2. Disclaimer
Important Notice
Nothing in this presentation or in any accompanying management discussion of this presentation (the "Presentation") constitutes, nor is it intended to
constitute: (i) an invitation or inducement to engage in any investment activity, whether in the United Kingdom or in any other jurisdiction; (ii) any
recommendation or advice in respect of the ordinary shares (the "Shares") in Bowleven plc (the "Company"); or (iii) any offer for the sale, purchase or
subscription of any Shares.
The Shares are not registered under the US Securities Act of 1933 (as amended) (the "Securities Act") and may not be offered, sold or transferred except
pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any other
applicable state securities laws.
The Presentation may include statements that are, or may be deemed to be "forward-looking statements". These forward-looking statements can be identified
by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "seeks" or
"should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or
intentions. These forward-looking statements include all matters that are not historical facts. They include statements regarding the Company's intentions,
beliefs or current expectations concerning, amongst other things, the results of operations, financial conditions, liquidity, prospects, growth and strategies of
the Company and its direct and indirect subsidiaries (the “Group”) and the industry in which the Group operates. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking
statements are not guarantees of future performance. The Group’s actual results of operations, financial conditions and liquidity, and the development of the
industry in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In addition,
even if the Group’s results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, are consistent
with the forward-looking statements contained in the Presentation, those results or developments may not be indicative of results or developments in
subsequent periods. In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the Presentation may not
occur. Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company undertakes no obligation to update or
revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. All written and oral forward-looking
statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements
referred to above and contained elsewhere in the Presentation.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 2
3. Presentation Agenda
• Overview
• Value Realisation
• Development & Operations
• Economics & Funding
• Interim Q&A’s
• Asset Overview (Resources)
• Exploration
• Outlook & Conclusion
• Q&A
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 3
5. Company Overview
Company Assets
• 5 Blocks in Cameroon covering 4,644km².
• 3 offshore shallow water, 2 onshore; all operated.
Nigeria
• Overall P50 contingent resource base 217 mmboe* (net).
• Extensive 3D & 2D seismic database; expanded significantly
during 2010/2011 (Bomono & Etinde).
• Substantial prospect inventory continually being developed
across portfolio.
• Offshore Bowleven (operator) 75% Etinde Permit (25% Vitol).
Cameroon
• Onshore Bowleven (operator) 100% Bomono Permit.
• SNH back-in rights 20% (Etinde) and 10% (Bomono) at grant of
exploitation licence.
Equatorial
Guinea
* Source: Annual Report for 2011. Operator’s volumetrics. Volumetrics update post Sapele-3 pending, excludes EOV.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 5
6. Vision & Strategy
Vision
“It is our vision to build an African focused exploration
and production company which in time becomes
renowned for its ability to consistently create and realise
material shareholder value through exploration led
organic growth and niche acquisitions.”
Strategy – Regional Focus on West Africa
• Strategy focused on creating and realising value through
material exploration success and development.
• Seek value adding partnerships and niche acquisitions as
appropriate.
• Fostering strong external partnerships and in-country
relationships.
• Targeted approach to technical, commercial and political
risk.
• Resources to Reserves.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 6
7. Company Overview
Bowleven – Finding Resources & Securing Acreage
• Current team has drilled 8 wells since joining in early 2007.
• Busiest and most successful Operator in Cameroon.
Succeeded in opening up Douala Basin and discovering oil on
acreage previously considered as gas prone.
• Multiple discoveries made – all wells encountered hydrocarbons.
• Wells have been targeted to maximise value – oils and rich gas.
†
• Drill locations have also been considered in context of the desire
to maximise the area of retained prospective acreage.
• Extensive additional 3D seismic acquired (Block 6, 4C OBC etc).
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 7
8. Etinde Drilling History
Track Record – Wells and Resources 2007 2008 2009 2010 2011
Sapele-1 (Feb 2011)
• 100% Drilling success rate. IE-2z (March 2007) Vitol
33-43m Net Pay
Tested 8,800boepd farm-in
• Focus on liquids. 55m Net Pay Sapele-1ST (June 2011)
Tested 3,101boepd
D-1R (July 2007)
• Gross resources up 166% since 2006. 19m Net Pay
Tested 5,655boepd
11m Net Pay IF-1R (August 2008) IE-3 (August 2010) Sapele-2 (Aug 2011)
• Operator’s estimates, excludes Sapele-3 and Tested 3,812boepd Tested 22,909boepd Tested 3,119boepd
Alpha-Epsilon System: 61m oil column from 5 zones 35m Net Pay
40m Net Pay
Sapele-3 (Oct 2011)
Etinde P50 Gross Resource
19m Net Pay
IM
IC
Manyikebi
IE
mmboe
IF
Deep Omicron Fairway
Sapele-3 SNA-1X
Sapele-1/1ST
D-1R Sapele-2
20km
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 8
9. Key Events for 2012-2013
Mobilise for Commercialisation
Etinde
• Target to sign MOUs for up to 80mmcf of dry gas sales by end
H1 2012.
