AGM Presentation – 11 June 2014
2
Falkland Oil and Gas Limited
Geographic
Focus
• Purely focussed on exploration offshore the Falkland Islands
• Only Falk...
3
Only explorer operating in both the North & South Basins
• Net interest of over 40,000 sq. km
• Material interest (40%+)...
4
FOGL’s South & East Basin Licences
2010 & 2012 drilling
• 5 wells drilled: 4 found gas or gas-condensate
• Proved a work...
5
Cretaceous Source Rocks: The key to finding oil
6
Major 3D seismic acquisition programme completed
Major 3D acquisition programme
• Completed in February 2014
• 3 separat...
7
New 3D seismic
• Over 12,000 sq.km 3D survey completed
• 3 separate areas of interest:
• Diomedea Fan Complex
• Cretaceo...
8
• The Diomedea area comprises a large system of
deep-water channels and fans.
• Mid Cretaceous source rocks are expected...
9
• Potential drilling candidates include:
• Humpback
• Finback
• Seismic interpretation is on-going
• Final target select...
10
• The Darwin exploration well discovered a rich gas
condensate in good quality Cretaceous sands
• Numerous, similar fea...
11
• A large 5,750 sq. km 3D seismic survey acquired
• Prospect mapping has yet to commence
• Fast-track 3D seismic data a...
12
• Interests in 5 licences
• PL004b (40% WI) contains Sea Lion
southern extension
• Material exploration prospect stacks...
13
• The Sea Lion field straddles PL032 & PL004b
• FOGL estimate that c.30% of the Sea Lion oil-in-place lies
within PL004...
14
PL004b: Zebedee (FOGL 40%)
Source: Premier Oil Source: Premier Oil
Multiple stacked targets
Zebedee Location
• FOGL: 40...
15
• Net resources c. 30 ~ 90 mmbbl (un-risked)
• Well will target Isobel deep
• Success will de-risk Elaine North & South...
16
• Net resources c.40 ~ 90 mmbbl (un-risked)
• Location provides potential to stack 5 fans
• Risk assessment: moderate
•...
17
• Ocean Rig’s Eirik Raude contracted
• Rig to be mobilised to the Falklands in Q1 2015
• The final drilling order is ex...
18
• FOGL has by far the largest exposure to the 2015 drilling programme:
Share of 6 well firm programme, based on drillin...
19
• FOGL is fully funded through a 5 well drilling programme commencing in Q1 2015
• It is either partially or fully carr...
20
FOGL largest exposure (>40%) to the 2015 drilling programme
Falklands only company operating in both north & south basi...
21
Disclaimer
FALKLAND OIL AND GAS LIMITED
DISCLAIMER
This presentation is not and is not intended to be a prospectus and ...
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Fogl agm2014 presentation

  1. 1. AGM Presentation – 11 June 2014
  2. 2. 2 Falkland Oil and Gas Limited Geographic Focus • Purely focussed on exploration offshore the Falkland Islands • Only Falkland explorer operating in both the North & South Basins • Largest licence holder of all Falkland explorers Exciting Portfolio • South and East Falkland Basin offers high impact drilling opportunities • North Falkland Basin offers lower risk ‘step-out’ exploration and appraisal • Interest in the Sea Lion oil development project Active Drilling Programme • Rig contracted – drilling commences Q1 2015 • Fully funded to drill 5 wells • Biggest player in 2015 drilling programme
  3. 3. 3 Only explorer operating in both the North & South Basins • Net interest of over 40,000 sq. km • Material interest (40%+) in all licences • Experienced operators • Noble Energy • Premier Oil • Over 12,000 sq.km 3D survey completed • Rig contract signed with Ocean Rig to use the Eirik Raude on a multi-well campaign • 5 well programme commencing in late Q1 2015 2004 licences FOGL: 40% Noble (op.) 35% Edison: 25% 2002 licences FOGL: 52.50% Noble (op.) 35.0% Edison: 12.5% FOGL: 40%
  4. 4. 4 FOGL’s South & East Basin Licences 2010 & 2012 drilling • 5 wells drilled: 4 found gas or gas-condensate • Proved a working hydrocarbon system in the basin • Good quality source rocks • Good quality Cretaceous reservoirs Toroa
  5. 5. 5 Cretaceous Source Rocks: The key to finding oil
  6. 6. 6 Major 3D seismic acquisition programme completed Major 3D acquisition programme • Completed in February 2014 • 3 separate survey areas • >12,000 sq. km in total
  7. 7. 7 New 3D seismic • Over 12,000 sq.km 3D survey completed • 3 separate areas of interest: • Diomedea Fan Complex • Cretaceous Fault Blocks • Hersilia Fan Complex • Excellent data quality & imaging • Step change in our understanding and ability to map prospective areas
  8. 8. 8 • The Diomedea area comprises a large system of deep-water channels and fans. • Mid Cretaceous source rocks are expected to be inter-bedded with these sands and mature for oil. • A 5,500 sq.km 3D survey was acquired to explore this play • Many prospects and leads have been mapped Diomedea Fan Complex (FOGL 52.5%) Diomedea 3D survey outline Humpback Finback Prospects and Leads map
  9. 9. 9 • Potential drilling candidates include: • Humpback • Finback • Seismic interpretation is on-going • Final target selection expected by end Q3 2014 Diomedea Fan Complex Humpback shown on amplitude map generated from the new 3D seismic Shelf Slope Basin
