Drillers and Dealers December 2011

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LATIN AMERICA ASSEMBLY
Ali Moshiri President, Africa and Latin America Exploration and Production, Chevron
Antonio Vincentelli CEO, PetroNova
The Latin America Assembly
Aurelio Ochoa President, Perupetro
Charle Gamba CEO, Canacol
Steve Hermeston President & CEO, CGX Energy
25 26 January 2012 The Hilton Bogot, Colombia

A New Forum for Latin Americas Oil & Gas Business Community
The Business of E&P in Latin America Capital Raising, M&A and A&D, JVs IOC / NOC partnerships and capex strategies evolving models Independent E&P opportunities in Per, Argentina, Brazil Capital markets: tapping local and international funding pools private and public New Frontiers and Unconventional plays: Argentine shale, heavy oil, offshore, Central America Oil Field Services Managing Risk, Navigating Regulation sharing best practice.
Frank Holmes CEO and CIO, US Global Funds
Javier Gutirrez Pemberthy President, Ecopetrol
John Wardle CEO, Amerisur Resources
Marcio Mello Chairman, Founder, and CEO, HRT Oil & Gas Oil Council Partners:
Richard Walls CEO, C&C Energia
Toronto Stock Exchange
TSX Venture Exchange
Energyintel.com
Steve Crowell CEO, Pluspetrol
Bourse de Toronto
Bourse de Croissance TSX
Bourse de Toronto
Bourse de Toronto
www.oilcouncil.com/event/latam
drake.lawhead@oilcouncil.com
Editors Remarks
2011 A Year of Discontent

During the two days of our World Assembly on November 16-17 at Chelsea Football Club, I pulled aside dozens of our speakers and Partners for sixty-second interviews. You can read some of the transcriptions in these pages. I asked roughly the same question to everyone, namely, what was the biggest lesson you learned in 2011 that will be carried into your business planning in 2012, and what concerns you and what excites you about the upcoming year for you as a business and for the oil and gas industry as a whole. In every answer, the same word came up: volatility; volatility in the financial markets, in the global economy, and in the sense of political instability. After 2011, what other answer could one give? And if volatility is the new stability and can be depended on as a factor in business planning does that mitigate the pernicious effects of it, once the unpredictable becomes predictable? From a socio-political perspective, there may never have been a year with as much aggregate dissatisfaction manifesting itself in so many parts of the world than 2011. It will enter history along with 1968, 1917, and 1848 as a year of widespread protest. Consider: A fruit seller in Tunisia with nothing more to lose sets himself on fire as a protest against a Government who had made his life unbearable to his own self. Like the assassins bullet that killed Archduke Ferdinand, it was a small, solitary act that was the beginning of a truly worldchanging year of rage. From Tunisia, the uprising spread across North Africa and into the Gulf States, the rumblings of which are still being felt as Egypt, Syria, and Yemen continue to fight for control of their futures. Meanwhile, a different storm was brewing in the Eurozone and US a painful relapse of a hangover of the 2008 financial crisis reasserting itself in the form of fears over sovereign debt. The prescribed cure austerity has triggered violent clashes and rioting in Rome, Madrid, Athens, and elsewhere. On the softer side of the spectrum, the Occupy movement, which started in Wall Street and was itself inspired by pictures from Tahir Square, has metastasized to over 82 countries in as unlikely candidates as Japan, Norway, Hong Kong and Mongolia. The Occupy movement has mercifully less violence in it than their Middle Eastern counterparts, but it too is characterized by deep dissatisfaction and discontent with the status quo. There were even times in 2011 when violent civil disobedience seemed to have little aim whatsoever. In July, gangs of Londoners took to the street to burn buildings, vandalize businesses, and injure policemen for reasons that were as pointless and superficial as the act itself. The global O&G industry often operates at the sharp end of geopolitical and economic risk, not to mention operational and environmental risk; E&P takes companies to some of the most unstable and difficult parts of the world, and when the markets pull back credit, E&P stocks are punished disproportionally. Yet, as Lord Browne reminded in his speech at our Awards of Excellence Dinner, the O&G industry produces a product that is indispensable to the functioning of the modern world. It does this by going into some of the most technically, logistically, and politically challenging parts of the world and uses NASA-level technology to extract its product from underneath the earths surface in a safe and environmentally acceptable way. It does this all for a product that is sold at $100 a barrel far cheaper than the cost of a gallon of nearly any other product, whether thats Coca Cola, milk, or bottled water. While doing that, it is important to remember to be good guests when operating in a foreign country, said Lord Browne. At a time when global levels of discontent are at an historic high, the O&G industry should not be satisfied with merely acceptable levels of environmental and social compliance it should over-deliver in these areas and build for itself a reputation as a good guest wherever it operates, bringing benefits to local economies and communities. Even when companies achieve this, too often, the media has put industry on the back foot, forcing it to issue reactive statements about its activities (fraccing was one of the Oxford English Dictionarys Words of the Year, its context almost unfailingly negative). Taking the lead in environmental, economic, and social initiatives is one way to reclaim control of the message the industry sends to the market and the media. In an alternative world, for example, why couldnt fraccing be associated not with poisoning water wells and causing earthquakes, but with an incredible feat of human ingenuity aimed at solving the problem of providing cheaper, cleaner, and geopolitically more secure supplies of energy that benefit the local economy. Out of interest, who wouldnt want that?
By Drake Lawhead, Editor
p.s. I look forward to meeting some of our readers at our Latin American Assembly in Bogot early next year (Jan 25-26th).
Drillers and Dealers :::
::: December 2011 Edition
Welcome to Drillers and Dealers December 2011
Drillers & Dealers

Official Publication of The Oil Council 3rd Floor 86 Hatton Gardens London EC1V 8QQ, UK Editor Drake Lawhead Vice President, Content/Member Relations drake.lawhead@oilcouncil.com T: +44 (0) 20 7067 1873 Editor-at-Large and Media Enquires Iain Pitt COO iain.pitt@oilcouncil.com T: +27 (0) 21 700 3551 Publisher Ross Stewart Campbell CEO ross.campbell@oilcouncil.com T: +44 (0) 20 7067 1877 Partnership Enquires Vikash Magdani EVP, Corporate Development vikash.magdani@oilcouncil.com T: +1 347 633 7734 Advertising Enquires Amir Shirkhan Vice President, Sales amir.shirkhan@oilcouncil.com T: +44 (0) 20 7067 1876 Laurent Lafont Vice President, Business Development laurent.lafont@oilcouncil.com T: +44 (0) 20 3287 3447 Graham Swanson Vice President, Business Development graham.swanson@oilcouncil.com T: +44 (0) 20 7067 1872 Craig Bennett Vice President, Business Development craig.bennett@oilcouncil.com T: +44 (0) 20 7370 8031 North American Media Enquiries Jay Morakis Partner JMR Worldwide jmorakis@jmrworldwide.com T: +1 212 786 6037 To Be Added to Distribution List Email: info@oilcouncil.com More Information At www.oilcouncil.com
Contents
Editors Foreword
Drake Lawhead, The Oil Council
SPECIAL CEO FOCUS Executive Q&A

Dr Nick Cooper, CEO, Ophir Energy
7 10
Characteristics of Success for CEOs of Mid-Cap E&P Companies

Mike Cripps, Managing Partner, Cripps Sears & Partners
Special Review: 2011 World Assembly and 2011 Awards of Excellence

Nuala Gallagher, Editor, International Resource Journal and James Elston, Former CEO, Realm Energy
12
ON THE SPOT THE ANALYST
What are the three most exciting prospects for the E&P industry in 2012? Perspectives from Analysts Across the Globe
20
FROM THE SIDELINES
Looking back on 2011, what lesson(s) will you take into your business planning for 2012? and other pressing questions asked to our network Perspectives from Partners and Members Across the Globe
24
Risked Portfolio Valuation
Jason Ambrose (Founder) and Bart Willigers (Principal Consultant), Palantir Economic Solutions
34
Meet The Members

Copyright, Commentary and IP Disclaimer: *** Any content within this publication cannot be reproduced without the express permission of The Oil Council and the respective contributing authors. Permission can be sought by contacting the authors directly or by contacting Iain Pitt at the above contact details. All comments within this magazine are the views of the authors themselves unless otherwise attributed to their company / organisation. They are not associated with, or reflective of, any official capacity, or any other person in their company / organisation unless so attributed ***
39
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Executive Q&A CEO Focus
Executive Q&A with Dr Nick Cooper, CEO, Ophir Energy

