraisal and exploration
drilling expected to move further
resources into reserves
Okwok 3C upside
26.3
24 | 2013 Full Year Results Presentation
Ebok 3C upside
117.7
Continued exploration success
• Okwok (2P – 47 mmbbls)
2013
• OPL 310 (gross P50 resources
774 mmboe, 3.8x larger than
pre-drill estimates )
• Simrit-2 & 3 Ain Sifni (Kurdistan)
• Maqlub-1 (Kurdistan)
• Okoro extension (2P - 52 mmbbls)
2012
25 | 2013 Full Year Results Presentation
• Ebok North Fault Block (2P - 25
mmbbls)
• Simrit-2 Ain Sifni (Kurdistan) (1,509 ft
net oil pay)
Ogo “one of the largest discoveries in 2013”
• 2,716 km2 3D marine
seismic commenced
• Looking to establish full
extent of syn-rift play, new
dip-closed structures in the
north and east
• Appraisal drilling to follow
seismic
900
P50 gross resources mmboe
800
700
774
600
500
400
300
200
100
202
0
Pre-drill
Post-drill (Ogo-1 and ST)
26 | 2013 Full Year Results Presentation
Group reserves and resources
mmboe
Proved and
Probable
Contingent
Resources
Prospective
Resources
End 2012
270.3
840.7
7,127
Production
(17.0)
-
Divestments
(1.5)
(1.9)
Discoveries and extensions
26.4
(26.4)
310
Revision of previous estimates
7.7
(2.6)
2,594
286.0
809.8
10,031
End 2013
•
Excludes management estimates of contingent resources at OML 113 (gross 167 mmboe) and additional upside at OML 26 (gross 144 mmboe)
27 | 2013 Full Year Results Presentation
E&A programme
Wells operating/new well spuds
Gross unrisked
resources
(mmboe)
Net unrisked
resources
(mmboe)
PoS(2)
Appraisal drilling
661
132
-
Ethiopia
Appraisal drilling
100
30
-
50%(1)
Nigeria
Exploration drilling
50
25
33%
74%
Tanzania
Exploration drilling
1,302
963
25%
50%(1)
Nigeria
Exploration drilling
65
33
40%
Block 1
80%
Kenya
Exploration drilling
270
216
20%
OPL 310
40%(1)
Nigeria
Appraisal drilling
774
310
-
Asset
W.I.
Country
Activity
Ain Sifni
20%
Kurdistan region of Iraq
El Kuran-3
30%
Ebok Deep
Tanga
OML 115
E&A well operating
E&A well - new spud
1) Post cost recovery economic interest
2) PoS in relation to exploration drilling campaign only
28 | 2013 Full Year Results Presentation
1H 2014
2H 2014
Conclusions
Osman Shahenshah
Shareholder
value
29 | 2013 Full Year Results Presentation
Conclusions
2013 – Record financial results
• Net production at top end of
guidance 47,112 boepd
• Revenue of US$1.6bn and cash
flow from operations of US$1.2bn
2014 – Targeting low-risk
reserves growth
• Ogo: 3rd largest global discovery
in 2013 – forward programme
underway
• Building on strong track record
of delivery
• Significant upside to 2P around
existing assets
2014 – Allocating capital to
highest cash return projects
Next 5 years – double-digit CAGR
production growth
• Okoro continues to outperform
• From within existing portfolio of assets
• Ebok completely de-risked
30 | 2013 Full Year Results Presentation
Appendix
Production and development
32 - 40
Exploration and appraisal
41 - 54
31 | 2013 Full Year Results Presentation
Certified reserves and resources
Nigeria
Côte d'Ivoire
Nigeria -Sao Tome &
Principe
Kurdistan Region of Iraq
Oil
Oil
Oil
Oil
(mmbbl) Gas(bcf) mmboe (mmbbl) Gas(bcf) mmboe (mmbbl) Gas(bcf) mmboe (mmbbl) Gas(bcf) mmboe
Group Proved and Probable
Reserves
At 31 December 2012
Revisions of previous estimates
Discoveries and extensions
Acquisitions
Divestments
Production
At 31 December 2013
154.5
7.7
26.4
(16.4)
172.1
-
154.5
7.7
26.4
(16.4)
172.1
0.3
(0.2)
(0.1)
-
9.2
(7.3)
(1.9)
-
1.9
(1.5)
(0.4)
-
Contingent Resources
At 31 December 2012
Revisions of previous estimates
Discoveries and extensions
