Pharos Energy Plc · LSE:PHAR
Pharos Energy — SOCO International — FY2011 Earnings Presentation
48 slides from Pharos Energy's earnings presentation, Mar 14, 2012
Slide 1: 2011 Annual Results Presentation
2011 Annual Results Presentation 14th March 2012
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: Introduction & Overview
SS == Introduction & Overview
Slide 4: 2011 Highlights
2011 Highlights Largest development project in Company’s history into production on time and on budget in August 2011 TGT production has achieved ca. 40,000 bopd and preparing for staged production increase Excellent financial year - Record levels of revenue, operating cash flow and net profit Phase
Slide 5: Positioned to Deliver Significant Value
Positioned to Deliver Significant Value Record cash generation transforms balance sheet for 2012 Strong balance sheet, getting stronger opens greater optionality to enhancing shareholder value Excellent position to benefit from focus on core self- funded, exploration led strategy Continue to drive v
Slide 6: Strategy Focused on Maximising Value
Strategy Focused on Maximising Value Recognising opportunity build large positions early on before the play concept becomes too expensive • early entry in Vietnam and our focus on pre-salt in West Africa Capturing potential increase portfolio value through the application of managerial and technical
Slide 7: Financial Results
— ss va = E 6 —_a = : : — 4 a: = - 5 FINANCIAL RESULTS
Slide 8: 2011 Financial Highlights (from continuing operations)
2011 Financial Highlights (from continuing operations) Production for 2011 averaged 5,437 boepd (140% increase yoy) Record financial year revenue of US$234 million (380% increase yoy) cash flow of US$90 million (650% increase yoy) after tax profit of US$89 million (623% increase yoy) Net cash of US$
Slide 9: 2011 Financial Summary (audited)
2011 Financial Summary (audited) (from continuing operations, US$ million, unless otherwise indicated) 2011 2010 Sales revenue 234.2 48.4 NE Prod 6,793 boepd vs 2,257 boepd Cash, Equivalents & Liquid Invest 307.6 Realisations $112.94/bbl vs $84.32/bbl Operating profit 156.9 29.1 Net Profit1 101.4 51
Slide 10: Operations
Operations 10
Slide 11: Cuu Long Basin Development and Appraisal Areas
Cuu Long Basin Development and Appraisal Areas TGT 30.5% WI CNV 25% WI TGD 58.5% WI 11
Slide 12: CNV Field
CNV Field Fractured granitic Basement field Producing at steady ca. 8,000 boepd Installing additional separation and 1250 m metering facilities – on stream May 2012 Additional production well being discussed for 2012 or 2013 – m 0 30 expected to add ca. 3-5,000 boepd 12
Slide 13: Top Basement Depth Map
Top Basement Depth Map Area around Proposed Well CNV-7P 1250 m m 0 30 BSM entry point 13
Slide 14: CNV Separator Project
INTERNATIONAL CNV Separator Project 14
Slide 15: TGT Field
TGT Field Largest development project in Company’s history into production on time and on budget in August 2011 Phase II development drilling at TGT commenced in October 2011. Production start up anticipated for August 2012 Achieved production of ca. 40,000 bopd and preparing for staged production i
Slide 16: Well Location and Completions
Well Location and Completions Field fully simulated to optimise well location selection Monobore completion design - allowing selective perforations, improved well monitoring (pressure and PLT data) and water shut off Other benefits • Perforating does not require rig • Run completion first and then
Slide 17: TGT-H1-WHP
INTERNATIONAL 17
Slide 18: FPSO Armada TGT
FPSO Armada TGT 1 INTERNATIONAL 18
Slide 19: Floating Production Storage and Offloading
