Tullow Oil Plc · LSE:TLW
Tullow Oil — Shareholder Meeting (May 2008)
40 slides from Tullow Oil's shareholder meeting presentation, May 14, 2008
Slide 1: Annual General Meeting
Annual General Meeting Aidan Heavey- Chief Executive Officer 14 May 2008
Slide 2: 2007 Business Highlights
2007 Business Highlights • 56% Exploration success rate in 2007 • World-class Jubilee field discovered • Group production up 13% to 73,100 boepd • Admitted to the FTSE100 index in September 2007, currently ranked 43rd • Current Market Capitalisation of approximately £6.5 billion • Total Shareholder
Slide 3: The Tullow Footprint
The Tullow Footprint Africa Europe Europe Angola Netherlands Congo (Brazzaville) Portugal • ~28,000 boepd Congo (DRC) Côte d'Ivoire United Kingdom • 3 countries Equatorial Guinea • 39 licences Gabon Ghana • 20 producing fields Madagascar Mauritania Africa Namibia Senegal • ~40,000 boepd Tanzania Uga
Slide 4: 2007 Results Summary
2007 Results Summary 2007 2006 Change Sales revenue £639.2 m £578.8m + 10% Operating profit before exploration activities £253.3m £295.1 m - 14% Net profit £52.6 m £157.4 m - 67% Basic earnings per share 7.33 p 24.23 p - 70% Dividend per share 6.00 p 5.50 p + 9% Capital investment £367.8 m £332.4 m
Slide 5: Africa - Operations Overview
Africa - Operations Overview Annual General Meeting 2008 Slide 5
Slide 6: Africa: developing a truly pan-African business
Africa: developing a truly pan-African business A continent with many opportunities • 13 countries • 50 licences • 17 producing fields A strong production portfolio • Production of over 40,000 bopd • Production from five countries - Mauritania - Cote d’Ivoire - Equatorial Guinea - Congo (Brazzaville
Slide 7: World-class Jubilee Field discovery in Ghana
World-class Jubilee Field discovery in Ghana 100% success rate in deep water licences • Two out of eight prospects drilled • Jubilee and Odum both discoveries • Region significantly de-risked and new play opportunities opened Appraisal programme - significant upside • Three wells drilled on Jubilee
Slide 8: Uganda – targeting over one billion barrels
Uganda – targeting over one billion barrels 100% success record in Lake Albert Basin • 10 wells drilled, all encountered hydrocarbons • Oil discovered over a range of 100 km High impact exploration programmes • Butiaba – 18 prospects identified, drilling commenced in April - Taitai discovery in May
Slide 9: Record production from African assets in 2007
Record production from African assets in 2007 Production of 40,000 bopd net to Tullow Equatorial Guinea • Okume - Production performance exceeding expectations at over 70,000 bopd • Ceiba - Production sustained above 40,000 bopd, further drilling planned for 2009 Congo (Brazzaville) • M’Boundi - 26
Slide 10: Extensive portfolio of African exploration acreage
Extensive portfolio of African exploration acreage Significant acreage position • Exploration acreage in 11 countries • 50 licences • Over 140,000 sq km Key Campaigns for 2008 • Ghana • Uganda Campaigns for 2009 • Mauritania • Côte d’Ivoire Annual General Meeting 2008 Slide 10
Slide 11: Europe - Operations Overview
Europe - Operations Overview Annual General Meeting 2008 Slide 11
Slide 12: SNS Gas Basin: Adding value in a challenging market
SNS Gas Basin: Adding value in a challenging market Market environment • Strengthening gas prices in UK • Contractor environment remains tight • Onerous UK tax regime for gas • Focus on managing operating costs Activity outlook to sustain production • Wissey & Bure developments planned for 2008 • K4
