Preliminary Results 2009...

1

Preliminary Results 2009 Presentation

2 November 2009

Disclaimer

2

Important Notice

Nothing in this presentation or in any accompanying management discussion of this presentation (the "Presentation") constitutes, nor is it intended to constitute: (i) an invitation or inducement to engage in any investment activity, whether in the United Kingdom or in any other jurisdiction; (ii) any recommendation or advice in respect of the ordinary shares (the "Shares") in Bowleven plc (the "Company"); or (iii) any offer for the sale, purchase or subscription of any Shares.

The Shares are not registered under the US Securities Act of 1933 (as amended) (the "Securities Act") and may not be offered, sold or transferred except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any other applicable state securities laws.

The Presentation may include statements that are, or may be deemed to be "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "seeks" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include statements regarding the Company's intentions, beliefs or current expectations concerning, amongst other things, the results of operations, financial conditions, liquidity, prospects, growth and strategies of the Company and its direct and indirect subsidiaries (the ‘Group’) and the industry in which the Group operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Group’s actual results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In addition, even if the Group’s results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, are consistent with the forward-looking statements contained in the Presentation, those results or developments may not be indicative of results or developments in subsequent periods. Recipients of the Presentation are advised to read the admission document dated 1 December 2004 issued by the Group (as supplemented by subsequent announcements by the Company to Regulatory Information Services) for a more complete discussion of the factors that could affect future performance and the industry in which the Group operates. In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the Presentation may not occur. Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in the Presentation.


Presentation Agenda

• Opening Remarks

• Asset Overview

• Financial Overview

• Outlook and Closing Remarks

• Open Questions

Preliminary Results 2009 Presentation 3

Kevin Hart, CEO

Ed Willett, Exploration Director

John Brown, Finance Director

4

Opening Remarks

Company Overview

• Strategy focused on creating and realising value through material exploration success.

• Seek value adding partnerships as appropriate.

• Fostering strong external partnerships and in-country relationships.

• Strong technical and management teams with successful track record.

5

Financial Strength

• Current cash position of circa $120 million, no debt.

• First phase of Vitol farm-out transaction provides additional $100 million gross expenditure carry.

• 7 Blocks (5 in Cameroon and 2 in Gabon).

• 4 offshore shallow water, 3 onshore.

• 6 operated, 1 non operated.

• Overall P50 contingent resource base 217 mmboe

• Extensive 3D & 2D seismic database.

• Substantial prospect inventory developed across portfolio.

• Extensive 2010 drilling & seismic work programmes planned.

Company Assets

Strategy - Regional Focus on West Africa


(2008: 203 mmboe).

Exploration: Resources to Reserves

• OLHP 1 & 2 (Bomono) Cameroon; seismic planned 2010.

• MLHP 6 (Etinde) Cameroon; seismic planned 2010.

• Epaemeno, Gabon; exploration drilling planned 2010.

• MLHP 5 (Etinde); additional seismic and exploration well planned 2010.

• EOV (NW Kowe), Gabon; mature prospect.

6

Appraisal/Development

• MLHP 7 (Etinde) Cameroon; multiple existing discoveries including IM & IE/ID gas/condensate and IF oil.

• Initial focus on appraising/developing IE and IF fields, appraisal well programme planned for 2010.

• EOV field – advanced discussions ongoing on EOV.

Development/Production

Exploration Phase


2009 Highlights


Above: Etinde PSC signing.

• Etinde PSC signed December 2008, setting economic basis for future developments.

• Equity fundraising in June 2009 raised approximately $113 million.

• Etinde farm-out transaction entered into with Vitol E&P Limited (Vitol) in August 2009; assignment approval anticipated by end 2009.

• Current group cash balance approximately $120 million.

• Vitol initial carry ($100 million gross) provides additional flexibility.

• Funding in place for planned 2010 work programme.

• Advanced discussions ongoing in relation to EOV.

• P50 contingent resources for the Group increased to 217 mmboe (2008: 203 mmboe).

• Completed GdF/SNH feasibility study adds momentum to the development of Cameroon gas resources.

