AGM 2014 final

8/12/2019 AGM 2014 final

http://slidepdf.com/reader/full/agm-2014-final 1/20

1

AGM 14 May 2008

8/12/2019 AGM 2014 final


2

2007: A year of significant progress2007: A year of significant progress

• Exploration activity further de-risks the project

• 750km of Controlled Source Electromagnetic (CSEM)data acquired over 12 prospects

• 9,950 km of additional 2D infill seismic data acquired

• Over 33,000kms of new seismic in total

“A landmark deal”

• Farmout to BHP Billiton announced

8/12/2019 AGM 2014 final


3

D u n g e n e s s A

r c h /

( R i o C

h i c o H

i g h )

Maurice EwingBank

MalvinasBasin

16 wells4 oil disc.

MagallanesBasinP+P

6 Billion Boe

0 100km

South & East Falklands Basin: locationSouth & East Falklands Basin: location

FOGLacreage

TheFalklandIslands

8/12/2019 AGM 2014 final


4

Scale: Huge licence areaScale: Huge licence area – – 48,853km48,853km 22

8/12/2019 AGM 2014 final


5

Prospects and leads mapProspects and leads map

8/12/2019 AGM 2014 final


6

Multiple Play typesMultiple Play types

CretaceousFan Play

Multiple independent play types = significant risk diversification

e.g. Toroa & Lutra e.g. Loligo &, Nimrod

e.g. Hersilia & Quest

e.g. Thulla & Endurance

e.g. Undine

CretaceousFan Play

TertiaryChannel Play

CretaceousOnlap Play

SpringhillPlay

FoldbeltPlay

8/12/2019 AGM 2014 final


7

Significant PotentialSignificant Potential

• TRACS estimate top 10 prospects have potential to hold more than 10

billion boe of prospective resources.

• FOGL latest estimate is over *10 billion boe (mean, un-risked resource)

• A further 90 prospects and leads have been identified and mapped

• Combined potential of all prospects and leads is >*60 billion boe

• Individual prospects, within the top 10, have mean reserves of between250 million and 3.5 billion barrels

Independent verification of resource estimates

* mean, un-risked resources (i.e. recoverable reserves)

8/12/2019 AGM 2014 final


8

Successful CSEM surveySuccessful CSEM survey

• 7 CSEM lines acquired

• Over 750 kms of data• 12 prospects surveyed• 7 posit ive anomalies• 3 negative• 2 prospects too deep for

technique

8/12/2019 AGM 2014 final


9

Positive CSEM anomalies

Caird Nimrod

Positive CSEM anomalies within the Tertiary Channel Play

GarrodiaWater Depth: 1,400mDepth to Reservoir 2,700 m

NimrodWater Depth: 1,500mDepth to Reservoir 2,900 m

Garrodia

8/12/2019 AGM 2014 final


10

LoligoLoligo

Loligo is one of a number ofprospects and leads within theTertiary Channel Play.

• Strong seismic DHIs• Positive CSEM anomaly

Loligo has most likely reservesof 3.5 billion barrels (un-risked)

Seismic amplitude mapof Loligo and Nautilus

Loligo

Nautilus

8/12/2019 AGM 2014 final


11

Toroa prospectToroa prospect

Toroa is a prospect within theCretaceous Onlap Play.

Toroa has most likely reserves of1.4 billion barrels (un-risked)

Top sand amplitude,with depth (m) overlay

Positive CSEM anomaly over

the Toroa prospect

8/12/2019 AGM 2014 final


12

Thulla prospectThulla prospect

Thulla

Thulla is a prospect within theSpringhill Play.

