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ROC OIL – UK NORTH SEA
INVESTOR PRESENTATION
January 2006
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• Balanced exploration, appraisal and development portfolios
• International focus
• Substantial operating capacity
• Management Team with established track record
• Candid communication
POINTS OF DIFFERENTIATION
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• Listed on AIM and ASX
• 187 million shares on issue plus 5 million employee options
• Market capitalisation > £200 million
• A$68 / £29 million cash and receivables at 31/12/05
• No debt. US$30 million bridging loan due to be executed in January 2006; to be replaced by a US$60 million corporate facility in March 2006
• Core workforce of approximately 100 people, representing 23 nationalities, located in five different countries and collectively fluent in 14 languages and 13 regional dialects
CORPORATE SNAPSHOT
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ROC listed on AIM in London at £0.72 / share in September 2004. At that time it did not seek to raise any new funds.
Currently trading around £1.20 / share.
Estimated 10 - 15% of ROC is now owned by overseas shareholders, mainly based in UK (pre-placement).
ROC IN A UK CONTEXT
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GOAL
• To make a lot of money for all shareholders by establishing asubstantial reserve base and sustainable production revenue
STRATEGY
Cost efficiently acquire
• Preferably in Africa, Australia and parts of Asia,
• Meaningful interests, generally with operatorship,
• In areas containing, or adjacent to, proven hydrocarbons with considerable exploration upside
• In countries with attractive fiscal regimes
Create and realise maximum value.
ROC’S GOAL & STRATEGY
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• Developing 15 MMBOE 2P reserves, net ROC, almost all oil, in four fields in three countries: Chinguetti (Mauritania), Cliff Head (Australia) and Blane and Enoch (UK).
• Producing >5,000 BOPD, net ROC. First production due 1Q 2006 for Chinguetti and Cliff Head and in late 2006 for Blane and Enoch.
• Appraising a potential further 20 MMBOE 2P unbooked reserves net ROC, in five fields in two countries: Tiof, Tevet and Banda (Mauritania), Wei 12-8 West and Wei 6-12 Complex (China).
• Drilling up to 21 exploration and appraisal wells in six countries(UK, Mauritania, Equatorial Guinea, Angola, China and Australia).
SIGNIFICANT GROWTH IN 2006
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FORWARD GLANCE INTO 2006
Q1 • Cliff Head and Chinguetti production start-up, respectively, offshore Australia and Mauritania.• ROC production goes from essentially zero to 5,000 BOPD and beyond.• Jacala and Willows, potential big hit wells, offshore Australia and onshore UK, respectively.• Exploration well offshore China.• Completion of Mauritania exploration drilling programme. • Development drilling starts at Blane
Q2
Q3
Q4
• Second phase of seismic acquisition commences in Angola.• 3 – 5 exploration wells offshore Perth Basin, Australia.• Exploration drilling resumes offshore Mauritania.
• 3 well exploration drilling programme starts onshore Angola – stretch target.• Aleta-1 deep water well to drill offshore Equatorial Guinea, subject to rig contract.• Development drilling starts at Enoch.
• Blane and Enoch production start up, North Sea.• Exploration drilling continues onshore Angola.• Exploration drilling continues offshore Mauritania.
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UKNORTH SEA
12% and 12.5% (1)
1999
MAURITANIA2 - 5% (2)
2000
EQUATORIALGUINEA18.75% (3)
2000
ANGOLA60%1998
UKONSHORE
100%1999
CHINA40% (2)
1998
AUSTRALIAGenerally 37.5%1999
Operated / ManagedNon-Operated
NEW ZEALAND40%2004
(1) Estimate post unitisation(2) Pre-Government Back-In(3) 15% Free carried through 2006/07 well
1998 Date of first contact
PORTFOLIO OF FOUR CORE REGIONSJANUARY 2006
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ROC’S DEVELOPMENT PORTFOLIO
Developing 15 MMBOE net2P reserves, almost all oil, in four fields in three countries.
All fields due on streamin 2006.
Total net ROC production>5000 BOPD from March 2006.
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TIMING OF FUTURE OIL PRODUCTION
NOW
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ROC DEVELOPMENT:OFFSHORE PERTH BASIN, WESTERN AUSTRALIA
Final Investment Decision:
Location: Cliff Head Oil Field, Offshore Perth Basin, Western Australia
ROC Equity: 37.5%
Discovery: December 2001
March 2005
Development Concept: Unmanned platform, pipelines to onshore plant. Oil trucked to refinery.
