ROC OIL – UK NORTH SEA...jd - AGM Pres_FINAL-May06.ppt Slide 74 ROC OIL – UK NORTH SEA 2006...

jd - AGM Pres_FINAL-May06.ppt

ROC OIL – UK NORTH SEA

2006 ANNUAL GENERAL MEETING

CHIEF OPERATING OFFICERBruce Clement

17 May 2006


• 2005 Financial Results

• Development Projects» Chinguetti» Cliff Head» Blane» Enoch

• Cliff Head Development Review

CHIEF OPERATING OFFICER’S REPORT


Profit After Tax $45.6 million

Four Development Projects Advanced• Three Projects Approved• Development Expenditure $103 million• Production commenced 1Q 2006

Saltfleetby Asset Sale Completed $109 million

Sound Financial Position at Year End• Cash Assets $66.4 million

Subsequent to Year End• Share Placement in January 2006 raised $75.9 million• Loan Facility Established US$30 million• First Oil from Chinguetti and Cliff Head

2005 FINANCIAL RESULTS - HIGHLIGHTS


• Saltfleetby Asset Sale

• Exploration Expense and Write Off

• Income Tax Benefit

KEY RESULTS

Profit After Tax $45.6 million

Earning Per Share 24.5 cents

KEY DRIVERS

2005 RESULTSINCOME STATEMENT - OVERVIEW


-63.7Saltfleetby Profit on Sale

-(8.0)Ardmore Provision

(26.2)45.6Profit / (Loss) after tax

1.740.4Income tax benefit

(28.0)5.2Profit / (Loss) before tax

(32.4)(48.2)Exploration costs expensed & written off

17.3(1.7)Trading (Loss) / Profit

38.30.9Sales Revenue

2004$ million

2005$ million

2005 RESULTSINCOME STATEMENT - DETAILS


• Net sales proceeds of $109 million

• 2P Remaining Reserves 36 BCF gas, 6.2 MMBOE

• Sold to WINGAS for potential future gas storage

• Sales price ($17.30 / BOE) was a significant premium over valueof remaining reserves

• Profit Before Tax $63.7 million

• Profit After Tax $81.3 million

SALTFLEETBY ASSET SALE


• Consolidated entity in sound financial position with $66.4 millioncash assets at 31 December 2005.

• No debt.

171.7215.0Total Equity

21.3(28.3)Net other (Liabilities) / Assets

21.5150.6Oil and Gas Assets

52.926.3Capitalised Exploration Expenditure (1)

76.066.4Cash Assets

31 Dec 2004$ million (2)

31 Dec 2005$ million

(1) $21.2 million Exploration Expenditure was transferred to Oil and Gas Assets in 2005.(2) A-IFRS

2005 RESULTSSUMMARY BALANCE SHEET


2005 RESULTSSUMMARY CASH FLOW STATEMENT

66.4Closing Cash 31 December 2005

(2.8)Other(40.3)Exploration Expenditure(92.7)Development Expenditure

Investments:(3.8)Net Cash from Operating Activities22.1Proceeds from Share Issue

107.9Saltfleetby Sale Proceeds76.0Opening Cash

$ million

83.2Closing Cash 30 April 2006 (1)

(1) Unaudited


• Significant investment in development projects during 2005

102.8Total4.7Enoch7.0Blane

21.5Chinguetti69.6Cliff Head

$ millionDEVELOPMENT PROJECT

• Similar level of investment planned for 2006, primarily for Blane and Enoch and completion of Cliff Head