Thulla has most likely reserves

of 630 million barrels (un-risked)

8/12/2019 AGM 2014 final


8/12/2019 AGM 2014 final


14

BHP BillitonBHP Billiton

• BHPB Petroleum accounts for 1/5 ofBHBP Group operating profits

• Current production 380,000 boped

• Proven reserves: 1.35 billion boe

• Probable reserves: 2.24 billion boe

• Planned 2008 exploration spend $700MM• Current E&P focus: Gulf of Mexico and

Western Australia

• New Ventures focus: Offshore Columbia,

Malaysia and The Falklands

An E&P player withthe power and thereach of a super-major

8/12/2019 AGM 2014 final


15

BHP Billiton FarmBHP Billiton Farm --In AgreementIn Agreement• Commitment to drill a minimum of two exploration wells within 3 years

• Underlines quality of exploration potential

• Acquired 51% interest and operatorship

• Paid $12.75 million and will pay 68% of the drilling programme costs

• Extensive deep water drilling experience

8/12/2019 AGM 2014 final


16

Drilling ProgrammeDrilling Programme – – a number of optionsa number of options

1. Minimum 2 well exploration programmecommitted to by BHP Billiton

2. 2 additional exploration &/or appraisal welllocations under consideration

3. BHPB actively seeking a rig

4. Rig options: – Direct contract with rig owner – Sub-let on an existing contract – Timeshare/swap with another Oil Company

8/12/2019 AGM 2014 final


17

2008: preparation for drilling2008: preparation for drilling

• Complete seismic & CSEM analysis and prospect evaluation

• Select best prospects for drilling and order of wells

• Select drilling locations, including potential appraisal well locations

• Select and contract rig

• Logistics planning: order long-lead equipment

• Conduct site surveys

• Complete well planning and gain FIG well consents

• Submit Environmental Impact Assessment (EIA) to FIG

8/12/2019 AGM 2014 final


18

Undervalued compared to our peersUndervalued compared to our peers• FOGL is currently significantly undervalued compared to the other Falkland explorers.

This differential is not supported by the underlying technical case

Market Cap. £ millions

0

50

100

150

200

250

Desire Borders & Southern FOGL Rockhopper

M a r k e

t C a p

£ M i l l i o n s

Licenced acreage

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

FOGL Borders & Southern Desire Rockhopper

L i c e n c e a r e a s q . k

m .

• Largest drillable prospects: 500 million bbls - 3.5 billion bbls

• Most upside: Resource potential & number of prospects & leads• Independently verified resource potential

• Multiple independent play types (spreads risk)

• De-risked prospects:

– Positive CSEM results & strong seismic DHIs

• BHPB is a very credible farminee, with access to rigs

8/12/2019 AGM 2014 final


19

OutlookOutlook

• FOGL is poised to participate in the first drilling campaign in the basin

• Preparation work for drilling in progress

• Site surveys expected to be carried out in second half 2008

• We anticipate that exploration drilling will commence in 2009

“ FOGL is now within touching distance of realising the potential ofwhat is probably one of the most exciting high impact explorationprojects currently being undertaken anywhere in the world”

8/12/2019 AGM 2014 final


20

Disclaimer Disclaimer

• Some statements contained in this presentation or in documents referred to in it are ormay be forward-looking statements. Actual results may differ from those expressed insuch s tatements, depending on a variety of factors .

• Past performance of the Company or i ts shares is not a guide to future performance.

• Any forward-looking information contained in th is pr esen tat ion has been prepared on thebasis of a number of assumptions which may prove to be incorrect, and accordingly,actual results may vary.

• This presentation does not cons titute, or form part of or con tain any invitation or offer toany person to underwrite, subscribe for, otherwise acquire, or dispose of any sharesin Falkland Oil and Gas Limited or advise persons to do so in any jurisdiction, nor shall it,or any part of it, form the basis of o r be relied on in any connection with or act as aninducement to enter into any contract or commitment therefore. No reliance may be placedfor any purpose whatsoever on the information or opin ions con tained in this document oron its completeness and no liability whatsoever is accepted for any loss howsoever arisingfrom any use of this document or its contents otherwise in connection therewith.

• This presentation has been prepared in compliance with English law and Engli sh courtswill have exclusive jurisdiction over any disputes arising from or connected with thispresentation.

AGM 2014 final

Documents

Transcript of AGM 2014 final