Apresentação 3 t11 inglês
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Transcript of Apresentação 3 t11 inglês
OGX: 3Q11 Results
Disclaimer
This presentation uses the terms “prospective resources” and “contingent resources” to describe those quantities of petroleum that are potentially recoverable from accumulations yet to be discovered. Because of the uncertainty to commerciality and lack of sufficient exploration drilling, prospective resources cannot be classified as reserves. Investors are advised that the U.S. Securities and Exchange Commission (SEC) and other international securities regulators do not recognize prospective and contingent resources. Prospective resources have a great amount of uncertainty as to their existence. There is no certainty that any portion of the prospective resources will be discovered and, if discovered, whether they could be developed economically. Therefore, investors are cautioned not to assume that all or any part of OGX’s prospective resources exist, or that they can be developed economically. Accordingly, information concerning prospective and contingent resources contained in this presentation are not comparable to information permitted to be made public by U.S. or other international companies subject to SEC reporting and disclosure requirements, especially Industry Guide 2 under the Securities Act.
Certain of the information and conclusions set forth herein are based on projections. These projections were prepared for the limited purpose of analyzing the potential risks and benefits of an investment in the securities by illustrating under certain limited assumptions. In addition, because of the subjective judgments and inherent uncertainties of projections and because the projections are based on a number of assumptions, which are subject to significant uncertainties and contingencies that are beyond the control of OGX, there can be no assurance that the projections or conclusions derived therefrom will be realized. Under no circumstances should the projections set forth herein be regarded as a representation, warranty or prediction that OGX will achieve or is likely to achieve any particular future result. There can be no assurance that OGX’s future results or projections will not vary significantly from those set forth herein. Accordingly, investors may lose all of their investment to the extent the projections or conclusions included herein are not ultimately realized.
This presentation also contains forward-looking statements, which may be identified by such words as "may", "plans", "expects", "believes" and similar expressions, or by their context. These statements are made on the basis of current knowledge and, by their nature, involve numerous assumptions and uncertainties.
Various factors could cause OGX's actual future results, performance or events to differ materially from those described in this presentation. In no event shall the Company or the members of its board, directors, assigns or employees be liable to any third party (including investors) for investment decisions or acts or business carried out based on the information and statements that appear in this presentation, or for indirect damage, lost profit or related issues. The Company does not intend to provide to potential shareholders with a revision of the statements or an analysis of the differences between the statements and the actual results. You are urged to carefully review OGX's offering circular, including the risk factors included therein. This presentation does not purport to be all-inclusive or to contain all the information that a prospective investor may desire in evaluating OGX. Each investor must conduct and rely on its own evaluation, including of the associated risks, in making an investment decision.
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3Q11 Highlights and Subsequent Events
Efficient execution towards 1st oil production
— Horizontal well OGX-26HP (Waimea) prepared for initial production
— Installation of mooring system
— FPSO OSX-1 in Brazil
Substantial progress in the Parnaíba basin
— Acquisition of a 50% stake in block PN-T-102
— Drilling and testing of the first production well (GVR-1D)
— Contracted EPC for gas production facility
Continued intensification of appraisal campaign