2005 DEVELOPMENT EXPENDITURE


12.1Angola6.5UK

41.6Total1.9Other

8.8Mauritania2.9China9.4Perth Basin

$ millionEXPLORATION AREA

• Continued focus on exploration across all ROC’s assets

2005 DEVELOPMENT EXPENDITURE


• $45.6 Million Profit After Tax for 2005

• Sound financial position at 31 December 2005

– Cash assets of $66.4 million

• Strengthened by share placement in January 2006

– $76 million

• US$30 million Loan Facility in place, but undrawn

• Expected Cash Flow from four new developments overnext 12 months

FINANCIAL SUMMARY


• Chinguetti Oil and Gas Field, offshore Mauritania ROC 3.25%

• Cliff Head Oil Field, offshore Perth Basin, WA ROC 37.5%

• Enoch Oil and Gas Field, North Sea, UK/Norway ROC 12%

• Blane Oil Field, North Sea, UK/Norway ROC 12.5%

ROC’S DEVELOPMENT PROJECTS


CHINGUETTI OIL AND GAS FIELDROC 3.25%


Chinguetti production commenced 24 February 2006ROC’s first cargo sold March 2006

CHINGUETTI OIL AND GAS FIELDROC 3.25%


Blane Subsea Development

Ula Platform Complex

BLANE OIL FIELD DEVELOPMENTROC 12.5%


BLANE OIL FIELD DEVELOPMENT

Module for host facilities on Ula Platform


Enoch Subsea Development

Brae “A” Platform

ENOCH OIL AND GAS FIELD DEVELOPMENTROC 12%


At the beginning of 2005, Cliff Head presented many unique challenges for ROC, including:

– ROC’s first operated offshore development project;

– The construction market in 2005 was overheating;

– The development was located in environmentally sensitive areas, both offshore and onshore;

– Cliff Head crude oil requires careful handling, with significantpotential flow assurance problems; and

– The project included development work in Federal and State waters, as well as onshore construction under Local and State government jurisdiction.

CLIFF HEAD DEVELOPMENT


How did ROC manage these challenges?

– Direct management of all elements of the project from design through to commissioning and operation;

– Establishing a ROC Project Management Team responsible for the safe delivery of the project;

– Working closely with all community and government stakeholders in the project;

– Working closely with a range of contractors and sub-contractors providing services and equipment to the project;

– Focusing on meeting and exceeding ROC’s safety and environmental commitments for the project.



Cliff Head Development Plan - March 2005

CLIFF HEAD OIL FIELDROC 37.5% and Operator


CLIFF HEAD JACKET AND TOPSIDES CONCEPTApril 2005


ARROWSMITH SEPARATION PLANT CONCEPTApril 2005


JACKET FABRICATION IN MALAYSIAJuly 2005


UPENDING THE JACKETOctober 2005


THE JACKET IN GERALDTON HARBOURNovember 2005


The Ensco 67 jack-up rig installing the Jacket at the Cliff Head Oil Field


MEZZANINE DECK MATING WITH CELLAR DECKJuly 2005


TOPSIDES NEARING COMPLETIONNovember 2005


492 TONNE TOPSIDES HEADING FOR CLIFF HEAD


THE CLIFF HEAD DECK LIFT


ARROWSMITHJune 2005


ARROWSMITHNovember 2005


ARROWSMITHJanuary 2006


What did ROC achieve with Cliff Head?

– ROC’s first operated offshore development project;

– Designed, constructed and commissioned the facilities to produce first oil within 14 months following the investment decision;

– Budget overrun by approximately 20% in an extremely difficult contracting environment;

– Excellent environmental outcome – the first “nil condition” licence granted by DOE for this type of project;

– Good, but not perfect, safety performance;

– Obtained all 160+ government approvals for the project;

– Designed and built facilities that can produce and process Cliff Head crude oil with a pour point over 30o C.



CLIFF HEAD DEVELOPMENTFIRST OIL HAD EVERYONE SMILING


I’m still an engineer with a strong financial tendency.This is what really makes me smile.