Development Cost: A$265 million / US$198 million
First oil production: March 2006
Gross Initial Production Rate: >10,000 BOPD
Gross 2P reserves: 14 MMBO
Operator: ROC
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Initial ProductionRate ~10,000 bpdInitial ProductionRate ~10,000 bpd
~14m bbls (2P)~14m bbls (2P)
CLIFF HEAD DEVELOPMENTBASIC DESIGN – FOUR MAIN COMPONENTS
• Offshore unmanned platform
• Two steel 273mm diameter pipelines, 14km long - one for production fluids and one for water injection; 14km power cable for general platform power; specifically for powering down hole pumps; 14km chemical injection and control umbilical for corrosion and scale inhibition.
• Onshore processing facility
• Oil trucked to refinery south of Perth
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CLIFF HEAD DEVELOPMENTArrowsmith processing plant and pipeline easement
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CLIFF HEAD DEVELOPMENTThe jacket in Geraldton Harbour: November 20051)
1) Jacket now installed at Cliff Head oil field
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• Chinguetti Oil Field: Development
• Tiof Oil Field
• Banda Gas Field
• Tevet Oil Field
• Pelican Gas
• Faucon Oil/Gas1)
• Labeidna Oil
1) Subject to analysis of samples, which are expected to confirm either light oil or gas & condensate
ROC’s acreage offshore Mauritania includes:
OFFSHORE MAURITANIA:DISCOVERIES AND FIELDS
Appraisal
RegionallySignificant
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CHINGUETTI OIL FIELD DEVELOPMENT
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ROC DEVELOPMENT:OFFSHORE MAURITANIA
Final Investment Decision:
Location: Chinguetti Oil Field, offshore Mauritania
ROC Equity: 3.25%
Discovery: May 2001
May 2004
Development Concept: Deepwater FPSO
Development Cost: US$730 million
First oil production: February 2006
Gross Initial Production Rate: Up to 75,000 BOPD
Gross 2P reserves: 123 MMBO
Operator: Woodside
Photo: FPSO on route to Mauritania
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ROC DEVELOPMENT:NORTH SEA
Two fields being developed, Blane and Enoch, both due on stream by end 2006.
NORTH SEA
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ROC DEVELOPMENT:UK NORTH SEA
Final Investment Decision:
Location: Blane Oil Field, UK North Sea
ROC Equity: 12.5%*
Discovery: May 1989
July 2005
Development Concept: Subsea tie back
Development Cost: £165 million
First oil production: 4Q 2006
Gross Initial Production Rate: >14,000 BOPD
Gross 2P reserves: 32 MMBO
Operator: Talisman* Unitised
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ROC DEVELOPMENT:UK NORTH SEA
Final Investment Decision:
Location: Enoch Oil and Gas Field, UK North Sea
ROC Equity: 12.0%*
Discovery: 1985
July 2005
Development Concept:
Development Cost: £75 million
First oil production: 4Q 2006
Gross Initial Production Rate: >12,000 BOPD
Gross 2P reserves: 15 MMBO
Operator: Talisman* Unitised
Subsea tie back
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MAURITANIA2 - 5% (2)
2000
EQUATORIALGUINEA18.75% (3)
2000
ANGOLA60%1998
UKONSHORE
100%1999
CHINA40% (2)
1998
AUSTRALIAGenerally 37.5%1999
Operated / ManagedNon-Operated
NEW ZEALAND40%2004
(1) Estimate post unitisation(2) Pre-Government Back-In(3) 15% Free carried through 2006/07 well
1999 Date of first contact
ROC’S EXPLORATION PORTFOLIO
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2006 ANTICIPATED DRILLING PROGRAMMESTRONG EXPLORATION FOCUS
Please note Target Volumes are Gross, Unrisked
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ONSHORE UK:GAS EXPLORATION
WILLOWS PROSPECT
• ROC – 100%
• Large structural-stratigraphic trap
• Big Potential / High Risk:50 – 100 BCF potential
• ROC to start drilling inMarch 2006
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JACALA PROSPECT
• ROC – 20%
• Largest undrilled structure inthe offshore Carnarvon Basin:
• Very Big Potential / High Risk:many hundreds of millions of barrels
• BHP-operated well due to drill February 2006
OFFSHORE AUSTRALIA:VERY LARGE OIL PROSPECT
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OFFSHORE AUSTRALIA:MULTIPLE SMALL-MODEST OIL PROSPECTS
WA-286-PROC 37.5% & Operator
TP/15ROC 20% & Operator
More than a dozen prospects and leads have been identified in the Perth Basin in general vicinity of the Cliff Head Oil Field.