  10. 10. 10 • The Darwin exploration well discovered a rich gas condensate in good quality Cretaceous sands • Numerous, similar features have been mapped in our adjacent licences. • A 3D seismic survey was acquired in 2013 to better define some of these prospects. • Seismic interpretation is on-going and final results are expected in Q3 2014 • Seismic amplitude responses indicate the possibility of different hydrocarbon phases, including oil • Potential drilling candidates include: • Nurnberg • Scharnhorst North Cretaceous Fault Blocks (FOGL 52.5%)
  11. 11. 11 • A large 5,750 sq. km 3D seismic survey acquired • Prospect mapping has yet to commence • Fast-track 3D seismic data available in mid June • Source rocks may be oil generative in the vicinity of Hersilia and West Hersilia • The Loligo well proved the presence of large amounts of gas in the Tertiary Channel play • Reservoir quality at the well location was poor. 3D seismic may indicate if better reservoir is present elsewhere within Loligo • To achieve a collaborative approach with Noble Energy, the previously excluded area covering Loligo and Nimrod has been re-combined into a single licence area Hersilia Fan Complex and Loligo (FOGL 40%) Scotia 3D survey outline Loligo • Fast track data will be available in June 2014 • Final processed data in Q4 2014
  12. 12. 12 • Interests in 5 licences • PL004b (40% WI) contains Sea Lion southern extension • Material exploration prospect stacks in PL004, PL003 & PL005 • Zebedee • Jayne East • Isobel • Elaine • Helen • Susan • Ann/Orca South FOGL’s North Falkland Basin Licences Jayne East Elaine Isobel Zebedee well location Susan
  13. 13. 13 • The Sea Lion field straddles PL032 & PL004b • FOGL estimate that c.30% of the Sea Lion oil-in-place lies within PL004b • 85 mmbbls 2C resources net to FOGL (Senergy) • Premier are proposing a two phased development concept, targeting the northern area first • Further appraisal required in PL004b to determine resources distribution & potential: Zebedee will be the key next well • In a success case up to 40% of Sealion oil-in-place could be within PL004b • FOGL has a significant stake in Sea Lion and unitisation discussions have now been initiated with the other field owners Sea Lion area Zebedee Location PL032 PL004b Probable Gas Extent Probable Oil Extent
  14. 14. 14 PL004b: Zebedee (FOGL 40%) Source: Premier Oil Source: Premier Oil Multiple stacked targets Zebedee Location • FOGL: 40%, Premier (Operator) 36%, Rockhopper: 24% • Net resources c. 60-160 mmbbl (un-risked) • Well to test 7 target horizons • The well will seek to extend the proven F2 sequence towards the south and will also test deeper targets within the older F3 sequence. • Risk assessment: low-moderate Source: Premier Oil Feb 2014 CMD Presentation Feb 2014 CMD Presentation
  15. 15. 15 • Net resources c. 30 ~ 90 mmbbl (un-risked) • Well will target Isobel deep • Success will de-risk Elaine North & South, Helen & Susan • Risk assessment: moderate • Key risk: up-dip seal & reservoir PL004a Isobel & Elaine (FOGL 40%) Elaine Isobel Jayne East Susan Source: Premier Oil Isobel Deep amplitude and spectral decomposition displays Feb 2014 CMD Presentation Isobel Deep Location
  16. 16. 16 • Net resources c.40 ~ 90 mmbbl (un-risked) • Location provides potential to stack 5 fans • Risk assessment: moderate • Key risk: up-dip seal PL04c: Jayne East (FOGL 40%) Jayne East Susan Jayne East Location
  17. 17. 17 • Ocean Rig’s Eirik Raude contracted • Rig to be mobilised to the Falklands in Q1 2015 • The final drilling order is expected to be: - 2 PMO operated wells in the North Falkland Basin - 2 Noble operated wells in the South Falkland Basin - 2 PMO in the North Falkland Basin • Option slots have been secured, to allow follow-up drilling on any successful results: - Up to 8 options available up to point of rig mobilisation - Options available during drilling on the basis of 1 option for every firm well completed & up to a maximum of 8 options • Eirik Raude is a fifth generation harsh environment semi-submersible & sister ship to the Leiv Eirikssen that successfully operated offshore the Falklands in 2012 FOGL’s drilling programme
  18. 18. 18 • FOGL has by far the largest exposure to the 2015 drilling programme: Share of 6 well firm programme, based on drilling days* - FOGL: 42% - Premier Oil: 19% - Noble Energy: 19% - Rockhopper: 13% - Edison International: 7% • Participating in 5 out of 6 firm wells 2015 drilling programme * Calculation based on equity share of total firm drilling programme, currently estimated at 260 days
  19. 19. 19 • FOGL is fully funded through a 5 well drilling programme commencing in Q1 2015 • It is either partially or fully carried on 4 of the wells as a result of farm-out carry arrangements with Noble Energy, Premier Oil and Rockhopper Exploration • Estimated well costs: Northern Basin well c.$50 million gross Southern Basin well c.$110 million gross • At end December 2013 FOGL had pro-forma cash of $151 Million • Impact of farm-outs Equity interest Paying interest Zebedee 40% 40% Isobel Deep 40% 0% Jayne East 40% 0% Noble well 1 52.5% 27.5% Noble well 2 52.5% 42.5% Funding
  20. 20. 20 FOGL largest exposure (>40%) to the 2015 drilling programme Falklands only company operating in both north & south basins Fifteen drilling commencing in Q1 2015 Five wells firm wells, plus options Fully funded or firm programme Five hundred mmbbls net prospective resources targeted by 5 wells>
