Etablissements Maurel & Prom Sa · EURONEXT:MAU
Etablissements Maurel & Prom Sa — Maurel & Prom — Shareholder Meeting (June 2012)
46 slides from Etablissements Maurel & Prom Sa's shareholder meeting presentation, Jun 14, 2012
Slide 1: General Shareholders' Meeting
General Shareholders’ Meeting 14 June 2012 www.maureletprom.fr
Slide 2: 2011 Activity
2011 Activity Jean-François Hénin Chairman and CEO
Slide 3: Introduction – Jean-François Hénin
Introduction – Jean-François Hénin 130 Brent 120 ($) Asset management ► Focusing resources on production assets 110 ► Exploration partnerships 111,22 ► Asset sales 100 90 Sustained activity in 2011 79,44 80 ► Increase in average production and reserves ► Strong cash flow generation 70 2010 2011 2012
Slide 4: Maurel & Prom activity in 2011
Maurel & Prom activity in 2011 Operations on Group assets Strategic alliance in Colombia and Peru Sale of MP Venezuela Distribution of MP Nigeria Exit from the country Disengagement from exploration or part of it Merger-absorption of Caroil with Tuscany Entry into the country (2012) Exercise of righ
Slide 5: Group certified reserves
Group certified reserves Additional resources in Mboe P1+P2 reserves net of royalties in Mboe 2011 production revision acquisition 2012 P1 P2 98 OMOUEYI 173.2 -5.3 8.5 176.4 56.5 119.9 103 BANIO 0.4 -0.1 0.2 0.5 0.3 0.1 GABON 173.6 -5.4 8.7 176.8 56.8 120.0 76 47 SABANERO 0.0 0.0 7.8 7.8 2.9 4.9 85
Slide 6: Production profile in Gabon (at 100%)
Production profile in Gabon (at 100%) bopd 60 000 DeGolyer and MacNaughton - 2P reserves at 1 January 2012 Maurel & Prom* estimates for 2012 and 2013 before 3D seismic study results on 14 June 2012 50 000 40 000 30 000 20 000 10 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 7: Sound financial structure
Sound financial structure Group net debt (in €M) 125 Reduction in net debt 152 95 61 Major capacity to raise additional funds -62 -118 SB -213 AFREXIM Elimination of financial risk in Colombia BGFI -368 Convertible bonds Strong cash flow in Gabon enabling -368 RBL Group and head office activities to
Slide 8: 2011 Finance
2011 Finance Michel Hochard Chief Financial Officer
Slide 9: 2011 production and sale prices
2011 production and sale prices boepd 20 000 2011 2010 18 000 Production sold bopd 14,269 11,768 16 000 Sale price US$/bbl 110.9 78.5 Gabon sales €m 414.9 253.9 14 000 Other €m 0.9 0.6 12 000 Impact of hedges €m -42.3 -37.9 Consolidated sales €m 373.6 216.6 10 000 8 000 6 000 Increase in production
Slide 10: Operating margins
Operating margins Operating income In €M 2011 2010 Sales 373.6 217.0 Improved profitability Expenses -63.6 -57.8 ► Increase in gross margin linked to increase in Other 0.8 0.3 production and in sale prices ► Increased Gross Operating Surplus, stabilisation of Gross margin 310.8 159.5 personnel expen
Slide 11: Financial income and debt
Financial income and debt Group debt: summary and changes Reserve Based Loan Date put in place: 30 January 2009 Term: 4 years Financial income Initial drawdown capacity: US$255 million Modified drawdown capacity, 21 October 2010: US$330 million Drawdown capacity in H1 2012: US$264 million (depending
Slide 12: Net income
Net income Net income Sale of Caroil In €M 2011 2010 • US$120 million in cash = €87 million; Pre-tax income 241.3 -119.8 • 81.5 million Tuscany shares, listed on the Toronto Stock Exchange Tax -98.2 -44.7 (TSX); Associates -1.3 4.5 • and 27.5 million stock options on a parity of 1:1 exercisable Net
Slide 13: Cash flow and asset structure
Cash flow and asset structure Cash flow 2011 (in €M) Balance sheet at 31 Dec. 2011 (in €M) 179 90 765 Shareholders’ equity 239 124 29 Non-current assets 1250 125 Other non-current 191 95 25 liabilities 60 TRESORERIE D'OUVERTURE INVESTISSEMENTS DIVIDENDE FLUX GENERES PAR L'ACTIVITE OPERATIONS DE CESS
Slide 14: Exploration & Production
Exploration & Production Philippe Corlay Director of Production Jean Bié Director of Exploration
Slide 15: Gabon: location of producing fields
Gabon: location of producing fields OMGW Omoueyi: 4,179 km² OMBG OMKO ONAL OMOC-N OMOC* * Exclusive exploitation authorisation applied for 14 June 2012 15