Transfers to reserves
Acquisitions
Divestments
At 31 December 2013
60.4
(2.6)
(26.4)
31.4
-
60.4
(2.6)
(26.4)
31.4
12.9
12.9
66.0
66.0
24.2
24.2
1.9
(1.9)
-
-
Total Reserves and Contingent
Resources
At 31 December 2012
Revisions of previous estimates
Discoveries and extensions
Acquisitions
Divestments
Production
At 31 December 2013
214.8
5.1
(16.4)
203.5
-
214.8
5.1
(16.4)
203.5
13.2
(0.2)
(0.1)
12.9
75.2
(7.3)
(1.9)
66.0
26.1
(1.5)
(0.4)
24.2
1.9
(1.9)
-
-
•
-
-
-
Total Group
Oil (mmbbl) Gas(bcf) mmboe
114.0
(0.1)
113.9
-
114.0
(0.1)
113.9
268.8
7.7
26.4
(0.2)
(16.7)
286.0
9.2
(7.3)
(1.9)
-
270.3
7.7
26.4
(1.5)
(17.0)
286.0
1.9
(1.9)
-
754.2
754.2
-
754.2
754.2
829.3
(2.6)
(26.4)
(1.9)
798.4
66.0
66.0
840.7
(2.6)
(26.4)
(1.9)
809.8
1.9
(1.9)
-
868.2
(0.1)
868.1
-
868.2
(0.1)
868.1
1098.1
5.1
(2.1)
(16.7)
1084.4
75.2
(7.3)
(1.9)
66.0
1111.0
5.1
(3.4)
(17.0)
1095.8
Excludes management estimates of contingent resources at OML 113 (gross 167 mmboe) and additional upside at OML 26 (gross 144 mmboe)
32 | 2013 Full Year Results Presentation
Production and development programme
1. Offshore Nigeria: Ebok & Ebok NFB
Production and Development activities map
• 18 producing wells
• CFB extension installation to be completed
1H 2014, NFB full field development to follow
• 5 new producers and 2 water injectors planned
6
2. Offshore Nigeria: Okoro FFD
• 10 producing wells
• Early production from Okoro Further Field Development established
• Further field development project sanctioned – Drilling expected to
commence Q2 2015
3. Offshore Nigeria: Okwok
• FDP received
• Partnership looking a the option of pre-drilling two production wells targeted
in H2 2014 once wellhead jacket has been installed. Wellhead jacket has
been fabricated and is in transit to the field
4. Offshore Nigeria: OML 113 (FHN)
• Aje field FDP submitted post-period end
• First phase of development includes two subsea production wells, tied back
to a leased FPSO
• First oil expected late 2015
5. Onshore Nigeria: OML 26 (FHN)
• Ogini FDP submitted, Isoko FDP expected shortly
• Multi-well drill campaign to commence 1H 2014
6. Barda Rash
• Production ramp-up progressing
• Flow lines and facilities to be updated to bring BR-4 and BR-5 into production
7. Ain Sifni
• Commerciality declared
33 | 2013 Full Year Results Presentation
7
5
2
1 3
4
Offshore Nigeria – Okwok
Successful organic reserves growth
OKW-11ST
OKW-10
Cored Interval
FB2
72’ Net Oil Pay
FB1
95’ Net Oil Pay
FB3
OKW-10ST
Cored Interval
89’ Net Oil Pay
34 | 2013 Full Year Results Presentation
2P reserves addition
of 47 mmbbls
following successful
E&A campaign
Onshore Nigeria – OML 26
Full cycle E&P opportunity
Full cycle E&P exposure
• 2 developed fields (Ogini producing and
Isoko)
0
5km
• 3 undeveloped fields (Aboh, Ovo and
Ozoro)
• Crude export is via the Forcados terminal
through a 29 km pipeline to the SPDC JV
operated Eriemu manifold
Currently producing only 1% of
total resources
1%
20%
64%
962*
mmboe
15%
Currently
Producing*
* Independently estimated by NSAI, includes management estimates
of additional upside at Aboh, Ovo and Ozoro of 144 mmboe
35 | 2013 Full Year Results Presentation
Ogini and Isoko
Phases 1,2 & 3
re-development*
Aboh, Ovo,
Ozoro 2C
Prospective
Resources
Recent operational progress
Significant momentum
• 2 new 5.2 MMscf/d gaslift compressors
installed and functional
• LACT unit has been tied-in to the Eriemu
manifold and commissioning is ongoing
• New 2 x 30kbbl Sulzer export pumps
installed and commissioning is ongoing