Drake Lawhead interviews Dr Nick Cooper, November 2011
Q: Its been a busy year In the last five months, you took over the helm at Ophir from Salamander, floated on the London Stock Exchange, and acquired Dominion Petroleum. What next for an encore or are you going to take a break? Ha-ha, certainly not. The business is about to swing back into the exploration programme with nine to thirteen to 13 wells in the next 15 months, starting in Tanzania with a well spudded before year end. Having IPOd in July we have a responsibility to shareholders to really keep up the pace in the Company and I am looking forward to a busy 2012. Q: Africa has several different exploration plays, most of which Ophir seem to have a stake in. Where do you see most market activity/excitement currently and where do you see most activity focussing on in the years to come? We are balanced in our attention to the portfolio; we have a pan African collection of licences in all but one of the major oil and gas plays, each with its own defining factors and upside potential. Tanzania is the most obvious upside, but Equatorial Guinea provides considerable value from a near term commercialisation point of view and our highly prospective acreage in Gabon is technically exciting. Q: How long before we see another Jubilee-sized discovery in Africa? Where might it come from? Not long I wouldnt have thought. However we should probably distinguish between oil and gas discoveries. ENI has just found 22.5 TCF gas offshore Mozambique, which combined with our volume of gas in Tanzania and that found by the Anadarko partnership could create a huge opportunity for the East African region. The pre-salt plays in Gabon and Namibia are also providing a lot of excitement to the industry, and if pre-drill estimates are to be believed they could be world scale discoveries in the event of success. Q: How would you describe the risk/reward profile of the plays you are involved in? Are you hunting elephants or smaller game? We have a fairly balanced portfolio in terms of size potential and risk/reward. We are targeting a risked net 600mmboe in our upcoming, fully financed drilling programme; a significant upside potential to our shareholders. Q: Do you see M&A picking up in 2012 in the independent E&P sector off the back of the Premier/Encore deal and your own acquisition of Dominion, or is it too early to call?
Executive Q&A CEO Focus
I think it is quite early to call. M&A in the E&P sector is always a good talking point amongst the advisers and industry, but over the past couple of years the glut of takeovers has failed to materialise; it has been more a case of likely targets being taken over by likely acquirers. But when you have situations where good assets are not necessarily being progressed to their full potential, it allows a well-financed operator to come and offer their shareholders the opportunity to realise value. Q: On a similar note do you foresee increased M&A activity across Africa in general in 2012? I would stick to what I have said previously, that good assets will always have a market, but that doesnt mean full corporate M&A will increase because of that. Q: Are the markets sufficiently liquid for your liking, as an African-focused exploration company? What do you foresee for investment appetite / liquidity in 2012? I wish I could predict the future. So far we have been treated well by the stock market as I believe it likes the upside potential from our portfolio, but as we go through the programme there will be successes and failures; that is the nature of E&P and I hope they appreciate the failures in the context of the wider fully financed work programme which we have in place. We aim to get to a risked outcome over a drilling program. Q: How would you describe Ophir in one sentence to a potential new investor? Ophir is present in four of the five sub-Saharan exploration themes and is the fifth largest holder of deepwater acreage in Africa; a big oil exploration in a mid-cap company with a strong recent success record and a significant step up in drilling ahead of us. Q: Which other oil companies do you admire, both in Africa and internationally, and why? Tullow would have to be my pick for what theyve achieved since the Energy Africa acquisition; a smart series of well-timed transactions and organic successes to build a world class E&P company. Q: Looking back on 2011, what lesson(s) will you take into your business planning for 2012? Cash is again becoming ever more important. Assuming that the macro environment doesnt improve then well see increasing differentiation between the haves and have-nots. Q: Finally, three questions we always ask: First, when youre away from work, how do you enjoy spending your spare time? Brainwashing my kids into supporting my terrible football team: launching a micro-brewery and helping my wife transform a muddy farm into a vineyard. Q: Second, what do you enjoy most about working in the oil and gas industry? An international business that has it all: talented people, considerable challenges, tangible rewards for success. Never easy, never dull. Q: Finally, I cant let you go without asking our standard question. Youre on a desert island what three luxuries have you chosen to bring? (N.B. Raft Building for Dummies, satellite phone, teleportation device etc., not allowed) My wife, two daughters and deckchair (I know thats four).
Dr Cooper began his career as a geophysicist with BG and Amoco in the UK and various international locations. He then spent two years with the energy team at Booz-Allen & Hamilton, advising on upstream and gas development projects. In 1999, Dr Cooper completed an MBA at INSEAD and went on to join the oil and gas team at Goldman Sachs where he held the position of Vice President. In early 2005 he co-founded and became CFO of Salamander Energy, the Asiafocussed exploration and production company, which has grown from start-up to FTSE250 constituent
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Guest Article
Characteristics of Success for CEOs of Mid-Cap E&P Companies

Written by Michael Cripps, Managing Partner, Cripps Sears & Partners
The following comments are the result of a confidential and anonymous survey conducted by Cripps Sears & Partners on the characteristics of success for CEOs of mid-cap E&P companies. CSP surveyed 40 existing CEOs and senior executives within the E&P sector. Each participant was asked to suggest at least 1-2 characteristics which they felt were most important. The results are below, listed in order of percentage of applicants who mentioned that particular characteristic. Relevant Sector Experience (22.5%): Our participants considered that a successful CEO should have a broad, fundamental understanding of the business they run, i.e. the full value chain. There should be a clear direction brought about by a clear understanding of the business. In the E&P sector in particular, he/she should have broad experience, both technical and commercial, and should fundamentally understand how to turn hydrocarbons into money (i.e. not a HR director). A successful CEO would also be aware of what he/she doesnt know and would be prepared to ask the right questions. A Good Team (20%): 20% of those surveyed felt that the role was not a one man job and that the key for success was in identifying and retaining a top quality team around you. A successful CEO is not afraid to surround themselves with high quality experts and can recognise/utilise the values and skills of that team. Strength of character is required to attract those individuals, to control, direct and focus them and, importantly, to not feel threatened by them. A CEO who can promote a healthy team atmosphere at Board level will find success. Leadership (20%): Our participants considered that a successful CEO should have different leadership styles for different occasions. They should be engaging and compelling with a strong degree of passion and conviction, galvanising and aligning the company. The CEO should lead from the front, generating trust and enthusiasm from the workforce. A CEO should be flexible and adaptable, and able to handle change. A particular skill often quoted in this category was decision making. A CEO should be able to make hard decisions when necessary. They should manage risks and uncertainty and not get paralysed. Communication Skills (15%): 15% considered that a good CEO should have excellent 360 degree communication skills, with the ability to deal up and down the organisation effectively, and across cultures. Some of those surveyed mentioned the importance of the Human Touch which was defined as the ability to communicate with people/staff genuinely and to be contactable. Managing External Relationships (15%): 15% percent considered the ability to attract investors and manage external perceptions and messages as vital to success. A good CEO is presentable, politically savvy, understands the role of the company in capital markets, and has the soft skills to listen/communicate with the external world effectively. Ambition (12.5%): 12.5% percent cited focus as an important characteristic of success. Clarity and determination are other qualities that were mentioned. Energy and stamina were considered important. Vision / Strategy (12.5%): A successful CEO will have a clear vision and strategy and will effectively communicate this to the Board and through the wider organisation. Our participants stressed the importance of a long term strategy and the resolve to not be swayed by short term market changes. Charisma (12.5%): Hard to define, our participants considered the charisma and personality of a CEO as key to success. The ability to articulate a strong vision and to personify it was seen as important. The CEO should be the epitome of the business and their character should filter down through the organisation. Balance (7.5%): 7.5% mentioned the need for balance, in leadership/management skills and personality. A CEO should find a balance between being entrepreneurial and order/processes; a balance between competitiveness and ambition. Leaders should be small and big, loud and quiet, looking at old and new. Track Record (7.5%): 7.5% considered a successful track record as the biggest key to success. Where it was mentioned, it was felt that consistent delivery of results would point to future success. Integrity and Honesty (7.5%): Interestingly, only 7.5% considered this vital to success.
About Cripps Sears: Established in 1973 Cripps Sears & Partners is an international executive search firm exclusively serving the Energy & Natural Resources, Infrastructure and Professional Services sectors. This focus gives our specialist teams a depth of industry knowledge and a network of contacts that we are able to utilise to our clients advantage as they look to grow their businesses with key personnel. About Michael Cripps: Educated in the UK, Michael Cripps read sciences and business studies. Mike developed an early career in industrial management before moving into recruitment. Mike formed Cripps Sears whilst still in his 20's and has since developed his international search career to focus primarily on the energy/infrastructure and the energy finance/legal sectors.
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Guest Review
Special Review (Guest Foreword): 2011 World Assembly

Written by James Elston, Director, Palladian Energy and Former CEO, Realm Energy
I have been lucky enough to attend The Oil Council in London several times and met my most recent business partner to start Realm Energy at one of their previous events. A very profitable encounter. The Oil Council is a veritable whos who of the international independent oil sector, key investors and their advisors and therefore a must on any calendar. As a long time analyst and recent CEO it represents a unique opportunity to keep up with the Jones and to network. Having been immersed in the unconventionals silo for some time I got to catch up with whats happening across the broader sector and gain some insights on leadership and technology. I found the company lead updates on the UK North Sea, Kurdistan and across Africa most fascinating. I was unaware of the parlous state of the UK North Sea where almost all small players have left and looming closure of infrastructure will incur massive abandonment costs whilst leaving untold riches untapped unless HMG acts over tax and pipeline access. The rise in service costs has I believe made the offshore a challenging place for small caps. With Kurdistan the numbers are enormous and it seems likely that the Iraqi central government will have to move towards the Kurds sensible PSC structures rather than the other way round. The African voyage from the Transform Margin offshore west through the Rift Valley basins to the gas plays offshore East Africa showed the tremendous opportunities being successfully pursued sometimes with startling new technology like Full Tensor Gradiometry (FTG). FTG appears to correlate very well with 3D seismic defined prospectivity but is a fraction of the cost to acquire and use and sees through volcanics and salt. The new magic bullet? I found the panel on Leadership most interesting. The panel were asked whether CEOs were born or made? Brian OCathain CEO of Petroceltic was able to reflect on former colleagues Aidan Heavey, CEO of FTSE 100 Tullow Oil and Sir Graham Hearne formerly of fellow FTSE 100 member Enterprise Oil. He suggested they exhibited three key behaviours; They surround themselves with people smarter than them; They are great communicators; and They are likeable characters. James McCallum CEO of Senergy also made three interesting points on CEOs; They must be approachable to ensure important ideas and information flow to the top and backdown; That there are different CEOs for different times in a companys development (I have some experience of this myself!); and That they must be inspirational and have no bad days These all seem great targets. Some reflections on leadership were also to be found at the Buy-Side/Sell-Side panel where analyst Simon Hawkins formerly of MF Global and Ambrian Capital, suggested that investors should look for lucky management with luck being a combination of preparation and opportunity. (I am forming a new start up and believe I have both of these). Andy Brough of Schroders a famously plain speaking and successful investor said he favoured repeat guys and not those seeking lifestyle. Indeed good people go round again people and again in the US some on their 4th or 5th start-up; a target hopefully some of the younger stars in the international firmament achieve. John Bookout at KKR the private equity firm gave a stunning exposition of what the US resource players (and KKR itself) are achieving in making the US more oil self-sufficient. My other key takeaway from the finance side was that the troubles at the big French banks are causing serious problems in the oil and gas related debt markets; something that I believe may cause more US resource players to merge given their insatiable appetite for capital. All in all two days well spent; who knows it may change your life too.
About James Elston: James Elston has 20 years of broad ranging oil and gas experience in industry, banking and consulting. He is a director of Fallingwater Energy and Palladian Energy Limited, where he advises investment banks, private equity firms and energy companies on a variety of issues largely relating to equity capital markets, M&A and equity research. Mr Elston was until recently CEO of Realm Energy International Corp a TSX-V listed Shale explorer in Europe.
Guest Review
Special Review (Part One): 2011 World Assembly

