Preliminary Results PresentationFor the year ended 30 June 2013Shareholders’ Regional Meeting23 September 2014
Investor Presentation
May 2015
May 2015 Investor Presentation 2
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.
‘Bowleven’, ‘EurOil’ and the Bowleven logo are trade marks of Bowleven plc and copyright in the content of this document is owned by Bowleven plc. They
should not be used without permission.
May 2015 Investor Presentation 3
Company Overview
• Strategy focused on creating and realising value through
material exploration success and development.
• Seek value adding partnerships and niche acquisitions as
appropriate.
• Fostering strong external partnerships and in-country
relationships.
• Targeted approach to technical, commercial and political risk.
• Resources to Reserves.
Vision
Strategy – Focus on Africa
“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.”
May 2015 Investor Presentation 4
Company Overview
• Completed farm-out of Etinde with global E&P company and
recognised local operator.
• Consideration from farm-out significantly strengthens balance
sheet and provides carry for two appraisal wells on Etinde.
• Near term focus is on existing asset base.
• Active operational period planned:
• Two well exploration programme due to commence on
Bomono; gas, condensate and oil all believed to be
potentially present.
• Carried for two well appraisal programme on Intra
Isongo; targeting additional resource potential identified
with previously drilled IM-5 well.
• Well funded for planned exploration and appraisal activities.
• Protect balance sheet strength pending further clarity on future
appraisal and development costs.
Recent Highlights
Outlook
May 2015 Investor Presentation 5
Onshore extension of
Douala Basin.
Series of structural
prospects.
Two well exploration drilling
programme commenced.
Asset Overview - Balanced Portfolio
Development
.
Early Stage ExplorationDevelopment
BomonoCameroon
Block 11BKenya
EtindeCameroon
3 blocks covering
~16,250k 3 blocks
covering ~16,250km²
m²
3 blocks covering
~16,250km²
Blocks 25, 28 & 29 Zambia
Exploitation Authorisation
over MLHP-7.
Gas sales agreement
(GSA) negotiations well
advanced.
Farm-out to
LUKOIL/NewAge
completed.
Two well appraisal drilling
programme on Intra
Isongo planned.
Three blocks covering
~16,250km².
Application for further two
blocks pending.
Early stage exploration.
Block 11B onshore Kenya
covering ~14,200km².
New hydrocarbon
province.
FTG survey completed.
May 2015 Investor Presentation 6
Etinde: Convert Resources to Reserves
• Expanded joint venture well placed to progress Resources to
Reserves.
• Farm-out to New Age and LUKOIL combines:
Local knowledge and experience.
Major E&P company.
Cameroon government participation and support.
Secure funding: Bowleven carried for up to $40 million
for its share of drilling and testing costs.
• Exploitation Authorisation (EA) awarded over block MLHP-7 with
multiple development options:
Ferrostaal-led fertiliser scheme (70mmscf/d).
GDF-led Cameroon LNG (CLNG) project.
Alternative LNG development schemes.
• Appraisal drilling programme planned on Intra Isongo formations
to prove up additional resource volumes in support of future LNG
opportunities.
• Well locations agreed & drilling expected end 2015 / 2016;
integral with GSA progression.
• Group’s current net P50 contingent resources 58 mmboe.
Etinde Exploitation
May 2015 Investor Presentation 7
Etinde: Additional Resource through Appraisal Drilling
• IM-5 well opened the Intra-Isongo play.
• Seismic response correlates with thick, reservoir quality
sands, identifying significant potential:
• Extent of discovered reservoir horizon.
• Additional Intra Isongo targets above and below Intra
Isongo IM-5 reservoir.
• Appraisal drilling programme will also target this additional
resource potential:
• Down-dip extension from IM-5 crestal location.
• Additional stacked targets at the Intra Isongo level.
• Locations nearing finalisation.
• 2 wells targeting combined 1-2 tcf of additional GIIP at
P90 level depending on reservoir connectivity.
Volcanics
Upper Isongo
Intra Isongo
Middle Isongo
IM-5
Greater Intra Isongo
Intra Isongo Potential
May 2015 Investor Presentation 8
Bomono
Operational Update
• Rig assembled at Zingana location.
• Site preparation at 2nd well site, Moambe, nearing
completion.
• Two well drilling programme commenced.
Identification of Gas Sales Opportunities
• Ideally located adjacent to Douala City.
• Actis acquisition of AES/Sonel brings new
momentum to growth of the local power market.
• Discussions initiated with power provider to outline
development opportunities.
• Development concept for early monetisation scheme
based on packaged power units to create a scalable
facility with liquids trucked to Limbe refinery . Rig onsite at Zingana
May 2015 Investor Presentation 9
Bomono: Exploration Targets
Zingana-1 Moambe-1*SW NE
Line No: BOM-10-106
Bo-03 (yellow) –
gas in B & C sds
‘B’ Sand twt
Structure Map
Zingana
Prospect
Moambe
Prospect
Oil Potential
• Focused on the deeper D&E sands.
• Zingana and Moambe targeting medium risk 50-100mmbbl
STOIIP pools (P50-Mean range) in each sand.
• Oil seep and historic well data suggest the possibility of liquids;
albeit lower risk for gas/condensate.
Gas/Condensate
• Shallower B&C sands.
• Proven and tested gas condensate in the B and C reservoirs
within the Zingana structure from proximally located early
1950’s wells.
• Two wells targeting 5-40bcf GIIP pools (P90-P50 range) in
each sand, with associated condensate.
