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Africa Oil Week November 2014
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Disclaimer
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Leading Deepwater Portfolio
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Somaliland • SL12/SL9 - 25%
Seychelles • PEC-5B/1,2&3 - 75%
Equatorial Guinea • Block R - 80%
Gabon • Mbeli - 40%
• Ntsina - 40%
• Manga - 70%
• Gnondo - 70% • Nkouere - 100% • Nkawa - 100%
Kenya • L9 - 90%
Myanmar • AD-03 - 95%
Tanzania • Blocks 1,3&4 - 20%
• Block 7 - 80% • East Pande - 70%
Indonesia • West Papua IV - 50%
• Aru - 60%
• N. Makassar Strait - 30%
• Obi - 42% • Kofiau - 100% • Halmahera-Kofiau - 80% • (N.Ganal - ENI 18.5%)
Key Highlights
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• 2C Contingent Resource of 830mmboe (post Tanzanian farm-down)
− 17.1 TCF (gross) discovered in Tanzania Blocks 1, 3 and 4
− 3.4 TCF (gross) discovered in Equatorial Guinea Block R
• Successful sale of 20% of Tanzania Blocks 1, 3 and 4 to Pavilion Energy for c.US$1.3bn(1)
• EG FLNG project progressing
− Further exploration and appraisal drilling underway
− Midstream solution being finalised
• High-impact drilling programme undertaken, key wells up and coming
− Tende (Tanzania)
• New licence acquisitions expanding the portfolio and refilling the exploration hopper
− Seychelles, Myanmar and Indonesia
• Net working capital end of June – c.US$1.3bn
• Share buyback underway up to US$100mn
1. US$38mn contingent and will be received on FID
Strategic focus
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Focus on Africa
Currently Future
Focus on E&A
Focus on Deepwater Basins
• Africa will remain core to the portfolio • But looking at new opportunities elsewhere, primarily
Asia (Myanmar licence first acquisition) • Key is geology rather than geography
• E&A will continue to be the company’s primary focus • Not averse to holding producing assets to help provide
cashflow sustainability
• Offshore, deepwater basins are expected to be the ongoing primary source of portfolio upside
• Offer significant running room, well understood by our technical team
• Strong in-house deepwater drilling capabilities
Focus on Capital Efficiency
• No change to strategy • Pre-drill farm-outs sought to minimise capital at risk • Monetisation of success at the optimum time to
maximise returns
Ophir Business Model
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Focused on maximising Returns on Investment
Gas and/or Oil/Liquids
Somaliland
Gabon Pre-salt and
Ogooué Delta
AGC
EG Gas 3D seismic
1st Discovery
Appraisal FID
First Production
Va
lue
Exploration and appraisal:
High-risk high-reward, rapid value accretion in the exploration and appraisal phase
Pre-drill farm-out opportunities to manage risk
Tanzania Blocks 1,3,4
Tanzania E Pande, Block 7
Kenya
Ophir’s primary E&A Focus
Gabon Deeper Water
2014 Drilling Activity
Into Further Exploration and Appraisal
Returns to Shareholders
Monetise and Recycle Cashflow
Cashflow from Production
EG Liquids
Oil/Liquids Gas
Car
ried
Inte
rest
s
Seychelles Myanmar
Indonesia
Country Block Name Well Name Ophir
WI
Pmean CoS 2014 2015
(MMBOE) (%) Q1 Q2 Q3 Q4 H1
Gross Net
Gabon Ntsina Padouck Deep x
Tanzania Block 1 Taachui
Gabon Gnondo Affanga Deep x Gabon Mbeli Okala x
Tanzania Block 1 Taachui DST 20%
Tanzania Block 1 Mzia-3 DST 20%
EG Block R Tonel North 80% - Tanzania Block 4 Kamba/Pweza N 20%
EG Block R
Silenus East Gas
and Oil 80% (gas)
EG Block R Fortuna-2 and
DST 80%
Tanzania East Pande Tende 70% 379 265 15% Tanzania Block 7 Mkuki-1 80% 365 255 13%
2014 Drilling Programme(1)
1. Programme is subject to change (prospect, order and timing)
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Oil / liquids
Gas
• West Africa – Vantage Titanium Explorer
• East Africa – Deepsea Metro I
Rigs Contracted Play opening well
Ophir in Equatorial Guinea
Summary
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• Ophir in EG
• Block R Overview and Resource summary
• Fortuna FLNG project progress and forward plan
• Why Floating
• Development Benchmarking
• Ophir further ambitions in EG
Equatorial Guinea: Ophir Today
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• Ophir Energy holds an 80% interest in Block R. Partner GEPetrol 20%
• Located in Distal Niger Delta in water depths from 1,300m-1,950m
• 8 Technical discoveries, 6 by Ophir
• 4 Ophir Appraisal wells (Fortuna East, West, 2 & Tonel North-1)
• Discovered+ Risked 2C: 3.4TCF
• Up to 7TCF of additional unrisked prospective resource, 2TCF of which are low risk prospective resources
• Sufficient discovered and prospective resource to support an FLNG train
Block R Regional Setting
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Alternate
sediment input Fortuna sediment
input
• Block R lies at the frontal toe-thrust zone and frontal deformation zone between the main Niger Delta and NW-SW trending Cameroon volcanic line
• Stratigraphy is dominated by three lithostratigraphic units which form the daichronos Tertiary seaward prograding delta
Block R Schematic Cross Section
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Block R : Seven Commercial Gas Discoveries
Oreja Marina
Estrella De Mar
Lykos
Fortuna Complex
Tonel
Viscata
Silenus East
