Etablissements Maurel & Prom Sa · EURONEXT:MAU

Etablissements Maurel & Prom Sa — Maurel & Prom — FY2010 Earnings Presentation

41 slides from Etablissements Maurel & Prom Sa's earnings presentation, Apr 1, 2011

  1. Slide 1: Annual Results

    MAURELY® PROM ANNUAL RESULTS

  2. Slide 2: Group Strategy

    1 GROUP STRATEGY 1/4/2011 2010 Annual Results 2

  3. Slide 3: 2010 key figures

    1 2010 key figures 1 Sales: €346m +80% 2 Opera=ng income before explora=on write‐offs: €111m +136% 3 Explora=on write‐offs: €211m + 398% 4 P1+P2 reserves: 288 Mboe +74% +58% in Gabon 1/4/2011 Résultats 2010 3

  4. Slide 4: Change of the strategy

    1 Change of the strategy • Sustained efforts to adapt the strategy to the economic environment… – Con=nued increase in Group produc=on in Gabon – Quick development of new discoveries – Acquisi=on of assets in Nigeria – Successful restart of explora=on ac=vity in Colombia • … resul7ng in contras7ng im

  5. Slide 5: Certified P1+P2 reserves

    1 Certified P1+P2 reserves Reserves P1+P2 net of royal=es Oil in Mboe 28% 70 288 Mboe ‐6 Gas 58 72% 288 218 218 165 165 P2 P1 60% 288 Mboe 40% 01/01/2010 Acquisi=on Produc=on Révision 01/01/2011 Strong increase up to 288 Mboe The Group's reserves correspond to commercially exploitable volumes of hyd

  6. Slide 6: Reserves details

    1 Reserves details P1+P2 reserves net of royal7es at 1/1/2011 in Mboe 01/01/2010 acquisi'on produc'on revision 01/01/2011 P1 P2 % retained ONAL 85% 87.2 ‐3.3 1.4 85.3 44.5 40.8 OMKO 85% 12.7 ‐0.3 0.8 13.2 7.5 5.7 OMBG 85% 4.2 ‐0.1 4.1 0.8 3.3 OMGW 85% 5.1 ‐0.6 3.9 8.4 4.0 4.4 OMOC‐North 85% 27.5 27.

  7. Slide 7: Resources

    1 Resources Hydrocarbon resources (M&P share, net of royal7es) Type of hydrocarbon 01/01/2011 Type of resource millions of barrels GABON ONAL 85% Oil 25 P3 OMKO 85% Oil 4 P3 OMBG 85% Oil 14 P3 OMGW 85% Oil 4 P3 OMOC‐North 85% Oil 19 P3 OMOC 85% Oil 26 P3 COLOMBIA Sabanero 100% Oil 33 CPO‐17 50% Oil

  8. Slide 8: Cost of barrel

    1 Cost of 1 baril 2007 2008 2009 2010 2007‐2010 EXPLORATION In US$m Explora=on expenses 174 322 320 326 1, 142 Explora9on write‐offs 41 78 75 280 473 41% in Mboe Oil reserves increase +15 +101 +5 +68 +189 Finding cost (before tax effects) 6.0 $/b ACQUISITION Nigeria acquisi=on (SEPLAT working interest

  9. Slide 9: 2010-2011 Activity

    2 2010-2011 ACTIVITY 1/4/2011 2010 Annual Results 9

  10. Slide 10: Gabon: a methodical strategy (1/2)

    2 Gabon : a methodical strategy (1/2) 00% ves at 1 2010 2P reser bbls 213 M 2009  Discovery of bls OMOC-North field 134 Mb in Gabon 2008  Production  Production start- s Mbbl start-up of up of Omgw and 132 Onal and Ombg in Gabon 2007  Discovery of Omko in  Ramp up of the s Gabon production: 19,

  11. Slide 11: Gabon: a rapid development

    2 Gabon : a rapid development OMGW OMKO OMBG ONAL Produc=on centre Wells drilled in 2010 OMOC‐Nord Wells to be drilled in 2011 OMOC 1/4/2011 2010 Annual Results 11

