2. 2
Falkland Oil and Gas Limited
Geographic
Focus
• Purely focussed on exploration offshore the Falkland Islands
• Only Falkland explorer operating in both the North & South Basins
• Largest licence holder of all Falkland explorers
Exciting
Portfolio
• South and East Falkland Basin offers high impact drilling opportunities
• North Falkland Basin offers lower risk ‘step-out’ exploration and appraisal
• Interest in the Sea Lion oil development project
Active
Drilling
Programme
• Rig contracted – drilling commences Q1 2015
• Fully funded to drill 5 wells
• Biggest player in 2015 drilling programme
3. 3
Only explorer operating in both the North & South Basins
• Net interest of over 40,000 sq. km
• Material interest (40%+) in all licences
• Experienced operators
• Noble Energy
• Premier Oil
• Over 12,000 sq.km 3D survey completed
• Rig contract signed with Ocean Rig to use the
Eirik Raude on a multi-well campaign
• 5 well programme commencing in late Q1 2015
2004 licences
FOGL: 40%
Noble (op.) 35%
Edison: 25%
2002 licences
FOGL: 52.50%
Noble (op.) 35.0%
Edison: 12.5%
FOGL: 40%
4. 4
FOGL’s South & East Basin Licences
2010 & 2012 drilling
• 5 wells drilled: 4 found gas or gas-condensate
• Proved a working hydrocarbon system in the basin
• Good quality source rocks
• Good quality Cretaceous reservoirs
Toroa
6. 6
Major 3D seismic acquisition programme completed
Major 3D acquisition programme
• Completed in February 2014
• 3 separate survey areas
• >12,000 sq. km in total
7. 7
New 3D seismic
• Over 12,000 sq.km 3D survey completed
• 3 separate areas of interest:
• Diomedea Fan Complex
• Cretaceous Fault Blocks
• Hersilia Fan Complex
• Excellent data quality & imaging
• Step change in our understanding and ability
to map prospective areas
8. 8
• The Diomedea area comprises a large system of
deep-water channels and fans.
• Mid Cretaceous source rocks are expected to be
inter-bedded with these sands and mature for oil.
• A 5,500 sq.km 3D survey was acquired to explore
this play
• Many prospects and leads have been mapped
Diomedea Fan Complex (FOGL 52.5%)
Diomedea 3D survey outline
Humpback
Finback
Prospects and Leads map
9. 9
• Potential drilling candidates include:
• Humpback
• Finback
• Seismic interpretation is on-going
• Final target selection expected by end Q3 2014
Diomedea Fan Complex
Humpback shown on amplitude map generated from the new 3D seismic
Shelf
Slope
Basin
10. 10
• The Darwin exploration well discovered a rich gas
condensate in good quality Cretaceous sands
• Numerous, similar features have been mapped in our
adjacent licences.
• A 3D seismic survey was acquired in 2013 to better
define some of these prospects.
• Seismic interpretation is on-going and final results
are expected in Q3 2014
• Seismic amplitude responses indicate the possibility
of different hydrocarbon phases, including oil
• Potential drilling candidates include:
• Nurnberg
• Scharnhorst North
Cretaceous Fault Blocks (FOGL 52.5%)
11. 11
• A large 5,750 sq. km 3D seismic survey acquired
• Prospect mapping has yet to commence
• Fast-track 3D seismic data available in mid June
• Source rocks may be oil generative in the vicinity of Hersilia
and West Hersilia
• The Loligo well proved the presence of large amounts of gas in
the Tertiary Channel play
• Reservoir quality at the well location was poor. 3D seismic may
indicate if better reservoir is present elsewhere within Loligo
• To achieve a collaborative approach with Noble Energy, the
previously excluded area covering Loligo and Nimrod has been
re-combined into a single licence area
Hersilia Fan Complex and Loligo (FOGL 40%)
Scotia
3D survey outline
Loligo
• Fast track data will be available in June 2014
• Final processed data in Q4 2014
12. 12
• Interests in 5 licences
• PL004b (40% WI) contains Sea Lion
southern extension
• Material exploration prospect stacks in
PL004, PL003 & PL005
• Zebedee
• Jayne East
• Isobel
• Elaine
• Helen
• Susan
• Ann/Orca South
FOGL’s North Falkland Basin Licences
Jayne East
Elaine
Isobel
Zebedee
well location
Susan
13. 13
• The Sea Lion field straddles PL032 & PL004b
• FOGL estimate that c.30% of the Sea Lion oil-in-place lies
within PL004b
• 85 mmbbls 2C resources net to FOGL (Senergy)
• Premier are proposing a two phased development
concept, targeting the northern area first
• Further appraisal required in PL004b to determine
resources distribution & potential: Zebedee will be the
key next well
• In a success case up to 40% of Sealion oil-in-place
could be within PL004b
• FOGL has a significant stake in Sea Lion and
unitisation discussions have now been initiated with
the other field owners
Sea Lion area
Zebedee Location
PL032
PL004b
Probable Gas Extent
Probable Oil Extent
14. 14
PL004b: Zebedee (FOGL 40%)
Source: Premier Oil Source: Premier Oil
Multiple stacked targets
Zebedee Location
• FOGL: 40%, Premier (Operator) 36%, Rockhopper: 24%
• Net resources c. 60-160 mmbbl (un-risked)
• Well to test 7 target horizons
• The well will seek to extend the proven F2 sequence
towards the south and will also test deeper targets within
the older F3 sequence.