• All flow lines/gaslift lines replacements
done
2 new gaslift compressors (background)
• Flow, temperature and pressure sensors
have been installed on the Test Separator
and all ligament valves replaced
• Wireline intervention campaign ongoing to
restore 2 strings in Ogini wells and Isoko
wells to production
36 | 2013 Full Year Results Presentation
LACT Unit installation at Eriemu
New Export Pump at Ogini
Ogini FDP in progress
Multi-well drilling campaign expected to commence shortly
• 37 new production wells, mostly
horizontal, from existing well pads
• 13 shot to medium term work-overs
• Replacement of existing 10” OginiEriemu oil export pipeline with new 18”
export pipeline
Well Cellars for first five wells and Drilling Waste Pit Construction nearly done
• Phased installation of two new 50,000
bbl/d 3-phase separation trains
• Phased expansion of compression
capacity to 40 mmcf/d for adequate gaslifting and Associated Gas (AG) export
Casings and Wellheads in NPDC Base in Edjeba, Warri
37 | 2013 Full Year Results Presentation
Offshore Nigeria – OML 113
FDP approval received
• FDP focused on the development
of the Cenomanian oil reservoir
• First phase development concept
consists of two subsea production
wells, tied back to a leased FPSO
• Wells most likely to consist of
recompletion of existing Aje-4 well
and a new well drilled to the Aje-2
subsurface location
• Extensive 2,716 km2 3D marine
seismic underway across OPL
310 and OML 113
38 | 2013 Full Year Results Presentation
Kurdistan – Barda Rash field development
Ramping-up production
• Continued ramp up in production
• Flow lines and facilities to be updated to bring BR-4 and
BR-5 into production in 2014
• Domestic sales expected to be augmented by access to
export pipeline
Production facilities
Storage tanks
39 | 2013 Full Year Results Presentation
Trucking offtake station
Viking I-10 rig on location at BR-4
Kurdistan – commercialising production at Barda Rash
Export infrastructure established
Shaikan
Source: Wood Mackenzie
40 | 2013 Full Year Results Presentation
Material exploration portfolio
An attractive portfolio located in highly prospective basins
Exploration Portfolio
Gross
prospective
resources
Net
prospective
resources
(mmboe)
(mmboe)
344
103
Kenya
4,443
3,959
Seychelles
2,994
2,245
Madagascar
846
761
Tanzania(1)
1,937
1,433
10,564
8,501
Nigeria(2)
1,943
787
Ghana
1,087
381
Côte d’Ivoire
87
57
South Africa
350
88
Other West Africa
252
35
Total Nigeria &
other West Africa
3,719
1,347
Kurdistan region
of Iraq(3)
917
183
Total Group
15,200
10,031
Country
Ethiopia
Total East Africa
Low risk, quick to monetise
Frontier area, major play
opening potential
41 | 2013 Full Year Results Presentation
Proven play concepts,
significant upside
(1) Resources upgrade on Tanga Block, Tanzania. Previously 1,681 mmboe gross prospective resources end
December 2012
(2) Post FHN consolidation, includes OML 26 and OML 113. Includes resource upgrade on OPL 310, gross P50
resources at Ogo now estimated to be 774 mmboe
(3) Prospective resources to be updated following successful Simrit-2 and Simrit-3 exploration wells in the
Kurdistan region of Iraq
Nigeria – OML 115
Several prospects and leads have already been identified
Utue Field
• High
quality analogues at
all levels
• Drilling
similar amplitudes
and responses to
discoveries in Ebok,
Okwok, Iyak, Utue and
Etisong
• EUR 266 MMBO
Iyak Field
Ameena East prospect
• EUR 150 MMBO
• First
exploration well
expected late 2014
Etisong N-1 (2011)
• Three reservoirs found.