  12. Slide 12: Gabon: gross production

    2 Gabon: gross production In bopd 100% ? 17 441 16 981 17 380 13 299 11 731 11 689 10 654 9 623 2 525 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 2009 2010 2011 1/4/2011 2010 Annual Results 12

  13. Slide 13: Omoueyi: fields and prospects

    2 Omoueyi : fields and prospects Omoueyi : 4 179 km² OMSN‐W ONAL‐W fields 2011 prospects > 2011 prospects and leads Basement 1/4/2011 2010 Annual Results 13

  14. Slide 14: Etekamba

    2 Etekamba Etekamba Gas field Oil + Gas field Oil field (ATORA) Prospects to be drilled in 2011 1/4/2011 2010 Annual Results 14

  15. Slide 15: Nigeria: progressive integration of assets

    2 Nigeria : progressive integration of assets SEPLAT shareholders SEPLAT (M&P 45%) acquisi=on costs: Shebah Petroleum US$340m + US$33m earn‐out (oil price) Maurel & Prom 45% 33% o/w US$153m from M&P o/w US$187m from credit line Pla_orm Petroleum 22% Oil reserves in SEPLAT (M&P 45%) working interest:

  16. Slide 16: Nigeria: successful restart of the production

    Nigeria : successful restart of the 2 production Gross produc7on In boepd (oil + condensates) 40 000 35 000 35 000 boepd Premium vs Brent : 1.75$ 30 000 Royal=es: 20% oil 25 000 7% gas 20 000 Opex: US$6/b 15 000 Transport & tariff: US$8/b 10 000 Income taxe: 65.75% 5 000 Depreciable asset base (SEPLA

  17. Slide 17: Nigeria issue: production

    2 Nigeria issue: production Targeted field development strategy: 2 fields developed per year – from 2012 ⇒ Increase produc7on: ⇒ Conversion of C1+C2 to P1+P2 • Exis=ng history • Exis=ng history • 2 more produc=on wells on Ovhor field • 3 appraisal wells (Orogho – • 5 workovers on Sapele field Okporhuru

  18. Slide 18: Nigeria issue: appraisal

    2 Nigeria issue: appraisal Oben Sapele Amukpe Ovhor Oil Oil + gas Fields Unappraised fields, audited by Gaffney & Cline (C1+C2) Unappraised fields, not audited by Gaffney & Cline Prospects and leads 1/4/2011 2010 Annual Results 18

  19. Slide 19: Nigeria issue: evacuation ways

    2 Nigeria issue: evacuation ways Oil pipeline Gas pipeline Planorm 2 3 Op7on 1 Sapele Amukpe ‐ Escravos 1 Amukpe (Chevron + Pan Ocean) Escravos FPSO 4 Warri Op7on 2 Sapele – Escravos or FPSO Forcados (by barge) 2 Op7on 3 30 km pipeline via Pla_orm and Agip Op7on 4 Rapele – Warri refinery 1/4/2011 201

  20. Slide 20: Colombia: exploration area of 10 000 sqkm

    2 Colombia : exploration area of 10 000 sqkm 2010 SSJN‐9 M&P 50% 2009  SWAP with Hocol Hocol 50%  COR-15 TEA awarded 2008  Hocol  Sabanero Colombia sale discovery COR‐15  4 exploration  2011: CPO-17 M&P 100%  Ocelote development licenses kept discovery Tangara (>14,000 bopd) (SSJN-9, Muisca S

  21. Slide 21: Sabanero discovery

    2 Sabanero discovery 3D seismic lines Sabanero M&P 100% SABANERO‐1 SABANERO‐SE1 SABANERO‐SE2 Wells drilled in 2010 Wells to be drilled in 2011 1/4/2011 2010 Annual Results 21