• Draft Etinde Exploitation Application on track for submission on
31st March 2012.
• Rig due to be delivered following completion of operations for †
Noble Energy. Anticipated around middle of year.
• 2-4 well offshore appraisal and development drilling
programme commencing with IM well.
• Project financing - discussions already commenced.
• Gas Sales Agreements, FID and finalisation of debt finance
targeted for 2013.
Bomono
• Drilling campaign scheduled to commence mid 2012.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 9
10. Strong Management Team
Kevin Hart Philip Tracy Ed Willett Chief Tabetando John Brown Peter Wilson
CEO Interim Operations Exploration Director Chairman EurOil Finance Director Director/General
Director Counsel
• Management team with track record of finding, financing and delivering oil and gas
projects to market.
• Excellent in-country relationships through EurOil with appropriate ministries and SNH.
• Bowleven and Vitol JV well-aligned in objective of exploiting gas and liquids in the
Etinde Permit, as a matter of priority.
• Development project to be EurOil driven with Bowleven and Vitol to contribute
management and technical expertise.
• Bowleven now positioned to deliver home-grown production and cashflow in 2015.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 10
12. Gas Handling – The Key to Monetising Resources
• Etinde resources are predominately gas-associated liquids.
• In order to realise the value of Bowleven’s existing discoveries,
finding a solution for the associated gas is key.
• In common with nearly all African countries, Cameroon has only
a small but rapidly expanding market for gas.
• Until very recently Cameroon Government had a strong
preference for any Cameroon gas, including Etinde gas, to be
earmarked for use in aggregated LNG (GdF) scheme.
• Whilst gas sales to a third party is clearly preferable it is not a
pre-requisite to development as alternative “in house” solutions
exist.
• Commercialising gas is a key objective of the work programme
that has been agreed by the JV for 2012.
• Production will provide the cashflow base for ongoing
development – plus further exploitation of the existing extensive
prospect inventory.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 12
13. Gas Solutions – Multiple Options
Third Party led Alternative In House Solutions
Fertiliser Power LNG Methanol Small Scale Reinjection
(Ferrostaal) (AES Sonel) (Cameroon/Bioko) (JV) LNG (JV)
80-185 60-110 60-110 Dependent
70mmscfd 10mmscfd mmscfd mmscfd mmscfd on Reservoir
• Negotiations advancing. • Being progressed in parallel.
Liquids focused – gas enabled
• Gas pricing TBC.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 13
14. Third Party Gas Solutions
Fertiliser Plant
Fertiliser Plant
Volume : 70mmscfd Dry Gas.
Start up : 2015
Status : Draft MOU under negotiation
(10 year supply).
Location : Limbe. Ferrostaal & SNH as
promoters will be owner/operator
of facility.
Notes : • LOI between Ferrostaal and SNH announced in October 2011.
• Plant’s annual production 600k tonnes Ammonia, 700k tonnes Urea
• Strong domestic and Central Africa fertiliser market (Cameroon currently
imports fertiliser).
• Site inspection and survey completed for preferred plant location at Limbe.
• Comparable projects by Ferrostaal in Trinidad and Oman.
• FEED sanction 2012.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 14
15. Third Party Gas Solutions
Power Plant (GTE)
Existing AES Power Plant
Volume : 10mmscfd Dry Gas initially
(pre-plant upgrade).
Start up : ASAP
Status : Draft MOU under negotiation
with AES Sonel (10 year supply).
Location : Limbe (adjacent to existing refinery).
Notes : • In conjunction with larger scale offtake solution.
• Dual fuel power source plant already in use at Limbe, conversion less
than 12 months.
• Significant supply constraints within country.
• Studies underway (USTDA backed) to double plant capacity (currently
85MW).
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 15
16. Third Party Gas Solutions
Liquefied Natural Gas
GdF - Liquefied Natural Gas
Volume : 85-185mmscfd Dry Gas from Etinde.
Start up : Earliest 2017
Status : Term sheet signed establishing
commercial framework
Location : Kribi. GdF and SNH as promoters
will be owner-operator.
Notes : • Countrywide offshore gas aggregation scheme (270km pipeline, 4 FEED supply
sources).
• Pre-FEED (Foster & Wheeler) completed end-2011 on a first LNG train with
2.5-3.5mtpa capacity.
• Facility to be situated at Kribi at deep water harbour project. Site preparation
work ongoing.
• Bankability study completed by Société Générale and Standard Chartered.
• Upstream committee established to coordinate opportunities and possible
synergies.
• Next steps are resource certification and feedgas HOA.
• FEED commences 2013.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 16
17. In House Gas Solutions
Methanol Plant
Methanol Plant
Volume : 60-110mmscfd Dry Gas.