The collective gross reserve potential is >250 MMBO.
Many of the drill targets are relatively close to shore and it may be possible to test some of them by drilling long reach horizontal wells from onshore drill sites.
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PRE-DEVELOPMENT – CHINA:Block 22/12
(1) CNOOC has rights to participate for up to51% in developments
This field, in the Beibu Gulf,is currently subject to development discussions with the Government-owned CNOOC oil company.
No guarantee of outcome.
WEI 12-8 WEST
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OFFSHORE CHINAMULTIPLE SMALL-MODEST OIL PROSPECTS
2002February:• ROC farmed in to Beibu Gulf Block
22/12March:• Wei 6-12-1 oil discoveryApril:• ROC appointed operatorJuly:• 3D seismic survey
2003 - 04• Three wells drilled – mixed results2006• One exploration well
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• Chinguetti Oil Field: Development
• Tiof Oil Field
• Banda Gas Field
• Tevet Oil Field
• Pelican Gas
• Faucon Oil/Gas1)
• Labeidna Oil
1) Subject to analysis of samples, which are expected to confirm either light oil or gas & condensate
ROC’s acreage offshore Mauritania includes:
OFFSHORE MAURITANIA:DISCOVERIES AND FIELDS
Appraisal
RegionallySignificant
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Equatorial Guinea,Offshore Rio Muni Basin
ROC 18.75% andTechnical Manager
In 2004 ROC operated the Bravo-1 exploration well in 1500m of water on budget and on schedule.ROC is free carried for 15%of the Aleta-1 deep water well, scheduled to be drilled as soon as a suitable rig is available, probably during 2006 / early 2007.
OFFSHORE EQUATORIAL GUINEALARGE DEEPWATER OIL PROSPECT
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Truncation/onlap edge
H Blocks
L Block
Channels/Overbank & LeveeReservoir fairway
AletaClosures
Low amplitudemounded lobesreservoir facies
Low amplitudemounded lobesreservoir facies
Aleta Prospect
Cretaceous channel sands identified by high resolution3D seismic
150-300 MMBO potential
Success will upgrade other nearby prospects with collective reserve potential of :
P10: >1 billion bblsP50: ~500 MMBOP90: >50MMBO
OFFSHORE EQUATORIAL GUINEALARGE DEEPWATER OIL PROSPECT
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ROC IN CABINDA, ONSHORE ANGOLA
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ONSHORE ANGOLA:CABINDA SOUTH BLOCK - ROC 60% & OPERATOR
1998: First attempt to acquire equity2001: First equity (45%) acquired.2002: Civil war ended.2003: More equity (15%) acquired.2004: Contract activated2005: Major seismic acquisition 2006: More seismic plus drilling
Area is adjacent to 5 billion barreloffshore oil province, currently producing >400,000 BOPD
Chevron recently paid a US$290 million signature bonus (including community commitment) to renew the adjacent offshore area and is now embarking on a multi-billion dollar redevelopment of offshore Cabinda.
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LOWER CONGO BASINOIL PRODUCING AREAS
OFFSHORE CABINDAca 5 billion barrels discoveredsince 1960s.Currently producing ~400,000 BOPD.Operator, Chevron, has just renewed original permit via a US$290 million signature bonus including community commitment and multi-billion dollar work commitment.Structural and depositional trends run from/to on/offshore.
10 km west tonearest production CABINDA
SOUTH BLOCK1,070 sq km
≡ 4 North Sea Blocks
Effectively no exploration between 1972 and 2005, when ROC acquired a very significant seismic survey
110 km north to M’Boundi
6 km south tonearest production
DEMOCRATIC REPUBLIC OF CONGO
Established production from several onshore fieldsPost-salt production at shallow depth
M’BOUNDI FIELD(Congo-Brazzaville)
Including one of Africa’s larger recent onshore discoveries with 2P reserves ~ 250 MMBO, plus upside.First production: 2002Current production : 45,000 BOPDFacilities expansion : to 60,000 BOPDPre-salt play ~1,800 mss>50 wells during 2004-06
2 km west tonearest oil discovery
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HOW THE CABINDAJOINT VENTURE EVOLVED
ELF20%
SONANGOL20%
FINA20%
SONANGOL20%
Late 80s - early 90s 1996 2001
SONANGOL20%
2003
ROC 60% and Op.
