Pharos Energy PLC · LSE:PHAR
Pharos Energy — SOCO International — FY2012 Earnings Presentation
27 slides from Pharos Energy's earnings presentation, Mar 11, 2013
Slide 1: 2012 Annual Results Presentation
2012 Annual Results Presentation 11th March 2013
Slide 2: Preface
Preface This presentation, which is confidential and is being supplied in the United Kingdom only to persons with professional experience in matters relating to investments for the purposes of the Financial Services and Markets Act 2000, does not constitute or form part of any offer or invitation to
Slide 3: 2012 Operational Highlights
2012 Operational Highlights Consolidated the Group’s interests in South East Asia portfolio with the $95m acquisition of the outstanding 20% interest in SOCO Vietnam Ltd Record Group net entitlement production volumes of ~15,500 BOEPD (2011: 6,730 BOEPD), a rise of 130% Additional production brought
Slide 4: 2012 Financial Highlights (from continuing operations)
2012 Financial Highlights (from continuing operations) Record revenue of $621.6m (2011: $234.1m), a rise of 166% 134% increase in after tax profits from continuing operations to $207.0m (2011: $88.6m) 271% increase in operating cash flow to $334.8m (2011: $90.2m) Cash, cash equivalents and liquid in
Slide 5: 2012 Financial Summary (audited)
2012 Financial Summary (audited) (from continuing operations, US$ million, unless otherwise indicated) 2012 2011 Sales revenue 621.6 234.1 Net Entitlement Production 15,500 boepd vs 6,700 boepd Cash, Equivalents & Liquid Invest 307.6 Realisations $118/bbl vs $113/bbl Operating profit 448.2 156.9
Slide 6: Operations
Operations 6
Slide 7: Central Vietnam Offshore Basins and Licences Awards
Central Vietnam Offshore Basins and Licences Awards ENI BL 114 EXXON BL 117 EXXON BL 118 EXXON BL 119 ENI MURPHY BL 120 BL 144 ORIGIN MURPHY BL 121 BL 145 SANTOS BL 123 PVEP BL 148 PVEP BL 149 MITRA BL 127 ONGC BL 128 7
Slide 8: Vietnam—Cuu Long Basin Blocks
Vietnam—Cuu Long Basin Blocks Acquired 20% non- controlling interest in SOCO Vietnam for $95 million TGT is largest development project in Company’s history; H4-WHP brought on- stream one month early, but one year TGT 30.5% WI ahead of original FDP CNV 25% WI Production averaged above 52,000 BOPD si
Slide 9: CNV Field
CNV Field Fractured granitic Basement field Producing at steady ca. 8,000 boepd Finalising calibration of additional separation and metering facilities Additional production well planned for 2013 – expected to add ca. 3- 5,000 boepd 9
Slide 10: Te Giac Trang Field Layout
Te Giac Trang Field Layout FPSO‐TGT 1 H1‐WHP FPSO Storage Capacity: 4 x 10” Multiphase Pipelines 620,000 BBLS 10” Water Injection Pipeline Processing Capacities: 8” Gas‐lift Pipeline Crude oil rate 55,000 BOPD Produced water rate 75,000 BWPD 1.8 km PLEM MWJ SSIV ~ 7 km 1 x 8” Gas‐export Pipeline H4‐
Slide 11: TGT 2013 Well Locations
TGT 2013 Well Locations TGT-17P H1 WI/Appraisal H3 Appraisal H2 South Appraisal H5 Appraisal 11
Slide 12: Preparation for 2014 Well Campaign
Preparation for 2014 Well Campaign 2014 initial well locations: • WI in H.1.1/H1.2 Block • WI in H4 Block • TGT-H2S App or H2 2nd Dev 12
Slide 13: Independent Confirmation of TGT Resources
Independent Confirmation of TGT Resources Range (low to high case) STOIIP (mmstb) 470 960 1 Recoverable Gas (mmboe) 15 30 Future activities will significantly de-risk high case Additional 10 infield and step out wells (e.g. H5 (50-150 mmstb)) planned in 2013-14 Continued drilling beyond 2014 Gas con
Slide 14: Supporting Higher TGT Recovery Factors
