Slide 1: 2017 Full Year Results
2017 Full Year Results Building a well-funded, full-cycle, exploration-led E&P company 19 April 2018
Slide 2: Important Notice
Important Notice This Presentation does not constitute an offer or invitation or a solicitation of any offer or invitation for the sale or purchase of any securities in the Company. In addition, it is not intended to form the basis of or act as an inducement to enter into any contract or investment
Slide 3: Strategy for value creation through the cycle
Strategy for value creation through the cycle Building a balanced portfolio in core areas o Focus on North Falkland Basin and Greater Mediterranean o Full cycle exploration and production company o Production base to cover costs and fund growth through exploration Maintaining balance sheet strength
Slide 4: 2017 highlights
2017 highlights Funding package for Sea Sea Lion cost estimates Regulatory interface for Lion progressing reducing Sea Lion well advanced o LOIs signed with o Gross capex to first oil o EIS consultation complete contractors for vendor reduced to c.$1.5bn o FDP largely agreed finance o Opex inc FSPO
Slide 5: North Falkland Basin
NORTH FALKLANDS BASIN ey) SEA LION EF SOUTH & EAST FALKLAND BASIN.
Slide 6: A strategic acreage position in a world class hydrocarbon basin
A strategic acreage position in a world class hydrocarbon basin o Leading acreage holder in the North Falkland Basin with >40% working interest in all key licences o Sea Lion discovery (350 – 450 meter water depth) drilled in 2010 o Sea Lion field fully appraised through extensive E&A campaign – 8 w
Slide 7: Sea Lion – increasing resource base as project matures
Sea Lion – increasing resource base as project matures e % i n creas 35 e in creas 115% o Independently certified 2C resources have more than doubled since discovery as field appraised and better understood o Operator has already booked barrels to be developed in Phase 1 as 2P reserves o Rockhopper
Slide 8: Sea Lion – development substantially de-risked
Sea Lion – development substantially de-risked 1 World class resource o 1.7 bn bbls in place; 520 mmbbls recoverable (2C) o Well understood reservoir o Highly marketable crude 2 Regulatory interface well advanced o EIS public consultation process completed o FDP substantially agreed; final update at
Slide 9: Sea Lion funding - working towards FID by end 2018
Sea Lion funding - working towards FID by end 2018 1 Key operational metrics o Initial target production 80,000 bopd gross o 23 well development (16 oil producers) o 220 mmbbl gross developed in Phase 1 2 Material costs savings achieved through FEED o Capex to first oil reduced to $1.5 billion gross
Slide 10: Material low-risk upside remaining within the basin
Material low-risk upside remaining within the basin 1 2 3 Capture 3C resource Low risk exploration upside Further exploration and within Sea Lion located close to Sea Lion appraisal of Isobel-Elaine 10
Slide 11: Greater Mediterranean
Greater Mediterranean 11
Slide 12: Growing our asset base in Greater Mediterranean
Growing our asset base in Greater Mediterranean …Delivering a step-change increase in production and revenue Note: • 2016 production and revenue includes impact of Egypt acquisition from mid August 2016 onwards 12
Slide 13: Abu Sennan – Western Desert, Egypt (Rockhopper 22%)
Abu Sennan – Western Desert, Egypt (Rockhopper 22%) o Operated by Kuwait Energy o Six fields currently producing ~865 boepd net o Active drilling program with historic success rate of >70% o Good quality crude with small (3 - 4%) discount to Brent o Low cash operating costs (~$6/bbl in 2017) o Explo
Slide 14: Italian portfolio - production with exploration upside
Italian portfolio - production with exploration upside Guendalina (RKH 20%) Monte Grosso (RKH 23%) o Operated by Eni o Operatorship recently transferred to Eni o 2017 net production: 290 boepd o Largest undrilled prospect onshore Western Europe o Attractive gas price (~$6/mcf) o ~250 mmbbl prospect;
Slide 15: Financial update
Financial update e = |
Slide 16: Protecting financial strength to enable growth
Protecting financial strength to enable growth o Strong financial performance in 2017 with continued focus on cost management • Revenue $10.4 million – up 40% vs 2016 • Low cost production: unit cash operating costs $9.5/boe – down 35% vs 2016 • Corporate costs funded by Greater Mediterranean produc
Slide 17: 2017 cash movements
2017 cash movements NFB drilling campaign close out cost expected to be minimal going forward 100 90 4 10 80 15 Includes FX, working capital, payments related to Egypt acquisition 70 7 5 60 5 4 50 40 81 30 51 20 10 0 Opening Cash Revenue Cost of sales NFB Exploration Sea Lion Capex Greater Med G&A O
Slide 18: Focus on cost management
Focus on cost management Continued focus on reducing corporate costs o Net recurring G&A in 2017: $5.3 million o Equivalent to ~$450k per month o 50% reduction since 2014 Savings achieved through o UK employees (14 in total) consolidated under single office in London o Significant head count reducti
Slide 19: Outlook
Outlook 19
Slide 20: Focus for 2018
Focus for 2018 Progress Sea Lion towards FID by Egypt drilling campaign end 2018 o Four well campaign in 2018 o Select preferred contractors and secure vendor financing o El Qa’a - exploration well in May o Secure senior debt funding o Abu Sennan - one exploration and two infill development wells –