— Drilled 9 wells in the Campos Basin
New drill-stem tests in the Santos Basin
— OGX-47 (Maceió) and OGX-11D (Natal)
Sale of first oil to Shell
— Total volume of 1.2 million barrels (600k barrels each cargo)
— Priced at an average discount of US$5.5 to Brent
Spudding of first well in Espírito Santo Basin
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Financial Results Highlights
3Q11 Financial Results
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Net Financial Results: Impact of interest
income, net losses on hedging of future
commitments in foreign currency, positive
impact of marking-to-market the fair value
of financial instruments, interest expenses
and exchange rate variations
Exploration Expenses: Primarily related
to the acquisition of seismic data in the
Parnaíba, Espírito Santo and Campos
basins
General and Administrative Expenses:
Increase in the number of employees from
212 to 305 between 3Q10 and 3Q11 and
the stock options plan
Intangibles: Impacted by the
intensification of our drilling campaign
mainly in Campos, Santos and Parnaíba
basins
Financial Statements - Main Items
R$ ('000) 3Q11 3Q10 YTD 2011
Net Financial Result 138,829 (62,916) 126,573
Financial Income 1,158,124 (6,211) 1,448,884
Financial Expenses (1,019,295) (56,705) (1,322,311)
Exploration Expenses (50,175) (15,467) (125,157)
G&A Expenses (78,854) (117,475) (209,340)
Taxes (35,778) (6,434) 30,625
Net Result for the period (25,978) (202,292) (177,298)
Interest of non controlling shareholders (8,488) (2,823) (17,167)
Attributed to controlling shareholders' interest (17,490) (199,469) (160,131)
Balance Sheet
R$ ('000) 09/ 30/ 2011 12/ 31/ 2010 Δ
Cash and cash equivalents* 6,701,228 4,788,166 1,913,062
Intangible 6,814,548 4,589,418 2,225,130
Exploratory drilling and studies 5,249,486 2,948,754 2,300,732
Mobilization of rigs 73,339 148,941 (75,602)
Signature Bonus on exploratory blocks 1,491,723 1,491,723 -
Financial Debt 4,752,827 - 4,752,827* cash and cash equivalent + marketable securities
Strong Cash Position
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Solid cash position of R$6.7 billion, or US$3.6 billion, to
support exploration commitments, development and
initial production
~80% of total cash protected against FX variations
— US$2.5 billion invested in offshore deposits
— US$465 million hedged through NDF (non
deliverable forward) contracts
Cash allocated in R$: Average cumulative gross
return equivalent to approximately 103.4% of the
Interbank Deposit Rate (CDI), or 13% p.a., generating
R$79.0 million of interest income for the period
Cash Allocated in US$: Average cumulative gross
return equivalent to approximately 1.4% p.a.,
generating US$8.5 million of interest income for the
period
Cash position in fixed income instruments allocated to
Brazil’s most solid financial institutions
Allocation by InstitutionR$ billion US$ billion
Cash Position Evolution Cash Allocation
2Q11 JUL AUG SEP0.0
2.0
4.0
6.0
0.0
2.0
4.0
6.0
Cash in R$
Bradesco37%
Itau Unibanco36%
BTG Pactual8%
Santander8%
Votorantim5%
CS4%
Others3%
Execution on Track
Granting of first licenses (LP and LI)
Public hearing: Jul 16, 2011Preliminary License (LP): Sep 8, 2011Installation License (LI): Sep 16, 2011
Buoy Installation
Mobilization of equipment to the siteInstallation of buoy underway
Beginning of subsea installation
10 PilesMoorings chains
MWA (middle water arch)
Campos Basin: Steps Towards 1st Oil
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Launch of the lines
Installation of flexible lines and umbilicalsConnection to wet christmas tree
1st Oil
Granting of the Operation License (LO)Production start-up
FPSO OSX-1
Arrived in Brazil on October 06, 2011Connection to the production system
Campos Basin: Steps Towards 1st Oil
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Parnaíba Basin: Latest Eventsand Project Development
Acquisition of a 50% stake in block PN-T-102
3rd onshore rig contracted and expected to commence operation in 4Q11
Drilled and tested the first production well in the basin, GVR-1 (Gavião Real field)
EPC contracted for the construction of the gas processing facility
— Contract signed with Valerus-Geogas (Brazilian engineering company)
EPC contracted by MPX for projects:
— TPP Maranhão III (A-3) 517 MW
