Salamander Energy Interim Results Presentation. 27 th September 2007

Transcription

1 2007 Interim Results Presentation 27 th September 2007

2 Forward-Looking Statements This presentation may contain forward-looking statements and information that both represents management s current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties. A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by these forward-looking statements. 2

3 2007 Interim Results Presentation 1. Introduction & Highlights James Menzies 2. Financial Review Nick Cooper 3. Current Activity Mike Buck 4. Exploration Portfolio, Summary & Outlook James Menzies 3

4 Salamander Energy plc Pure Southeast Asian E&P Overview Lao PDR Savannakhet 95% (E) Main board listed on the LSE Market capitalisation circa $400 mm 2P reserves of 42.3 mmboe (YE06) 2007 forecast production circa 8,000 boepd Base plate of stable, long life production Broad spread of exploration & appraisal assets Disciplined allocation of capital across both discovered reserves and exploration Thailand Phu Horm 9.5% (P&D) L15/ % (E&A) L27/ % (E&A) L13/ % (A) Vietnam DBSCL01 100% (E) Philippines SC41 35% (E&A) Indonesia Bontang PSC 70% (E&A) Simenggaris JOB 21% (E&A) Ensign 41 Rig, Phu Horm Field, Thailand P: in production D: under development A: appraisal E: exploration H Addition Indonesia ONWJ PSC 5% (P&D) SES PSC 5% (P&D) 4

5 2007 Interim Results Headlines Highlights Maiden profit of $3.8 million (H1 2006: loss $2.2 million) Revenues of $32 million (H1 2006: $8.8 million) Operating cash flow of $14.1 million (H1 2006: $1.7 million) Production increased by 175% to 7,700 boepd (H1 2006: 2,800 boepd) Portfolio expanded with addition of four new licenses Phu Horm field established as a reliable producer averaging 88 MMscfd Strong balance sheet, period-end net cash position of $129.6 million (2006: net debt of $36.1 million) Current Activity & Outlook Appraising five discoveries targeting in excess of 50 MMboe of reserves Pre drill activity continues ahead of high impact 2008 exploration drilling programme targeting c. 500 MMboe net unrisked resources Increased gas sales from ONWJ and SES PSCs 5

6 Interim Financial Highlights 1H H 2006 FY 2006 Production (WI) mboepd Realised prices - Oil $/bbl Gas $/mscf Revenue $mm EBITDA $mm Post tax profit / (loss) $mm 3.8 (3.2) (19.6) EPS $/share 0.04 (0.09) (0.48) Cash $mm Gearing % Production up on half year and climbing to approx. 8.0 mboepd for the full year Higher gas realisations with Phu Horm contribution, new Indonesian GSA s Revenues up 260% Maiden profit in 1H 2007 Cash position comparable to end 2006, despite new investments 6

7 Interim Income Statement $mm 1H H 2006 FY 2006 Revenue Cost of sales (21.1) (6.2) (23.8) Gross profit Exploration expenses (3.1) (0.9) (5.3) SG&A - General (0.7) (2.0) (2.7) - Share Based Payment (0.1) (1.4) (9.5) - IPO Fees (3.1) Operating profit 7.3 (1.7) (12.8) Interest revenue Includes 1H 2997 amortisation of $7.21/boe Exploration includes prelicence expenditures. No write downs for the period Full period contribution from producing assets driving positive operating profit Interest expense & other (1.2) (1.3) (4.2) Pre-tax profit 10.0 (1.5) (14.5) Tax (6.2) (1.7) (5.1) Post-tax profit 3.8 (3.2) (19.6) ONWJ, SES taxed at 41.5%; PH at 50%. Effective tax rate 54% post non-deductables, plus $0.9mm deferred tax charge 7

8 Interim Cash Flow Statement $mm 1H H 2006 FY 2006 Cash b/forward Net operating cash flow 4.8 (2.2) 7.7 Capex - Production, development (8.7) (61.2) (90.4) - Exploration, appraisal (15.2) (4.6) (7.4) 1H 2007 operating cash flow suppressed by delayed lifting of crude in June full year capex forecast raised to $75mm after Simenggaris, SC41 Interest revenue Interest expense (1.0) (0.8) (5.8) Net proceeds from new equity issue Net proceeds from new debt raising Cash c/forward IPO greenshoe closed in January 2007, net of IPO fees Cash position comparable to end 2006, despite new investments 8