Written by Nuala Gallagher, Editor, International Resource Journal (IRJ)
Convening over 900 oil and gas industry and investment heads, more than 65 speakers and 40-plus industry partners at The Oil Councils London-held 2011 World Assembly (and 650-seater black tie awards dinner) seems a staggering feat especially as current industry news coverage swings wildly from disaster to discovery. Everrisk conscious investors continue to be embattled by volatile equity prices, nettled by the ongoing woes (and headlines thereof) when it comes to Europes sovereign debt crisis. These are uncertain times for the entire energy industry as share prices falter and polarised views on sector outlook abound; nonetheless, at this high profile intercontinental meet the industrys great and good remained realistic about how business will fare in the coming months and how best to tackle challenges neither whitewashing mishaps or downplaying the deals worth celebrating. Price Tides: A Return to 2008? In tackling those beholden to hindsight head on, Jeffrey Currie, Global Head of Commodities Research at Goldman Sachs, chose to channel the wisdoms of Mark Twain on day one of the Assembly when he reminded onlookers that history doesnt repeat itself. Underlying fears that oil prices may again undergo 2008-style falls from all-time highs to barrel-scraping lows will impact the market regardless of whether a full blown financial crisis sweeps through, explained the man who famously told investors that financial worries were overriding market fact the first time round. Currie advised against fearing economic weakness in the U.K. and U.S., instead emphasising the seriousness of financial stress as he described how moves to avoid the whirlpool of the sovereign debt crisis, could send everyone sailing right into the rocks. In addition to reiterating Goldmans September 11 statement forecasting that the U.S. will become the world's largest oil producer in 2017, Currie outlined the emerging hydrocarbon provinces on the banking giants radar. Most of the supply growth we see for next year is coming from Libya and Iraq, he said. As the two-day Assembly rolled on, it transpired that Goldman and Currie are not alone in these forecasts. Media Leaps on Libyan Interest Within minutes of hitting the conference atrium, reporters shuttered copy across newswires and one subject reigned supreme: who was readying to enter Libya and how? Prominent energy houses hailing from Kuwait, Germany and Denmark (to name a few) professed varying levels of interest and activity, and each appeared to stress that the catalyst behind choosing to enter the country is how contractual arrangements will take shape when the nation forms a democratically-elected government. Speaking to MarketWatch on the sidelines, Sara Akbar, CEO of Kuwait Energy Company said that the company can see Libya as a great opportunity under the new government, and has just begun putting together proposals for working with the Libyan NOC in the future. In the long term, she said, Kuwait Energy Company will look at opportunities for new licenses. Her comments on initial interest government and industry contract formation depending were echoed by Jon Ferrier, EVP for Business Development and Strategy at Maersk Oil & Gas, who told the news agency that the company plans to send a team to Libya and weigh up its own future options. Enter Iraq, Enter Industry The work of energy giant ExxonMobil Corporation (and local unit ExxonMobil Iraq Ltd.) in the Kurdish region of Iraq remained suitably high on the agenda; the firms six oil and gas exploration deals in the country have rarely received as much coverage as they have of late. However, the assembly offered those in the industry-know a chance to level the playing field away from sensational headlines and debate the positive impact the multinational will have on both the local level market and global perceptions surrounding it. John Gerstenlauer, COO for Gulf Keystone Petroleum told The Wall Street Journal that it is impossible for an explorer bearing Exxons enormous presence to do what it has done and not change the dynamics, as he explained that the dealings taking place between the company and the Kurdish government depict an element of credibility, to Kurdish officials.
Guest Review
Special Review (Part Two): 2011 Awards of Excellence

Written by Nuala Gallagher, Editor, International Resource Journal (IRJ)
Led by introductory speaker Andy Yakuba, Group Executive Director of E&P at Nigerian National Petroleum Company, and after dinner guest of honour speaker Lord John Browne, Managing Director at Riverstone and former Group CEO of BP, The Oil Councils 2011 Awards of Excellence offered the industry elite a black-tie occasion to talk business and reflect on an eventful year. Its easy to forget, looking from the inside, the remarkable work that we in the energy industry do, Lord Browne said, noting that for all of the criticism that oil and gas garners, some well-deserved, it is important to remember how integral a role it plays globally. In an inspiring and candid address, Browne reflected without hesitation on the most damning disasters that have taken place in recent history and openly broached contentious realms such as those surrounding ambiguous public understanding of fraccing practises. He reminded diners that there is no such thing as risk-free energy and earmarked four drivers for future consideration: To be realistic about the challenges facing everyone; to cultivate external relationships that rival those strong bonds that exist internally within the industry; to handle crisis situations by reacting quickly and comprehensively (not under-reacting) in taking responsibility quickly while asking for as much help as possible; and to further industry-wide cooperation, which will reduce risk more broadly. His words provided a fitting atmosphere for the announcement of the 2011 Awards winners and the raucous applause that ensued.
** EXECUTIVE OF THE YEAR = ASHLEY HEPPENSTALL ***
Iain Manson, Head of Energy (EMEA) at Korn Ferry International (right) presents the award to Ashley Heppenstall, President and CEO of Lundin Petroleum (left) 2011 has been an exceptional year for Lundin Petroleum particularly with regard to our continued exploration success in Norway. It was a great honour for the company and myself personally to be recognised by The Oil Council particularly as these awards were voted upon by people from within our industry. Ashley Heppenstall, President and CEO of Lundin Petroleum
Guest Review
*** LARGE-CAP OF THE YEAR = ANADARKO PETROLEUM ***
Andy Yakubu, Group Executive Director of E&P at NNPC (left) presents the award to Ian Cooling, EVP of International Exploration at Anadarko Petroleum (right)
*** MID-CAP OF THE YEAR = TULLOW OIL ***
Brendan Wilders, Head of Corporate Sales at Oriel Securities (right) presents the award to Ian Springett, CFO of Tullow Oil (left) Tullow is delighted and honoured to have been voted Mid-Cap of the Year by our peers at The Oil Council Awards. We have had an excellent past year following first oil in Ghana in late 2010, record financial results including a doubling of our dividend, increased production and stunning exploration success off South America. We have also made acquisitions in Africa and Europe and completed a secondary listing on the GSEx. George Cazenove, Head, Media Relations, Tullow Oil
Guest Review
*** SMALL-CAP OF THE YEAR = NAUTICAL PETROLEUM ***
Emma Nicholson, Director of Corporate Development at Intrepid Financial (right) presents the award to Steve Jenkins, CEO of Nautical Petroleum (left)
*** EXPLORER OF THE YEAR = LUNDIN PETROLEUM ***
Kevin Price, Global Head of Reserve Based Finance at SGCIB (right) presents the award to Ashley Heppenstall, President and CEO of Lundin Petroleum (left)
Guest Review
*** OIL SERVICES COMPANY OF THE YEAR = PETROFAC ***
Keith Morris, Head of Oil & Gas Research at Evolution Securities (right) presents award to Gavin Graham, EVP of Integrated Energy Services at Petrofac (left)
*** NOC OF THE YEAR = STATOIL ***
Matthew Harwood, Group Head of Strategy at Petrofac (left) presents the award to Julio Dal Poz, Head of Transactional Support at Statoil (right)
Guest Review
*** LIFE-TIME ACHIEVEMENT AWARD = SIR FRANK CHAPMAN, BG GROUP ***
*** 2011 GUEST OF HONOUR SPEAKER - THE LORD BROWNE OF MADINGLEY ***
With thanks to the International Resource Journal: a unique monthly online publication that is sent electronically to over 100,000 verified and carefully selected senior executives from medium to large companies across the globe About Nuala Gallagher: Prior to editing The International Resource Journal (IRJ) with Toronto-headquartered George Media Inc., Nuala worked in financial journalism and as an editor on government print projects. A degree qualified journalist, Nuala specialises in covering natural resources with particular interests in resource nationalism and environmental reporting. Based in London, Nuala is also a member of Women in Mining UK. She can be reached at nualag@irjonline.com
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Special CEO Feature
On The Spot The Analyst