Floating Production Storage and Offloading Vessel Name: FPSO TGT 1 Date of Build: September 1996 Type of Vessel: Double Hull Crude Oil Tanker Main Functionality: Receipt of fluids from WHP’s wells and processing of the incoming fluids, Control of the WHP’s wells, Storage of the stabilised crude oil
Slide 20: Overall Te Giac Trang Field Layout
Overall Te Giac Trang Field Layout H1-WHP FPSO 4 x 10” Multiphase Pipelines 1 x 10” Water Injection Pipeline 1 x 8” Gas-lift Pipeline 01 -2/ JOC k 15 ng oc g Lo 1.8 km Bl C an 1 Th 16- g JO k n PLEM MWJ oc g Lo SSIV B l an ~ 7 km Ho 1 x 8” Gas-export Pipeline Ga s E x 1 x 16” Multiphase Pipeline por
Slide 21: TGT– Early Reservoir Testing
TGT– Early Reservoir Testing TGT-H1-3P TGT-2X TGT-H1-7P TGT-H1-1P TGT-H1-5P TGT-H1-2P West East 5.2 Upper 5.2 Lower C TGT-H1-5P TGT-H1-1P TGT-H1-2P TGT-2X TGT-H1-3P TGT-H1-7P H1 Platform - Existing perforations TGT-1X TGT-H1-6P TGT-H1-4P - Planned future perforations TGT-H1-8P 21
Slide 22: TGT– Early Reservoir Testing
TGT– Early Reservoir Testing Well performance has demonstrated the ability of all wells to produce oil at high rates with minimal drawdown. Confirmed the presence of a local, strong aquifer providing support to the main Miocene and Oligocene C reservoirs. Well flowing pressures are very stable indic
Slide 23: TGT-H4 Jacket with PVD-1 Jack-Up Rig
TGT-H4 Jacket with PVD-1 Jack-Up Rig 23
Slide 24: TGT H3N/H4 Development Wells
TGT H3N/H4 Development Wells TGT-H4-10PST1 TGT-H4-10P TGT-H4-12P TGT-7X TGT-4X TGT-H4-WHP TGT-6X m0 TGT-3X 42 36 5m 535 TGT-H4-14P m TGT-H4-9PTGT-H4-11P 24
Slide 25: H4 Topsides at PVC-MS Yard, Vietnam
H4 Topsides at PVC-MS Yard, Vietnam Helideck Installation 13 Feb 2012 25
Slide 26: TGT Summary
TGT Summary TGT is showing all the characteristics of a World-Class Field Strong aquifer response - delay planning for water injection and fewer wells needed Strong well performance indicates good sand connectivity and high recovery potential Regulatory authorities need more time to refine forward d
Slide 27: Hydrocarbon Columns - TGT Field
South Hydrocarbon Columns - TGT Field North H2N H2S H3N LEGEND Most Likely H4 H3 Upside / Undrilled 5.2 Upper 5.2 Lower H1.2 Olig-C H1.1 H2 HST-1X-ST1 TGT-H1-5P TGT-H1-1P TGT-H1-3P TGT-H1-2P TGT-2X TGT-H1-7P TGT-1X TGT-H1-6P TGT-H1-4P TGT-H1-8P TGT-5X TGT-H4-10P-ST TGT-H4-10P TGT-H4-12P TGT-7X H4S T
Slide 28: TGT Five Year Development Well Plan
TGT Five Year Development Well Plan 2012 2014 • 2 infill • 1 alternative appraisal • 1 producer • Add. dev. wells • 1 appraisal • Sidetrack flank wells 2015 • Add. dev. • Appraisal • Water Injector 2012 • 5 development wells 2016 • Appraisal wells in new leads 2013 • 1 appraisal • 2 + 1 infill or Wa
Slide 29: TGT Summary Activities to deliver
TGT Summary Activities to deliver Full field and individual well models for infill locations and timing and to refine focus on “undrilled” fault blocks • more than a dozen undrilled Fault Blocks/Closures remain to be drilled from the TGT WHP’s – until the largest of these blocks are drilled, it is n
Slide 30: TGD-TGT Location Map
TGD-TGT Location Map Block 16-1 Boundary THANG LONG 15.2 Te Giac Trang (TGT) Development Area ( 173 km2 ) a b Te Giac Den (TGD) Appraisal Area: TGT-2X Form Top E Sequence to Basement ( 105.9 km2 ) Te Giac Trang TGT-1X From Sea Bed to Basement ( 44 km2 ) c Development Area TGT-5X Area Relinquished TG
Slide 31: TGD Comparison of 2009 PSDM and 2012 MAZ Survey
TGD Comparison of 2009 PSDM and 2012 MAZ Survey 2009 PSDM XLINE MAZ has: Identification of possible Reverse fault not seen before More coherent Poor Reflectors reflectors in 2012 MAZ PSDM XLINE Pre- Volcanic sands Better reflectors in D section Better Reflectors showing steeper dips in D section Rev