CLIFF HEAD DEVELOPMENTFIRST OIL DELIVERY TO BP


ROC OIL – UK NORTH SEA

2006 ANNUAL GENERAL MEETING

GENERAL MANAGER - EXPLORATIONWes Jamieson

17 May 2006


3 DISCOVERIES, ALL IN MAURITANIA, BUT CURRENTLY PERCEIVED TO BE COMMERCIALLY CHALLENGING OR SUB-COMMERCIAL

– Tevet (Cretaceous), Labeidna, Faucon

2005 – ANOTHER ACTIVE YEAR

• 8 Exploration Wells and 1 Appraisal Well• 1755 km² of new 3D Seismic • 780 km of new 2D Seismic

EXPLORATION REVIEW


41 EXPLORATION WELLS SINCE IPO US$ 38.4M / A$ 56.3M

11 ‘Significant’ Discoveries(Commercial or Regionally Significant)

1 Perth Basin / Australia - oil

2 Beibu Gulf/China - oil, oil & gas

8 Mauritania - 5 oil / 3 gas

Most significant• Chinguetti

• Cliff Head

• Wei 6-12S-1

• Tiof

0

2

4

6

8

10

12

14

16

18

1999 2000 2001 2002 2003 2004 2005 2006

Num

ber o

f wel

ls

Planned

Currently Drilling

Drilled Wells

Cliff HeadChinguetti

BandaWei 6-12-1

PelicanTiof

TevetTevet DeepLabeidnaFaucon

Wei 6-12S-1

Cliff Head - Significant Discoveries

EXPLORATION REVIEW


EXPLORATION STRATEGY REMAINS

• Utilise modern technology cost-effectively to enhance probability of success

• Reduce lead times from concept/discovery to reserves/production

• Be in the right basin/right area of the world

• Develop a mixed programme that provides steady growth but incorporates one or two potentially company changing wells in each annual programme

• Focus manpower and activity on areas with “potentialto deliver”

EXPLORATION REVIEW


UPDATE ON SELECTED ACTIVITIES

Angola

China

UK

EXPLORATION REVIEW


EXPLORATION ACTIVITY

2004PSA activated on 1 November 2004

2005Seismic – 162 km2 3D, 505 km 2D plus Geological and Geophysical studies

2006 - PlannedSeismic – 240 km2 3D, 220 km 2D plus Geological and Geophysical studiesDrilling - 3 exploration wells