Corporate

Operational

8

Cameroon

Asset Overview

Cameroon Overview

Rio Del Rey Basin

• MLHP 7.

• Shallow offshore area.

• Highly prospective acreage within a proven active hydrocarbon system.

• Tertiary oil and gas-condensate discoveries.

• Established portfolio of additional Tertiary prospects.

• Maturing exploration with transition into an appraisal/development phase.

Douala Basin

• MLHP 5 & 6, OLHP 1 & 2.

• Onshore and shallow offshore areas.

• Highly prospective acreage

• Number of onshore oil seeps.

• Tertiary and Cretaceous leads.

• Onshore early exploration phase on 2D dataset.

• Offshore mature prospects portfolio on 3D dataset.

9Preliminary Results 2009 Presentation

Douala

Cretaceous Turonian plays accessible in onshore area and shallow waters.

Etinde PSC Overview


Commitments

Asset Strategy

Etinde (MLHP 5, 6, & 7)

• 100%* Bowleven

• Etinde Permit covers an area 2,316km².

• 3 year exploration period, expiring December 2011.

• 200km² 3D seismic data and 1 well.

• Commitments will be covered in 2010 programme.

• Existing IM & IE/ID gas/condensate and IF oil discoveries.

• IE and IF appraisal drilling planned.

Discovered Resources (MLHP 7)

• Further seismic coverage planned to identify additional prospectivity.

• High impact exploration drilling planned.

• Significant and established prospect inventory.

Exploration Resources

• To move resources to reserves.

• Secure appraisal area over MLHP 7 existing discoveries

• Aggressive exploration plan over MLHP 5 & 6.

* pending assignment approval for Vitol transaction.

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Cameroon Appraisal / Development

Asset Overview

Isongo Oil Discovery -IF – Bowleven 2008. Tertiary sourced 35°API oil transforms prospectivity and value of acreage.

Isongo Prospects -Multiple undrilled structural culminations associated with existing discoveries. Low risk and high potential.

Biafra Prospects -Shallow dry gas accumulations at Manyikebi and IE plus additional prospectivity. Oil shows in IM-1.

MLHP 7 Discoveries & Prospects Inventory Overview


Isongo Gas Condensate Fields -Isongo Marine, IC, ID and IE. IE successfully appraised by Bowleven in 2007. Characterised by rich condensate yield – CGR of 70-140 bbl/mmscf.

• IF oil discovered August 2008.

• Bowleven assessment of hydrocarbons in place 225mmbbls STOIIP.

• Independent certification by TRACS supports Bowleven’sassessment.

• A prominent gas chimney effect obscures much of the seismic reflectivity of the oil charged reservoir interval.

• Sea bed survey undertaken highlights presence of gas chimney.

• 4 component OBC 2D seismic data acquired.

• High resolution 3D seismic to be acquired over IF field ahead of appraisal drilling 2010.

MLHP 7 IF Field Update

1000m

Seabed expression of IF Gas Chimney

Poor data zone

IF-1IF-1R


3D Compressional Wave Data

WSW ENE

TWT









1000m


Poor data zone

IF-1IF-1R


IF-1 IF-1R

2D Shear Wave Data

WSW ENE

TWT









1000m


Poor data zone

IF-1IF-1R


IF-1 IF-1R

MLHP 7 IE Field Update

• IE-1 drilled 1981; encountered dry gas in Biafra (mean 80bcf GIIP) and gas/condensate in Isongo (mean 463bcf WGIIP).

• IE-2Z appraisal drilled February 2007 (Bowleven) established high flowrates and significant condensate potential.

• IE-3 appraisal well location identified; ready to drill.

• IE-3 well stacked objectives:

– To appraise Isongo Sand 1 updip of IE-1 and IE-2z wells

– To prove additional volumes in Isongo Sand 2 & 3.

– To penetrate the Biafra shallow gas accumulation.

• First well in 2010 drilling campaign.


ETM-1

IE-1IE-2z

ID-1

2.5km

IE-3 (Proposed)

Proposed well location

MLHP 7 IE Field Update

• IE-1 drilled 1981; encountered dry gas in Biafra (mean 80bcf GIIP) and gas/condensate in Isongo (mean 463bcf WGIIP).