What are the three most exciting prospects for the E&P industry in 2012?
The E&P industry in 2011 has seen some remarkable events on the exploration side. The massive resource increase to a 1.7 3.3bnb recoverable range at Norways Aldous Major South / Avaldsnes discovery (on 4th generation acreage) proves that seemingly mature areas can throw up truly world class results, and provide company changing events for those involved (principally Lundin Petroleum). At the same time, high risk, frontier play-opening swings of the bat have proved successful such as Tullows Zaedyus discovery offshore French Guiana and then we have the East African gas success offshore Mozambique started by Anadarko being taken to a new level by ENIs estimate of 22Tcf in place from one well into the Mamba South Area. Clearly the E&P industry has the belief, determination and skills to keep unlocking the geology placed before it but after the successes of 2011, what can possibly be more exciting in 2012? 1. Prove the concept, build on the discovery, extend the play. The old adage that where you find oil there will be more nearby will lead to follow up drilling, both appraisal and exploration, in the areas we have mentioned above. The initial discovery is not the end of the story so look for more news to come from these three areas. 2. Choose a Swing the bat play. Rockhoppers success with Sea lion in the North Falklands basin could be over shadowed as the East Falkland Basin is drilled, first by Borders and Southern (2 prospects with ~2bnb prospective resources) and then by Falklands Oil & Gas (a further 2 wells with multi-billion barrel prospective resource estimates). Expect interest to build as the Leiv Eiriksson drilling rig starts to move down from Greenland during December (60 day transit time). 3. Gulf of Mexico getting back to work. We think 2012 will also see further loosening of the restrictions against Gulf of Mexico drilling, offshore USA, this is incredibly important to the E&P industry as frankly the deepwater expertise the Gulf of Mexico provides to the world is significant. This may go against a common perception following the Macondo incident but the irony of that event is that had it happened anywhere else in the world a lack of resources to tackle the problem could have amplified or extended the situation.and....we can't help mentioning.... 4. Keep at it! Prove the doubters wrong. Exploration also requires perseverance, so we also highlight that less successful drilling (or flow-testing) during 2011 in frontier basins such as Greenland by Cairn Energy and the ongoing Shale gas evaluation in Poland may not have provided the instant success that some would look for, but in all cases the data acquired has improved knowledge, reduced uncertainty, calibrated models and will certainly help with further work in 2012.
Mark Wilson, Analyst, Macquarie Bank
Special CEO Feature
1.
M&A Activity: Current low equity valuations, combined with high oil prices and resulting excess cash on large oil companies balance sheets, is creating the perfect environment to encourage M&A activity in 2012. With large oil companies struggling to obtain meaningful success either in terms of volume growth or exploration success at the drill bit, it is cheaper for them to buy rather than build exploration assets now. We see a wave of consolidation occurring globally which will help to bolster global equity valuations in E&Ps and provide investors with attractive capital returns.
2.
Africa: Africa is emerging as a hotbed of activity for E&Ps, with increasing activity in both East and West Africa. The impetus to fully understand the geological opportunity set being presented within the West African Transform Margin as well as in Eastern Africa will continue to be thematic. An intensifying of activity and drilling is anticipated, given the relatively stable fiscal and political backdrop combined with certain countries still being relatively under-explored.
3.
LNG: Large gas finds have been made by several E&Ps globally. LNG and the drive to monetise stranded gas reserves through this technology is an exciting growth area. The development of a truly globally-integrated LNG trading business is being expedited by the recent fuel switching of Japan away from nuclear towards gas, as well as the exponential demand pattern from Asian countries. Although small and medium-sized E&Ps may not have the capital bases to see through a full LNG plant to production, they do play a pivotal role in finding the gas reserves in the first place. We see a greater role for E&Ps in this area.
Angus McPhail, Analyst, Investec Securities

1. West Africa Pre-Salt: The pre-salt play in West Africa is being tested with multiple wells in Angola and Gabon testing the conjugate basins to the pre-salt finds in the Brazil with the potential for multi-billion barrel discoveries rivalling the Santos basin key plays on this are Cobalt and Ophir. Neuqun Basin, Argentina: The Neuqun basin is likely to be the first commercial shale oil development outside of the US with all the ingredients in place for success with good geology and well results to date in an existing basin with available infrastructure, an established service industry and good fiscal terms (even taking into account low oil prices). YPF has sewn up the most acreage but there are a number of smaller companies leveraged to the region such as Madalena Ventures, Americas Petrogas and Antrim Energy. 3. Peru: Peru is likely to see a double digit number of wells drilled targeting 50mmboe+ accumulations targeting the same trend that extends down from Venezuela/Colombia into Peru with companies such as Gran Tierra, Petrominerales, Talisman and Maurel et Prom active, as well as an underexplored deepwater offshore play being pursued by Karoon and Gold Oil.
2.
Anish Kapadia, Senior Research Analyst, Tudor, Pickering, Holt & Co
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From The Side-lines

During our World Assembly we pulled aside the following industry leaders for 60-second interviews: =============================================== Looking back on 2011, what lesson(s) will you take into your business planning for 2012? 2011 was an interesting time, in fact when MENA came into being on the TSX in May 2011; going from a private company to a public had a lot to do with the capital and equity markets which have been in meltdown since then. For 2012 what we need to do is position ourselves with some innovative financing and some strong partners to help us take advantage of our clever thinking to deliver new business in 2012 and not be constrained by financial concerns. Are you optimistic or pessimistic about the capital markets next year? Ive been in the industry for 30 years and been through five or six cycles. If youve been in the industry that long you have the adrenaline going through your body and you have to be involved in it, particularly in a growth vehicle, which MENA is that excites us. The energy industry is going to be here forever and fossil fuels will be here for a long, long time, so there are always lots of opportunities for E&P firms and MENA and its very exciting to be doing it. Were very happy to be in the industry and not pessimistic. Why have you come to The Oil Council Assembly today? The Oil Council is good for benchmarking what the industry is doing. It allows me to get a good understanding of what others are doing and making sure Im ahead of the game. Being around, talking to people, getting feedback here gives us the confidence that we have the right strategy at MENA.
Graham Lyon, CEO, MENA Hydrocarbons

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Looking back on 2011, what lesson(s) will you take into your business planning for 2012? I think what weve learned in 2011 in getting capital is that you have to have a robust story. Weve gone for smaller chunks of capital in 2011 and set ourselves up with a good story so that you can go into 2012, when hopefully the markets will turn, and away you go. Theres a growing interest around the world, particularly in gas. In Australia, youve seen an increase in interest in unconventional gas, which you wouldnt have thought youd see. Especially since Fukushima, youve got the Japanese looking at gas as an alternative to nuclear. I think that with the whole move to carbon neutral, gas is a good step to go through. What concerns you in 2012? Particularly as a junior, the biggest issue weve got is capital. At the frontier, where we are, there is an immediate reaction from investors to pull back, either because theyre caught with lack of liquidity in their current investments or because of a movement towards risk averse. Weve seen that in 2011. If that continues or if we have another major financial crisis, its clearly going to make getting capital more difficult. But as weve heard at the conference, if youve got a good story, theres always the capital. Why have you come to The Oil Council Assembly today? Ive been very impressed in the type of people that are here, the people interested in investing and new stories, they get the whole mix. Our story is a little different from what other people have heard in London or Canada. Its a good place to meet people, make connections, and put ourselves on a good footing for our IPO in 2012, which will either be the UK or in Canada.
David Williams, Managing Director, Larus Energy
Special CEO Feature
Looking back on 2011, what lesson(s) will you take into your business planning for 2012? 2011 was a watershed year for us. We took over our asset in East Africa 14 months ago, so 2011 has been a year of consolidating that asset, cleaning it up and putting it on a platform that we can move forward with it, and we think weve achieved that now. In this business, which Ive been in for 50 years, you cant replace patience. Especially dealing in an international theatre and being a junior O&G company like we are, you just have to keep your head down and keep going. We have an extensive drilling program, but what will be the hurdle in 2012 is financing. The world is not a happy place and equity financing will be very difficult to come by in 2012. We have to manage the resources we have and not get too ambitious. Were operating in a theatre that is very active and high profile; Mozambique & Tanzania. Its going to be hard for us to keep up with the big boys, I have to say and not get caught up in the tsunami. What do you foresee for 2012 with respect to your business? I think well see a lot of M&A in 2012, rather than equity. Its happening in Calgary now and will happen in London. We just listed on the AIM exchange which gives us a whole new source of liquidity, but its not going to be easy, and I think well see a lot of M&A. We have a lot ahead of us three exploration wells this year and a huge seismic operation in Mozambique in 2012. We have the potential for getting a production base set up in Tanzania where we have to deliver 200mcf a day to pipeline within 18 months, so we are pretty focused on that. If we werent focused on that, something would slip. Why have you come to The Oil Council Assembly today? Were on the AIM, so The Oil Council Assembly gives us the opportunity to introduce ourselves to the London market. Its a huge market with a lot of potential.
Bob McBean, Executive Chairman, Wentworth Resources

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What challenges do you see the oil and gas industry facing in 2012 and beyond? As businesses look to the next 5-10 years, businesses are going to be constrained by a number of things, one of those is likely to be human capital I believe there isnt enough coming into the industry, and thats an industry issue to resolve. Companies need to make sure they have the right access to human capital to drive their business forward. Its all very well having a growth plan, but how are you going to implement that if you dont have the people to drive that growth? The industry needs a many-pronged strategy: you need to build form the bottom up, bring up the right amount of young talent, entice people to join the sector, and you also need to develop that talent and nurture it. A number of the panel speakers talked about cherishing your employees, treating them well, growing them and developing. These are things you need to do to ensure your talent stays with you, because it is a competitive market and if you dont do those things, others will take them away from you. There have been a number of reasons for it. There are significant demographic issues counting against the industry. Particularly in the west, the number of young engineering graduates has reduced. The Western workforce is ageing and cycling out of the working population. Also, the Oil and Gas industry has reacted in a boom bust way to the cycles of price which has resulted in extremes of hiring and firing that needs to change, there needs to be a longer term perspective on attracting and retaining talent. Im very positive about the oil and gas sector, the dynamics are very strong. There is a lot that is not positive about the global economy, but within oil and gas, things are still very strong, so I expect a busy 2012. We will be recruiting for a broad range of clients, and in very technical disciplines unconventional oil and gas and shale gas expertise has been asked for in Europe as we start to exploit those resources. We and our clients will be challenged to find enough of the right talent in those areas.
Iain Manson, Senior Client Partner, Korn Ferry International
Special CEO Feature
What trends do you see continuing into 2012? If you look at 2011, there were a lot of events that could not have been predicted Fukushima for example. If you look at oil markets, we were down in the third quarter greater than 20%, but were back up again. I think this volatility will continue into 2012 probably extending into the first half. For the remainder of the year we should see a positive turn barring something else unexpected coming. But the long term outlook for the industry is positive and its there where we should focus, and make our beds on the basis of conviction that we will get out of this immediate volatility. Why have you come to The Oil Council Assembly today? This is my second Oil Council Assembly. It is definitely a prestigious event with lots of executives. Its a great place for networking and a great place to listen to people who are experts in their fields share ideas and talk about their plans thats the value I get out of it.
Nawaf Marafi, Head, Oil and Gas, Kuwait Financial Centre (Markaz)
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Looking back on 2011, what lesson(s) will you take into your business planning for 2012? I think the industry is becoming increasingly comfortable with the fact that oil prices are remaining relatively robust, there is a confidence returning to the E&P players in turn if their investment strategies and rationales. Certainly the issue of competency in a post-Macondo environment is a critical factor for most companies and their boards to consider in terms of governance. But there are viable solutions out there. We are working as a company with the insurance underwriters in London to ensure the customers we work with who are drilling wells receive lower insurance premiums because theyre using the risk management systems that weve invested in over the last 4-5 years. Thats a positive outcome from the increased awareness of what can happen to a well if it goes wrong. In terms of the global investment rationale, we continue to see NOCs reaching outside their traditional boundaries looking for international investment, we see the small new starts and medium-sized independents continuing to globalize. In a world where there continues to be a dearth of critical knowledge to get the job done, it continues to be a very good year for Senergy. Unfortunately in the course of the last year weve seen a considerable escalation of the costs of most things in the industry and that includes the intellectual talent of the people we all seek to use. Many of the oil companies have sought to pursue access to the capability at any price, and I dont think thats a healthy thing for the industry. Strangely, the industry continues to focus on the individual rather than access to the knowledge itself. The technical challenges of any basin are in themselves just that a technical challenge, and that challenge can be addressed by accessing a wider spread of knowledge and capability through a company like ourselves, rather than simply going out and getting the best person available. I would emphasise that the way Senergy continues to work with its customers is as a knowledge partner working alongside the internal capability of the client. Theres no doubt that two heads are better than one, and I like to think a hundred heads are better than two. Certainly having the breadth and depth of capability that we have which is consistent with a large independent oil and gas company is something we can bring to our smaller customers and give them a capability that allows them to punch way above their weight. I continue to emphasise that the industry needs to do more to tell the great story of what its about and the great things its doing around the world. We must continue to erode the unfortunate circumstance where the media tends to lead industry communication. Weve got to get out of a reactive method of telling our story into a proactive one. The industry continues to globalise, oil prices remain high, and the demand for our product continues to rise year on year. Thats an environment where the world has finally accepted the importance of the energy industry in terms of the global economy we all live and invest in. For me the future is looking very positive. Leadership from companies and differentiation of their product will be key to their success.
James McCallum, CEO, Senergy