• Tested 8,500 bopd (40° API)
Etisong-1 (2008)
• TD: 7,204 ft; Multiple
reservoirs.
• 6,000 bopd reported test
rate)
42 | 2013 Full Year Results Presentation
Ufon South prospect
Kurdistan – Ain Sifni – Commerciality declared
World class acreage located within a prolific and proven oil trend
Simrit-2 exploration well
• Drilled to a total depth 12,467 ft following initial discovery
• Total net oil pay encountered of 1,509 ft
• Cumulative flow rate of 19,641 bopd achieved from the DST
programme – EWT completed H2 2013, produced crude
trucked to local markets
Simrit-3 exploration well
• Objective to explore the eastern extent of the Simrit anticline
• Drilled to total depth of 12,300 ft
– 9 DSTs in Triassic, Jurassic and Cretaceous heavy oil
reservoirs reaching 6,293 bopd
A
– Well configured as a produced water disposal well
▲
A
▲
Shaikan 1Shaikan 1
Simrit-4 exploration well
Jebel 1
Simrit 1
Jebel Simrit
• Spudded in early 2014 - targeting the Jurassic and Triassic
reservoirs
Maqlub-1 exploration well
• Maqlub-1 spudded June 2013 (110 day programme)
• Untested structure along trend with Barda Rash
• Well currently drilling ahead, hydrocarbons encountered in
the Cretaceous and Jurassic reservoirs
A
B
Data from Hunt Oil Middle East; interpretation from PetroTel
43 | 2013 Full Year Results Presentation
A
B
0
5
Km
Loc.
E. Simrit
1
Loc. E.
Simrit
1
B
B
Afren East Africa Exploration
Exploring East Africa`s petroleum systems
East Africa
Afren acreage
Country
Ethiopia
Block 08
WI (%)
Net mean
prospective
resources
(mmboe)
Blocks 7,8
30%
344
103
Kenya
Block
L17/L18
100%
2,021
2,021
Kenya
Block 1
80%
2,422
1,938
Seychelles
Blocks A,B
75%
2,994
761
Madagascar
Block 1101
90%
846
2,245
Tanga
74%
1,937
1,433
10,564
8,501
ETHIOPIA
Block 07
Asset
Gross mean
prospective
resources
(mmboe)
Block 01
KENYA
Block L17
Tanga
Block
Tanzania
Block L18
Total
TANZANIA
SEYCHELLES
Block 1101
•
East African acreage covers over 82,000 km2
•
Each block contains evidence of a working oil prone
petroleum system
MADAGASCAR
•
Actively moving prospects to ‘drill ready’ status following
an extensive seismic acquisition programme
Oil seeps and shows
Oil discovery
Gas discovery
44 | 2013 Full Year Results Presentation
Afren East Africa Exploration
Significant upgrade to prospectivity based on 2012/2013 seismic campaign
Kenya
Blocks L17 & L18 (100% & Operator)
• 1,207 km 2D marine seismic and 474 km 2D shallow water and
transition zone seismic completed
• 1,000 km2 3D seismic and 120 km 2D onshore seismic completed
• Two exploration wells planned in 2015
Block 1 (80% & operator)
• 10,696 km airborne high resolution gravity and magnetic survey
