Investor Presentation - Bowleven PLC...The Presentation may include statements that are, or may be...

JUNE 2013 RBC Global Energy and Power Conference 1

Investor Presentation RBC Conference June 2013


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 USA, Canada, 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"); (iii) any offer for the sale, purchase

or subscription of any Shares; or (iv) any directed selling effort in respect of any Shares.

Cautionary note for US investors

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 United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved

reserves that a company has demonstrated by actual production or formation tests to be economically and legally producible under existing economic and

operating conditions. The Company is not required to make filings with the SEC and this presentation includes information on "volumes initially in place",

"STOIIP“, "resources" and other similar terms. Such terms do not refer to and are not reserves and US investors are cautioned accordingly.

Cautionary note for Canadian investors

No securities commission or similar authority in Canada has reviewed or in any way passed upon this presentation or the merits of the Shares, and any

representation to the contrary is an offence.

Forward-looking statements

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.

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.


Vision & Strategy

• 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.

Vision

Strategy – Focus on Africa

“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.”


Company Overview

• 5 blocks in Cameroon covering 4,644km².

• 3 offshore shallow water, 2 onshore; all operated.

• Multiple hydrocarbon discoveries.

• P50 contingent resource base 203 mmboe* (net).

• Phased Hub & Spoke development planned.

• Continued exploration.

Cameroon

• Block 11B onshore Kenya covering ~14,000km².

• Early stage exploration; Airborne geophysical survey and 2D

seismic acquisition.

• Operated by Adamantine Energy, technical support provided by

Bowleven under a TSA.

* Source: Annual Report 2012. Operator’s volumetrics. Pending update from results of IM-5 well.

Kenya

Kenya

Ethiopia

State back-in rights: Etinde 20%, Bomono 10% (at grant of exploitation licence).

Acreage: 2,328km2

Onshore

Equity Interest:

100%

Operator:

Bowleven Group

Bomono Permit

Nigeria

Cameroon

Acreage: ~14,000km2

Onshore

Equity Interest: 50%

(Adamantine 50%)

Operator:

Adamantine

Block 11B

South Sudan

Corporate

Acreage: 2,316km2

Shallow Offshore

Equity Interest:

75% (CAMOP 25%)

Operator:

Bowleven Group

Etinde Permit

• Cash end April 2013 ~ $42 million, no debt.

• Petrofac: up to $500 million for Stage I development with $60

million IM-5 costs reimbursed at FID.

• High equity positions provide farm-out flexibility.


Etinde Overview Overview of Gross Unrisked Mean Volumes In place*

*Operator’s estimates.


Hub and Spoke Development Flexibility for future expansion

• All processing onshore; unmanned offshore platforms.

• Stage I - fields on MLHP-7.

• Stage II - discoveries on MLHP-5 (Sapele).

• Significant flexibility for future expansion.

• Hub location to be optimised to maximise synergies with

fertiliser plant.

• First production anticipated 2016; integrated with fertiliser

timetable

• Offshore (wells and other infrastructure): ~$600 million.

• Onshore (processing & NGLs plant): ~$300 million.

• Development costs subject to phasing and cost

optimisation. To be further refined during FEED.

• Intra Isongo – potential for reduced platform and well

requirements, with associated reduction in costs.

Stage I Development Cost Target (Gross): ~$900 million

Phased Approach

• Oil, condensate and wet gas to hub.

• Liquids stripping and NGL extraction onshore.

• Stage I: 70mmscfd dry gas to fertiliser plant.

• Initially IM/IE? fields; level of IF contribution under

evaluation.

• Initial liquids production ~ 15k-20k boepd* (including LPG’s);

to be updated post integration of IM-5 results.

• Supplemental gas offtake solutions also being considered.

• Intra Isongo – possible reinjection candidate; evaluation

required.

Liquids Focused – Gas Enabled

* Operator projections, currently excludes IF.


†

Resources to Reserves: The Path to FID*

• Etinde: Ongoing evaluation of material prospectivity; IM-5 Intra

Isongo discovery highlights extensive exploration/appraisal

play.

• Bomono: 2 wells planned prior to end of 2014.

• Kenya: Work programme commencing.

Exploration Strategy

* FID: Final Investment Decision

IM-5: successful appraisal/development well - liquids rich and

fertiliser gas requirements underpinned.

Submission of Etinde Exploitation Authorisation Application

(EEAA); integration of IM-5 results underway.

Fertiliser gas sales term sheet including pricing agreed; signing

ceremony held 22 May 2013.

Access to potential development financing - Petrofac Strategic

Alliance.