• IE-2Z appraisal drilled February 2007 (Bowleven) established high flowrates and significant condensate potential.

• IE-3 appraisal well location identified; ready to drill.

• IE-3 well stacked objectives:

– To appraise Isongo Sand 1 updip of IE-1 and IE-2z wells

– To prove additional volumes in Isongo Sand 2 & 3.

– To penetrate the Biafra shallow gas accumulation.

• First well in 2010 drilling campaign.


MLHP 7 Resource (Mean Unrisked Volumes In Place)


*includes NGLs, which comprise condensate and LPGs. †NGLs include LPGs for ID & IE only.

Dry GIIP (bcf)

Wet GIIP* (bcf)

NGL†

(mmbbl)STOIIP

(mmbbl)

Isongo Marine Field* 466 18

Isongo E Field* 80 463 105

Isongo D Discovery* 8 1

Isongo C Discovery* 77 5

Isongo F Discovery 225

Manyikebi 56

Total Discovered Resource† 136 1014 129 225

Isongo Marine Exploration 1291 42

Isongo D Exploration 158 35

Isongo C Exploration 288 6

Isongo E Exploration 16 64 5

Isongo G Cluster 349 8

Total Exploration Resource† 16 2150 96

Total MLHP 7 Resource† 152 3164 225 225

†Volumes presented as gross figures.

IF-1r DST Flare

• Remapping of MLHP 7 in 2009 has resulted in the following key updates since the last presentation of volumetrics:

• Middle Isongo IM discovered gas-condensate up from 348 to 466bcf WGIIP and exploration resource up from 823 to 1291bcf WGIIP.

MLHP 7 Forward Plan 2010 - Drilling

• Priority commercialisation of existing resource base.

• Up to 4 wells planned in 2010 to include appraisal of IF Oil, IE condensate and high-impact exploration well on MLHP 5.

• 4th well in programme to be confirmed following initial drilling and seismic results.

• IE-3 location selected; ready to drill.

• IF-2 initial location selected; 3D seismic to confirm.

• Jack-up rigs available in region for 2010 drilling.

• Tender process planned for Q4 2009.

• Rig rates significantly lower than 2008 peak.


2009 2010 2011

Q4 Q1 Q2 Q3 Q4 Q1 Q2

EtindeDrilling

Preparation IE-3 MLHP 5 IF-2 Etinde WellAppr. Expl. Appr. TBC

MLHP 7 Forward Plan 2010 - Seismic

• Etinde commitment of 200km² 3D seismic data; covered by 2010 campaign.

• Current plan to acquire additional c.500km² 3D data on MLHP 6 & 7.

• MLHP 6 & 7 programme to image updip additional prospectivity from IE and IF.

• High resolution 3D planned over IF pre-appraisal drilling.

• Tendering for seismic crews in preparation phase.

• Reprocessing existing 3D seismic to improve subsurface imaging pre appraisal/development activities; contract awarded.

MLHP 7 current 3D 575km²

MLHP 5 & 6 current 3D 812km²

MLHP 6 & 7 Proposed 3D

500km²


2009 2010

Q4 Q1 Q2 Q3

EtindeSeismic

Reprocessing MLHP 7 3D

MLHP 6 & 7 3D Acquisition, Processing & interpretation

MLHP 7 Conceptual Development

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IE

Gas Reinjection Pipeline

IF WHP Platform6-Slot Wellhead and subsea wells

Multiphase pipelines from fields to FPSO for fluid separation, gas compression,

living quarters and storage.

Limbé

Existing Limbé Refinery and Power station

Potential Gas Export Pipeline

Field Oil/NGLsMbbl/d

Gas Fuel/ Export

MMscf/d

Gas Recycling /ProductionMMscf/d

Development Wells

Prod. Inj.

IF 30 (oil) 36 - 4 3

ID-IE 15-25 (NGL) - 130-150 3-5 2-3

TOTAL 45-55 (liquids) 36 130-150 7-9 5-6

IF

IE WHP Platform9-Slot Wellhead


• Integrated development option for discoveries via FPSO with associated gas piped to shore.