• Risk assessment: low-moderate
Source: Premier Oil
Feb 2014 CMD Presentation Feb 2014 CMD Presentation
15. 15
• Net resources c. 30 ~ 90 mmbbl (un-risked)
• Well will target Isobel deep
• Success will de-risk Elaine North & South, Helen & Susan
• Risk assessment: moderate
• Key risk: up-dip seal & reservoir
PL004a Isobel & Elaine (FOGL 40%)
Elaine
Isobel
Jayne East
Susan
Source: Premier Oil
Isobel Deep amplitude and spectral decomposition displays
Feb 2014 CMD Presentation
Isobel Deep
Location
16. 16
• Net resources c.40 ~ 90 mmbbl (un-risked)
• Location provides potential to stack 5 fans
• Risk assessment: moderate
• Key risk: up-dip seal
PL04c: Jayne East (FOGL 40%)
Jayne East
Susan
Jayne East Location
17. 17
• Ocean Rig’s Eirik Raude contracted
• Rig to be mobilised to the Falklands in Q1 2015
• The final drilling order is expected to be:
- 2 PMO operated wells in the North Falkland Basin
- 2 Noble operated wells in the South Falkland Basin
- 2 PMO in the North Falkland Basin
• Option slots have been secured, to allow follow-up drilling on any
successful results:
- Up to 8 options available up to point of rig mobilisation
- Options available during drilling on the basis of 1 option for every firm well
completed & up to a maximum of 8 options
• Eirik Raude is a fifth generation harsh environment semi-submersible
& sister ship to the Leiv Eirikssen that successfully operated offshore
the Falklands in 2012
FOGL’s drilling programme
18. 18
• FOGL has by far the largest exposure to the 2015 drilling programme:
Share of 6 well firm programme, based on drilling days*
- FOGL: 42%
- Premier Oil: 19%
- Noble Energy: 19%
- Rockhopper: 13%
- Edison International: 7%
• Participating in 5 out of 6 firm wells
2015 drilling programme
* Calculation based on equity share of total firm drilling programme, currently estimated at 260 days
19. 19
• FOGL is fully funded through a 5 well drilling programme commencing in Q1 2015
• It is either partially or fully carried on 4 of the wells as a result of farm-out carry arrangements with
Noble Energy, Premier Oil and Rockhopper Exploration
• Estimated well costs: Northern Basin well c.$50 million gross
Southern Basin well c.$110 million gross
• At end December 2013 FOGL had pro-forma cash of $151 Million
• Impact of farm-outs
Equity interest Paying interest
Zebedee 40% 40%
Isobel Deep 40% 0%
Jayne East 40% 0%
Noble well 1 52.5% 27.5%
Noble well 2 52.5% 42.5%
Funding
20. 20
FOGL largest exposure (>40%) to the 2015 drilling programme
Falklands only company operating in both north & south basins
Fifteen drilling commencing in Q1 2015
Five wells firm wells, plus options
Fully funded or firm programme
Five hundred mmbbls net prospective resources targeted by 5 wells>
21. 21
Disclaimer
FALKLAND OIL AND GAS LIMITED
DISCLAIMER
This presentation is not and is not intended to be a prospectus and does not or is not intended to constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for
any securities in Falkland Oil and Gas Limited (the "Company") in any jurisdiction. It shall not form the basis of, or be relied on in connection with, or act as invitation or inducement to enter
into, any contract or commitment whatsoever. No offer of securities is being or will be made in circumstances which would require a prospectus or similar document to be approved.
While the information contained in this presentation, which does not purport to be comprehensive, is believed to be accurate, neither the Company nor any other person has conducted any
investigation into or verified such information. No representation or warranty, express or implied, is or will be given by the Company or its directors, officers, employees or advisers or any
other person as to the accuracy, completeness or fairness of this presentation and, so far as permitted by law and except in the case of fraud, no responsibility or liability whatsoever is
accepted for the accuracy or sufficiency of any of the information contained in this presentation or for any errors, opinions, omissions or misstatements, negligent or otherwise relating to this
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This presentation may include certain "forward looking" statements which are based on expectations, projections and forecasts relating to the future performance of the Company. Such
statements, projections and forecasts, which are intended as a guide only, represent the Company's own assessment and interpretation of information available to it at the date of this
presentation and reflect significant assumptions and subjective judgements by the Company. A number of factors could cause actual results to differ materially from the potential results
discussed in such forward looking statements, estimates and forecasts, including (but not limited to) changes in general economic and market conditions and all other risk factors (whether
political, regulatory or otherwise) associated with offshore exploration, development and production. In all cases, recipients should conduct their own investigation and analysis of the
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