FID targeted for H2 2013 subject to:

• EEAA - approval anticipated imminently post IM-5 update.

• Gas Sales - moving to GSA.

• Finance - enhanced project economics post IM-5.

• Fertiliser FID - feasibility study completed moving to FEED.

†

FID

EEAA

Fertiliser FID

(Ferrostaal, SNH,

Proman, Helm)

Finance

Gas Sales

Group Objectives Excellent Progress


IM-5 Well: Pre-drill targets and results*

Etinde Appraisal/Development Drilling

IM-3

Middle Isongo

Intra Isongo

Upper Isongo

IM-3 (Gas

Condensate

Discovery)

Middle Isongo

Net Pay 37m

Upper Isongo

32m (net) encountered; wet as

prognosed.

Intra Isongo

Log evaluated net pay of

approximately 70m.

Intra Isongo DST

Tested >10,800 boepd from

29m net pay.

(37mmscfd & 4,664 bcpd);

CGR inferred 125bbls/mmscf

(peak 133).

IM-5

• Primary: determine reservoir, fluid

properties and gas composition of

Middle Isongo.

• Secondary: explore potential of

Intra Isongo.

• Upper Isongo expected to be

water bearing.

• Suspended as a

development/production well as

planned.

Objectives

Middle Isongo DST

Results

Middle Isongo

Log evaluated net pay of

approximately 25m.

Middle Isongo DST

Tested >7,000 boepd from

14m net pay.

(23mmscfd & 3,155 bcpd);

CGR inferred 136bbls/mmscf

*Operator’s estimates.

• Condensate-rich gas flowed

on test.

• Combined max. flow rates:

60mmscfd & 7,819 bcpd

(Total >17,800 boepd).


Upper Isongo

Intra Isongo

Middle Isongo

Seismic Correlation Panel Tying IM Wells

IM-3 IM-5 IM-2 IM-4

Log evaluated

net pay approx. 70m.

Areally extensive Intra

Isongo amplitude response

implies gross reservoir

thickness greater than 35m.

Upper Isongo

Intra Isongo

Middle Isongo

3m net

pay. Below

seismic

resolution

= no

amplitude

response

1 Km

Log evaluated

net pay approx.

25m.


P99 polygon ~4.5km2

P01 polygon ~30km2

Intra Isongo

IM Field Volumetric Update

Material Volume Addition

• Validation of more than sufficient gas volumes on a P90

basis to meet fertiliser plant requirements.

• Intra Isongo discovery represents material volume addition.

• Liquids rich wet-gas: Middle Isongo (min-max) 80-

200bbl/mmscf, Intra Isongo 100-285bbl/mmscf.

• Combined Mean WGIIP and CIIP increased by 162% and

868% to 1,222 bcf and 184 mmbbls respectively.

Material Volume Addition

*Operator’s estimates. Volumes are presented as gross figures.

The WGIIP figures include NGLs, which comprise condensate and LPGs

Volumes have been derived on a probabilistic basis but totals have been arithmetically summed.

Totalling anything other than mean is statistically incorrect and is provided for illustrative purposes only.

WGIIP (bcf)* P90 P50 P10 Mean

Upper Isongo 81 122 187 129

Middle Isongo 175 389 863 467

Intra Isongo 275 539 1,094 626

Total WGIIP (bcf) 531 1,050 2,144 1,222

CIIP (mmbbls)* P90 P50 P10 Mean

Upper Isongo 5 8 13 9

Middle Isongo 25 56 127 68

Intra Isongo 44 91 193 107

Total CIIP (mmbbls) 74 155 333 184


Intra Isongo Exploration/Appraisal Upside at discovery horizon and greater interval

*Operator’s estimates. Volumes are presented as gross figures.

The WGIIP figures include NGLs, which comprise condensate and LPGs

Volumes have been derived on a probabilistic basis but totals have been arithmetically summed.

Totalling anything other than mean is statistically incorrect and is provided for illustrative purposes only.

Material Exploration/Appraisal Upside

• IM-5 well has considerably de-risked the Isongo play.

• Seismic response correlates with thick reservoir quality

sands.

• A significant number of additional prospects recognised.

• A number of amplitude based prospects are defined at the

same horizon as the Intra Isongo discovery.

• Further prospects also defined in the intervals immediately

above and below Intra Isongo horizon - “greater interval”.

IE-3

Intra Isongo Unrisked Prospect Volumes*

P90 P50 P10 Mean

Total WGIIP (bcf) 599 1,308 2,943 1,591

Total CIIP (mmbbl) 95 221 517 273

5 Km

Discovered Volumes*

IM Field P90 P50 P10 Mean

Total WGIIP (bcf) 531 1,050 2,144 1,222

Total CIIP (mmbbl) 74 155 333 184


• Alliance with Petrofac to deliver first production

from Etinde.