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Special CEO Feature
Looking back on 2011, what lesson(s) will you take into your business planning for 2012? 2011 was a very choppy year; weve all been challenged by the volatility of the markets. Weve had our ups and downs. In our business, in the small cap end of the market, every well is like a referendum on the future of the company. The thing weve learned is that you have to stick with your vision; you have to have tenacity and sail through those ups and downs. You drill your wells and you know youre doing the right thing, ultimately, if youre adding value the market will recognise that. We moved into Kurdistan in 2011. The day we announced two blocks in Kurdistan, which we were delighted about, our share price went down. We couldnt understand why, but the market saw them as liabilities. Three months later, exactly the same blocks, suddenly were heroes because ExxonMobil moved in next door. We drilled wells in Algeria which did not perform exactly as we expected, and the share price didnt respond as expected, but ultimately at the end of our programme, we added value in Algeria. The lesson is you cant watch the share price every day. Youve got to stick with your vision. Ultimately value will out. For us, 2012 looks like a better year. Were optimistic the capital markets will open again both on the debt and equity side in the first quarter of 2012, especially if the Eurozone is sorted. Were not relying on that, but were optimistic that will come through. From an operational point of view, were about to get a big receivable from Enel - 100m plus, and a further 3040m in the middle of the year. Thats enough to fill our acquisition aspirations and we intend to grow our business and enlarge our portfolio in 2012. Were confident we will grow the company and add value. Are you hunting for a company to acquire? I wouldnt say were hunting for companies, were hunting for assets. If assets come with companies, then maybe. But were happy with what we have in Algeria and Kurdistan. The arrival of a technical government in Italy means that probably the offshore Italian drilling ban will go away. We have a very good asset there that were hoping to go back to in 2012. Weve had a choppy year, but things are looking rosy in 2012 and were looking forward to the future. Why have you come to The Oil Council Assembly today? The Oil Council has managed to put together a great group of people. Its a good combination of industry players investors, advisors, bankers and its a great opportunity to talk to lots of different stakeholders in our business and swap stories. Thats why we always come. We appreciate the opportunity to talk to a thousand of our closest friends, and well be back next year for sure.
Brian OCathain, CEO, Petroceltic International

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What trends do you see continuing into 2012? Its very hard to predict because of the volatility. In this part of the year it will depend on what happens in the Eurozone. If we can get those problems solved relatively soon, even if just a short period of stability, things will be very different in Europe. Thats a big unknown. When you talk to the banks at the moment, the new phrase is that volatility is the new stability, in other words theres an acceptance that this instability will continue for a few months yet. When you look to 2012, what excites you? In terms of what to look forward to in 2012, Africa is a very interesting place to be doing business in the oil and gas space. The Middle East also has some amazing opportunities. Obviously, weve had the Arab Spring, but as things start to settle down a bit and I think things will return to normal. Maybe the slightly surprising one is Russia. Its very clear the Russians have reopened the doors with their big deal with ExxonMobil and their arctic joint venture. Im fairly confident well see some additional deals coming up in Russia very soon. What assignments are companies coming to you for? Many of the deals were doing now because of the instability in the financial markets are very much at the asset level. So its oil and gas companies cutting out the risk that comes with corporate activity and listing and instead investing straight in the asset, and at the moment there are some great deals to be had I see that as an area of
Special CEO Feature
activity. The unconventional and shale area, particularly in Europe, is an area well see more and more activity in also. I think the jury is still out with regards to the company level; we need to see more stability in the Eurozone. But if by the first or second quarter next year that is sorted out, I imagine the capital markets will return and the IPOs that have been stacked up will come to market and we may even see a boom come the third quarter. Why have you come to The Oil Council Assembly today? Ive come to the Oil Council because I continue to be interested by the content that is produced here. There are a lot of faces that I come across in my daily business life, and in my opinion these are the guys doing the deals of today and tomorrow, and its a great place to network.
Greg Hammond, Partner, Akin Gump Strauss Hauer & Feld

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When you look to 2012, what concerns do you have, and what excites you? I think 2011 promised a lot and didnt deliver. I hope that 2012 will deliver, but right now, it isnt promising a lot. The key trend is around access to capital. There are a number of planned IPOs that have been pushed back I dont think theyll all succeed and if you havent already prepared for that IPO youre probably too late for that opportunity. Those companies that arent successful finding capital, particularly those who need to fund big development projects will become vulnerable. The larger players in the sector are tremendously well capitalized, and they will deploy that capital opportunistically. I think companies should make sure their plans for access to capital are drawn up now. They should be open to a range of options and make sure theyre well prepared. The window will open in 2012 but when, and for how long, I think is still uncertain. Im excited that we might see more activity next year. Its going to be driven by capital either access to or lack of access to capital which will drive transactions. Im excited that there will be a greater geographic diversity to that. Our clients are coming from North America, Asia, transacting in Africa and through the capital markets here in Europe its a great globally diverse industry to be a part of. Why have you come to The Oil Council Assembly today? The Oil Council hasnt been going long, but youve done a great job of building a good network in this industry. Im looking forward to meeting people some of whom we know and some of whom we dont know. Events like this are hugely important to us.
Jon Clarke, UK Head, Oil and Gas, Ernst & Young

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Looking back on 2011, what lesson(s) will you take into your business planning for 2012? The lesson everyone should remember in a time of financial crisis is that you absolutely need to have a strong balance sheet and not face the necessity to go to the market at a time the market doesnt want to provide the financing. The secret is to plan your fundraising long enough in advance so that you can pull the trigger when the markets opens up, which in volatility it tends to do, but not always. The opportunities are there, the problem is always the volatility of the financial markets to be able to raise the funds for exploration, which has to be equity, or to raise the funds to develop the discovery which has to be the banks. If you are in the position where the asset you want to develop cannot be financed, then you are at the mercy of eventual partners who will know you are weak at that point in time. What brings you to The Oil Council Assembly today? I find it interesting The Oil Council is having a panel on corporate governance, which is a subject I am very forceful on the importance of having the right board and corporate governance to guarantee to the shareholders that they will all be treated the same.
Special CEO Feature
What makes a strong board? It needs to have very strong individuals with a lot of expertise in the fields you need to have expertise in. And it needs people with enormous integrity who are capable of saying no to the management team when they feel that what is being done is not in the interests of the shareholder.
Pierre Jungels CBE, Chairman, Rockhopper Exploration

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When you look to 2012, what concerns do you have, and what excites you? Im an economist, so what concerns me and excites me overlaps its the economic environment and question of if we go along this rocky path of economic adjustment to lower growth, whether there will be a moment when higher oil and energy prices will become an impediment to recovery. That will be the time when the industry finds itself in a tight spot; thats my worry. What excites me is the contribution of the energy sector to this necessary catching up of the economic growth of developing countries how fast they are, what they can accomplish, the whole dynamism that you see that wouldnt be possible without the contribution of the international energy sector. In energy data you see this development more clearly than in standard economic data I find that quite extraordinary.
Christof Rhl, Group Chief Economist, BP
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Looking back on 2011, what lesson(s) will you take into your business planning for 2012? What we learned in 2011, especially in the Middle East, is that change will come. No matter how long it takes, eventually change will come and things will be better; there are plenty of opportunities. The space of opportunities for an E&P company like us was huge. Especially since we are an indigenous company and know how to manage risks in all the places we are operating now. Our job now is to find out how to capture these opportunities and how to rank them, pick the best, and develop them. The thing to do in 2012 is to capture those opportunities and build on them. We are very positive and optimistic. The long term view is great. The lesson we learned is about risk management and emergency plans, and the importance of learning how to put those plans into action properly; thats a huge learning for a company like us. To have it on paper is one thing, but to prove it, put it into action, and to succeed, is another thing. Emergency response and risk management is the highlight of what we learned. Why have you come to The Oil Council Assembly today? What I hope is to interact with other CEOs here and share my experiences as well. Its important to share your views with colleagues and the industry; thats how we build knowledge and relationships.
Sara Akbar, CEO, Kuwait Energy Company
Looking back on 2011, what lesson(s) will you take into your business planning for 2012? Clearly you have to take it into consideration the Eurozone debt crisis, the Arab Spring, that kind of unpredictability of a lot of events. How do you prepare for those? Of course you cant, because you cant forecast them. But theres something about resilience, portfolio management.
Special CEO Feature
You have to be prepared and have a strong balance sheet. And of course, is there a way you can position yourself either for opportunities coming out of those discontinuities, or on the other hand, how can you defend yourself from those challenges.
Anders Marvik, VP, Corporate Strategy and Business Development, Statoil