Start up : TBC
Status : Under Evaluation.
Location : Limbe
Notes :
• 0.6-1.3Mtpa Methanol plant.
• Cost screening and feasibility study completed H2 2011.
• Next steps - partner evaluation of engineering and technical definition.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 17
18. Third Party Gas Solutions
Liquefied Natural Gas
Small Scale Liquefied Natural Gas Scheme
Volume : 60-110mmscfd Dry Gas.
Start up : TBC
Status : Under evaluation.
Location : Limbe
Notes : • 0.35Mtpa LNG plant.
• Cost screening and feasibility study completed H2 2011.
• Next steps - partner evaluation of engineering and technical definition.
• Least mature of options.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 18
19. In House Gas Solutions
Reinjection
Reinjection
Volume : Reservoir dependent.
Start up : TBC
Location : TBD.
Notes : • Possible to enhance liquids yield through reservoir pressure maintenance.
• Ongoing reservoir studies and core analysis.
• Capex would need offshore compression, additional injector wells and dry
gas pipeline from shore (all liquids stripping and compression to be done
onshore).
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 19
20. Maximising Liquids Value
Delivery Point Gas Options
Phase 1 – MLHP-7
IM
Target 2015
Power (AES)
Up to 10mmscfd
IE
3rd Party Led
Fertiliser
(Ferrostaal)
IF Up to 70mmscfd
Oil, Condensate
Liquids Stripping
& up to Up to 80mmscfd
(Primary NGL Plant LNG
90mmscfd of Dry Gas
Processing) Up to 80mmscfd
Onstream 2016-
Omicron Deep & wet gas
Subsequent
Lower
Phases
Alternative In-House Solutions
Epsilon C4’s C3’s
C5’s Butane Propane Methanol
Cond. c.60-70mmscfd
Future Phases
D-Discovery Small Scale
Potential
(D-1R) Total Liquids Production LNG
c.60-70mmscfd
10-15% Shrinkage
Other existing & • All liquid offtake is marketable internationally i.e. free marketing rights for oil.
Future
Discoveries Reinjection
• Strong local and pan-African market for Propane & Butane (Cameroon
currently imports from Equatorial Guinea).
• Current concept is phased development.
• Flexibility in gas disposal options maintained.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 20
21. Value Optimisation: Gas supply configuration to maximise liquids yield
Total Mean WGIIP & Initial Liquids Yield*
Test Yields
600
bbls/mmcf
1,272
1,272bbls/mmcf
IF 1,272
500 Omicron Deep 313-329
IF
IE 127-292
Initial Liquids Yield bbls/mmcf
Lower Omicron 121
400
D1-r 59
Sapele Omicron
IM TBC (IM-5)
Deep
300
• Test yields exclude NGLs
IE
which could provide
200 Sapele Lower significantly enhanced liquids
Omicron production e.g. IE Field
IM
additional c.70bbls/mmcf.
100
D1-r
0
0 200 400 600 800 1000 1200 1400 WGIIP bcf
Mean WGIIP bcf
Note: D-1r and Lower Omicron based on sample yields; *Operator’s estimates.
Note: D-1r and Lower Omicron based on sample yields * Operator's estimates
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 21
23. Maximising Liquids Value
Delivery Point Gas Options
Phase 1 – MLHP-7
IM
Target 2015
Power (AES)
Up to 10mmscfd
IE
3rd Party Led
Fertiliser
(Ferrostaal)
IF Up to 70mmscfd
Oil, Condensate
Liquids Stripping
& up to Up to 80mmscfd
(Primary NGL Plant LNG
90mmscfd of Dry Gas
Processing) Up to 80mmscfd
Onstream 2016-
Omicron Deep & wet gas
Subsequent
Lower
Phases
Alternative In-House Solutions
Epsilon C4’s C3’s
C5’s Butane Propane Methanol
Cond. c.60-70mmscfd
Future Phases
D-Discovery Small Scale
Potential
(D-1R) Total Liquids Production LNG
c.60-70mmscfd
10-15% Shrinkage
Other existing &
Future
Discoveries Reinjection
• Single multiphase pipelines to shore-based facilities.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 23
24. EurOil Development Project Organisation
Project Steering Committee
• Stakeholder Interface
• Operational HSEQ
• Technical Authorities
Development Project Team
• Development Management
• Gas Usage
• Project Finance
3rd Party Expertise
• Drilling Operations
• Sub-Surface Appraisal
• Engineering Design & Construction
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 24
25. Stage Gated Process
EXPLORE APPRAISE SELECT DEFINE EXECUTE OPERATE
1 2 3 4 5
Intent to Feed Project Comm’g
develop approval Sanction & startup
Exploration drilling, seismic, formation evaluation, modelling
Drilling /Production Well
Field development planning
Completions
Feasibility Studies Engineering Detail Design
Procurement
Construction
Commissioning and
Start Up
Maturity of Cost
Class 5 Class 4 Class 3
Estimates estimates estimates estimates
-40% +50% -20% +40% -15% +25%
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 25
26. Boundary Conditions
• Development of gas solution “drives” the project.