• High level basis of development design agreed.

• Provides up to $500 million for Stage I

development with $60 million IM-5 costs

reimbursed at FID.

• Provides access to expertise, purchasing power

and personnel (including engineering, design,

project management, procurement and

training).

• Utilising Petrofac’s extensive expertise.

Strategic Alliance

Hub and Spoke Development Stage I Development Gantt Chart


• Hydrocarbons discovered at multiple stratigraphic levels.

• Significant in-place volumes discovered across MLHP-5 by

the Sapele and D-1R wells.

• Extensive stratigraphically trapped accumulations.

• Deep Omicron test yields 313-329bbls/mmscf.

• Sapele recoverable reserves ultimately determined by

number of wells, completion type and reservoir connectivity.

• Stage II development anticipates unmanned offshore

platforms integrated with onshore hub facility constructed in

Stage I.

• Utilisation of Stage I hub facilitates sanction of future tie-ins.

• Third party assessment carried out by Sproule in H2 2012

(previously announced) validate Bowleven’s Deep Omicron

in-place fairway volumes.

Sapele & D-1R

Hub and Spoke Development Stage II (MLHP-5)

Independent Volume Assessment

In-Place Volumes

Mean

Bowleven‡ Sproule*

Total mmboe 1,197 1,208

Independent Volume Assessment

‡ Operator’s volumetrics.

*Aggregated discovered and undiscovered volumes.


Cameroon Overview Further Prospectivity

Douala Basin

• MLHP-5 & 6, OLHP 1 & 2.

• Onshore and shallow

offshore areas.

• Highly prospective

acreage.

• Number of onshore oil

seeps.

• Tertiary and Cretaceous

leads.

• Onshore early exploration

phase on 2D dataset.

• Offshore mature

prospects portfolio on 3D

dataset.

Rio del Rey Basin

• MLHP-7.

• Shallow offshore area.

• Highly prospective

acreage within a proven

active hydrocarbon

system.

• Tertiary oil and gas-

condensate discoveries.

• Established portfolio of

additional Tertiary

prospects.

• Intra Isongo discovery at

IM-5; Material

exploration/appraisal

upside.

Cretaceous Turonian plays accessible in onshore area and

shallow waters.


Etinde - Further Prospectivity

MLHP-6

MLHP-5

• EEAA envisages additional exploration in exploitation area.

• Extensive deeper prospectivity at Paleocene and Cretaceous

levels. Hydrocarbons encountered with Sapele-1 and Sapele-3.

• Palaeocene Alpha-Epsilon system Mean GIIP 1819bcf*.

• Cretaceous Mean Dry GIIP 1029bcf*.

• Evaluation of prospectivity ongoing.

• Highly prospective acreage given its position between proven

active hydrocarbon systems.

• Variety of exploration play types, Bowleven has 3D seismic

dataset.

*Operator’s volumetrics.

MLHP-7

• A significant number of additional prospects recognised at

Intra Isongo and greater interval.

MLHP-5

MLHP-6


• 6 deep wells and c.10 shallow wells drilled in the 1950’s.

• Wells and onshore oil seeps prove active hydrocarbon

system.

• Tertiary and Cretaceous structural and stratigraphic traps

defined in area.

• Total 500km 2D seismic acquired by Bowleven.

• New 2D data integrated into existing vintage dataset along

with airborne magnetic/gravity survey and geochemical

datasets which now define a series of structural prospects.

Bomono Overview

Bowleven

2D

Acquisition

Vintage 2D

VOG: Gas and

condensate production

commenced Dec 2011.

Douala

10km

Seeps

Historical

NE SW


Bomono Exploration

Well Operations

Future

• Exploration well location selected (Zingana-1), planning for

immediate follow-up with second independent exploration well.

• Zingana-1 Prospect - site prepared; drill ready location.

• 2 wells planned prior to end 2014.

• Etinde hub facilities provide additional flexibility in event of

further discoveries.

Prospect

Unrisked Mean

HIIP

Oil mmbbls Associated

Gas bcf Gas bcf

Condensate

mmbbls

Tertiary D & E

Sands. 302 224

Tertiary B & C

Sands. 196 7

Permit Status

• Government approval has been given to move into second

two year exploration phase (to December 2014).

• Farm-out completion delayed; discussions continuing. Also

considering alternative farm-out partners in parallel.

