Growth in Africa - Lundin Petroleum

Exploration and Marginal Field Development
Growth in Africa
WF9679 07.07
Alex Schneiter, Executive VP & Chief Operating Officer
Cape Town, October 2007
Disclaimer
DISCLAIMER
Certain statements made in this presentation involve a number of risks and uncertainties
that could cause actual results to differ materially from those projected. Certain statements
relating to Lundin Petroleum’s business and operations are based on management’s
expectations, estimates and projections. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult to predict.
Certain statements are based upon assumptions as to future events that may not prove to
be accurate. Therefore, actual outcomes and results may differ materially from what is
expressed or forecasted in such statements. Lundin Petroleum makes no commitment, and
disclaims any duty, to update or revise any of these statements.
This presentation is for informational purposes only and is not intended as a solicitation or
offering of securities in any jurisdiction. The information contained in this presentation is not
intended to qualify, supplement or amend information disclosed under corporate and securities
legislation of any jurisdiction applicable to Lundin Petroleum and should not be relied upon for
the purpose of making investment decisions concerning any securities of Lundin Petroleum.
WF8278
Lundin Petroleum - A Diversified Portfolio
United Kingdom
5 production licences,
20 exploration licences
Norway
Russia
1 production licence,
2 development licences,
22 exploration licences
4 producing licences,
1 exploration licence
Ireland
4 exploration licences
France
Netherlands
18 production licences,
1 exploration licence
14 production licences,
2 exploration licences
1 exploration licence
Vietnam
Ethiopia
Tunisia
Cambodia
1 exploration licence
5 exploration licences
1 production licence,
3 development licences
Sudan
Congo Brazzaville
1 exploration licence
Indonesia
1 exploration licence
Kenya
3 production licences,
2 exploration licences
1 exploration licence
WF9189 10.07
Four Core Areas: Europe, Africa, Russia, Far East
The Lundin Group Areas of Operation - Africa
LUNDIN PETROLEUM
Tunisia - Oudna Field
Oil production
LUNDIN MINING
Eritrea / Morocco / Burkina Faso
Investments in mineral exploration
RED BACK MINING
Mauritania / Ghana
Gold production
LUNDIN PETROLEUM
Congo Brazzaville Oil and gas exploration
LUNDIN MINING
Democratic Republic of Congo
Tenke Fungurume Project - large copper/cobalt deposit
LUNDIN PETROLEUM
Sudan / Ethiopia / Kenya
Oil and gas exploration
WF9678 10.07
Company Profile
PRODUCTION (BOEPD)
2P RESERVES (MMBOE)
40,000
200
30,000
150
20,000
100
10,000
50
0
0
02 03 04 05 06 07
MARKET CAPITALISATION (MUSD)
as at 16 October 2007
10,000
8000
6000
4000
02 03 04 05 06 07
Contingent Resources 133 MMboe
200
100
100
0
0
02 03 04 05 06
Lundin
200
Heritage
300
Tullow
300
PA Resources
400
0
Soco
400
02 03 04 05 06
WF9800 10.07
OPERATING CASH FLOW (MUSD)
Premier
EBITDA (MUSD)
Dana
2000
Last Decade - African Developments
WF9801 10.07
1998 - En Naga Field, Onshore Libya
1999 -Thar Jath Field, Onshore Sudan
Lundin as operator discovers and
develops the North and West
En Naga Fields with reserves of
100 MMB oil
Lundin as operator discovers the
Thar Jath oil field with estimated
reserves of 150 MMB oil. First oil
June 2006
2006 - Oudna Field, Offshore Tunisia
Lundin Petroleum as operator
develops the Oudna oil field with a
single subsea producer tied back to
a FPSO. First oil November 2006
with a start-up production of
20,000 bopd. Estimated reserves
are 12 MMB oil
Africa Exploration - Increasing Company Focus
Forecast approximately 20% of the Company’s total production in 2007 to come from Africa
Estimate 25% of the Company’s total 5.4bn barrels of unrisked prospective resources to be in Africa
25% of the Company’s total exploration expenditure for first half of 2007 spent in Africa
Anticipate to drill 3 exploration wells in Africa in 2007 and up to 5 exploration wells in 2008
Lundin Petroleum activity in Africa
AFRICA
REST OF
THE WORLD
2007 Forecast
Production
WF9684 09.07
AFRICA
REST OF
THE WORLD
Total Unrisked
Prospective Resources
AFRICA
REST OF
THE WORLD
Exploration Expenditure
1H 2007
AFRICA
REST OF
THE WORLD
Unrisked Prospective
Resources targeted in 2007
Lundin Petroleum’s African Strategy
High risk, high reward frontier exploration
target prospects with significant
resource potential
Marginal field development
creative designs
quick pay-back
WF9807 10.07
Lundin Petroleum - African Assets
Nigeria
ATL ANTI C OCEAN
Sudan
- 5B: Partner with Petronas
Sudapet, ONGC Videsh.