• The bulk of the value is in the sales of the liquid hydrocarbons.
• JV working to define the technical scope of the processing plant
required to maximise the value of the liquids and deliver dry gas
at the factory gate.
• Multiple gas utilisation concepts are being evaluated.
• The bulk of the hydrocarbon processing will be performed
onshore.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 26
27. Concept: Combined Hub and Spoke Development
Fully Integrated Holistic Option to Maximise Synergies
Bomono
Limbe Hub and
Phase 1 Power Plant Douala GTE
and Gas
IM All Liquids & Gas supply
Condensate to
IE Limbe
IF
Indicative Etinde Concept Assumptions (gross)
Class 5 Estimates
• Potential to accelerate Core Hub
development/production. Limbe Processing facility $275-325million
• Facilitates phased approach.
• All processing onshore; Each Spoke
unmanned offshore
platforms.
Sapele 2-3 wells $20-30million each
Wellhead Jacket $25-30million each
• Provides flexibility for future
expansion. 20km Pipeline $1-2million/km
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 27
28. Key Milestones Gantt Chart
2012 2013 2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
IE-4/IF-2
IM-5 MLHP-5 Production Drilling
MLHP-6
Field Mapping and Reserve Reserves
Simulation Certification
Draft Exploitation
Exp. Application &
Appl. FDP finalised
Concept
Concept Screening &
Selection FEED
Pre-Engineering Studies
Pre-FEED
Gas Utilisation Studies
Debt negotiation ongoing
Draft Exploitation Application
Exploitation
Authorisation
Application Submission
Gas sales MOU signed
Preliminary Investment
Export Contracts
Gas Sales Agreement
Negotiation
Final Exploitation
Design, Construction,
Installation
Submission
Phase 1 First
Investment
Production
Decision
Decision
signed
Final
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 28
30. Value Optimisation: Gas supply configuration to maximise liquids yield
Total Mean WGIIP & Initial Liquids Yield*
Test Yields
600
bbls/mmcf
1,272
1,272bbls/mmcf
IF 1,272
500 Omicron Deep 313-329
IF
IE 127-292
Initial Liquids Yield bbls/mmcf
Lower Omicron 121
400
D1-r 59
Sapele Omicron
IM TBC (IM-5)
Deep
300
• Test yields exclude NGLs
IE
which could provide
200 Sapele Lower significantly enhanced liquids
Omicron production e.g. IE Field
IM
additional c.70bbls/mmcf.
100
D1-r
0
0 200 400 600 800 1000 1200 1400 WGIIP bcf
Mean WGIIP bcf
Note: D-1r and Lower Omicron based on sample yields; *Operator’s estimates.
Note: D-1r and Lower Omicron based on sample yields * Operator's estimates
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 30
31. Valuation Assumptions for Indicative Initial Development Economics
• Cash at 1.1.2012 US$160million including EOV proceeds. • IM plus 1 well 2012, appraisal costs US$60million included
in cash flows.
• $1.55=£1.
• Etinde Historic Costs to end 2011 US$536 million;
• 294,455,919 Bowleven shares in issue.
Bowleven share US$394million (net cost recovery
• Bowleven development equity 60%; Vitol and State 20% (State $468million).
20% back-in on development sanction).
• Phased Hub and Spoke development; 1st production
• Inflation 3% p.a. 2015; Platforms on IE and Sapele; Wellheads on IM and
IF; ten development wells; pipelines from IE and Sapele to
• Discount Reference Date 1.1.2012. processing plant including NGLs.
• Single PSC Exploitation Area. • Total Capex to gas delivery point ~US$910million; opex
• Liquids (oil, condensate and NGL’s) sold as blend at Brent $90 US$19 million (Phase 1) to US$32 million p.a (all phases).
long-term real (2012 terms). • Wet Gas plateau production rate 90mmcfd; 10 year
• Gas sales price TBC. plateau; gas shrinkage ~11%; dry gas 80mmcfd.
• Post-processing sales gas delivered to Upstream delivery point • Average liquids rate scenarios per mmcf: 125, 250, and
in Limbe for Fertiliser and Power Plant. 400 bbls.