ANGOLA CABINDA SOUTH ONSHORE BLOCK

EXPLORATION REVIEW


General Area of20063D seismic


20053D seismic

SEISMIC & DRILLING ‘ACTIVITY’ – CABINDA SOUTH

Pre-ROC440km multi fold 2D seismic33 wells

ROC 2005162 km2 3D seismic505 km 2D seismic

ROC 2006240 km2 3D seismic220 km 2D seismic3 wells

EXPLORATION REVIEW


CABINDA SOUTH CONCEPTUAL PLAY TYPESAS DEVELOPED PRE 2005 SEISMIC AQUISITION

PRE SALT

SOURCE INTERVAL

POST SALT

SALT

EXPLORATION REVIEW


W E

REPRESENTATIVE 3D SEISMIC LINE

KEY OBSERVATIONS

Good data quality

Abundant structuring

Overall confirmation of conceptual play types

EXPLORATION REVIEW


W E

REPRESENTATIVE 2D SEISMIC LINE

KEY OBSERVATIONS

As per 3D line

Good representation of Regional Geology

Multiple play types apparent

EXPLORATION REVIEW


EXAMPLE OF A REGIONAL POST SALT PLAY FAIRWAYADJOINING RESERVES / PRODUCTION ESTABLISHED

circa 125 mmbblsC

circa 100 mmbblsB

circa 1,200 mmbblsA

RESERVES AREA

Sources: general industry data

PlayFairwayTrend

A

CB

EXPLORATION REVIEW


2005 SEISMIC ACQUISITION OPERATIONS

GEOGRAPHIC SETTING & PHOTOGRAPHS

EXPLORATION REVIEW


SEISMIC ACQUISITION IN CONTEXT OF BLOCK GEOGRAPHY

COASTAL PLAIN

SAVANNAH

HEAVILY VEGETATED

/JUNGLE




EXPLORATION REVIEW


TYPICAL LANDSCAPES

OUTSIDE CABINDA CITY

EXPLORATION REVIEW


TYPICAL SMALL VILLAGES IN

SOUTH WEST OF BLOCK

EXPLORATION REVIEW


LINE SURVEYING

EXPLORATION REVIEW


LINE LOCATING& MARKING

EXPLORATION REVIEW


OPERATIONAL CHALLENGES

EXPLORATION REVIEW


VARIABILITY OF OPERATING CONDITIONS

EXPLORATION REVIEW


DRILL & GEOPHONE CREWS

EXPLORATION REVIEW


DRILLING DYNAMITE SHOT-HOLES WITH

MAN-PORTABLE EQUIPMENT

EXPLORATION REVIEW


SEISMIC ACQUISITION - VIBROSEIS

EXPLORATION REVIEW


BORDER CROSSING TO DEMOCRATIC REPUBLIC OF CONGO

EXPLORATION REVIEW


CHINA - BEIBU 22/12 BLOCK

MAJOR EXPLORATION ACTIVITIES

2002Drilled Wei 6-12-1 discovery wellAcquired 460 km2 3D seismic

20042 Appraisal wells & 1 exploration well – southern area of block; disappointing overall.

2006Just drilled Wei 6-12S-1 discovery - follow up appraisal planned

EXPLORATION REVIEW


FROM 2003 AGM

Wei 6-12-1 drilled in 2002

Oil discovery but not considered commercial on stand alone basis

Single 13.5m sand

EXPLORATION REVIEW


WEI-12-6-1 Discovery WEI-12-6 South Prospect

NE SW

1km0

6-12 SOUTH PROSPECT• Strong Analog to 6-12-1 Discovery, on Trend and Potentially Bigger• Could move 6-12 Complex to Commerciality

FROM 2005 AGM

EXPLORATION REVIEW


WEI 6-12S-1 RESULTS

• Drilled in Late April - Early May 2006• Commitment Well• 3 km SW of 6-12-1 discovery (2002) • A gross interval of ~500 m contains

numerous separate reservoir sands• Total Net pay ~100 m Oil & Gas

EXPLORATION REVIEW


6-12 SOUTH PROSPECT – SEISMIC ‘TIE’ TO 6-12-1 DISCOVERY

Multiple pay zones –100 m net over 500m interval

Single 13.5m oil sand intersection

Up-dip potential

EXPLORATION REVIEW


ONSHORE UK WILLOWS WELL

Primary objective is the Rotliegendes sandstone, the reservoir sequence for most

of the southern North Sea gas fields

0 5km

EXPLORATION REVIEW


Line 5120 flattened on Top Kirkham Abbey

ROTLIEGENDES INTERVAL

OBVIOUS THICKENINGIN RESERVOIR INTERVAL

WILLOWS – SEISMIC & WELL SUPPORT

WILLOWSPROSPECT

CAYTHORPE GAS FIELD

RESERVOIR PINCHOUT

EXPLORATION REVIEW


PLAY TYPE DEMONSTRATED TO WORK WITH LARGE RESERVES IN ADJACENT OFFSHORE AREA

WILLOWSMean reservestarget ~75 bcf

60km

EXPLORATION REVIEW


EXPLORATION DRILLING ACTIVITY FORECAST Most likely outlook to End 2006

ANGOLA 3 Stretch target & assuming a rig is contracted

CHINA 1 Sidetrack appraisal to 6-12S-1 discovery

MAURITANIA 5 - 6 A couple of ‘potentially big’ wells are planned

PERTH BASIN 1 - 2 Planned 4 but slippage a distinct possibility with fixed term return of rig contract and Cliff Head priority

ONSHORE UK 1 Willows ____

12 - 13

EXPLORATION REVIEW

IMPORTANT NOTE:THE TIMING AND THE NUMBER OF WELLS MAYBE REVISED DUE TO RIG AVAILABILITY, LOGISTICSAND/OR JOINT VENTURE AND GOVERNMENTDECISION-MAKING PROCESSES

ROC OIL – UK NORTH SEA...jd - AGM Pres_FINAL-May06.ppt Slide 74 ROC OIL – UK NORTH SEA 2006...

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