- 2D seismic ongoing
- Drilling commences Q4 07
MOROCCO
WESTERN
SAHAR A
TUNISIA
ALGERIA
Tunisia (operator)
LIBYA
- Produced 7 MMB oil at Isis
- Oudna plateau production
21,000 bopd
EGYPT
MAURITANIA
Congo Brazzaville
- Partner with Soco, Raffia Oil,
SNPC, AOGC
- 3D seismic Q4 2006
- Currently interpreting seismic
- Commence drilling in 2008
MALI
NIGER
SENEGAL
CHAD
BURKINO
GAMBIA
GUINEA
FASO
SUDAN
BISSAU
GHANA
NIGERIA
GUINEA
TOGO
SIERR A IVORY
BENIN
CENTR AL AFRIC AN
LEONE COAST
C AMEROON REPUBLIC
LIBERIA
YEMEN
DJIBOUTI
E THIOPIA
SOMALIA
UGANDA
KENYA
GABON
CONGO
ERITREA
- 1 exploration licence
in force majeure
DRC
TANZ ANIA
ATL ANTI C OCEAN
ANGOL A
Z AMBIA
MAL AWI
MOZ AMBIQUE
ZIMBABW E
NAMBIA
MADAGASC AR
BOTSWANA
Kenya
- Block 10A signed 4Q 2007
- Gravity survey and
reprocessing 2008
SOUTH
AFRIC A
0
SWA ZIL AND
500 km
Over 120,000 km2 of acreage position in Africa
WF8928 10.07
Somalia
Ethiopia (operator)
- 2 blocks signed 4Q 2006
- 3 blocks signed 2Q 2007
- Aeromagnetic and gravity
surveys Q4 07
Africa - an Increasing New Ventures Focus
Exploration
Ethiopia - Signed PSC in fourth quarter 2006
Ethiopia - Signed two PSCs in third quarter 2007
Kenya - Signed PSC in fourth quarter 2007
Congo Brazzaville - Signed PSC in first quarter 2007
Ethiopia
Appraisal
Congo Brazzaville - Viodo marginal field development
Congo
(Brazzaville)
90,000 km2 of exploration acreage secured in 2006/7
GABON
0
KM
50
CONGO
(Brazzaville)
ADIGALA
DJIBOUTI
ETHIOPIA
BLOCKS 2 & 6
BLOCKS 7 & 8
MARINE XI
SOMALIA
ANGOLA
CONGO
(Kinshasa)
BLOCK 10A
KENYA
0 KM 200
WF9681 10.07
Kenya
Exploration - Sudan, Block 5B
Block B Central
Thar Jath (Dev)
20
EGYPT
LIBYA
d
Se
Jarayan 1
Block 5A
Jong
Block 5B
Baang 1
Port Sudan
lei Ca
Thar Jath
a
nal
Duar
Km
Re
0
CHAD
Khartoum
Haar
ERITREA
SUDAN
Kosti
Bahr El Zaraaf
Fagil
Pakwak
Laer
White Nile
ETHIOPIA
Riang
Tungrab
Wau
Bei
CENTRAL
AFRICAN REPUBLIC
Shotfeng
Adok
Goakni
Wan Machar
AYOD
Upper Nile
CONGO
BLOCK 5B
KENYA
Puldwot
Woi
Khawr Jurwel
Mer
Jonglei
Duk Padiet
Nyal
B
Dorok
Pakam
Agok
Puldwot
Jolong
Lake Nuong
Ganyiet
Nuong Dock
Seismic Camp
Werneyol
Paraken
El Buheyrat
Kongor
Shambe
Block B Central
Lualajokbl
Prolific Muglad Basin petroleum system
1500 km 2D seismic survey programme
Over ~1200 km of seismic acquired since 2006
5 exploration wells in 2007-8
Current Partners 5B interest
Lundin Petroleum 24.5%
Petronas Carigali 39.0%
Sudapet
13.0%
ONGC Videsh Ltd
23.5%
Net unrisked resource
> 500 million boe
from targeted prospects
WF9171 10.07
Joint