• No value for post-plateau tail gas or liquids production. • Liquids include depletion condensate, oil, additional
condensate C5+ generated through NGLs processing,
• No value for Bomono. propane and butane.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 31
32. Indicative Cost Estimates and Phasing (Class 5 ±50%)
Subsequent
Real 2011 Capex Phase 1 Processing Total
Phases
First production Date 2015 2015 2017 -
Development wells Number 5 wells 5 wells 10 wells
Development wells US$million 135 135 270
Wellhead Platforms US$million 50 50 100
Pipeline/tiebacks US$million 100 130 230
Total Field US$million 285 0 315 600
Processing & NGL’s Plant US$million 0 310 0 310
Total US$million 285 310 315 910
CAPEX Total 2013/2014 2015/2016 2017 2018/2019
Development Wells 270 135 45 90
Platforms 100 50 20 30
Pipelines/Tie Backs 230 100 20 110
Note: Initial capex will be
Processing & NGL’s Plant 310 310 reduced in the event
appraisal wells are
Total 910 595 85 0 230 suspended as producers.
Phase 1 All Phases
Opex p.a. US$million 19 32
Yr of 1st production 2015 2020 onwards
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 32
33. Illustrative Productivity
90mmcfd Wet Gas • Economics are based on
constant liquids over the
250bbls/mmcf
plateau period.
Reality
• In reality, fields will exhibit
400bbls/mmcf = 36 mbpd
higher initial flush production
followed by a declining
profile.
250bbls/mmcf = 22.5 mbpd
125bbls/mmcf = 11.25 mbpd
Note: Operator’s estimate.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 33
34. Illustrative Initial Development Valuation
Bowleven Initial Development Valuation £/share at 1st Jan 2012: Etinde Hub & Spoke $90 Brent; Average Liquids Rates.
Liquids Yield bbls/mmscf
(Includes NGL’s) Cash • 90 mmcf wet gas
Etinde Hub & Spoke NAV • 80 mmcf dry gas
• Ten year plateau
125 1.69
0.35 1.34 • Total Dry Gas Sales 292bcf
• Total Wet gas produced c.330bcf
Total Liquids Produced = 41 mmbbls (14% of Mean Etinde Liquid Resources).
2.61 $70/bbl Brent
250 0.35 2.95 3.30 $90/bbl Brent
3.92 $110/bbl Brent
Total Liquids Produced = 82 mmbbls (27% of Mean Etinde Liquid Resources).
400 0.35 4.51 4.86
£/share
Total Liquids Produced = 131 mmbbls (44% of Mean Etinde Liquid Resources).
Note: Bowleven 294 million shares; $1.55=£1; cash includes EOV proceeds; no value for Bomono or tail production.
Operator’s estimates.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 34
35. Bowleven Net Share of Initial Development Cashflow
US$ million Annual Bowleven's Net Share of Initial Development Cash Flow US$ million Cumulative
90mmcfd; 250 bbls/mmcf; US$90/bbl; Gas price TBC.
800 4,000
Cost oil
700 3,500
Profit oil
600 3,000 Capex incl. all fees etc
Opex
500 2,500
Corporation Tax
400 2,000 Annual NCF
Cumm NCF
300 1,500
200 1,000
100 500
0 0
(100) (500)
(200) (1,000)
(300) Cash flow positive (1,500)
~ 13 months after
1st production
(400) (2,000)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Note: Operator’s estimate.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 35
36. Project Funding
• Forecast net cash balance at 1Q 2012 ~ $160 million, no debt.
• Forecast total 2012 Group expenditure $110 million (assuming 2 wells on Etinde with coring, testing,
development studies, plus one Bomono well).
• Estimated net share of development capex over life of fields (post SNH back-in) ~US$550million.
• Estimated net peak working capital requirement c.US$400million*.
• Debt finance market – discussions commenced with a number of banks.
• Strong funding relationships within JV with lending institutions.
• Significant post back-in equity position (60%) gives further financing flexibility.
*(60% of $595 million Phase 1 gross capex =$357million plus taxes of $80million and cost inflation allowance of ~$20million, less corporate cash end 2012 c. $50million).
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 36
37. Summary of Key Milestones for 2012
Milestone Date Status
Gas Sales MOUs by end H1 2012 Negotiations ongoing
Draft Exploitation Application by end Q1 2012 Preparation underway
Drilling (2-4 wells) Commence mid 2012 Rig due for release from Noble Energy.
Contract signed
Final Exploitation Application end Q3 Concept screening in progress
Banking Term Sheet secured end 2012 Dialogue open
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 37
40. Cameroon Overview
Relatively underexplored - an emerging oil story
Rio del Rey Basin Douala Basin
• MLHP 7. • MLHP 5 & 6, OLHP 1 & 2.
• Shallow offshore area. • Onshore and shallow
offshore areas.
• Highly prospective
acreage within a proven • Highly prospective
active hydrocarbon acreage.
system.
• Number of onshore oil
• Tertiary oil and gas- seeps.
condensate discoveries.
• Tertiary and Cretaceous
• Established portfolio of leads.
additional Tertiary
prospects. • Onshore early exploration
phase on 2D dataset.
• Maturing exploration with
transition into an • Offshore mature
appraisal/development prospects portfolio on 3D
phase. dataset.