• Phase 1: IF oil development via FPSO.

• Phase 2: IE/ID gas-condensate recycling.

• Gas reinjection to maintain reservoir pressure.

• Condensate production to FPSO.

• Phase 3: Potential tie-in of IM if opportunity for gas off-take arises.

Manyikebi Discovery

IC Discovery

ID Discovery

GdF SUEZ – SNH Cameroon LNG Study


• Strategic partnership between GdF SUEZ and SNH formed November 2008.

• Objective to develop an LNG export plant in Cameroon.

• GdF/SNH Phase 1 feasibility study concluded.

• Sufficient in-country gas resources for LNG facility.

• Onshore plant at Kribi preferred option.

• Potentially provides a market and monetises Etinde gas fields including IM.

Bowleven / SNH

Gas Collection

Liquefaction facility

Domestic Market

LNG Purchaser

Gas, LPGs LNG

Other Gas Suppliers

Upstream commitment to develop proven reserves & continue exploration for additions.

Gas gathering, processing connecting all required suppliers

Construction & operation with committed long term gas supply and LNG offtake.

Buyer commitment to long term LNG purchase

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Cameroon – Exploration

Asset Overview

Douala Basin Discoveries


Logbaba (1950’s) Gas-condensate in Upp. Cret. deep-water sands. (VOG currently drilling well 105).

Souellaba (1950’s)Oil-gas in Miocene-Eocene deep-water sands

SANAGA-1x (1970)1885ft shows (C7+) in Eocene, Paleocene & Cretaceous sands

N. Matanda (1980/81)Gas-condensate in Upp. Cret. Deep-water sands

D-1r (2007), 25mmscfd, 1400bcpd from 75ft gross

Miocene deep-water sands

Coco Marine (2002/5)3000bopd 34° API oil, & 1.8mmscfd from Paleogene deep-water sands

Noble (Belinda, 2005/7)O-1 24mmscfd, 1225bcpdO-3 30mmscfd, 1540bcpdI-4 29mmscfd, 1634bcpdMiocene deepwater sands

Noble (Yolande + YoYo, 2007)YoYo-1 31mmscfd, 330bcpdI-3 36mmscfd, 371bcpd

Noble (Carmen, 2008/9)O-5 26 feet of net oil pay, 13 feet of net gas pay TD at 11,150ft Lower Miocence

Noble (Diega, 2008)I-6 37ft net oil pay, 2700bopd (separate from gas-condensate zone)

Noble (Benita, 2007/8)I-1 34mmscfd, 1038bcpdI-2 115ft net oil pay 32°APII-5 42ft net oil pay, 6250bopd

Douala Basin Discoveries


• Active drilling & discoveries on neighbouring acreage.

• Oil shows in Sanaga-1X and the Souellaba oil field on the block boundary.

• Unique opportunity to access the prolific West African Tertiary and Cretaceous fairways from shallow water & onshore locations.

Mean unrisked in-place volumes **

>4.5 WGIIP*(tcf)

>250 mmbbls CIIP

>700 mmbbls STOIIP

• Portfolio of prospects in across the Tertiary and Cretaceous fairways.

• MLHP 5 allows ready access to both Tertiary and Cretaceous fairways from a shallow water location.

• Potential exploration prospectivity on MLHP 6; previously discounted, no existing seismic coverage.

• Further seismic acquisition planned over MLHP 5 & 6.

• Exploration well planned 2010.

** As per 2009 interim presentation

D-1r mean discovered resource

72bcf WGIIP*

4mmbbls NGL

*includes NGLs, which comprise condensate and LPGs.

A well in MLHP 5 could materially transform the acreage.

MLHP 5 & 6 Forward Plan 2010

• Prospect and lead inventory matured on existing 3D coverage.

• High impact exploration well(s) planned for 2010.

• Acquire additional c.450km² 3D seismic data on MLHP 5 in 2010 to infill gaps within the existing data.