— TPP Maranhão IV + V (Bertin) 676 MW
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Exploratory Campaign
Campos Basin: Appraisal Campaign
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Note: 1 Numbers indicate the well drilling area as per D&M’s Dec/10 reports and net pay
2011¹ Activities
Well Drilling Area
OGX-35D 3C – Albian 80m
OGX-36D/OGX-39HP
3C – Albian 60m
OGX-40D 2C – Albian 107m
OGX-41D/OGX-44HP
2C – Albian 92m
OGX-42D 3C – Albian 82m
OGX-43D Delineation – Albian 50m
OGX-45D Delineation – Maastric. 5m
OGX-48 3C – Albian 12m
OGX-50D/OGX-55HP
1C – Albian 52m
OGX-53D/OGX-60HP
1C – Ongoing
OGX-54 Delineation – Albian: 24m
OGX-56D 3C – Albian: 60m
OGX-61 3C - Ongoing
OGX-62 3C – Santonian: 26m Albian: 20m
OGX-64 3C - Ongoing
OGX-65D 1C - Ongoing
2010 Activities
OGX-9D
OGX-13
OGX-21D/OGX-26HP
Drilled in the 3Q11
Intensive appraisal campaign to delineate discovered accumulations
New results from wells drilled in 3C and delineation area
Beginning of the appraisal in the Peró-Ingá accumulation
Focus on retaining areas for the production phase
Continuation of the Waimea development towards production
New seismic reprocessing at BM-C-43 block to better image the subvulcanic section
Focus on the appraisal campaign to expedite production development
Highlights
Peró-Ingá*
Waimea*
* Illustrative images
Espírito Santo Basin: First Step into the Deep Waters
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Frontier area with recent
important discoveries in
neighboring blocks
Proven active petrolific system in
the region
Operator and partner: Perenco
2 well locations agreed:
— Moriche
— Guarapari
First well currently being drilled in
deep waters (~1,100m)
Other companies’ recent discoveries
Highlights
Initiating the drilling campaign in a new basin with two well locations already defined for this year
4 accumulations already discovered of which 2 were declared commercial
Parnaíba Basin: Important New Discoveries and Test
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Exploratory campaign
Wildcat Wells2010 Activities
OGX-16
OGX-22
2011 Activities
OGX-34
OGX-49
OGX-59
OGX-66
Drilled in the 3Q11
Appraisal Wells2011¹ Activities
Well Drilling Area
OGX-38 3C: 43m
OGX-46D 3C: 15m
OGX-51D 3C: 8m
OGX-57 3C: -
Drill-stem test for first production well
Gavião Real field (GVR-1 well)
First production well successfully drilled and tested
Dry gas Excellent results - Production Potential (AOF):
— 3.5 M m³/day of gas
Characteristics:Flame: 23m0% sand0% liquid
New acquisition (3Q11)
Maceió (OGX – 47)
Gas and condensate (~20% with approx. 50° API)
AOF production potential results:— Vertical well: 1.0M
m³/day of gas— Horizontal well: 2.5M
m³/day of gas
Recent Horizontal Wells TestedSantos Basin: Positive Drill-Stem Test Results
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Encouraging results from 2 drill-stem tests confirm emergence of a new gas and condensate center in the region
Natal (OGX-11D)
Gas and condensate (~25% with approx. 47° API)
AOF production potential results:— Vertical well: 1.0 M
m³/day of gas and 1.2K bbl/day of condensate
— Horizontal well: 5.0M m³/day of gas and 6K bbl/day of condensate
Drill-stem tests performedExploratory Campaign2010 Activities
MRK-2B
OGX-11D
OGX-12
OGX-17
OGX-19
2011 Activities
OGX-23
OGX-24
OGX-30
OGX-47
OGX-63
Spud in the 3Q11
Sale of First Oil to Shell
Sales contract signed for the first 2 cargos
totaling volume of 1.2 million barrels (600
thousand barrels each cargo)
Priced at an average of US$5.5 discount
to Brent (GoM reference)
Transaction confirms the quality of the
Waimea accumulation oil and the
execution capability of OGX’s teams
LOI also signed to explore future business
opportunities with Shell
Strategic partner for future ventures
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Upcoming Events
Commencement of production in the Waimea accumulation (OGX-26HP)
Spudding of the second well and drilling results in Espírito Santo Basin
Continued exploratory and appraisal campaign in the Campos, Parnaíba
and Santos Basins
New drill-stem tests in Campos, Santos and Parnaíba Basins
Commencement of exploratory campaign in Colombia through the initiation
of seismic shooting and interpretation
Participation in upcoming ANP bidding rounds
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