operators
(WNPOC)
Exploration - Sudan, Block 5B
UD-1 well site preparation
Nuong Dock seismic camp
Barges and drilling equipment at Kosti logistics base before transit to well location
WF9171 10.07
Exploration - Ethiopia
Three PSA’s signed in 2006 and 2007
100% operated by Lundin East Africa BV
Ogaden Basin
Blocks 2 & 6 (Nov 06)
- 24,514 km2
Blocks 7 & 8 (July 07)
- 21,767 km2
Calub 2.7 Tcf &
Hilala 1.35 Tcf
Adigala
SOMALIA
Gelenso heavy oil seep
Galadi-1 oil shows in
Jurassic and Triassic
ETHIOPIA
Afar Basin
Adigala Area (July 07)
- 27,508 km2
Frontier exploration in under explored
basins with multiple plays and proven
petroleum systems
Gherbi 1
WF9682 10.07
XEF 5
XEF 1
XE 3
XE 3A
XDE 1
XE 4
XE 5
GX 2 GX 3
Gumburo 1
GX 4
Galadi 1
02
OGAD
XC 2
06
Tulli 1
EN BA
SIN
07
Unappreciated Jurassic oil system
in Ogaden
Possible extension of Somalia geology
into Adigala block
XEF 2
Hilala-1 oil recovered
from upper Jurassic
Shillabo 2
Magan 1 Magan 2
Shillabo 1
Hilala 1
Hilala 4
Faf 1
Callafo 1
Abred 1
XC 3
Dusa Mareb 2
Bodle 1
El Kuran 2
El Kuran 1
08
Derkale oil seep
XC 4
Genale-1 - oil and gas
shows in Triassic
Megan-1 oil shows
in Jurassic
El Koran-1 oil in Jurassic
and gas in Triassic
XD 2
XD 2
G
Exploration - Ethiopia
Lundin Petroleum scout trip - Ogaden Basin Blocks
Typical terrain
WF9815 10.07
Exploration - Kenya
El Harr
Afric
a
Block 3E
Unity 1A
UnityMunga
1B South
Beneshangul Gumuz
Kaikang 4
Mala 1
Miyan 1
Thar Jath (Dev)
Block 7E
Block 5A
Block A
PSA signed for Block 10A, Anza Graben
14,748 km2
Block A
ETHIOPIA
Block B Central
Block 5B, Sudan
Africa
Southern Rift Block
Block 10A, Kenya
Block 10BA
DRC
Block 13T
Block 10BB
UGANDA
Initial work programme - 4 years
Seismic reprocessing
Gravity survey
Seismic acquisition
One exploration well
Blo
Block 12A
Block 14T
Block 12B
0
100
KM
WF9803 10.07
Block G
SUDAN
100% operated by Lundin Kenya BV
Anza Graben is south eastern continuation
of the Cretaceous Rift System productive in
the Muglad Basin, Sudan
Proven oil-prone mature source rock
Proven sandstone reservoirs
Proven multiple undrilled rift structures
Block B North-East
200
KENYA
Tunisia, Oudna Field - Marginal Field Development
Discovery well in 1978 (Shell)
Tested cumm. rate of 7,000 bopd (41°)
Miocene sandstone reservoirs
Negotiated fiscal and technical solution
Water Depth: 264m
Reservoir: Miocene Birsa Sands
Successful testing of Oudna-3
Gross reserves: ~12 MMBO (41°API)
Field onstream 11 November 2006
1 subsea producer with jet pump
1 subsea injector