Slide 32: TGD Alpha Location
TGD Alpha Location: Inline 680; Xline 1620 Alpha C D E Upper E Lower Volcanics Basement P50 Area 32
Slide 33: TGD Conclusions
TGD Conclusions New seismic has improved image across the area Mid and Lower Oligocene, as well as Basement, objectives are recognised in two prospects Source, seal and structure are very low risk prospect elements Reservoir risk is higher and may not sole risk Currently working on interpretation to
Slide 34: Central African Portfolio
Central African Portfolio 34
Slide 35: Cabinda North
Cabinda North Completed extensive seismic acquisition programme across the entire block Currently reviewing prospect portfolio for well location selection for drilling in 2012 35
Slide 36: Congo Marine XI and XIV Blocks
Congo Marine XI and XIV Blocks Completed two well drilling programme on Marine XI and Marine XIV Reviewing results in preparation for additional well on Marine XI in late 2012/early 2013 Pre salt geology highly complex 36
Slide 37: Nganzi Block Activity
Nganzi Block Activity Evaluation of well results completed Chela leads identified and mapped Seismic programme ongoing Preparing for potential drilling late 2012 37
Slide 38: Block V Activity
Block V Activity Completed detailed environmental study together with relevant DRC authorities Preparing for Phase 1 exploration activity of high definition aeromagnetic – aerogravity survey on the DRC side of Lake Edward in 2Q 2012. Objective is to better define lake based seismic acquisition progr
Slide 39: Exploration Drilling Schedule
Exploration Drilling Schedule 39
Slide 40: Primary Areas of New Venture Focus
Primary Areas of New Venture Focus VIETNAM CONGO DRCONGO ANGOLA OPERATED NON-OPERATED 40
Slide 41: Conclusion & Outlook
Conclusion & Outlook 41
Slide 42: Positioned to Deliver Significant Value
Positioned to Deliver Significant Value Record cash generation transforms balance sheet Strong balance sheet, getting stronger Continue to drive value enhancements within existing portfolio while using strong revenue to expand Excellent position to benefit from focus on core self- funded, exploratio
Slide 43: Strategy Focused on Maximising Value
Strategy Focused on Maximising Value Recognising opportunity build large positions early on before the play concept becomes too expensive Capturing potential increase portfolio value through the application of managerial and technical expertise lay off risk Realising value lock in returns at the rig
Slide 44: Going Forward into 2012 and Beyond
Going Forward into 2012 and Beyond TGT performing well, with results to date indicating need for fewer wells, delay to water injection and upper end of range of recovery factors Ramping up production all about PetroVietnam and partner alignment Additional perforations and five additional production
Slide 45: Going Forward into 2012 and Beyond
Going Forward into 2012 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 46: SOCO International plc
SOCO International plc From 19th March 2012 48 Dover Street London W1S 4FF United Kingdom Tel: 020 7747 2000 Fax: 020 7747 2001 Registered No: 3300821 www.socointernational.com 46
Slide 47: Appendix
Appendix INTERNATIONAL 47
Slide 48: Substantial Shareholders
Substantial Shareholders (millions of shares) Name of Holder Number % Pontoil Intertrade Limited 80.8 23.9 BlackRock, Inc. 34.0 10.0 Chemsa Ltd (Previously the Estate of P. Maugein, former SOCO 24.4 7.2 Chairman) Legal & General Group Plc 11.9 3.5 Directors 35.9 10.6 187.1 55.4 48