• 1,900 km 2D seismic completed
Block 01
Block L17
Block L18
45 | 2013 Full Year Results Presentation
• Planned exploration well late 2014
Afren East Africa Exploration
Significant upgrade to prospectivity based on 2012/2013 seismic campaign
Tanzania
Tanga Block (74% & operator)
• 755 km 2D shallow water
Tanga
Block
• 930 km 2D marine seismic
• 620 km2 marine 3D seismic completed
• Two exploration wells planned in 2014
Ethiopia
Block 7 & 8 (30%)
• 308 km 2D seismic data
• 3 wells on license
• El Kuran-3 well spudded October 2013
Block 07
Block 08
Madagascar
Block
1101
• Well deepened to target deeper Gumboro zone - TD of 11,574 ft reached in
March 2014
Block 1101 (90% & operator)
• 220 km vintage 2D seismic and 1 well
• 9,014 km gravity and magnetic survey
• 230 km 2D seismic completed
• Additional 2D seismic and shallow borehole coring programme planned in 2014
Seychelles
Area A & B (75% & operator)
• 3,733 km of 2D seismic data
• Multiple vintages of 2D seismic
• 3,375 km2 3D completed
• On-going seismic interpretation
46 | 2013 Full Year Results Presentation
Ethiopia – Blocks 7 and 8 (Ogaden Basin)
Appraisal of the El Kuran oil discovery underway
Mid Hamanlei TWT Structure
El Kuran -1
A’
A
Faf
A
A’
Gabredarre
U. Hamanlei
M.Hamanlei
•
El Kuran-1 well with gas shows in Adigrat
and potential oil zone identified in Hamanlei
•
El Kuran-3 well spudded in October 2013, TD extended to
11,574 ft to target deeper Gumboro zone
47 | 2013 Full Year Results Presentation
ODA-10_29
Kenya – Block 1
Large under-explored sub-basin of the proven Ogaden Basin
•
Large under explored sub-basin of the Ogaden Basin,
continuous with the Calub, Hilala and El Kuran
discoveries
•
Numerous plays on block proven by offset successes
in Ethiopia
•
Exciting inventory identified from newly acquired seismic
•
Drilling expected on the Khorof prospect, a large 4-way
dip-closure down-dip of an oil seep
El Kuran Oil & Gas
Discovery (1972)
Key
Block 1 Lead
Oil Seep
EAX2011 Seismic
Genale Gas
Discovery (2011)
S
W
N
Bogal Gas
Discovery (2010)
10km
48 | 2013 Full Year Results Presentation
NE
Kenya – Blocks L17/L18
Mombasa High identified as a low risk onshore drilling opportunity for 2015
MIDDLE EOCENE MATURITY
MIDDLE JURASSIC MATURITY
Sunbird discovery
Sunbird discovery
MOMBASA
HIGH
MOMBASA
HIGH
WASIN
WASIN
Tongoni & Tambarani
Seeps
Source typing in progress:
believed to be Jurassic
Oil seeps on Pemba Island
Typed to Jurassic source rocks(?)
Immature Eocene source rock in
Pemba-5 well
Tongoni & Tambarani
Seeps
Source typing in progress:
believed to be Jurassic
Oil seeps on Pemba Island
Typed to Jurassic source rocks(?)