tieback to Ikdam FPSO
Total investment USD 186 MM
Payback - Q4 2007
WF8932 10.07
FPSO Ikdam undocking in Malta
Tunisia, Oudna Field - Marginal Field Development
Lundin Petroleum 40% (operator)
Atlantis 40%
ETAP 20% back-in right exercised March 2007
Production forecast for 2007 of >14,000 bopd (gross)
Water breakthrough and production decline
as modelled in approved FDP
Production (Gross Barrels)
30,000
Oil Rate
Forecast oil rate
25,000
20,000
15,000
10,000
5,000
0
Nov.2006
WF9193 08.07
Jan.2007
Mar.2007
May.2007
Jul.2007
Sep.2007
Nov.2007
Development - Congo Brazzaville
Gabon
Block Marine XI:
Soco E+P Congo (operator)
Lundin Petroleum
Raffia Oil
SNPC
AOGC
0
18
Km
Nyanga Mayombe
37.5%
18.75%
18.75%
15.0%
10.0%
M'Bya Marin
M'Wengui
4°0'0"S
Noumbi
Congo Brazzaville
Marine XI spans 1,400 km2 in
water depths less than 110m
Marine IV
Kouilou B
Marine III A
Kouilou A
Yombo-Masseko-Youbi
Kayo Bloc Nord
Loango
4 discoveries remain undeveloped
Zatchi Marine
Mwafi
Likalala-Libondo
Tilapia
Kombi
Kouakouala A
Pointe Indienne
10 prospects/leads identified w/ 2D seismic
Foukanda
Marine XI
Kouakouala B
Kouakouala D
Marine III B
Yanga-Sendji
Djambala Marine
1,200 km2 3D acquired 4Q-2006;
currently being interpreted
Key points:
”Marginal” discoveries potentially
commercial in current oil price environment
No exploration to date in block using
3D seismic
WF874707.07
9
Kouakouala C
Sounda Marine
Kayo Bloc Sud
Tchibouela
Marine IX
Kitina Marine
Tchibeli-Litanzi-Loussima
Tchendo
Cabinda A (North)
Emeraude
Haute Mer C
D.R.C.
Awa-Paloukou
Likouala
Moho-Bilondo
N'Kossa
N'Soko
Angola
N'Sangui
Block 0 (Area A)
Nemba
Block 14aLomba
Mer Profonde Sud
Cabinda B (Center)
Kuito
BlockTomboco
14d Benguela
Belize
14K / A-IMI
Lobito
Landana
Longui
Vanza
Block 0 (Area B)
Bomboco
Block 14b
Block 0 (Area B)
Kokongo
Cabinda C (South)
12°0'0"E
Conclusion
Over 20 years of operational
experience in Africa
Well established projects
across Africa
Proven track record in Africa
Exploration success resulting in commercial
developments (Libya, Sudan)
Able to secure new areas in highly competitive market
Development of marginal fields success (Tunisia)
Going forward, continue two prong strategy in Africa
Marginal field development
Frontier, high risk / high reward exploration
WF9804 10.07
Lundin Petroleum
WF8934 09.06
Active Explorer
Talented & Motivated Staff
Onshore/Offshore Operations Experience
Financially Strong
HSE Competence
Corporate Responsiblity Commitment
www.lundin-petroleum.com