Zingana-1

(Proposed Well)

B & C Sands

D & E Sands


Kenya

Upcoming Work Programme

• Block-wide high density airborne gravity gradient survey.

• Acquisition of 500km 2D seismic.

• Drilling anticipated 2014.

Geology

• Intersection of N-S trending Tertiary, and NE-SW trending

Cretaceous rift systems.

• 5 basins identified in or fringing the block.

• Existing data suggests basins similar form to Lockichar Basin

(Ngamia-1).

• Significant acreage ~14,000km2.

• Bowleven 50% equity interest.

• Initial 2 year exploration period work programme.

• Operated by Adamantine Energy, technical support provided

by Bowleven under a TSA.

Block 11B

Block

11B

Ngamia-1 Twiga South-1

Paipai-1

■Cretaceous

■Tertiary

Sabisa


Kenya Block 11B

• Existing vintage seismic and gravity data confirm presence of multiple basins

and structural features closely analogous to successful discoveries to the south.

• Preliminary scouting trip confirms ideal terrain across the Gatome basin for

Vibroseis seismic acquisition.


Funding Overview

• Cash at end April 2013 approx. $42 million, no debt.

• Petrofac provides up to $500 million for Stage I development;

initial capital investment at FID.

• Potential for up to $60 million of Bowleven’s IM-5 costs at FID.

• High equity interests in Etinde, Bomono and Kenya provide

opportunity to introduce additional farm-in partners if appropriate.

• Investigating new ventures financing for early entry exploration

opportunities.

• Strategic alliance agreement with Petrofac allows further Etinde

farm-down (up to 1/3).

Significant financing flexibility.


Outlook

• Ongoing evaluation of material Etinde prospectivity.

• Bomono drilling (2 wells planned prior to end of 2014).

• Exploration activities over Kenya acreage (FTG/2D seismic);

drilling anticipated 2014.

Exploration

• Etinde development sanction – the path to FID includes:

• Approval of the EEAA; updated to integrate IM-5 results.

• Finalisation of a Gas Sales Agreement.

• Triggering access to Petrofac funding.

• Progressing phased development activities including pre-

FEED/FEED work.

Resources to Reserves: The Path to Development

Resources to Reserves

Cameroon

Exploration

New Frontiers

(Kenya)

oil & gas

Appendix


Petrofac Commercial Structure

• 80% of Euroil’s entitlement to cost oil until 130% of amount

invested has been repaid.

• X% of Euroil’s entitlement to profit oil (set at FID) to provide a

money multiple of 2.125 of amount invested, subject to not less

than 20% IRR.

• On Petrofac achieving money multiple of 2.125 and IRR 20%:

X% set at 10% ($500 million case) or 6% ($300 million case).

• On Petrofac achieving money multiple of 2.3 and IRR 20%:

X% set at 5% ($500 million case) or 3% ($300 million case).

• Petrofac’s remuneration ultimately capped at maximum of 50% of

Euroil’s project NPV.

Basis of Petrofac’s Remuneration

Commercial Structure

• Structure provides potential for $300 million or $500 million of

capital.

• Petrofac to be remunerated from Euroil’s share of the Etinde

project cashflows.

Onshore Hub

Offshore

Infrastructure

$300 / $500

million

Share of cost

& profit oil


C5’s Cond.

ML

HP

-7

ML

HP

-5

Fu

rth

er

Dis

c.

Maximising Liquids Value

• All liquid offtake is marketable internationally i.e. free marketing rights for oil.

• 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.

IM

IE

IF

Omicron Deep &

Lower

Epsilon

D-Discovery

(D-1R)

Other existing &

Future

Discoveries

Oil, Condensate

& up to

90mmscfd of

wet gas

Liquids Stripping

(Primary

Processing)

NGL Plant Up to 80mmscfd

Dry Gas

Power (AES)

Up to 10mmscfd

Fertiliser

(Ferrostaal)

Up to 70mmscfd

LNG

Up to 80mmscfd

Delivery Point Gas Options

C4’s Butane

C3’s Propane Methanol

c.60-70mmscfd

Small Scale

LNG

c.60-70mmscfd

Reinjection

Total Liquids Production

10-15% Shrinkage

3rd

Party

Led

Alte

rnativ

e In

-House S

olu

tions

oil & gas

Principal Contact:

Kerry Crawford

Tel: +44 131 524 5678

Kevin Hart

Tel: +44 131 524 5678

www.bowleven.com

Bowleven Plc.

The Cube

45 Leith Street

Edinburgh

EH1 3AT

United Kingdom

[email protected]

Investor Presentation - Bowleven PLC...The Presentation may include statements that are, or may be...

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