  22. Slide 22: CPO-17 discovery

    2 CPO-17 discovery Merlín CPO‐17 M&P 50% Hocol 50% Successfull Stra7graphic wells : stra=graphic well ‐ drilled with lighter mining‐type equipment; Stra=graphic wells to be ‐ lower cost drilling equipments; ‐ verifica=on of seismic surveys; drilled in 2011 ‐ obten=on of core samples; Prospects to be

  23. Slide 23: Strategic alliance with Pacific Rubiales Energy

    Strategic alliance with 2 Pacific Rubiales Energy Acquisi7on of 50% of M&P interest in its • Cash reimbursement: US$66m as of 31/3/2011 explora7on blocks (excl. Tangara): • Full carry obliga7on on the explora7on ac7vity: ‐ Sabanero SSJN‐9 M&P 50% ‐ SSJN‐9, CPO‐17 and Muisca up to US$120m Hocol 50% ‐

  24. Slide 24: Other countries

    2 Other countries Tanzania: Syria: Congo: • Resources on Mafia audited by • Draco‐1 well • Marine III (M&P 75%): Mbafou & Schlumberger: up to 4 Tcf • Area reinterpreta=on NGoumba • Mandawa (M&P 90%) : Kianika‐1 • Kouilou relinquishment wells •Loufika and Zingali exploita=on • MNazi Bay : 3D seismic li

  25. Slide 25: Oil services: Caroil

    2 Oil services: Caroil Rigs working for the Group As of 31/12/2010: 3 rigs As of 31/03/2011: 2 rigs Cameroun : 1 rig Colombia : 4 rigs Gabon : 3 rigs Tanzania : 1 rig Congo : 5 rigs RDC : 1 rig Averaged u=lisa=on rate in 2010: 88% Averaged day rate: $36,500/day/rig 1/4/2011 2010 Annual Results 25

  26. Slide 26: Group Results

    3 GROUP RESULTS 1/4/2011 2010 Annual Results 26

  27. Slide 27: Economic Environment

    40 50 60 70 80 90 100 Janvier Février 1/4/2011 3 Mars Avril Mai Juin 2009 Juillet Août 61,5 Septembre Octobre Novembre Décembre Janvier Brent ($) Février Mars Avril Mai Juin 2010 Juillet 79,4 Août Septembre Octobre Novembre Décembre Economic Environment 1,23 1,33 1,43 1,53 1,18 1,28 1,38 1,48 2010 A

  28. Slide 28: Sales

    3 Sales 285 Nigeria In €m Oil produc7on 11% 124 110 76 €285m 65 34 8 2008 2009 T1 T2 T3 T4 2010 Gabon 89% In €m Oil services 99 Cameroun 12% 85 84 Gabon Colombia 3% 27% France 5% 28 24 24 24 €99m Tanzania 3% 2008 2009 T1 T2 T3 T4 2010 Congo 50% 1/4/2011 2010 Annual Results 28

  29. Slide 29: Hedges

    3 Hedges Sale price In bopd H1 2010 H2 2010 2011 2012 2013 In $/b Hedge 1 750 71.0 Hedge2 500 500 63.4 Hedge 3 1,000 1,000 57.0 Hedge 4 2,250 2,250 58.8 Hedge 5 500 500 55.0 Hedge 6 500 500 500 62.0 Hedge 7 2,000 2,000 2,000 62.2 Hedge 8 500 500 85.8 Hedge 9 500 500 500 86.7 Total in bopd 7,500 6,75

  30. Slide 30: Operating income and write-offs

    3 Operating income and write-offs 2010 2009 Write‐off details: Sales (in €m) 346 192 Syria : 1well Produc9on 285 124 €12m Oi services 99 84 Congo : 3 wells Hedge ‐38 ‐16 €30m Cost of sales ‐116 ‐83 Tanzania : 2 wells Gross margin 230 109 €37m 66% 57% Gabon : 1 well Taxes ‐24 ‐7 €15m Payroll ‐27 ‐20 S