9 Interim Balance Sheet $mm 1H H 2006 FY 2006 Fixed assets - Exploration, appraisal Producing,development Other Thailand, Indonesia, Philippines Thailand (Phu Horm), Indonesia (ONWJ, SES) Cash Debtors / (Creditors) 3.6 (0.5) (7.3) Long term debt (25.7) (92.0) (25.7) Deferred tax liability (0.9) - - Net assets H 2007 reflects delayed lifting of crude in June 2007 SMBC facility. Producing assets have additional debt capacity 9

10 Production Growth Average production forecast to rise by more than 80% in 2007 Production Rate (mboepd) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Thailand Gas & Liquids Indonesia Gas Indonesia Liquids 2006 Average H1 '07 Average 2007 Outlook 2007 production forecast 49% liquids Indonesian gas fixed price, average $2.90/mcf in 2006 Phu Horm gas indexed to oil, averaging over $5/mmBtu Volume growth from SES & ONWJ PSCs, new contract >$3.60/mcf Phu Horm volume growth, back filling Nam Phong field decline Current production rate of c. 8.0 mboepd 10

11 Khorat Basin, Greater Mekong Leading acreage position: production, development, appraisal & exploration Block L15/43 (27.2%) Southern extension of Phu Horm field Phu Horm South well scheduled Dec 07 Block L13/48 (16.2%) Si That discovery, Phu Horm analogue Best estimate 1 Tcf 2D seismic Q4 07 Appraisal well 2008 Phu Horm Field (9.5%) Average production 88 mmscfd PH-10 completed as producer PH-6 likely to be commercial Three producing wells see Bcf Nam Phong Power Plant 710 MW Block L27/43 (27.2%) Numerous pinnacle reef structures Dong Mun discovery 150 Bcf mean/250 Bcf upside potential Spud appraisal wel in Oct 07 Savannakhet PSC, Lao PDR (95%) Two x 1 Tcf prospects One liquids prospect c. 150 mmbo Extensive 2D seismic Two wells in

12 Khorat Plateau Operational update, Phu Horm field PH-6 Drilled underbalanced, saw gas down to TD Valve failure during drilling Acid-frac scheduled for Q1 08 PH-7 PH-10 PH South Drilled underbalanced,did not encounter fracture network Completed as a producer, 10 MMscfd Drilled conventionally Tree clearance finished, site construction well underway Spud immediately post completion of DM-3 well (Dec 08) SPH-A 12

13 Khorat Plateau Phu Horm-6 Drilling Data Salamander Energy Under Balanced Drilling Bit Change Deployment Valve not working : well killed / damaged Conventional Drilling (over balanced) 13

14 Khorat Plateau Phu Horm field: north - south cross section South prognosis SPH-A PH-5 PH-3 PH-10 PH-4 PH-7 PH-6 PH-1 PH-2 North TD 2462 TD 2463? TD GDT: 2590m (Pressure data) Gas show/flow during drilling 1853 TD 2342 GDT: 2403m (Temp Log PH-5) TD 2037 GDT: 2156m(test at PH-1) 2493 TD TD 2480 DST #2A 1839? DST # Huai Hin Lat Fm Pha Nok Khao Fm Up Limestone Unit Pha Nok Khao Fm Mid Dolomite Unit Pha Nok Khao Fm Lower Limestone Unit DST # DST # DST flowed gas with no water DST flowed gas and water 3043 Formation DST flowed water TD 3295 Si That Formation Clastics Unit Si That Limestone Unit Loei Group 3244 TD DST #

15 Khorat Basin, Greater Mekong Appraising the Dong Mun discovery, L27/43 Northeast Thailand Scheduled spud October 2007 Carbonate platform & reef DM-1 tested gas at 5+ MMscfd 150 Bcf mean, 250 Bcf gross upside potential, Salamander interest 27.2% Multiple follow up opportunities on the block 45 km from the Nam Phong power plant Top Pha Nok Khau Fm Depth Structure 15