Supporting Higher TGT Recovery Factors Range (low to high case) Independent Estimate 28% 35% SOCO Estimate 32% 50% Reservoir quality and reservoir geometry in TGT’s individual sands supports SOCO recovery factor estimates: Relatively thin but continuous sands, less risk of water bypass and therefore
Slide 15: West to East Cross Section
West to East Cross Section TGT‐3P TGT‐16P TGT‐2X TGT‐7P TGT‐1P TGT‐15P TGT‐5P TGT‐2P West East Water Cut 60% 30% 0% 35% 5.2 Upper Aquifer Support 5.2 Lower Olig-C TGT‐H1‐5P TGT‐H1‐1P TGT‐H1‐2P TGT‐H1‐16P TGT‐H1‐3P TGT‐H1‐15P TGT‐2X TGT‐H1‐7P H1 Platform Aquifer Support TGT‐1X TGT‐H1‐6P TGT‐H1‐4P TGT
Slide 16: TGT Activities to deliver Performance Reserves
TGT Activities to deliver Performance Complete FPSO sustained capacity test (beyond 55,000 bopd) Calibrate process simulation model for early debottlenecking Enhance production management techniques Focus on individual sand perforation plans and timing Reserves Upgrade full field simulation for high
Slide 17: Central African Portfolio
Central African Portfolio 17
Slide 18: North Congo Basin—Current Portfolio
North Congo Basin—Current Portfolio 100% WI Added Nanga II A block and commencing seismic reprocessing 40.39% WI Preparing to drill Lideka East on Marine XI in 2H13 Have a non- refundable deposit 17% WI to sell Cabinda to minority partner 65% WI Completing seismic reprocessing for drill or drop deci
Slide 19: Cabinda North
Cabinda North Selling entire equity in two stage disposal deal Initial non-refundable deposit received Expect completion by end March 19
Slide 20: Marine XI—Lideka East + Prospects and Discoveries
Marine XI—Lideka East + Prospects and Discoveries Estimated mean predrill recoverable resources c. 70 mmbbl in primary target Sendji formation COS 40% Estimated mean upside recoverable resources c. 60 mmbbl in secondary formations Preparing for expected drilling 2H13 20
Slide 21: Nganzi Block
Nganzi Block Ongoing seismic depth reprocessing of two vintages of 2D “time” seismic to validate existing Leads and Prospects Obtained 6 month PSC extension Drill or Drop decision to be made by September 2013. If drill, then need to relinquish 50% of block 21
Slide 22: Block V Activity
Block V Activity Completed detailed environmental study together with relevant DRC authorities Activity suspended during M23 insurgency With Peace Accord signature, targeted to resume Aeromag acquisition in May-June Block V 85% WI 2013 Target decision on Block V 85% WI seismic acquisition in Septemb
Slide 23: Drilling Schedule & Potential Reserve Implication
Drilling Schedule & Potential Reserve Implication 2013 Potential March April May June July August Sept Oct Nov Dec Reserves Vietnam 40 ‐ 80 4 Infield wells +TGT‐H5 Congo (Brazzaville) 60 ‐ 130 Lideka East Marine DR Congo Contingent Well 1 Contingent Well 2 23
Slide 24: Conclusion & Outlook
Conclusion & Outlook 24
Slide 25: Outlook
Outlook Continued strong cash generation from the Vietnam assets Development drilling on TGT and CNV Appraisal well on the previously undrilled TGT H5 block Sustained capacity test on TGT FPSO pending Exploration drilling on Lideka Marine East Well 1 (Republic of Congo) in 2H13 2013 return of capita
Slide 26: Going Forward into 2013 and Beyond
Going Forward into 2013 and Beyond Very strong financially and will be generating more cash with stable production of ca. 16,000 boepd. Offers more options in enhancing shareholder value through development of the current portfolio adding new ventures consistent with our current and historical focus
Slide 27: SOCO International plc
SOCO International plc 48 Dover Street London W1S 4FF United Kingdom Tel: 020 7747 2000 Fax: 020 7747 2001 Registered No: 3300821 www.socointernational.com 27