Immature Eocene source rock in
Pemba-5 well
Maturity
Immature
Oil
Gas
Post-Mature
• Unique opportunity to explore two play systems with prospects in prime position to
have received charge from Jurassic and Eocene source rocks at different stages of
basin evolution
49 | 2013 Full Year Results Presentation
Kenya – Blocks L17/L18
Mombasa High identified as a low risk onshore drilling opportunity for 2015
SUNBIRD-1
Mombasa High
• Oil dominated systems charged from
Jurassic/Eocene marine source rocks
• Block L18 in particular ideally positioned to have
received charge from the Pemba and Tembo Trough
source kitchen areas
BASE TERTIARY DEPTH MAP
50 | 2013 Full Year Results Presentation
Tanzania – Tanga Block
A unique opportunity to explore a high potential oil prone basin
CHUNGWA
A
Tongoni & Tambarani
Seeps
Source typing in progress:
believed to be Jurassic
CHUNGWA
A
NANASI
A’
Oil seeps on Pemba Island
Typed to Jurassic source rocks(?)
Immature Eocene source rock in
Pemba-5 well
MKONGE
PANGANI
Maturity
HERCULES
MIDDLE EOCENE MATURITY
Tongoni & Tambarani
Seeps
Source typing in progress:
believed to be Jurassic
NANASI
A’
MKONGE
PANGANI
Oil seeps on Pemba Island
Typed to Jurassic source rocks(?)
Immature Eocene source rock in
Pemba-5 well
HERCULES
MIDDLE JURASSIC MATURITY
Immature
Oil
Gas
Post-Mature
• Unique opportunity to explore two play systems with prospects in prime position to
have received charge from Jurassic and Eocene source rocks at different stages of
basin evolution
51 | 2013 Full Year Results Presentation
Tanzania – Tanga Block
Prospectivity matured to drill ready status following extensive seismic acquisition programme
Chungwa-1
A
Shallow water 2D Deep water 3D
Nanasi-1
A’
Nanasi/Mkonge Complex
TWT (MSECS)
SEAFLOOR
Cretaceous
deltaic reservoirs
(1 kilometre thick)
MID EOCENE
A
CHUNGWA-1
NANASI-1
A’
Middle Jurassic
source rock within
the oil window
MKONGE-1
MID JURASSIC
PEMBA TROUGH
• Oil dominated petroleum system charged from Jurassic and
Eocene marine source rocks on the flanks of the Pemba Trough
52 | 2013 Full Year Results Presentation
Madagascar
Block 1101 (90%)
Block 1101
Sterling
EXXON
Afren EAX Block
1101
EXXON
EXXON
Antso and Mantaly
AGIP 1970/71
1-3 tcf gas
Bemolanga oil sands
20 bn bbls OOIP
Tsimororo heavy oil
1-2 bn bbls OOIP
NIko
Manandaza 41° API Oil &
significant gas
Shell 1991
• 2 major structures mapped close to existing well with oil
shows
Manambolo wet gas /
condensate discovery
Petro-Canada 1987
• Evidence of working petroleum system through oil seeps
• Structures at depths of 1,640 ft – 8,202 ft
• Airborne gravity and magnetic survey and acquisition of
2009 MEIL SKL-2
oil discovery
tested ca. 3,000 bopd
500
Km
230 km 2D seismic completed in 2012 augment existing
220 km 2D seismic data
• Additional 2D seismic and a shallow borehole coring
programme planned for Q2 2014 ahead of exploration
drilling
• Work programme focusing on the Mantaly prospect and
the Antso lead
53 | 2013 Full Year Results Presentation
Madagascar and the Seychelles
Rift Play: Karoo – 3D seismic successfully completed over deepwater Area A
Bonit Lead
TWT (Seconds)
3.0
Calub
Tarbaj Hill
n
tri
s
cu
la
Seychelles
Majunga
e
Ria Kalui-1
Wingayongo
5km
Seismic Line from EAX 2012 Marine 3D Seismic Survey – Area A - Seychelles
Bemolanga
Tsmiroro
0.0
South
Morondava
TWT (Seconds)
Kisangire -1
Buzi
Termane
Pande
4.0
1.0
2.0
TRIASSIC
54 | 2013 Full Year Results Presentation
Seismic Line from EAX 2008 Land Seismic Survey - Block 1101 Madagascar

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