oil search north slope alaska alaska north slope

59 Pages·2017·4.52 MB·English

Colville River, Alaska North Slope
ALASKA NORTH SLOPE:
A STRATEGIC EXPANSION
OIL SEARCH
OPPORTUNITY
NORTH SLOPE ALASKA
FOR OIL SEARCH
A New Path for Growth
14 December 2017
OIL SEARCH LIMITED | ARBN 055 079 868 | ASX: OSH | POMSoX: OSH | US ADR: OISHY
www.oilsearch.com
PRESENTATION OUTLINE
(cid:1) INTRODUCTION Alaska Barrow
(USA) Canada
(cid:1) Strategy & rationale Deadhorse
North Slope
(cid:1) ALASKA - AOG PERSPECTIVE
USA
(cid:1) ACQUISITION METRICS
TAPS &
(cid:1) ASSET SUMMARY Dalton
ALASKA Highway
(cid:1) Alaska North Slope - history and geological setting
(cid:1) Nanushuk field
(cid:1) Exploration upside Anchorage
Valdez port
(cid:1) TEA BREAK
(cid:1) ASSET SUMMARY CONT.
(cid:1) Development plans
(cid:1) Stakeholder engagement
(cid:1) Programme schedule
(cid:1) PNG LNG EXPANSION UPDATE
(cid:1) FINANCIAL OVERVIEW
(cid:1) Q & A
OIL SEARCH ALASKA STRATEGY SEMINAR -DECEMBER 2017 | PAGE 2
ALASKA NORTH SLOPE
INTRODUCTION
PETER BOTTEN – MANAGING DIRECTOR
OIL SEARCH ALASKA STRATEGY SEMINAR -DECEMBER 2017 | PAGE 3
OSH STRATEGY AND RATIONALE
OSH HAS WORLD CLASS GAS PORTFOLIO IN PNG
(cid:1) Strong resource base
(cid:1) >10tcf resource now dedicated to LNG expansion and development
(cid:1) Key elements of two train expansion being delivered
(cid:1) Appraisal and exploration success delivering resource base for next
generation of LNG growth
REALITY THAT LNG PROJECTS ARE COMPLICATED, REQUIRE
PARTICIPANT ALIGNMENT, MARKET SUPPORT AND FINANCING
(cid:1) Many areas not in OSH control
(cid:1) Requires time to commercialise
OIL SEARCH ALASKA STRATEGY SEMINAR -DECEMBER 2017 | PAGE 4
OSH STRATEGY AND RATIONALE
STRATEGIC IMPERATIVE TO ALIGN INTERESTS FOR
P’nyang Muruk
CONTINUED EXPANSION
• Resources in NW Highlands:
NW Highlands • Hides-Muruk-P’nyang-Elk-Antelope
• Onshore Gulf
Elk-Antelope
• Offshore Gulf
Gulf / Forelands
• Deep water Gulf
• Multiple tcf potential but when and how
much do we invest?
• Facilities and infrastructure optimisation
Offshore Papuan Gulf :
• Coordinated and timely investment in
Shallow and deep water
exploration appraisal and infrastructure
• Strategic focus for 2018 – growth after
Train 3 and 4
• Disciplined capital prioritisation, based on
this work
OIL SEARCH ALASKA STRATEGY SEMINAR -DECEMBER 2017 || PPAAGGEE 55
PNG : A WORLD CLASS GAS PROVINCE
~
5bnboe discovered to date , YTF >7bnboe
Discovered hydrocarbon volumes in millions of
barrels of oil
YTF = OSH estimates benchmarked against
USGS and others
Discoveries
• 12 Developed
• 30 Undeveloped
P50 discovered resource
Yet-to-Find potential
• 24 tcf
• 92% gas & 8% oil
• 958 mmbbl
• 40 tcf
• 550 mmbbl
• Giant fields
predicted
OIL SEARCH ALASKA STRATEGY SEMINAR -DECEMBER 2017 | PAGE 6
STRATEGIC RATIONALE – ALASKA ACQUISITION
ALASKA BRINGS SUSTAINED DEVELOPMENT, PREDICTABILITY AND CONTROL
(cid:1) Driven by:
– Quality Tier 1 oil resource with significant upside in development and
exploration
– Compelling entry price at right time in development and oil price cycle
– Conservative resource and development assumptions following material
due diligence
– Deal structure provides significant optionality and risk mitigation. Option
allows strategic partnering
– Ability to drive early commercialisation
– Enhances resource position
– Enhances shareholder returns post 2023. No change to dividend policy
– Supported by Balance Sheet strength and flexibility
OIL SEARCH ALASKA STRATEGY SEMINAR -DECEMBER 2017 | PAGE 7
O
PNG AND ALASKA
Creates a world class, focused oil and gas portfolio with material
exploration upside
OSH Forecast Net Production OSH Production & Exploration Acreage
OSH Operated
OSH Non Operated
Pikka Oil base 25.5%
E
O
53000km² 52,000km²
B s
on Papua LNG & PNG LNG expansion cre 13.2m acres 12.8m acres
Milli et A
N
PNG LNG
PNG Oil
PNG PNG
2014 2019 2024 2029 2034 2039 2015 2017
2016 acreage 2017 acreage
OSH estimate net resources OSH Net Prospective Resources (YTF)
2P & 2C
E OSH estimate of E 2,889km²
BO Alaskan resource BO 0.7m acres
million faocrq puuisriptioosnes of the Million Alaska PNG
PNG Pikka ALASKAN
2015 2017
Base
2017 acreage
OSH Development
OSH Exploration
* PNG LNG gas conversion using an OSH specific conversion factor 5,100 scf= 1 boe; ** Papua LNG gas conversion using 6,000 scf= 1 boe LNG production is well head gas.
OIL SEARCH ALASKA STRATEGY SEMINAR -DECEMBER 2017 | PAGE 8
ACQUISITION IS IN LINE WITH STATED STRATEGY
2014 Annual Report
2015 Annual Report
November 2016 Investor Field Trip
August 2017 Company Update
OIL SEARCH ALASKA STRATEGY SEMINAR -DECEMBER 2017 | PAGE 9
ALASKA NORTH SLOPE
AOG PERSPECTIVE
BILL ARMSTRONG – PRESIDENT, ARMSTRONG OIL AND GAS
OIL SEARCH ALASKA STRATEGY SEMINAR -DECEMBER 2017 | PAGE 10