Cretaceous Turonian plays accessible in onshore area and
shallow waters.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 40
41. Etinde Existing Discoveries
Overview of Gross Unrisked Mean Volumes In place*
Deep Omicron fairway
*Operator’s estimates.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 41
42. oil & gas
MLHP-7
IM, IE, IF and Biafra Discoveries
43. Etinde Existing Discoveries
IM – Gas Condensate Field
Historical
IM-1 IM-2
• Discovered by TEPCAM in 1967 with the IM-1 well.
• 3 additional wells drilled from 1971-1981 discovering and
appraising Gas-Condensate in the Upper and Middle Isongo.
• High quality reservoir sands with excellent deliverability.
• Gas composition from IM-4 Upper Isongo DST 11.4mmscfd,
827bcpd yields a CGR 72.5bbl/mmscf – similar to Alba Field
(Equatorial Guinea).
• Only one well successfully penetrated Middle Isongo; CGR is
uncertain at this reservoir level.
• Mean WGIIP 466bcf (Upper and Middle Isongo)*.
Present
IM-4
• Bowleven will begin operations on the IM-5 well in late-Q2
2012.
IM-1
• Well to appraise Middle Isongo reservoir and enhance the IM-2
established volumes and confirm CGR.
Future
IM-3
• The IM-5 well is likely to be used as a future producer.
• It is anticipated that the IM Field will be used as one of the
first phase producers into the Etinde Hub & Spoke
development.
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 43
44. Etinde Existing Discoveries
IE – Gas Condensate/Oil Field
Historical
• Discovered by TEPCAM in 1980 with the IE-1 well.
• 2 Appraisal wells (IE-2z, IE-3) drilled by Bowleven.
• High quality reservoir sands with excellent deliverability.
• IE-3 flowed at a combined rate of 22,909boepd*.
• Rich liquids yield – CGR of 127-292bbl/mmscf, and IE-3 also
flowed oil on test. IE-3
• Additional NGL component of c.70mmbbls/mmscf.
• Mean WGIIP 408bcf; 95mmbbl liquids†.
Present
• Bowleven acquired a 4C OBC survey for improved crestal
imaging of the IE Field. IE-2z
IE-1
• New seismic data now being interpreted to refine field ID-1
structural model and locate the IE-4 appraisal well.
Future
• It is anticipated that the IE Field will be used as one of the
first phase producers into the Etinde Hub & Spoke
development.
• Appraisal well to enhance proved volumes and located to
maximise liquids production.
*Maximum flow rates per interval ranged from 845 to 11,778boepd with a cumulative maximum rate of
14576bpd liquids and >50mmscf gas (total 22,909boepd). † Operator’s volumes.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 44
45. Etinde Existing Discoveries
IF – Oil Field
Historical
4C OBC Data IF-1R
• Discovered by Bowleven in 2008 with the IF-1R well.
• 1 well drilled on structure to date.
• High quality interbedded reservoir sands with excellent Biafra Gas
deliverability.
• Drill stem tested 3,371bopd 35°API oil with 2.65mmscfd
associated gas, combined rate 3,812boepd.
• Mean STOIIP 225mmbbls*.
4C OBC data on
Present periphery of the IF gas
chimney. Signal much
improved from
• Bowleven acquired a 4C OBC survey for improved imaging previous volumes
of the IF Field through a prominent gas chimney with allowing some detail in
extensive seabed expression. the western flank of IF
to be determined.
• New seismic data now being interpreted and integrated with S-wave data yet to be
incorporated.
previous mapping to further improve structural definition and
overall field extent beneath the gas masking effect.
Future Isongo Oil
• It is anticipated that the IF Field will be used as one of the
future producers into the Etinde Hub & Spoke development.
• Further wells to target and maximise liquids production.
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 45
46. Etinde Existing Discoveries
Etinde – MLHP-7 Biafra Gas Fields
Historical
Timeslice Optical Stack – Biafra Interval
• Shallow play prolific in the Niger Delta and Rio del Rey Basin
recognised across the MLHP-7 part of the Etinde PSC area. IM-4
Manyu
IM-1 Oil ETM-1
• Drilled by 6 wells; 2 of which to specifically target the Biafra IM-2 Gas Response
IC-1
interval.
IM-3
• Dry gas encountered in 5 wells with the exception of IM-1
which encountered oil shows. IE Biafra Field
• Excellent reservoir quality encountered in all wells. Manyikebi
ETM-1
Biafra Discovery
• IE & Manyikebi - Mean Dry GIIP 136bcf*. IE-3
Present Manyikebi Manyikebi IE-2z
IE-1
Biafra Extension ID-1
• An areal extensive play being extended into MLHP-6.
• Volumetric resource update during Q1-Q2 2012 for IF, IM,
ETM and MLHP-6 Biafra prospectivity.
Future IF-1R
• Potential to incorporate into future phases of the Etinde Hub IF-1R
& Spoke Development. Gas Response
• Possible potential also remains to fast-track development to
provide feedstock gas to AES Sonel (Gas to Power scheme)
at Limbe.
