Tullow Oil Plc · LSE:TLW
Tullow Oil — Investor Presentation (May 2013)
28 slides from Tullow Oil's investor presentation, May 16, 2013
Slide 1: Irish Shareholder Meeting
2013 Irish Shareholder Meeting Tullow Oil plc Irish Shareholder Meeting 16 May 2013
Slide 2: Disclaimer
2013 Irish Shareholder Meeting Disclaimer This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Tullow believes the expectations reflected herein to be rea
Slide 3: Substantially strengthened the business in 2012
2013 Irish Shareholder Meeting Substantially strengthened the business in 2012 • Basin-opening exploration success in Kenya • Five new country entries (4 x Atlantic Margin, 1 x East Africa) • Successful and cost-effective remediation of Jubilee • Development plans presented in Ghana and Uganda • $2.
Slide 4: Tullow's exploration-led strategy
2013 Irish Shareholder Meeting Tullow’s exploration-led strategy Additional cash flow from new production ~$4bn debt facilities Exploration and High Margin Monetisation Production Appraisal Options & Selective Cash flow $1bn + p.a. Portfolio Development Management Fully Funded Costs & Dividends Addi
Slide 5: Increased scale
2013 Irish Shareholder Meeting Increased scale 2009 2012 Change Sales revenue $916m $2,344m +156% Net profit $31m $666m +2050% Cash generated from operations1 $588m $1,778m +202% Capital investment $1,189m $1,870m +57% Net Debt2 $1,144m $989m -14% Loan facilities $2,250m $4,000m +78% 1 Before workin
Slide 6: Capital expenditure for 2013
2013 Irish Shareholder Meeting Capital expenditure for 2013 $2,000m for full year 2013 $800m $270m $580m $350 $2,000m • Ghana: Jubilee phase 1A & TEN development • Uganda: Continuing appraisal and development • Other Africa: Maintaining mature production & high-impact exploration $756m $378m $776m $
Slide 7: Development & Operations
2013 Irish Shareholder Meeting Tullow Oil plc – 2013 Irish Shareholder Meeting Development & Operations
Slide 8: Reserves and Resources
2013 Irish Shareholder Meeting Reserves and Resources Group Reserves and Resources Reserves and Resources 1,203 mmboe 2,000 1,800 • Commercial Reserves - 388 mmboe 1,600 - TEN transferred to Reserves - 112 mmbo 1,400 1,200 • Contingent Resources - 815 mmboe mmboe 1,000 - Uganda Resources commerciali
Slide 9: High quality African focused oil production
2013 Irish Shareholder Meeting High quality African focused oil production Group Working Interest Production Ghana – Jubilee operated Current production production Future production 100 Other licence areas Europe 40 90 Asia 35 80 Ghana 30 70 Rest of Africa kboepd 25 kboepd 60 20 50 15 40 10 30 5 20
Slide 10: Jubilee field – production stable; Phase 1A on track
2013 Irish Shareholder Meeting Jubilee field – production stable; Phase 1A on track Jubilee field well potential Jubilee production stable 160 • Well recovery plan delivered below capex guidance Well Potential 140 Excess Capacity • Well rates recovered to pre-acid levels and sustained FPSO oil capac
Slide 11: Jubilee area – future potential being confirmed
2013 Irish Shareholder Meeting Jubilee area – future potential being confirmed Jubilee full field development plan • Supports P50 Reserves of 700 mmboe, with upside • ~ 20 infill well locations already identified • 4D seismic planned to enhance recovery • Currently discussing plan with Government •
Slide 12: TEN development – progressing to sanction
2013 Irish Shareholder Meeting TEN development – progressing to sanction PoD submitted November 2012 mmboe P90 P50 P10 • Discussions with GoG progressing towards approval TEN Reserves & Resources * 200 360 600 • Negotiations on gas ongoing Oil/Gas Ratio (%) 80:20 70:30 60:40 • FPSO and Subsea award
Slide 13: Uganda development - negotiations ongoing
2013 Irish Shareholder Meeting Uganda development - negotiations ongoing Uganda Resources Successful Uganda appraisal being completed Risked Prospective Resource • Successful appraisal results increase contingent resources 0.2bn bls • Limited remaining appraisal activity and spend 1.8bn Discovered E
Slide 14: Exploration & Appraisal
2013 Irish Shareholder Meeting Tullow Oil plc – 2013 Irish Shareholder Meeting Exploration & Appraisal
Slide 15: Exploration strategy is focused on Africa & Atlantic Margins