Slide 13: Strategic step-out in Strat Trap play from UK to Netherlands
Strategic “step-out” in Strat Trap play from UK to Netherlands July 2007 Carboniferous stratigraphic traps core play fairway • Stratigraphic Traps Core Play • UK CMS Area consistent exploration success since 2001 • Diminishing materiality of UK plays Tullow non-operated End 2008 Tullow operated • Sa
Slide 14: South Asia – Operations Overview
South Asia – Operations Overview Annual General Meeting 2008 Slide 14
Slide 15: South Asia: Reinvesting for growth
South Asia: Reinvesting for growth A growth region for Tullow • Region of growing energy demand • Major high-impact exploration potential • Relatively low-cost exploration/operations Developments to fund exploration • Production of approximately 5,000 boepd • Five high impact exploration licences Fu
Slide 16: India: 4-well campaign in proven rift basin
India: 4-well campaign in proven rift basin Exciting region with high impact potential • CB-ON/1 on trend between two proven basins to the north and south • 2006/2007 seismic has identified a number of prospects Programme expected to commence June • Four firm wells followed by two contingent • Exist
Slide 17: South America - Operations Overview
South America - Operations Overview Annual General Meeting 2008 Slide 17
Slide 18: South America: High impact potential in 2008
South America: High impact potential in 2008 French Guiana • Tullow operated offshore licence - 77.5% • Preparing to drill substantial Matamata prospect in 2008 • Likely to seek a farm-in partner Suriname • Five wells drilled in 2007 on Uitkijk licence, hydrocarbons encountered • Development potenti
Slide 19: 12 Month Exploration programme – 36 wells planned
12 Month Exploration programme – 36 wells planned Europe 2 wells Pakistan Mauritania 2 wells 2 wells Côte d’Ivoire 1 well India 4+ wells Suriname 5 wells Uganda French Guiana 9+ wells 1 well Ghana 6+ wells Gabon Tanzania 2 wells 2 wells Annual General Meeting 2008 Slide 19
Slide 20: Commitment to Corporate and Social Responsibility
Commitment to Corporate and Social Responsibility Annual General Meeting 2008 Slide 20
Slide 21: Tullow is committed to effective CSR
Tullow is committed to effective CSR • Tullow is fully committed to helping local communities where we operate • CSR is an integral part of the business, Tullow is not a charity • Tullow’s CSR commitments focus on - Health - Children - Education - Community • Tullow’s 2008 CSR report published today
Slide 22: Examples of CSR work in action
Examples of CSR work in action Discretionary Budget • 2006 US$ 0.5 million • 2007 US$ 0.9 million • 2008 US$ 2.0 million CSR projects in • Uganda • Ghana • Bangladesh • Pakistan CSR projects addressing.. • Health - Fresh Water - Mosquito nets - Malaria prevention - Birth Clinic - HIV/AIDS education
Slide 23: Conclusion
Conclusion Annual General Meeting 2008 Slide 23
Slide 24: Tullow’s business has reached a new level
Tullow’s business has reached a new level • Consistent strong performance from underlying business • Continued effective portfolio management • Strong team in place to deliver business expansion • High-impact opportunities to deliver future growth Preparing for the next phase of growth Annual Genera
Slide 25: AGM Proxy Votes Cast
AGM Proxy Votes Cast Steven McTiernan – Acting Chairman
Slide 26: Resolution 1 Receive and adopt Report & Accounts
Resolution 1 Receive and adopt Report & Accounts Proxy Votes % Votes Cast FOR 426,474,817 99.81 AGAINST 809,473 0.19 VOTE WITHHELD 17,019 - Annual General Meeting 2008 Slide 26