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 46
47. oil & gas
MLHP-5
Sapele Lower & Deep Omicron discoveries,
D-1R Discovery
Palaeocene & Cretaceous discoveries
48. Etinde Existing Discoveries
Sapele – Deep Omicron Oil Fairway
Historical
• Discovered by Bowleven in 2011 with the Sapele-1 well.
• 4 wells drilled by Bowleven penetrating the stratigraphically
trapped accumulation.
• High quality interbedded reservoir sands with excellent
deliverability, extend across MLHP-5.
• Flow rates for Sapele-1ST =3101boepd*, Sapele-2
=3119boepd†.
• Mean HIIP 477mmboe (not including Sapele-3 extension)‡.
Present
• Integration of ongoing post-well studies to provide volumetric
update and define future appraisal and development well
locations.
Future
• Anticipated that the Deep Omicron oil will form part of the
second phase for the Etinde Hub & Spoke Development.
*Sapele-1ST flowed at a stabilised rate of 2,023 bopd of 39.2 degree API oil and approximately 6.47 mmscfd of
associated gas.
†DST1 peak flow rate of 381 boepd, comprising 233 bopd of light oil and 0.89 mmscfd of associated gas and DST 2
comprising 1,818 bopd of light oil and 5.52 mmscfd associated gas. ‡ Operators volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 48
50. Etinde Existing Discoveries
Sapele – Lower Omicron Gas-Condensate Fairway
Historical
• Discovered by Bowleven in 2011 with the Sapele-1 well.
• 4 wells drilled by Bowleven penetrating the stratigraphically
trapped gas-condensate accumulation.
• Arealy extensive, good quality interbedded reservoir.
• Test in Sapele-2, initially flowed wet gas up to 3.1mmscfd,
however test curtailed due to a pressure leak in test string.
• Mean HIIP 203mmboe*.
Present
• Geological model evolving with integration of ongoing post-
well studies together with planning for future well locations.
Future
• Anticipated that the Lower Omicron hydrocarbons will form
part of the future phasing for the Etinde Hub & Spoke
Development.
*Mean HIIP of 203mmboe comprises 132mmbbls CIIP and 1219bcf WGIIP; operator’s volumes.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 50
51. Sapele Wells
Lessons Learnt
• The Sapele wells are drilled in a geologically/operationally
challenging environment.
• Interbedded reservoir facies with shale source rocks.
• Lower and Deep Omicron sandstone reservoirs are laterally
extensive/connected and are marked by substantial pressure
inversions. This was not known prior to the drilling of the Sapele
wells.
• The combination of pressure peaks and inversions create
situations where the well is markedly over or underbalanced.
• Underbalanced situation leads to influx and well control
safety issues.
• Overbalanced situation leads to formation invasion,
damage, mud cake and mud loss to formation.
• The overbalance situation in the reservoirs had led to
compromise logging and testing results.
• Logging environment very demanding, high downhole
temperatures frequently exceeding tool ratings, differential
sticking on longer tools also key issues.
• Subsequent wells will be redesigned to case off different
pressure regimes during drilling e.g. Sapele-3.
Pore pressure chart for one of the
• Sapele-3 drilled within budget and without substantial formation Sapele wells, highlighting the
operational margins for Mud Weight
invasion. (to include ECD). Note the c.2ppg
EMW drop on entering the Deep
Omicron reservoir.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 51
52. Etinde Existing Discoveries
D-1R – Gas-Condensate Field
Historical
Far Angle Stack
• Discovered by Bowleven in 2007 with the D-1R well.
• Single well penetration of the stratigraphically trapped
accumulation.
• Good quality reservoir sandstones of Miocene age.
• Well tested 25.4mmscfd with 56bbl/mmscf condensate
(combined 5,655boepd); no depletion.
• Well test analysis indicative of greater connected volume than
can be seismically mapped.
• Mean WGIIP 71.5bcf, with 4.4mmbbls condensate*.
Present
• Geological and geophysical evaluation ongoing.
Type II AVO Anomaly
Future
• Possible appraisal drilling for possible GOC/GWC.
• Anticipated that the D-Discovery will form part of the future
phasing of the Etinde Hub & Spoke Development.
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 52
53. Etinde Existing Discoveries
Sapele – Palaeocene Alpha-Epsilon System
Historical
• E-W trending Palaeocene depositional systems have long
been recognised in the Douala Basin. MLHP-6
• Numerous oil shows and discoveries within this petroleum
system; CoCo Marine 1 & 2, Moulongo Marine etc. MLHP-5
• Sapele-1 encountered gas and oil shows in Epsilon which Epsilon
was latterly confirmed as Palaeocene in age from Complex
biostratigraphy.