After our World Assembly we also pulled aside the following industry leaders for 60-second interviews:
Looking back on 2011, what lesson(s) will you take into your business planning for 2012? 2011 was an extraordinary year where we saw volatility in prices of equities, currencies and commodities never seen before and with everyday further shocks to the financial system, particularly in Europe. The major lesson here was more of a reminder than learning, but cash is king and when the ducks are quacking feed them. Going into 2012 one's business must be strong enough to withstand long periods of difficult trading and also strong enough to take advantage of opportunities that arise from others weakness. Having adequate cash is the major way to be positioned. If you are making an acquisition, the best way if the seller is slightly distressed is to make an offer and make it simple and in cash. So in the same vein, if you want to grow your business go where the cash is and that is not Europe or the Americas, go East! The Middle East and in particular China and Hong Kong. It's no good knocking on the same doors that we have been for the last 30 years in the West, we need new doors and new relationships. These don't come easily and so have to be worked upon, but it is never too late to start. 2011 saw equity prices tumble regardless of rising commodity prices and saw the ability to fund in equity extremely difficult. This will turn at some stage but for 2012, we have to be prepared for the worst and assume it will remain very tight, so we have to think out of the box and see what other modes of funding are possible. M&A is one alternative but a lesson I learnt in 2011 (and 2010) was that acquisitions can be very distracting, come with huge risks as you don't know exactly what you are buying till you have it and you can't guarantee they will happen right up to the last minute, so always have a strong organic plan and don't involve all your staff in a deal until you are confident it will happen. Finally, flying economy class can save a lot of money and on many flights is not as bad as people say, so a day flight to Canada it is quite adequate to fly economy, but if you are flying to and from Hong Kong and you want to have good meetings, don't even try it, just go business and accept it (but you can still shop around and get discounted business flights!)
Andrew Monk, CEO, VSA Capital

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Looking back on 2011, what lesson(s) will you take into your business planning for 2012? Kentz listed in early 2008 just ahead of the biggest economic crisis for decades and a decline in the oil price to lows that year of $35 a barrel. Against this backdrop we grew our backlog of work on hand over 60 per cent during 2008 to 2010. Yes, we were starting from a smaller base than some, but with every challenge comes opportunity. Reports suggest that 2012 is set to be another challenging year with uncertainty still over the global economy and the outlook for the energy industry. Kentz continues to grow, with first half revenues in 2011 up 50 per cent on the same period last year, and importantly we have invested in our business; in people, in systems and procedures, and in our shareholder base with a move to the FTSE250. If I take anything from 2011 it is to focus on the metrics that are within our control; a strong and diversified service offering, good mix of clients, geographical flexibility and delivery of projects.
Special CEO Feature
The oil price has yet to reflect the general malaise of the world at large, driven in part by the continued boom in developing economies. This has supported International Oil Companies to continue to seek out more and more remote reserves and Kentz is well-positioned to support them. New areas we entered in 2011 included Papua New Guinea, Iraq, Alaska and Korea; all projects with core clients. Cross-cultural competence has played a vital role in playing away from home and Kentz has been doing that for over 30 years. My lesson will be to remain dynamic in our reach and capabilities in order to service the customers we really enjoy working with. After all if youre not enjoying what youre doing, whats the point?
Hugh ODonnell, CEO, Kentz Corporation

What advice would you give to CEOs to strengthen their industry image, credibility, and reputation? The reputation and credibility of the management team of independent oil and gas companies is one of the key drivers of valuation and the ability to access capital, which for all but a few exploration companies is essential to the business model. There are five basic steps to ensuring you as a CEO have a strong reputation: 1) Set short, medium and long-term expectations which can be delivered upon or exceeded; avoiding disappointing investors is critical. In the current environment the market treats meeting or exceeding expectation with a static or modest increase in share price, but any disappointment is met with a savage reaction on the downside. Never has the phrase under-promise and over-deliver been more appropriate. Have some visibility and profile. There are currently 28 oil and gas companies listed on the Main Market of the London Stock Exchange, accounting for over 17% of the value and 74 listed on AIM accounting for 15% of the value. Not engaging in some profile raising activity risks the company slipping off the radar entirely, particularly for the smaller companies. Profile can be raised in the media or through speaking at investment banking sector conferences or industry conferences Ensure the sell-side analysts are kept up to speed, receive the right levels of disclosure, are communicated with on a regular and professional basis and that they have access to the CEO. I believe the sell-side is increasingly influential in that not only do they influence their institutional clients, but increasingly the sector media is taking a lead from the better informed sell-side analysts. Be consistent with messaging, allowing audiences to digest a simple message to potential investors and the wider industry. In this regard, it can be beneficial for CEOs to become known for a theme which is linked to the messaging. Engage an adviser who knows the sector (it can be technical after all), has enthusiasm for your business and knows the competitive landscape.
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Well organised communications and investor relations for companies which rely on the equity markets to execute their business models has to be a priority and has to be invested in. Broadly, the better the reputation of the leader, the higher the valuation and thus the more efficient the equity capital.
Billy Clegg, Managing Director, Strategic Communications Division, FTI Consulting (formerly Financial Dynamics).
Billy Clegg is a Managing Director at FTI Consultings Strategic Communications Division (formerly Financial Dynamics). Billy heads the London Oil and Gas team and advises companies such as Faroe Petroleum, Ophir Energy, Bridge Energy, Cove Energy, Volga Gas and Amerisur Resources.
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Shaping the future.
Guest Article

Written by Jason Ambrose (Founder) and Bart Willigers (Principal Consultant), Palantir Economic Solutions
The challenges currently faced by E&P industry are unparalleled. The industry is facing a business environment of highly volatile hydrocarbon prices, increased pressure to minimise cost structures, diminishing U.S. and European investment opportunities, a shrinking experienced workforce and a cautious capital market. The combination of all these recent developments provides a compelling reason for managers to implement more effective technologies for allocating capital and improving the overall quality of E&P investment decisions. A prerequisite for successful corporate management is an in-depth understanding of business performance. This insight is provided by the development of a corporate roll-up or consolidation of the past and expected performance of all assets owned by a firm. By taking a portfolio view, managers are able to create judgments on future performance and assess the exposure faced by an organization. This will ultimately drive the development of a corporate strategy and high-level decision making. In a survey by Booz, Allen and Hamilton that preceded the turbulent market development of 2008 and 2009, leaders of twenty oil & gas companies expressed dissatisfaction with current risk management processes and a desire for change (McKenna et al., 2006). McKinsey interviewed over 1,000 corporate directors, 76% of which stated that they want to spend more time on strategy and risk management (Roberts, 2005). Only 11% of the directors indicated that they have a satisfactory understanding of the risk exposure of their companies, whereas 50% stated that they lack the data to track corporate risk exposure over time. This lack of insight into the effect of unforeseen events on corporate performance can be catastrophic for those companies and can be partially attributed to the methods and processes used to determine the economic value of the companys assets. The Boston Consulting Group reported that many energy companies simply ignore uncertainty and risk and that project decisions are based on deterministic evaluations (Balagopal and Gilliland, 2005). Clearly, if the economic impact of uncertainty is not assessed at a project level, this information and the relevant insights cannot be communicated to corporate decision makers. Although the oil and gas industry has started to realize the value of enhanced financial modeling (Bickel and Bratvold, 2007), most efforts to improve decision-making processes have focused on project management. Risking procedures such as decision tree modeling or Monte Carlo simulation are routinely applied in project management but are rarely applied at a corporate portfolio level. As a consequence, corporate decision making tends to be suboptimal. Even though computing technology has been the cornerstone of portfolio management for several decades, present computing systems cannot handle the vast amounts of data generated in a Monte Carlo simulation of a large number of assets. In this study, we discuss the risks and problems of current financial modeling techniques. A demonstration is given on the use of novel innovative financial software applications and their promise to optimize the workflow and operations in corporate planning processes. We describe the development of a risked portfolio and demonstrate the integration of data from varies databases and a financial analysis of this data using the PalantirSUITE .
Calculation Auditing
For many economists in the E&P industry spreadsheet programs are the main modeling tool. Developed to execute scratch pad calculations, spreadsheet programs were never intended to execute the very large and complex calculations that are required in the planning processes of large corporate organizations. Recent research has provided much insight into the errors that people make when they develop spreadsheets. Spreadsheets, even after careful development, contain errors in one percent or more of all formula cells. In large spreadsheets with thousands of formulas, there will be dozens of undetected errors (Panko, 1998). These error rates are in line with those reported in computer programming. However in computer programming, strict guidelines have been developed that eliminate most errors. Surveys of spreadsheet developers indicate that spreadsheet creation, in contrast, is informal, and few organizations have comprehensive policies for spreadsheet development. Given that formal testing in spreadsheet development is rarely undertaken and because many errors may not be apparent, even significant errors may go undetected (Panko, 1998).
Guest Article
Data Management
The development of a corporate portfolio view is probably the most daunting task faced by economists working in the E&P industry. Large amounts of data coming from many different sources enter the process in as many different formats. In the portfolio process, the data and its assumptions have to be approved by a number of corporate line managers and multiple adjustments are typically required before the final approval is given and the ultimate assessment can be made. An efficient portfolio process requires a system which ensures that the data gathering and data capture processes are consistent, data integrity is secured and there is a fully integrated workflow. Although computing technology has been the cornerstone in portfolio management for several decades, the systems used in most organizations consist of a collection of stand-alone applications which are poorly integrated. As a result, vast amounts of human resources are dedicated to the low value activity of transferring data between different systems. Palantir has long understood the short comings of current practices and has developed a suite of integrated software tools known as the PalantirSUITE which greatly enhance the process of portfolio modelling. In addition to developing static portfolio consolidations using PalantirCASH , the tools allow for dynamic portfolio analysis. PalantirPLAN enables managers to create on-the-fly scenario analysis and what-if scenarios can be developed to provide insight into whether future production targets are met when alternative development scenarios are chosen for one or several key projects (Fig 1). The PalantirTREE application allows for probabilistic portfolio analysis. Financial statements can be generated using the PalantirFINANCIALS application.
Data Migration
In the assessment of an investment proposal that relates to a joint venture, individual investors will evaluate the investment option in the context of their portfolio. It is therefore of crucial importance to develop an understanding of the business opportunity from the perspective of the other stakeholders. Hence economists will be forced to model one or even multiple portfolios of their competitors. Although companies will not have access to the private view that their peers hold on their portfolio, relevant information can be purchased from several data-gathering organizations. Palantir has developed a number of data loader tools that enable companies to rapidly load large amounts of data from products like QUE$TOR from IHS inc. or Global Economic Model (GEM) from Wood Mackenzie. The data that relates to equity positions and production and cost forecasts are loaded into PalantirCASH and a cash flow can be developed for each of the individual assets of a given company (Figure 2). These cash flows can subsequently be analyzed using a library of tax regimes, reporting templates and the project aggregation features of PalantirCASH and PalantirPLAN .
Portfolio Risking
One of the great successes of modern financial risk modeling is the application of computing technology to simulate complex continuous probability distributions associated with the value metrics of real-life assets. The Monte Carlo simulation technique is the best known example and is widely applied by economists in the E&P industry. However, a Monte Carlo simulation in which project economics are aggregated into a large asset portfolio is rarely undertaken. The main reason is that present computing systems cannot handle the vast amounts of data generated in a Monte Carlo simulation of a large asset portfolio. Palantir has developed a pragmatic approach to create a risked portfolio view. Following this method, the continuous distribution of feasible project outcomes is approximated by a small number of probability-weighted discrete scenarios (Willigers, 2009). In a corporate portfolio simulation, a project sample would be drawn from these discrete distributions as opposed to the original continuous distributions. If either a global assumption needs revision or a single asset requires recalculating, the economics of a relatively small number of scenarios would be computed. Thus, there is no need to store or recalculate a large number of outcomes (typically more then 2,000) for each project, as would be required in a conventional Monte Carlo simulation.