Slide 27: Resolution 2 Declare a Final Dividend
Resolution 2 Declare a Final Dividend Proxy Votes % Votes Cast FOR 427,006,773 100.00 AGAINST 3,800 0 VOTE WITHHELD 290,736 - Annual General Meeting 2008 Slide 27
Slide 28: Resolution 3 Directors’ Remuneration Report
Resolution 3 Receive and approve the Directors’ Remuneration Report Proxy Votes % Votes Cast FOR 405,710,363 99.62 AGAINST 1,562,463 0.38 VOTE WITHHELD 20,028,483 - Annual General Meeting 2008 Slide 28
Slide 29: Resolution 4 Re-elect David Bamford as a Director
Resolution 4 Re-elect David Bamford as a Director Proxy Votes % Votes Cast FOR 424,666,224 99.66 AGAINST 1,467,133 0.34 VOTE WITHHELD 1,167,952 - Annual General Meeting 2008 Slide 29
Slide 30: Resolution 5 Re-elect Steven McTiernan as a Director
Resolution 5 Re-elect Steven McTiernan as a Director Proxy Votes % Votes Cast FOR 425,865,420 99.67 AGAINST 1,410,171 0.33 VOTE WITHHELD 25,718 - Annual General Meeting 2008 Slide 30
Slide 31: Resolution 6 Re-elect Graham Martin as a Director
Resolution 6 Re-elect Graham Martin as a Director Proxy Votes % Votes Cast FOR 412,018,488 96.66 AGAINST 14,230,670 3.34 VOTE WITHHELD 1,052,151 - Annual General Meeting 2008 Slide 31
Slide 32: Resolution 7 Re-elect Clare Spottiswoode as a Director
Resolution 7 Re-elect Clare Spottiswoode as a Director Proxy Votes % Votes Cast FOR 424,640,671 99.67 AGAINST 1,421,439 0.33 VOTE WITHHELD 1,239,199 - Annual General Meeting 2008 Slide 32
Slide 33: Resolution 8 Re-elect Patrick Plunkett as a Director
Resolution 8 Re-elect Patrick Plunkett as a Director Proxy Votes % Votes Cast FOR 421,123,913 99.3 AGAINST 2,957,165 0.7 VOTE WITHHELD 3,220,231 - Annual General Meeting 2008 Slide 33
Slide 34: Resolution 9 Re-appoint auditors
Resolution 9 Re-appoint auditors and authorise the Directors to determine their remuneration Proxy Votes % Votes Cast FOR 426,568,767 99.83 AGAINST 707,516 0.17 VOTE WITHHELD 25,026 - Annual General Meeting 2008 Slide 34
Slide 35: Resolution 10 Renew Directors’ authority to allot shares
Resolution 10 Renew Directors’ authority to allot shares Proxy Votes % Votes Cast FOR 423,369,346 99.09 AGAINST 3,903,235 0.91 VOTE WITHHELD 28,728 - Annual General Meeting 2008 Slide 35
Slide 36: Resolution 11 Dis-apply statutory pre-emption rights
Resolution 11 Dis-apply statutory pre-emption rights Proxy Votes % Votes Cast FOR 426,437,511 99.82 AGAINST 775,804 0.18 VOTE WITHHELD 80,625 - Annual General Meeting 2008 Slide 36
Slide 37: Resolution 12 Adopt new Articles of Association
Resolution 12 Adopt new Articles of Association Proxy Votes % Votes Cast FOR 421,530,509 98.92 AGAINST 4,611,577 1.08 VOTE WITHHELD 1,151,854 - Annual General Meeting 2008 Slide 37
Slide 38: Resolution 13 Adopt amendments to the Articles of Association
Resolution 13 Adopt amendments to the Articles of Association Proxy Votes % Votes Cast FOR 415,250,679 97.26 AGAINST 11,676,617 2.74 VOTE WITHHELD 366,644 - Annual General Meeting 2008 Slide 38
Slide 39: Resolution 14 Approve changes to the 2005 Performance Share Plan
Resolution 14 Approve changes to the 2005 Performance Share Plan Proxy Votes % Votes Cast FOR 364,146,043 94.87 AGAINST 19,695,822 5.13 VOTE WITHHELD 43,452,075 - Annual General Meeting 2008 Slide 39
Slide 40: Tullow Oil plc
Tullow Oil plc 3rd Floor, Building 11 Chiswick Park, 566 Chiswick High Road London, W4 5YS Tel: +44 20 8996 1000 Fax+44 20 8994 5332 Investor Relations Contact Chris Perry: chris.perry@tullowoil.com Annual General Meeting 2008 Slide 40