• Sapele-3 well also encountered oil in the same Palaeocene Sapele-3
interval. SNA-1X
Sapele-1
• Pay zones correlate to bright amplitude seismic data. Sapele-1ST
• Mean GIIP 1819bcf for the system*. D1-RSapele-2
Present
• Gas condensate, dry gas and oil were all encountered at
Sapele-1 & 3 validate additional Palaeocene prospectivity.
• Liquids volumetric analysis ongoing with the integration of
Sapele-3 well results.
Future
• Anticipated that the Alpha-Epsilon System will form part of
future phasing for the Etinde Hub & Spoke development.
Palaeocene depositional features from seismic timeslice
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 53
54. Etinde Existing Discoveries
Sapele – Cretaceous Discovery
Historical
Sapele-1
• Discovered by Bowleven in 2011 with the Sapele-1 well. Cretaceous Amplitude Map (kick interval).
• Medium quality interbedded reservoir sandstones of the Upper Sapele-1
Cretaceous.
• The stratigraphically trapped accumulation was found to contain
high pressure dry gas.
• Sapele-1 was abandoned due to the high pressure influx of gas
to the well bore. N
• Mean Dry GIIP 1029bcf*.
Present
• Geological and geophysical evaluation of the Cretaceous
interval across the Douala Basin of Cameroon is ongoing to
define reservoir fairways, future drilling locations and pressure
profiles within the basin.
Future
• Cretaceous gas reservoirs have the potential to provide
significant gas volumes to future production phases.
• Pressure encountered require careful operational planning prior
Cretaceous
to the drilling of future wells into this interval.
• Anticipated that the Cretaceous reservoirs will form part of a
future phase to the Etinde Hub & Spoke development. Gas Kick
*Operator’s volume.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 54
56. Bomono
Historical
• 6 deep wells and c.10 shallow wells drilled in the 1950’s.
• Wells and onshore oil seeps proved active hydrocarbon
system.
• Tertiary and Cretaceous structural and stratigraphic traps
defined in area.
• 285km 2D acquired in Q1 2010 dry season. Further 215km 2D
acquired by end January 2011.
• New 2D data integrated into existing vintage dataset and now
defines a series of structural prospects.
Present
• Prospect selection in progress, with a (commitment) well due
Q3 2012.
• Planning for immediate follow-up appraisal wells.
Unrisked Mean Associated Gas Condensate
Oil mmbbls Gas bcf
HIIP bcf mmbbls
Tertiary D & E
355 186
Sands.
Tertiary B & C
326 112
Sands.
Future
• Anticipated that Bomono discoveries will be linked into the
proposed facilities at Limbe for gas stripping and oil export.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 56
57. MLHP-6
Historical
• Sparse 2D data and spec-surveys acquired across the MLHP-
6 area.
• Recognition of onshore seeps immediately adjacent to Mt
Cameroon, with shows in peripheral wells (Pungo-1X, 1970).
• No wells on block.
Present
• Bowleven acquired full 3D seismic dataset in 2010 which
affords a new understanding of the Cameroon Line, its
evolution and associated prospectivity.
• Variety of play types to explore for in MLHP-6.
• Highly prospective acreage given its position between proven
active hydrocarbon systems.
• Sapele-3 well confirms extension of Deep Omicron & Alpha-
Epsilon System into MLHP-6.
• Kosmos recently signed the new Fako block in the equivalent
onshore area, on the flanks of Mt Cameroon.
Future
• Further exploration drilling expected on MLHP-6.
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 57
59. Summary
• Exploration success has extended Etinde resources into liquids and across the acreage.
• Energy/Momentum/Means to deliver Etinde to first production.
• Key milestones 2012-2013.
• End Q1 2012 – Draft Exploitation Application & Development Plan submitted to SNH,
• Q2 2012 – IM-5 well spuds. Signed MOUs for gas sale agreements.
• Q2/Q3 2012 Bomono operations.
• End Q3 2012 – IM-5 well TD, pre-FEED Etinde Hub & Spoke development commences.
• Q3 2012 – Additional well spud (IE/IF, Block 5, Block 6).
• End Q4 2012 – TD of additional well.
• 2013 – Gas Sales Agreements, FID and finalisation of debt finance targeted.
• 2 - 4 offshore wells are programmed for 2012, not all required before the decision point reached for the Etinde Hub & Spoke
development.
• Project financing discussions already commenced.
• Fully funded for 2012.
• With a potential gas solution and liquids focus, significant cash flow is anticipated from first production – enabling further
exploration and development.
Liquids focused – gas enabled
24 JANUARY 2012 CAPITAL MARKETS DAY PRESENTATION 59
60. Contact:
John Brown – Tel: +44 131 524 5678
oil & gas
Kevin Hart – Tel: +44 131 524 5678
info@bowleven.com
www.bowleven.com
Bowleven Plc.
1 North St Andrew Lane,
Edinburgh,
EH2 1HX,
United Kingdom.