  31. Slide 31: Tanzanian provision details

    3 Tanzanian provision details Total capex Explora7on 31/12/2011 Book value Provision In €m 2006‐2010 write‐offs Value Seismic 19 19 19 Mkuranga 22 22 22 Mbezi 13 13 Minangu 11 11 Mafia Deep 100 100 76 24 Mohoro 12 12 ‐ ‐ Others 5 2 3 3 182 38 143 76 67 In case of a development: use of a great part of

  32. Slide 32: Net debt and financial income

    3 Net debt and financial income Groud debt as of 31/12/2010 : In €m 2010 OCEANE 2014: €298m OCEANE 2015: €70m OCEANE 2014 ‐25.5 Bank facility: $50m (reimbursed on March, 7th 2011) OCEANE 2015 ‐2.5 Bank facility ‐4.1 Banco de Occidente: $2m RBL ‐0.3 Reserves Based Loan: $285m SEPLAT financing ‐3.3 SEP

  33. Slide 33: Net income

    3 Résultat net 2010 2009 Sales 346 192 Income from oil produc7on and services ac7vi7es 111 47 Tanzanian provisions ‐76 ‐ Explora9on write‐offs ‐135 ‐56 Corporate taxes: Others ‐9 ‐10 Income tax: €29.1m Opera7ng income ‐109 ‐20 Nigéria: €5.5m Financial income 16 ‐25 Gabon: €17.8m Caroil: €5.8m Income

  34. Slide 34: Balance sheet

    3 Balance sheet In €m Assets Liabili=es 1 849 1 849 1 645 1 645 835 Non‐current assets 940 Current assets 1 358 1 107 Deposit Cash 343 Net equity Conver=ble bonds 290 Non‐current liabili=es 110 456 Current liabili=es 240 428 58 381 125 191 95 2010 2009 2009 2010 1/4/2011 2010 Annual Results 34

  35. Slide 35: Cash flow

    3 Cash flow 183 €220m 77 428 70 332 125 225 95 300 137 140 Opening cash Conver=ble bond Opera=ng cash flow Capex Nigeria acquisi=on Financing Others Closing cash Deposit reimbursment 1/4/2011 2010 Annual Results 35

  36. Slide 36: What next?

    4 WHAT NEXT? 1/4/2011 2010 Annual Results 36

  37. Slide 37: Two major growth vectors

    4 Two major growth vectors • In Gabon: a methodic strategical growth sevng + OMBG and OMGW first oil + OMOC‐North discovery + Extension of water injec=on to Onal satellites + Pursuit of step by step explora=on = Strong increase in reserves and produc=on • In Nigeria: asset acquisi=on + Produc=on prog

  38. Slide 38: 2011 program

    4 2011 program Q1 Q2 Q3 Q4  ONAL-W  Nyanga Mayombe seismic acquisition  Kari seismic  Nemqueteba Explora=on acquisition  OMSN-W  Omoueyi seismic acquisition  Peru civil works  ETK-1  ETK-2  SSJN-9  Mios-Lavignolle  CPO-17-EST1  Merlin-1 (CPO-17) Appraisal  CPO-17-EST9  OMOC 401  CPO-

  39. Slide 39: 2011 capex

    4 2011 capex By country By ac=vity Development Nigeria 110 30 43% 12% Colombia Gabon 37 US$259m 167 259 M$ 14% 64% Explora=on Oil services 127 22 France 49% 8% 4 1% Peru Others 7 15 3% 6% Capex before any farm‐out 1/4/2011 2010 Annual Results 39

  40. Slide 40: Conclusion

    5 CONCLUSION 1/4/2011 2010 Annual Results 40

  41. Slide 41: An attracting risk profile

    5 An attracting risk profile Increase in oil price Con=nued increase in produc=on in Gabon and Nigeria Opening cash: €220m High level of diversified reserves (Gas/Oil, Gabon/Nigeria): 288 Mboe 72% oil, 28 % gas 40% P1, 60% P2 Diversified resources to appraise: 419 Mboe Major natural gas resources in T

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