Slide 16: Omoc-N: update on incident
Omoc-N: update on incident Findings • End January: production higher than projections • Collapse at PF Omoc-N-100 during drilling of Omoc-N-104 well Consequences • Production halted on two producing wells • Impossibility of putting Omoc-N-103 well already drilled into production • Impossibility of d
Slide 17: Omoc-N: focus on reasons behind the collapse
Omoc-N: focus on reasons behind the collapse 14 June 2012 17
Slide 18: Omoc-N: focus on the drilling postponement
Omoc-N: focus on the drilling postponement Weeks - 2012 52 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 w 1 2 3 4 5 6 7 8 9 inj inj inj Caroil-4 Omoc-N-103 Omoc-N-104 Omoc-N-105 Omoc-N-503 Omoc-N-106 Omoc-N-107 Omoc-
Slide 19: Omoc and Omoc-N: Kissenda development
Omoc and Omoc-N: Kissenda development boepd 12 000 DeGolyer and MacNaughton - 2P reserves at 1 January 2012 Omoc-Nord 10 000 Maurel & Prom estimates for 2012 and 2013 A+C before 3D seismic study results on 14 June 2012 8 000 6 000 4 000 2 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 20: Onal (Grès de base): optimisation of water injection
Onal (Grès de base): optimisation of water injection Findings • Pilot water injection project put in place in 2010 • Evidence of a more heterogeneous reservoir than predicted by initial static data • Evidence of fast water flows at some producing wells • Pressure not sustained to some other wells Co
Slide 21: Onal (GdB): production profile
Onal (GdB): production profile boepd 40 000 Pilot injection Development after 3D seismic 2010-2012 35 000 30 000 DeGolyer and MacNaughton - 2P reserves at 1 January 2012 Maurel & Prom estimates for 2012 and 2013 before 3D seismic study results on 14 June 2012 25 000 20 000 15 000 10 000 5 000 0 2012
Slide 22: Omko: effectiveness of water injection
Omko: effectiveness of water injection Start water injection boepd Findings • Water injection effective • Increase in production Action plan • Acquire 3D seismic data • Postpone North field development boepd 5 000 4 500 4 000 3 500 3 000 DeGolyer and MacNaughton - 2P reserves at 1 January 2012 2 500
Slide 23: Omgw: successful water injection program
Omgw: successfull water injection program Start of water injection boepd Findings •Water injection seems effective •Increase in production Action plan •Acquire 3D seismic data •Postpone North field development 4 500 Consequences 4 000 •In line with projections 3 500 Production profile 3 000 boepd bo
Slide 24: Ombg: production profile
Ombg: production profile Findings • One well in production • Decline in production boepd DeGolyer and MacNaughton – 2P reserves at 1 January 2012 2 500 Action plan Maurel & Prom estimates for 2012 and 2013 before 3D seismic study results on 14 June 2012 • Acquire 3D seismic data 2 000 Consequences •
Slide 25: Omoueyi: Acquisition of 3D seismic
Omoueyi: Acquisition of 3D seismic Area being acquired: 337 km² Complete coverage of all Omoueyi fields Onal, Omko, Ombg, Omgw, Omoc and Omoc-N South part of the basin Omal exploration zone North basin west of Omko Acquisition cost: US$27 million 14 June 2012 25
Slide 26: Gabon: regions to explore
Gabon: regions to explore Omoueyi – 100% GABON • 2D seismic acquisition under way • 3D seismic acquisition under way Kari – 100% • 2D seismic acquisition under way Omoueyi • Recording under way 4,178 km² • HRAM recording Kari Etekamba 2,659 km² Nyanga Mayombe – 100% 580 km² • Two topics researched:
Slide 27: Gabon: 2D seismic campaign
Gabon: 2D seismic campaign Gamba Sandstones Mélania Sandstones Nyanga Kissenda Sandstones Mayombe Basal Sandstones 2D seismic 2012 (500km) Kari Gamba Sandstones Banio Carbonates 2D seismic 2012 (300km) 14 June 2012 27
Slide 28: Congo
Congo La Noumbi 2,827 km² Forages prévus : M&P 49% operator - Kola 1 : Chela - Kola 2 : Chela + Vandji Eni 37% Afren 14% Lead ADoungou NW Vandji 35.8 km² Djeno 9.1 km² Lead E Chela 31 km² 14 June 2012 28
Slide 29: Namibia
Namibia Block 0044 M&P 37% operator 5,122 km² PGS 48% Other 15% Block 0045 17,133 km² 2012 2D seismic campaign: 5,000 km 14 June 2012 29