• MLHP 6 & 7 c.500km² 3D seismic planned for 2010 to enable full assessment of Etinde prospectivity.

• Tendering process for seismic crews underway.

MLHP 7 current 3D 575km²

MLHP 5 & 6 current 3D 812km²

MLHP 5 Proposed 3D 150km²


2009 2010

Q4 Q1 Q2 Q3

EtindeSeismic

Reprocessing MLHP 7 3D

MLHP 6 & 7 3D

MLHP 5 3D program

MLHP 5 Proposed 3D OBC 300km²

2009 2010 2011

Q4 Q1 Q2 Q3 Q4 Q1 Q2

EtindeDrilling

Preparation IE-3 MLHP 5 IF-2 Etinde WellAppr. Expl. Appr. TBC

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Cameroon

Bomono Overview

Bomono Overview


Commitments

Asset Overview

Bomono

• 100% Bowleven.

• Composed of two blocks covering an area of 2328km².

• 5 year first term, expiring December 2012.

• 500km 2D seismic data (320Km 2D planned for Q1 2010).

• 1 well (to be drilled 2011/2012).

• Highly prospective acreage within a proven active hydrocarbon system.

• Readily accessible local gas market (Douala City in OLHP 2).

• Unique situation to access the prolific West African Turonian play onshore in a combination of structural and stratigraphic traps.

• Initial technical evaluation highlights multiple prospects with individual sizes ranging from 10 to 250mmbbls Mean STOIIP.

• Q1 2010 acquisition 320km 2D seismic.

• Tender process completed; contract awarded. 2009 2010 2011

Q4 Q1 Q2 Q3 Q4 Q1 Q2

Bomono Seismic Preparation 2D Seismic Acquisition,

Processing & Interpretation(Additional 2D or

Drilling)

Planned 2D acquisition

Existing 2D

26

Gabon

Epaemeno Overview

Basement

Basement

Epaemeno Overview

Commitments

Asset Overview

Epaemeno

• 50% Bowleven, 50% farm-out completed April 2007.

• Second exploration term expires August 2010 with third term expiry August 2013.

• Commitment 2D seismic data acquired in Q1/Q2 2009.

• 1 well with 50% relinquishment at the end of the second term.


2009 2010 2011

Q4 Q1 Q2 Q3 Q4 Q1 Q2

Epaemeno Drilling

Technical preparation

ahead of 2010 dry season.

Site Preparation EPA Well 50% Block Relinquishment

End August 2010

Dentale Prospects

Tsiengui (145MMbbl)

Koula (75MMbbl)

Avocette (265MMbbl)Obangue (55MMbbl)

Onal (180MMbbl)

Omko-1 (20MMbbl)

2P STOIIP source: IHS Energy

Rembo Kotto (60MMbbl)

Assewe (18MMbbl)

Dentale Basin

Topo Graben

• Bowleven has been acting as technical operator under a TSA.

• Sub-salt fields and discoveries to the east and south of the block.

• 2010 to focus drilling on significant prospect inventory established following interpretation of 2D seismic.

• Prospect volumetric range 10 to 350mmbbls Mean STOIIP consistent with field sizes in the region.

• Technical evaluation and prospect inventory complete and highlights a number of significant prospects on the margins of the Dentale Sub-basin.

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Gabon

East Orovinyare Overview

East Orovinyare

Commitments

Asset Overview

East Orovinyare

• 100% Bowleven.

• PSC signed in February 2004.

• Shallow water.

• Block contains the EOV oil field.

• No further commitments.

• Exploitation licence containing an oil field (EOV).

• Production facilities principally complete in Louisiana; awaiting relocation to platform site.

• EOV development project sanction deferred pending further drilling to enhance resource base on block.

• Additional exploration upside remains untested within the block including the North West Kowe prospect.

• Advanced discussions ongoing on EOV.


30

Financial Overview

2009 Year End Results Summary

• Loss of $10.2 million in year (2008: loss of $10.9 million).

• Loss reported after EOV impairment of $50 million, and unrealised finance income of $50 million.

• Net assets of $426 million at year end.

• $70 million invested in fixed assets.