  21. 21. 21 Disclaimer FALKLAND OIL AND GAS LIMITED DISCLAIMER This presentation is not and is not intended to be a prospectus and does not or is not intended to constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities in Falkland Oil and Gas Limited (the "Company") in any jurisdiction. It shall not form the basis of, or be relied on in connection with, or act as invitation or inducement to enter into, any contract or commitment whatsoever. No offer of securities is being or will be made in circumstances which would require a prospectus or similar document to be approved. While the information contained in this presentation, which does not purport to be comprehensive, is believed to be accurate, neither the Company nor any other person has conducted any investigation into or verified such information. No representation or warranty, express or implied, is or will be given by the Company or its directors, officers, employees or advisers or any other person as to the accuracy, completeness or fairness of this presentation and, so far as permitted by law and except in the case of fraud, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency of any of the information contained in this presentation or for any errors, opinions, omissions or misstatements, negligent or otherwise relating to this presentation. Each recipient must conduct its own independent investigation and analysis of the Company and of the information contained in this presentation and bear all the costs of doing so. This presentation may include certain "forward looking" statements which are based on expectations, projections and forecasts relating to the future performance of the Company. Such statements, projections and forecasts, which are intended as a guide only, represent the Company's own assessment and interpretation of information available to it at the date of this presentation and reflect significant assumptions and subjective judgements by the Company. A number of factors could cause actual results to differ materially from the potential results discussed in such forward looking statements, estimates and forecasts, including (but not limited to) changes in general economic and market conditions and all other risk factors (whether political, regulatory or otherwise) associated with offshore exploration, development and production. In all cases, recipients should conduct their own investigation and analysis of the information contained in this presentation. No representation or warranty is made or assurance given that the statements, projections and forecasts contained in this presentation will be borne out in practice or that the Company will perform as projected and the Company does not assume responsibility for verifying any of such statements, projections or forecasts. Neither the Company nor any persons shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this presentation. This presentation has been made available to recipients for information only. The Company gives no undertaking to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in it which may become apparent. No person has approved (for the purposes of section 21 of the Financial Services and Markets Act 2000 (the “FSMA”)) the contents of, or any part of, this presentation. This presentation is only directed at persons who have professional experience in matters relating to investments and who: a) in relation to persons resident in the UK, fall within the exemptions contained in Articles 19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (including certain investment professionals, high net worth companies, unincorporated associations or partnerships and the trustees of high value trusts); or b) in relation to U.S. Persons (as defined in Rule 902 of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)), are an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act; or c) are otherwise permitted by the laws of the jurisdiction in which they are resident to receive them; and d) in relation to persons in member states of the European Economic Area (“EEA”), are a “professional client” or an "eligible counterparty" within the meaning of Article 4 (1)(II) and 24(2), (3) and (4), respectively, of MiFID as MiFID is implemented into national law of the relevant EEA state. Persons falling within one of the categories of persons described above must comply with the terms of this disclaimer and they will conduct their own analyses or other verification of the data set out in this presentation and bear the responsibility for all or any costs incurred in doing so. Persons who do not fall within one of the categories of persons described above should not rely on this presentation nor take any action upon it. Neither this presentation nor any copy of it may be taken or transmitted into the United States of America or its territories or possessions (the "United States"), or distributed, directly or indirectly, in the United States, or to any U.S. Person as defined in Regulation S under the Securities Act, including U.S. resident corporations, or other entities organized under the laws of the United States or any state thereof or non-U.S. branches or agencies of such corporations or entities or into Canada, Australia, Japan, New Zealand, the Republic of Ireland, or the Republic of South Africa, except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States or other national securities laws.

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