Seven commercial gas discoveries have been made within Block R
• 2002 Exxon: Oreja Marina (not currently in FLNG project) & Estrella de Mar
• 2008 Ophir: (Bythos dry), Fortuna, Lykos
• 2012 Ophir: Tonel, Viscata
• 2014 Ophir : Silenus East, (Tonel North)
• A further 7TCF prospectivity still to be explored
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Fortuna-2 DST – 21 October 2014
DST conducted safely: Zero Lost Time Incident
• Sustained flow rate of 60MMscfd with drawdown <20psi
• Expected flow rate at FLNG facility operating conditions 180MMscfd via 5” tubing
• Reduced development well requirements in pre-FEED/FEED
• Subsurface de-risking complete for Miocene turbidite play
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Fortuna FLNG Project
Fortuna Overview
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• Development: 3.0 Mtpa FLNG @ 440MMscfd
• FID 2016 First Gas 2019
• CAPEX: Upstream: c.US$3.0 FLNG Vessel c.US$3.25
• Initial phase Fortuna (blue) up to 7 production wells
• Subsequent phases discovered resources Tonel (green), Viscata (purple) and remaining (red) from Thrust Belt Gas (TBG)
• 13 additional development wells over 15 years
• Combination of 12” dual and 16” single flowlines
• Additional notional development well locations (~1.2TCF unrisked) to be matured
• Fortuna DST results will reduce well count
Midstream – Proposed Layout
• Length: 357m, breadth: 60m
• New-build hull Turret moored
• Vessel classification as Floating Offshore LNG Liquefaction Terminal
• LNG storage capacity 230,000m3
• Side by side off-loading
Safety in design drives layout
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Govern
ment
Agre
em
ents
2015 2016
PSC Gas
terms Host Government Agreement
Upst
ream
Award
Farm-down
LN
G M
ark
eti
ng
Initial Market
approach LNG SPA Heads
of Terms
Pro
ject
Fin
ancin
g
Arrange Debt Financing
FID FEED Contract
Fully Termed LNG SPA
2014
Gas Terms
Resource certification
Farm-down
2017-19
Development
First
Gas
Mid
stre
am
Charter Agmt
Heads of Terms
FDP
Charter Agreement
EG Block R: Timeline & Milestones (5 Yr Plan)
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Why FLNG for Block R
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FLNG is gaining momentum
• Four under construction – Prelude, PFLNG1, PFLNG2, Pacific Rubiales
• Six in FEED, 17 prospects being studied
• Presence is going global – SE Asia, USA, Africa, South America
• Existing technology, but installed in a different place
• Construction is in a state-of-the-art shipyard with every available facility and resource
• NOT in a hostile, remote location at the end of a several thousand mile-long logistical chain
Benign metocean conditions:
Gas is 99.7% Methane, no inerts, no sulphur, no water – better than pipeline quality
• Minimal pre-treatment
• Simple process, less equipment, no exotic materials
• Routine subsea infrastructure
• No technical innovation, everything tried and tested
• Reliable, efficient, high uptime
Equatorial Guinea - Benchmarking EG FLNG Globally EG FLNG is highly cost competitive and will come on-stream before majority of East Africa/North American volumes
Overview LNG Prices (Japan) Required for NPV10 Breakeven ($/mcf)
Supply / Demand Curve (mmtpa)
150
250
350
450
2008 2010 2012 2014 2016 2018 2020
(mm
tpa)
Speculative Possible Under Construction Existing Demand
EG FLNG
onstream
• EG FLNG is cost competitive on a global scale
- Lower DES break-even price than the majority of constructed and planned Pacific & Atlantic volumes
• Project will commence production in 2019
- Well placed to take advantage of ongoing LNG market tightness prior to planned East African and North American volumes coming on-stream
--
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4
6
8
10
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14
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GLN
G
QC
LN
G
PET
RO
NA
S FLN
G 1
Wheats
tone L
NG
Aust
ralia P
aci
fic L
NG
Gorg
on
Plu
to
Bro
wse
Yam
al LN
G
Pre
lude F
LNG
Kit
imat
LNG
Sab
ine P
ass
Ph 2
Sab
ine P
ass
Ph 1
LN
G C
anad
a
Sakhali
n 2
Tanzania
LN
G
Moza
mbiq
ue L
NG
DS
LN
G
Vla
div
ost
ok L
NG
Levi
ath
an F
LN
G
Ango
la L
NG
Ichth
ys
PN
G L
NG
EG
FLN
G
Tangguh P
hase
2
Abadi
MLN
G T
rain
9
Snohvi
t
NLN
G S
even P
lus
Dam
iett
a
Ken
ai
ELN
G 1
ELN
G 2
Peru
LN
G
Bra
ss L
NG
NPV
10 B
reakeve
n P
rice ($/m
cf)
Shipping Costs
Ophir Project FOB
Pacific FOB
Atlantic FOB
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Summary
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• Financially viable FLNG project: ‘Fortuna Project’
• Potential to be first FLNG in West Africa: First Gas 2019
• Agreed Fiscal Gas Terms with Equatorial Government
• Resources of 3.4TCF de-risked through successful DST
• Metocean favourable for simple development
• Gas composition (99+% Methane) favourable for simple processing
• Midstream Partner selected
• Upside exploration through licence extension from 1st Jan 2015
• Industry ‘leading edge’ Project
• Future replication for stranded scalable gas
• New partnerships with Industry leading companies for Ophir Energy
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Contact:
Investor Relations
Ophir Energy plc
Tel: +44 (0)20 7811 2400
Email: investor.relations@ophir-energy.com