Slide 30: Colombia: strategic alliance
Colombia: strategic alliance Sale to Pacific Rubiales Energy of 49.999% of MP Colombia COR-15 MP Colombia 100% 1- Payment of PRE to M&P of US$63 million Muisca 2- PRE bears the exploration risks: MP Colombia 100% carries exploration on the following permits: • Sabanero and COR-15, unlimited; • SSJN-
Slide 31: Colombia: start of Sabanero production
Colombia: start of Sabanero production 2500 Sabanero field 2000 • Discovered in 2010 by MP Colombia • Located 250 km east of Bogota • 40 km as the crow flies from the Rubiales field 1500 BOPD 1000 Development characteristics • Heavy oil: 12°API • High water production 500 • Thin reservoir • 6% of ro
Slide 32: COR-15 and Muisca (Colombia)
COR-15 and Muisca (Colombia) Oil discovered Gas discovered Area 1,194 Km² COR-15 1,194 km² COR 15 Muisca 2,320km² Muisca 14 June 2012 32
Slide 33: CPO-17 (Colombia)
CPO-17 (Colombia) CPO-17 2,104 km² Dorcas-1 Merlin-1 and Merlin-2ST Test with ESP 725 bbl of oil at 8.2°API, Viscosity 5,000 cP. Injection of thinner at base. 8.5°API 3,456 bbl of water. Viscosity 3,000 cP in reservoir condition Decision to repeat test as cold production with a more powerful pump. T
Slide 34: SSJN-9
SSJN-9 SSJN-9 2,647 km² COR 15 1 194 km² 3D SEISMIC : 380 Km² 2D REPROCESSED LINES: 560 km Prospect SANTA-FE 14 June 2012 34
Slide 35: Peru
Peru Surface facilities: • Location of the first prospect • 2.5 ha platform. • Camps set up on the military base Drilling rig and equipment • Equipment transported by helicopter, plane and river Duration of project: 18 months (2 wells) • Civil engineering: 4 months • Rig Move/Rig up: 2 months • Dril
Slide 36: East Africa
East Africa Gas discovered Gas fields in production M&P option MKuranga Mafia Deep Block 4 BG/Ophir Songo Songo Bigwa-Rufiji-Mafia M&P 60% operator Block 2 Statoil/Exxon 12,025 km² Block 1 Mnazi Bay BG/Ophir Tanzania M&P 48% operator Area 4 Mnazi Bay Eni 756 km² Rovuma offshore Rovuma Onshore Anadar
Slide 37: Tanzanie
Tanzanie Bigwa-Rufiji-Mafia M’Kuranga gas field - 2D seismic - Selection of a new well to drill Mnazi Bay Production - 3 workovers in progress Ziwani-1 well drilling confirmed - The quality of Oligocène reservoir - The gas upsides (Pliocène) - The trap Next step - review of existing seimsic data - i
Slide 38: Mozambique
Mozambique M&P 27,71% Anadarko operator 13,315 km² 2D seismic campaign in progress (900 km) in North-East part Close to recent big discoveries 15 km Source: Anadarko - Eni 14 June 2012 38
Slide 39: 2012 Outlook
2012 Outlook Jean-François Hénin Chairman and CEO
Slide 40: 2012 Strategy
2012 Strategy 2012 Priority Increase production Acquire know-how in development of different deposits (heavy oil, water injection) Renew reserves 2012 Action plan Develop the Sabanero field and acquire experience in heavy oil Consolidate the development plans for the Omoueyi fields Discover new fiel
Slide 41: Key figures 2012
Key figures 2012 Production at 100% 2012 investments in US$M 25 000 22,000 20 000 18,140 125 +7% 14,618 15 000 +24% Exploration In bopd Colombie Développement Gabon 10 000 269 5 000 0 2010 2011 2012e 14 June 2012 41
Slide 42: Shareholders
Shareholders Jean-François Hénin Chairman and CEO
Slide 43: M&P and MP Nigeria share price since 1/1/2011
M&P and MP Nigeria share price since 1/1/2011 20 18 16 14 12 10 8 6 4 2 0 14 June 2012 43
Slide 44: Analyst coverage
Analyst coverage 10% 10% 11% 11% 20% 20% 20% 20% 18% 18% 18% 20% Cheuvreux Exane Natixis Deutsche Bank 50% 50% 56% 56% Tudor Pickering 45% 45% 45% 50% 50% 50% 50% 50% Standard Bank Arkeon Aurel BCG CM-CIC Kepler Goldman Sachs 40% 40% 36% 36% 36% 33% 33% 30% 30% 30% 30% 30% Jun-11 Jul-11 Aug-11 Sep-1
Slide 45: Shareholding structure
Shareholding structure Employees Individuals 1% 28% Treasury shares Institutionals 5% 36% Macif 7% 0.5% 8.0% Strategic Pacifico shareholders 24% 36% 16.6% 48.5% 26.4% France Continental Europe (excl. France) North America UK & Ireland Rest of the World 14 June 2012 45
Slide 46: www.maureletprom.fr
www.maureletprom.fr