SONANGOL20%
Late 90s
FORCE20% FORCE
20%
ROC45% and Op.
BAKER HUGHESLACULA
15%
ANGLOSUISSE
20%
BAKER HUGHESLACULA
15%
FIRST
DEEP
WATER
EXPLORATION
SUCCESS
TOTALFINAELF65%
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Angola is undergoing reconstruction following the end of the 30 year civil war in 2002.
For several decades, offshore oil production platforms have pumped oil to shore-based facilities in Cabinda 15 km north of ROC’s Block.
ROC’s recent seismic survey effectively marked the return of exploration activity to onshore Angola after an absence of more than 30 years.Current active operators : Sonangol, ExxonMobil, BP, Total, Chevron, Devon and ROC.
ANGOLA: LARGE AND GROWING OIL PRODUCER
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• Seventh largest country in Africa and the continent’s third largest oil producer.
• For decades, offshore Angola has been a focus area for some of the largest oil companies in the world; but never more than now.
• For all practical purposes, onshore Angola had not been actively explored since 1972, until ROC acquired 505 km 2D and 162 sq km 3D seismic in 2005.
• Preliminary interpretation of recent seismic confirms numerous prospects and leads
ANGOLA: FIRST ONSHORE SEISMIC SURVEYFOR MORE THAN 30 YEARS
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SUBSTANTIAL EXPLORATION POTENTIAL WEST AFRICA - ANGOLA
• 505 km 2D and 162 sq km 3D Dynamite and Vibroseisseismic survey June -November 2005
• Data quality is good to excellent
• Structuring confirmed numerous prospects and leads identified.
• Interpretation due to be completed 1H 2006
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CABINDA SOUTH BLOCK, ONSHORE ANGOLA2005 2D AND 3D SEISMIC SURVEY
Preliminary results of ROC’s 2005 seismic programme suggest that the Cabinda South Block will be a prime exploration focus for ROC in 2006 and beyond.
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PRE-1972 WELL RESULTS IN RELATION TOPRELIMINARY 2005 SEISMIC INTERPRETATION
Post Vermelha
Vermelha
1Oil and Gas
(98 – 1)
TARGET
Chela
Pre-Chela
VALID / OPTIMALTESTS
Discoveries Dry
INVALID / SUB-OPTIMAL TESTS
With shows No shows
TOTALPENETRATIONS
1*Oil
(121 – 5)
1Gas
(123 – 5)
1Oil
(123 – 1)
1
(123 – 4)
2
(123 – 5)(111 – 2)
-
-
5
-
3
5
26
28
6
4
33
31(30 in block)
10
10
* Well is 2km offshore, outside block600 BOPD discovery, trap type unknown
PostSalt
PreSalt
Shallow
Deep
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WELLS IN AND ADJACENT TO SOUTH CABINDA BLOCK1964 - 2005
Second well drilled in the Block (1964) recovered 400 BBLS of oil plus some gas and water
Chevron testing one of its offshore wells as seen from within ROC’s Cabinda South Block during September 2005.
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One of the world’s most prolificpetroleum provinces.
Production offshore and immediately to the west, immediately onshore to the south – both on trend – and ca 100 km to the north.
Multiple reservoir, source and cap intervals, collectively hundreds of metres thick, in a heavily structured setting with additional potential for stratigraphic traps.
Pre-1972 drilling viewed as encouraging in light of new (2005) seismic.
THE PETROLEUM GEOLOGY OFTHE LOWER CONGO BASIN
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CABINDA SOUTH BLOCKEXPLORATION PLAY CONCEPTS
Oil flow 2km offshore
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• World class source rock- TOCs 3% to 25% (Avg 9%)- HIs 250 to 750
• 800 metres of good to excellent source rocks intersected in wells pre 1972
• Proven oil & gas generating kitchen in western region of the block
• Proven migration pathways into pre- and post-salt reservoirs
SOURCE ROCK: A KEY INGREDIENT
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ONSHORE ANGOLA
An established oil production facility to the south of ROC’s Cabinda acreage illustrates the type of development that could occur in the Cabinda South Block- if exploration is successful
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• Balanced and diverse exploration, appraisal and development portfolios
• Four new production streams in 2006
• Aggressive, international exploration drilling programme
• Equity raised to fund a much accelerated Angolan exploration programme
SUMMARY