• Net cash resources of $130 million at 30 June 2009.

• Access to substantial additional finance post year end with Vitol farm-out.


2009 Year End – Funds Summary

Cash increase

$27m

• Net cash at 30 June 2009 - $130 million

Foreign exchange

movement on cash

balances

$8m


Current Estimated Expenditure

$30 - $35m¹

$95 - $110m¹²

$14 - $16m

$6 - $9m*

Principal 2010 Work Programme Expenditure


*Net to Bowleven.¹Includes work programme for Etinde proposed by Bowleven and Vitol after government approval for transaction is received.²Budget for 3 well programme including testing, 4th Etinde well budget not included as location and target tbc.³Vitol will fund an initial $100 million gross exploration/appraisal work programme on Etinde in return for a 25% stake in the permit.

Total $145 - $170m .

2009 2010 2011

Q4 Q1 Q2 Q3 Q4 Q1 Q2

Epaemeno Drilling Preparation Site

Preparation EPA Well 50% Block RelinquishmentEnd August 2010

Bomono Seismic Preparation 2D Seismic Acquisition Additional 2D or

Drilling

EtindeDrilling Preparation 3 Well Programme

4th

Etinde well (tbc)

EtindeSeismic

Repro. MLHP 7 3D

MLHP 5, 6 & 7 3D Surveys

Bowleven Net (After Carry)³ ~$40 - $60m .

• Initial estimates, to be updated post-tender process.

• Excludes internal corporate costs etc.

Etinde$125-$145m

Other$20-$25m

Included in estimate.

Excluded from estimate

Funding Overview

• Net cash at 30th June 2009 $130 million

• Current cash circa $120 million.

• Etinde farm-out to Vitol provides $100 million funding of gross work programme for 25% interest.

• Vitol have an option to acquire further 25% for further $100m work programme and $25m cash to be invested in Etinde.

• EOV field – advanced discussions ongoing on EOV.

• Moving from resources to reserves.

• Significant financing flexibility.


35

Outlook & Closing Remarks

2010 Overview and Objectives


• Continuous exploration/appraisal programme with up to four wells on Etinde to commence H1 2010, including:

• IE and IF appraisal wells to confirm commercial viability.

• High impact MLHP 5 exploration well to pursue Cretaceous oil play.

• Fourth well, target to be confirmed during 2010 work programme.

• Extensive 3D seismic acquisition and reprocessing on Etinde.

• Progress IE and IF development projects to sanction; aim to upgrade resources to reserves.

• Drilling on Epaemeno planned with operator, Addax, in H2 2010.

• Commence Bomono 2D seismic in Q4 2009.

• Continue to review farm-out opportunities to optimise exploitation of acreage.

2010 Work Programme

• MLHP 7 appraisal well on the IF oil field.

• MLHP 7 appraisal well on the IE gas-condensate field.

• MLHP 5 high impact exploration well.

• Epaemeno onshore exploration well.


2010 Seismic Programme

2010 Drilling Programme

• MLHP 7 3D seismic re-processing.

• 3D streamer survey over MLHP 6 and MLHP 7 (including IF).

• MLHP 5 3D shallow water seismic survey.

• 2D survey over Bomono.

2010 Other Events

• 50% relinquishment of Epaemeno.

• Vitol option exercise date (25% Etinde) 30th Sept 2010.

2009 2010 2011

Q4 Q1 Q2 Q3 Q4 Q1 Q2

Epaemeno Drilling Preparation Site

Preparation EPA Well 50% Block RelinquishmentEnd August 2010

Bomono Seismic Preparation 2D Seismic Acquisition (Additional 2D or

Drilling)

EtindeDrilling Preparation IE-3 MLHP 5 IF-2 Etinde Well

EtindeSeismic

Repro. MLHP 7 3D

MLHP 5, 6 & 7 3D Surveys

43

Analyst Contacts

Principal Contact:Kerry CrawfordTel: 0131 524 [email protected]

Kevin Hart – Tel: 0131 524 5678John Brown – Tel: 0131 524 5678

38

Preliminary Results 2009...

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