16 East Kalimantan Tutung appraisal, Bontang PSC 2D transition zone seismic acquired, processed & interpreted Tutung Alpha 1 location selected circa 1.2 km North of discovery well Bcf potential Ensco-1 contracted Spud December 07/January 08 Near Top Reservoir Depth Structure Ensco 1 barge-mounted rig 16

17 2007 Appraisal Program Five fields & discoveries to be appraised targeting > 50 mmboe resources Salamander Energy 1. South Sembakung Tested 12.7 mmscfd 125 Bcf & 3 mmbc potential 2. Manik Stratigraphic discovery 44 mmbo mean, 90 mmbo upside 3. Dong Mun 150 Bcf mean, 250 Bcf upside 45 km from gas plant 4. Phu Horm South Significant step out from Phu Horm field Additional 180 Bcf net to Salamander in success case Plus unitisation upside 5. Tutung Gas-condensate 100 Bcf upside potential Ensign 16 Land Rig Phu Horm South L15/43 (27.2%) One well Bohai IV Apexindo 2 Land Rig Ensco 1 Drilling Barge Manik Discovery, SES PSC (5%) Three wells Dong Mun Discovery L27/43 (27.2%) One well South Sembakung Discovery Simengarris JOB (21%) Two wells Tutung Discovery Bontang PSC (70% operated) One well firm, plus one contingent 17

18 2008 Exploration Campaign Six to eight high impact wells targeting > 10x 2P reserves Thailand L13/48 (16.2%, jointly operated) Appraisal drilling 2008 Si That feature 1 Tcf mid case Vietnam DBSCL1 (100%, operated) Exploration drilling 2008/9 Oil prone graben Lao PDR Savannakhet PSC (95%, operated) 2 exploration wells large prospects. 1 Tcf+, 150 mmbo Oil & gas potential Philippines SC41 (35%) 2 exploration wells leads / prospects Oil recovered on block mmboe each Indonesia Bontang PSC (70%, operated) 2 exploration wells leads / prospects 20 mmboe+ features, gas & liquids 18

19 Philippines SC41, Sandakan Basin, East Kalimantan Under-explored basin offshore Borneo, favourable economic terms Salamander 35%, large area (4820 km 2 ), proven petroleum system Completed 750 km 2 3D seismic ahead of 2008 exploration drilling Nine leads already identified along foldbelt trend: expected size range MMboe per feature Wildebeest-1 recovered 38.2 degree API oil from two zones SW NE 19

20 Cuu Long Delta River Block 1, Vietnam Overlooked Cuu Long Basin analogue 1970 s Vintage Seismic, DBSCL-1 PSC Half Graben Half Graben Basement Horst Block Same vertical scale Modern Seismic, Cuu Long Basin 20

21 Forward Programme 2007 appraisal drilling ahead of extensive 2008 exploration campaign Salamander Energy Data Acquisition Exploration Drilling Appraisal Drilling Indonesia Lao PDR Vietnam Thailand Lao PDR Philippines Vietnam Indonesia Thailand Indonesia Q3 Bontang 3D Cuu Long Aero-Mag 2007 South Sembakung Manik Q4 Savannakhet 2D Cuu Long 2D L13/48 2D Dong Mun Phu Horm South Tutung 2008 South Sembakung 3D Phu Horm 3D Savannakhet A & B SC41 A & B DBSCL1 Bontang A+ B Si That SS-4 Dev'mnt Drilling Thailand Indonesia PH-10 PH-6 Acid Frac South Sembakung Tutung H Forecast Exploration & appraisal capex $22.1 mm $55 mm Production & development capex $8.3 mm $17 mm 21

22 Profit & Cash Flow Underpinning Broad E&A Portfolio Fully funded, highly active programme for 2H 2007 & 2008 Salamander Energy Maiden Profit $3.8 MM up from $3.2 MM loss Increasing Revenues & Cash Flow Revenue of $32 MM, operating cash flow 0f $14.1 MM Expanding the Asset Portfolio Four additional license interests added during H1 07 Material Appraisal Programme Underway Five fields and discoveries, targeting c. 53 MMboe of resources unrisked Preparing for High Impact 2008 Exploration Programme 6-8 wells in Indonesia, Philippines, Vietnam, Thailand and Lao PDR, mostly operated, high equity stakes 500+ mmboe of resources unrisked Fully funded to carry out work programme Financial capacity to grow the business Good visibility on regional deal flow 22