2013 Irish Shareholder Meeting Exploration strategy is focused on Africa & Atlantic Margins Norwegian North Atlantic Continental Shelf Exploration & Business Development Central Atlantic Central Atlantic Major Exploration Margin East African Campaign Launched Rift Basins Guyanas East African Transfo
Slide 16: Sustained industry-leading exploration & appraisal performance
2013 Irish Shareholder Meeting Sustained industry-leading exploration & appraisal performance 100 93% Appraisal Success 90 80 77% E&A Success % 70 60 58% Exploration Success 50 2012 40 46 E&A Wells Number of Wells 34 E&A Successes 30 32 Appraisal Wells 20 26 Appraisal Successes 14 Exploration Wells
Slide 17: Industry-leading exploration acreage position
2013 Irish Shareholder Meeting Industry-leading exploration acreage position Exploration wells Appraisal wells Key trigger wells South American Atlantic Margins 1 0 Cebus-1 Central Atlantic Margins 3 0 Frégate-1, Tapendar-1 West African Atlantic Margins 5 1 Calao-1, Sylli-1 East African Rift Basins
Slide 18: Campaign approach to exploration: East Africa example
2013 Irish Shareholder Meeting Campaign approach to exploration: East Africa example UGANDA 21 PROSPECTS DRILLED Follow-on Prospect 1.2 Follow-on Prospect 1.2bn Kasamene-1 Jobi-East Follow-on Prospect 1.0 10,000 sq km* Nsoga-Kigogole Billion Barrels Follow-on Prospect 0.8 Mputa-1 Follow-on Prospect
Slide 19: Exploring over 10 related basins in Kenya & Ethiopia
2013 Irish Shareholder Meeting Exploring over 10 related basins in Kenya & Ethiopia Three scales of exploration ongoing simultaneously in multiple basins 1. Appraisal & testing of Ngamia-1 & Twiga South-1 (25 sq km scale) 2. South Lokichar Basin drill-out towards commerciality (10,000 sq km) 3. High
Slide 20: Kenya: South Lokichar Rift Basin drill-out towards commerciality
2013 Irish Shareholder Meeting Kenya: South Lokichar Rift Basin drill-out towards commerciality Etom Agete North Basin Bounding Fault Play: Agete South Twiga-1 “String of pearls” Ekales like Kingfisher in Amosing Lake Albert Ekosowan Ngamia-1 Ewoi Etunyuk Basin Flank Play: Q2 2013 Etuko-C “Prospect
Slide 21: Guyanas: extensive "Jubilee play" potential plus upside plays
2013 Irish Shareholder Meeting Guyanas: extensive “Jubilee play” potential plus upside plays • Jubilee play campaign continues across the Atlantic; Multiple Ghana-scaled prospective fan systems • New 3D seismic surveys reveal exciting drilling targets in Suriname and French Guiana •Cebus is currentl
Slide 22: North Atlantic margins campaign in Greenland & Norway
2013 Irish Shareholder Meeting North Atlantic margins campaign in Greenland & Norway Greenland - highly prospective acreage • 1,800 sq km 3D seismic acquired • Evaluation of licence to continue to 2015 Norway - relatively unexplored vs UK • Highly prospective oil basins • Experienced exploration tea
Slide 23: Corporate Responsibility
2013 Irish Shareholder Meeting Tullow Oil plc – 2013 Irish Shareholder Meeting Corporate Responsibility
Slide 24: How we do business
2013 Irish Shareholder Meeting How we do business • We manage our business in a responsible Creating Shared Prosperity way to maximise sustainable development opportunities for host nations • We are committed to ensuring long-term benefits to local people and economies where we operate • The foundat
Slide 25: Open, transparent disclosure
2013 Irish Shareholder Meeting Open, transparent disclosure • We are committed to transparent disclosure of payments to governments and other stakeholders in the countries in which we operate • Revenue transparency and disclosure enables a country’s citizens to hold their government and Tullow to ac
Slide 26: Conclusions
2013 Irish Shareholder Meeting Tullow Oil plc – 2013 Irish Shareholder Meeting Conclusions
Slide 27: Conclusions
2013 Irish Shareholder Meeting Conclusions • Strong production base to fund industry- leading exploration • Major developments making good progress securing revenue over the medium-term • Strong and well-balanced financial position • Major exploration campaigns throughout 2013 in Kenya, Ethiopia, Mo
Slide 28: Tullow Oil Ltd
2013 Irish Shareholder Meeting Tullow Oil Ltd Number 1, Central Park Leopardstown Dublin 18 Ireland Tel: +353 (0) 1 213 7300 Follow Tullow on: Fax: +353 (0)1 293 0400