The following procedure describes how a risked portfolio view can be developed using software from Palantir in combination with information from third party data providers. The valuation process consists of four phases: 1. 2. The development of a cash flow model for individual assets that constitute an asset portfolio using third party data. Given that third party data typically only provides a single base-case scenario, two additional scenarios: a conservative and optimistic scenario, are created. This is achieved by applying a generic multiplier to
Guest Article
3.
the production profiles. The expected value established on the basis of the three scenarios equals the value of the base case. The cost requirements for the two additional scenarios are estimated by applying the power rule as defined in equation (1). This engineering rule-of-thumb describes the effect of changing production volume on the costs associated with a project.
( )
(1)
Where scenario y refers to the base-case scenario and scenario x refers the additional scenario that is developed.
4.
A cumulative probability distribution of the portfolio value is developed on the basis of the probability weighted scenarios for the individual projects. Details on the algorithm applied are described by Willigers (2009).
Figure 1. Screenshot of PalantirPLAN showing a listing of projects in the left panel, a project Gantt chart in the upper right panel, a chart showing the cumulative production of the portfolio in the lower right panel and a summary of key value metrics in the inset-window in the lower right corner of the image.
Figure 2. A schematic representation on the workflow used in portfolio valuation using the PalantirSUITE.
Guest Article
The Application of Integrated Software in Complex Economic Modeling

The analysis described in this paper is an illustration of the potential of using integrated software in the development of complex economic models. The development of a large portfolio of risked projects could, in principle, have been developed in an Excel environment. Although Excel is still the most widely used application for these types of analysis, it would have taken an economist several months to construct a very complex model or several models which by its very nature would be very difficult to audit and as a consequence, such a model would have been prone to modeling errors. In contrast, all features required for the analysis executed in the study were already in place in PalantirCASH , PalantirPLAN and PalantirTREE . These functionalities and tools had already been audited by a team of expert software developers and financial analysts long before an economist would start with the build of a model. The daunting task of data collection and consolidation is greatly facilitated using integrated software such as PalantirSUITE . A software architecture where all corporate data are stored in a central database enables multiple users to enter, manipulate and store information whilst ensuring the integrity of the data. Once all data is stored and collected in consistent fashion the process of developing a portfolio overview by aggregating project data is greatly simplified.

Jason Ambrose, Managing Director and Founder, Palantir Solutions Jason is an expert engineering economist with over 15 years of industry experience. In 2001, he founded Palantir Solutions, a specialist consulting partnership and software development company. As Managing Director, Jason is responsible for setting the strategic direction of the company. Reporting to him are the Development Manager, Consulting Manager, Marketing Director and Finance Manager. In addition to his extensive experience Jason holds a B.Sc. in Mechanical Engineering from the University of Alberta, Edmonton, AB, Canada. Palantir Solutions is a leading, global provider of Integrated, Dynamic Planning Software and Services to upstream oil and gas companies. Palantir provides Integrated, Dynamic Planning Solutions and Services that connect upstream organisations. Integrated Planning brings budget, economic and planning processes together eliminating conflicting data sources. Information becomes accessible throughout the organisation.
References Balagopal, B. and Gilliland, G. (2005) Integrating value and risk in portfolio strategy for energy companies. Bickel, J. E. and Bratvold, R. B. (2007) Decision making in the Oil and Gas industry: From blissful ignorance to uncertainty induced confusion. SPE 109610. McKenna, M. G., Wilczynski, H. and VanderSchee D. (2006) Capital project execution in the Oil and Gas industry. Panko, R.R. (1998) What We Know About Spreadsheet Errors. Journal of End User Computing, Vol 10, 15-21 Roberts, T. (2005) Appetite for destruction: Ensuring sound risk management and governance. Willigers, B.J.A. (2009) Practical portfolio simulation: Determining the precision of a probability distribution of a large asset portfolio when the underlying project economics are captured by a small number of discrete scenarios. SPE 124180
Winning new oil and gas from established US basins

Nostra Terra Oil and Gas Company plc is a fast-growing exploration and production company focused on emerging plays within established hydrocarbon regions of the United States. During the last two years, Nostra Terra has acquired interests in Kansas, Texas, Colorado and Oklahoma. It is now looking to expand and upgrade its portfolio rapidly by identifying, screening and acquiring a diverse pipeline of upstream assets. Working interests in new acquisitions will vary, ranging up to 100% in some cases, and include both operated and non-operated projects. The key to Nostra Terras growth strategy is the use of state-of-the-art drilling technology, including horizontal drilling, combined with 3D seismic mapping, sophisticated log suites and multi-stage well completions to target and exploit compartmentalised reservoirs that were under-produced when the original vertical wells were drilled in these mature fields. Nostra Terra is publicly listed on the London Stock Exchanges AIM market. The company is debt-free and fully funded on its current projects, and has also entered into a standby equity distribution agreement (SEDA) that further enhances its financial resources and flexibility. For more information and contact details, please visit www.ntog.co.uk.
Meet The Members
Member
David Williams, CEO, Larus Energy
Member
Kevin Davidson CEO, Maxwell Drummond
How did you come to be in the oil industry? I was working in Canberra at the time and my wife said to me I dont know where you are living next year, but I am not living in Canberra! A job came up in Perth with the new Gas Corporation established there which ran gas transmission pipelines and gas distribution systems and bought and sold gas and so I was hooked. What is your proudest work-related achievement to date? The successful merger of Great Artesian Oil and Gas Limited into Drillsearch Energy Limited (both ASX junior E&P companies.
How did you come to be in the oil industry? Luck. I was born in North East Scotland.
What is your proudest work-related achievement to date? Building Maxwell Drummond from seven people in one office (Aberdeen) in 2001 to the globally integrated business it has now become with over 60 colleagues in seven offices (Aberdeen, Calgary, Houston, London, Perth, Singapore and Rio de Janeiro). Where do you see the greatest opportunity in todays oil and gas markets? With such a scarcity of talent, the greatest differentiator between a mediocre and exceptional businesses will be the ability to create the right conditions, for the right people, to succeed Where do you see the greatest challenge in todays oil and gas markets? Finding, attracting, retaining and motivating the best talent. This is not a pitch it is what challenges me the most, every single day. What was the wisest advice you ever received from a mentor? "Don't come with the problem, come with the solution" - it's become a clich for a good reason!
Where do you see the greatest opportunity in todays oil and gas markets? Papua New Guinea, but then I would say that! Actually it is a new province flying low under the radar and has the potential of being a major supplier of LNG into SE Asia. Where do you see the greatest challenge in todays oil and gas markets? The proliferation of unconventional oil and gas and their associated attention from social and environmental crusaders. What was the wisest advice you ever received from a mentor? Be open minded about what you might end up doing as a job and grab your opportunities when they are there.
Meet The Members
Member
David Williams, CEO, Larus Energy
Member
Kevin Davidson CEO, Maxwell Drummond
What advice would you pass on to a graduate wishing to work in your line of business? Get as broad an experience as possible, be willing to do anything, put up with the dislocation of having to be in faraway places, grab the opportunities when they are presented to you. Whats the one interesting fact about you that no one would suspect? I actually do like American football
What advice would you pass on to a graduate wishing to work in your line of business? It is a fantastic career choice. You will get out what you put in. Keep outside of your comfort zone - it's a very easy thing to do in the early years but gets harder as time goes by. Whats the one interesting fact about you that no one would suspect? Although I have travelled a great deal for many years now, I still love it, especially long-haul... How do you prefer to spend your spare time? I am keen on many sports: running, squash, mountain biking and golf so spend a lot of time trying to burn more calories than I consume! Favourite holiday destination? After living in West Africa and Houston for a number of years, I would trade the beach holiday for skiing and snowboarding. I love Steamboat Springs and get there pretty much every year along with a long weekend in Alberta or BC when visiting our Calgary office.
How do you prefer to spend your spare time? On my yacht up in Pittwater (north of Sydney)
Favourite holiday destination? Koh Samui, Thailand
All-time favourite book? Lord of the Rings All-time favourite film? Pulp Fiction What 3 things would you take to a desert island? A bottle of Laphroaig, another bottle of Laphroaig, my wife (at least that way I would still have some money left if I got of the island only joking!)
All-time favourite book? Crime and Punishment All-time favourite film? The Deer Hunter. What 3 things would you take to a desert island? My wife, my guitar and Tabasco sauce.
To be included in a future edition please contact iain.pitt@oilcouncil.com
The Oil Council in conjunction with its Partners and Members is proud to announce the return of industry acclaimed international thought leadership and corporate development forum focussing on the burgeoning oilfield services and engineering sector.
OILFIELD SERVICES AND ENGINEERING ASSEMBLY
OIL COUNCIL
Expert speakers at the 2011 Assembly included:

Brady Murphy Senior Vice President, Europe and Africa Halliburton
Gavin Graham Executive Vice President, Business Development, IES Petrofac
Hugh ODonnell CEO Kentz
Jorgen Rasmussen President and CEO Archer
27 28 June 2012 Royal Garden Hotel Kensington, London, UK

The defining event for the oilfield services and engineering sector
Hear from the operators at the forefront of global E&P - what are they looking for from their service providers? Understand how partnerships between operators and oilfield service companies are evolving and where the opportunities lie Showcase your innovative solutions and assist the E&P pioneers in achieving operational excellence Secure financing for your upcoming projects and expand your footprint to enable you to win the contracts that matter Spot the opportunities by hearing about the latest developments in offshore and onshore drilling, rig construction and refurbishment, downhole technology, EOR, unconventional resources, frontier E&P and much more
Simon Crowe CFO Subsea 7
Tony Piazza Senior Exploration Manager Petrobras
James Brady Vice President, Technology Schlumberger SIS
Anders Marvik Vice President, Global Strategy Statoil
Our partners include:
Robin Macmillan Vice President, Europe and North Africa National Oilwell Varco
Stein Inge Liasj President, China Aker Solutions
www.oilcouncil.com/event/ofs
+44 (0) 207 370 8493
zara.clarke@oilcouncil.com
What were doing

The World Oilfield Services Assembly will host a highly influential audience of over 400 senior industry participants, including leading O&G companies (NOCs/IOCs/Independents), oilfield service companies (engineering, procurement, and construction, subsea, rig building and refurbishment, drilling, seismic and other equipment and technology providers), investment banks, brokers, consultancies, financial advisors and a plethora of investors (institutional, private equity and VC).
What people said

The World Oilfield Services Assembly was unlike many other industry events I have attended in that its focus was very much on quality rather than quantity. The calibre of speakers and attendees was second to none and as such the event was an excellent platform for intellectual and stimulating debate about the challenges and opportunities facing the energy sector, and how as individuals, companies and an industry we must use our knowledge, skills and collaboration to find ways of sustaining and securing energy supplies for future generations. James McCallum, CEO, Senergy This first Oil Council event focused on the service industry was not only timely, but it made us think why we had waited so long. These are the companies that actually do the work, that face the challenges head-on in the field, and that provide much of the technology and innovation in our industry and it showed. What came across was the vibrancy, passion and commitment of each company represented in an event superbly organized by The Oil Council team Lew Watts, Non-Executive Director, Regester Larkin and former EVP, Halliburton The event gets a good mix of people together who have interest to talk to each other, The Oil Council provides this and has managed to create an excellent event. The talks and presentations were of interest and kept all of us awake and participating. Well Done! John Boogaerdt, Senior Advisor, Schlumberger Business Consultants Thanks for the opportunity to show some highlights of Petrobras to such a senior audience, it was a very interesting event, well organized and well attended indeed Tony Piazza, Senior Exploration Manager, Petrobras
Why were doing it

Over the past two years the resurgence of the oilfield services and engineering sectors has been transformational. More complex reservoirs, ever expanding frontier E&P, harsher operating environments, new mega projects and the explosion of Canadian oil sands, deepwater Brazil (and West Africa), and the US shale gale, combined with the increasing need for improved project management, safety, maintenance, production output and on-field capability has not only ensured these companies are viewed as vital industry components but also now responsible for driving new industry growth and production capacity. With project approvals, contract awards and capex commitments continuing their recovery in line with the recovery of the worlds financial markets, the fortunes of these companies have changed significantly, resulting in stronger balance sheets, larger order books/ backlogs, positive cash flows, renewed investor interest and share performances that have outperformed many of their E&P clients. Furthermore tomorrows oil and gas markets promise even more business opportunities to these companies. So what does the future hold for these companies, their partners, and the increasing number of investors, advisors and financiers pursuing them?
Whats in it for you

The Oil Councils 2012 Oilfield Services and Engineering Assembly will explore and discuss the latest developments, trends, challenges and opportunities facing this rapidly evolving and progressive market sector. Purposefully designed to create an environment of knowledge sharing and thought leadership, executives can meet not only their peers, partners and prospects but myriad new investors, financiers, advisors and analysts.
Over 400 attendees from 2011 including:

3i,3Legs Resources, Accenture, Adrok, Afren, Aker Solutions, AMEC, Arcelor Mittal, Archer, Arthur D Little, AXA Framlington, Barclays Capital, Barclays Natural Resource Investments, BG International, BNP Paribas, BP, Bridge Energy, Canamens Energy, Capital International Research, Caza Oil & Gas, Cazenove Capital Management, CCMP Capital, Cenkos, Chariot Oil & Gas, Clifford Chance, CRAI, Denham Capital, Det Norske, Deutsche Bank, Douglas Westwood, Energistics, Energy Ventures, EnQuest, Enteq, Equator Exploration, Ernst & Young, Eurasia Drilling, Evolution Securities, Expro Group, ExxonMobil, Fairfield Energy, Fidelity International, First Reserve, FirstEnergy, Fugro GRL, GE Oil & Gas, GLG Partners, Green Dragon Gas / Greka Drilling, Guinness Atkinson Funds, Gulf Investment Corporation, Gulf Keystone Petroleum, Halliburton, Hallin Marine, Herbert Smith, Heritage Oil, HSBC, Hunting, Indus Gas, ITF, JOGMEC, JP Morgan, KBC Advanced Technology, Kentz, King & Spalding, Lime Rock Partners, Lion Petroleum, Lloyds Bank Corporate Markets, Lombard Odier, Marsh, Marubeni Energy Europe, Maxwell Drummond, Melrose Resources, MF Global, MOL Oil & Gas, National Oilwell Varco, Natixis, Nomura, OandO, OAO NOVATEK, Oriel Securities, Palantir Solutions, Perella Weinberg Partners, Petrobras, Petrofac, Petrofac Energy Developments, President Petroleum, Promon Engenharia, RBC Capital Markets, RCM (Allianz Global Investors), Rockhopper Exploration, RPS Energy, Salamander Energy, Samsung C&T Corporation, Sasol Petroleum, Schlumberger, Senergy, Shell, Siemens, Simmons & Co, SNR Denton, Societe Generale, Statoil, Sterling Energy, Subsea 7, Taylor-DeJongh, TD Securities, Tethys Petroleum, Trafigura, Transocean, Trican Well Services, TSX, Tullow Oil, Vattenfall, Warburg Pincus, Weatherford, Willis and Wood Group.
How can you get involved?

Contact Zara Clarke, VP Content EMEA +44 (0) 207 370 8493 zara.clarke@oilcouncil.com
www.oilcouncil.com/event/ofs
+44 (0) 207 370 8493
zara.clarke@oilcouncil.com
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2011 A Year of Discontent

By Drake Lawhead, Editor

Drillers and Dealers :::

::: December 2011 Edition

Welcome to Drillers and Dealers December 2011

Drillers & Dealers

SPECIAL CEO FOCUS Executive Q&A

Characteristics of Success for CEOs of Mid-Cap E&P Companies

Special Review: 2011 World Assembly and 2011 Awards of Excellence

ON THE SPOT THE ANALYST

FROM THE SIDELINES

Risked Portfolio Valuation

Meet The Members

Drillers and Dealers :::

::: December 2011 Edition

2011 Deloitte LLP. All rights reserved.

Executive Q&A CEO Focus

Executive Q&A with Dr Nick Cooper, CEO, Ophir Energy

Drillers and Dealers :::

::: December 2011 Edition

Executive Q&A CEO Focus

Drillers and Dealers :::

::: December 2011 Edition

WHATS ON THE ROAD AHEAD?

Managing Risk | Maximising Opportunity

Characteristics of Success for CEOs of Mid-Cap E&P Companies

Drillers and Dealers :::

::: December 2011 Edition

Integrated services from Petrofac

PETROFAC IS DELIGHTED TO BE A PARTNER OF THE OIL COUNCIL

Special Review (Guest Foreword): 2011 World Assembly

Drillers and Dealers :::

::: December 2011 Edition

Special Review (Part One): 2011 World Assembly

Drillers and Dealers :::

::: December 2011 Edition

Special Review (Part Two): 2011 Awards of Excellence

** EXECUTIVE OF THE YEAR = ASHLEY HEPPENSTALL ***

Drillers and Dealers :::

::: December 2011 Edition

*** LARGE-CAP OF THE YEAR = ANADARKO PETROLEUM ***

EXECUTIVE OF THE YEAR = ASHLEY HEPPENSTALL *

* LARGE-CAP OF THE YEAR = ANADARKO PETROLEUM *

* MID-CAP OF THE YEAR = TULLOW OIL *

* SMALL-CAP OF THE YEAR = NAUTICAL PETROLEUM *

* EXPLORER OF THE YEAR = LUNDIN PETROLEUM *

* OIL SERVICES COMPANY OF THE YEAR = PETROFAC *

* NOC OF THE YEAR = STATOIL *

* LIFE-TIME ACHIEVEMENT AWARD = SIR FRANK CHAPMAN, BG GROUP *