• If successful, subsequent appraisal to prove volume will be
achieved by scaled early production system (gas to power).
Cretaceous
• Deeper, high pressure cretaceous prospectivity recognised
but will not be targeted by the current drilling programme.
• Potential for 2-3tcf (in place) but high pressure, high
temperature. * Moambe well trajectory projected onto section, actual location
2km ENE of Zingana surface location.
May 2015 Investor Presentation 10
Kenya – block 11B
Operational
Overview
Uganda
South SudanEthiopia
Kenya
Source: Bowleven
• Significant acreage ~14,200km2 in highly prospective East
African Rift system.
• Intersection of Tertiary and Cretaceous rift systems.
• Existing data suggests basins similar form to Lokichar Basin.
• Multiple oil discoveries to the south (Lokichar Basin).
• High level of industry activity – multi-well drilling campaigns
ongoing and infrastructure planning underway (including
pipeline pre-FEED study) e.g. Tullow Oil, Africa Oil.
• 2014 field work and interpreted FTG results has greatly
increased the geological understanding of the area.
• Greatly assisted in the design of the planned seismic
programme.
• First exploration phase expires 26 May 2015.
• Logistical issues / security concerns prohibited seismic
activity pre-expiry.
• Application for an extension submitted to Kenyan authorities
to enable seismic acquisition and second exploration phase
decision.
May 2015 Investor Presentation 11
Zambia
• Luangwa Valley Karoo basin total area ~42,000 km².
• Five blocks applied for: Three blocks awarded (25, 28
and 29) ~16,250km² and applications for two blocks
pending (26 and 27).
• Previous exploration 1980’s (Placid) acquired
3,000km 2D seismic and drilled 2 wells (primary
objectives were never reached).
• Thermally immature Coal measures are widely known
around the basin margins. It is considered that more
liquids rich, mature lacustrine source rocks could be
present deeper into the basin.
• Four year exploration period. Minimum committed
work programme estimated ~$500k.
Coal Occurrences
1980’s exploration well
Overview
May 2015 Investor Presentation 12
Funding Overview – Current Portfolio Fully Funded
• Strong balance sheet.
• Consideration from LUKOIL/NewAge farm-out:
$165 million cash received.
Estimated $5 million working capital adjustment.
$40 million (net) carry for two appraisal wells.
$40 million deferred cash payment.
• Cash on 24 March 2015, ~$155 million (post farm-out
completion and $9 million Petrofac settlement), no debt.
• Potential for development funding at FID. Options include
project debt, development bank finance and mezzanine
finance.
• Funding towards exploration activity in Kenya via First Oil
strategic partnership.
• G&A reduced to ~$1.1 million (gross) per month (previously
$1.5 million - $1.7 million per month); further reduction
initiatives planned.
Equity
Placing
First
Production
Use of Transaction Proceeds
Proceeds (~$250m)
• $165m at completion
• ~$5 million working capital
• $40m carry - 2 appraisal wells
• $15m on completion of
appraisal wells
• $25m at FID
Use of Transaction Proceeds – Disciplined Capital Approach
Etinde Expenditure (~$110m)
• $40m - two appraisal wells
• $140m – share of Etinde
development expenditure
(likely 50% “equity” and
50% debt funding)
Financing Flexibility (~$140m)
• Petrofac fee ($9m); paid
• Bomono – exploration &
appraisal
• Kenya
• G&A
May 2015 Investor Presentation 13
Timeline Operations - Cameroon
H2 2015 2016
Bomono drilling
Bomono EA preparation
/ submission
Etinde drilling
Etinde pre-development
FID
2 exploration wells
2 appraisal wells
May 2015 Investor Presentation 14
Conclusion
• Strong balance sheet following completion of Etinde
farm-out.
• Balanced portfolio with near term focus on existing
asset base.
• Fully funded for planned activity:
• Exploration drilling campaign on Bomono.
• Appraisal of the extensive Intra Isongo reservoir
interval on Etinde.
• Results of planned drilling on Etinde and Bomono will
determine future capital requirements.
• Forward strategy under review by the Board following
recent farm-out completion. Capital markets day
planned.
The next 12-18 months will see
Bowleven participate in four
potentially significant exploration
and appraisal wells.
May 2015 Investor Presentation 16
• The largest privately owned oil and gas company in the world by proved reserves.
• Accounts for in excess of 2% of global output of crude oil.
• Listed on both the Russian and London stock exchange.
• Over 20 years of operating experience.
• Extensive experience in operating multi-tcf gas fields, developing and producing hydrocarbons (including the processing of
natural gas liquids).
• Majority of exploration and production activity is located in Russia but has interests in Cote d’Ivoire, Ghana, Egypt, Saudi Arabia
and Iraq amongst others.
• Privately-owned oil and gas company.
• Operations in 7 countries, namely, Congo-Brazzaville, Cameroon, Nigeria, Ethiopia, Morocco, South Africa and Kurdistan.
• NewAge has reached FID on five development projects with production having recently started on two of these projects.
• CAMOP, a subsidiary undertaking of NewAge has held a 25% (20% post government back-in) equity interest in the Etinde
Permit since 2009.
Information on LUKOIL/NewAge
LUKOIL
NewAge
Principal Contact:
Kerry Crawford
Tel: +44 131 524 5678
Kevin Hart
Tel: +44 131 524 5678
www.bowleven.com
Bowleven Plc.
The Cube
45 Leith Street
Edinburgh
EH1 3AT
United Kingdom