Welcome one

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NEW BUSINESS PRACTICE

• Welcome one all
• Thanks
• To all the presenters who are giving both of
  their time and their experience to be with us
  today.
• To the PESGB and particularly to Julie Callaghan
  for organising this event.
• To the English Heritage Lecture Theatre for
  hosting us today.
• Fire Alarm Escape Routes
• PESGB Forthcoming Events

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Why a New Business Practice Conference?
Stimulating activity on the UKCS Norwegian
Portfolio Managers meeting Berlin
Jim Munns PESGB President Director, Endeavour
Energy UK Ltd.
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UKCS World Competitive
Evolving rather than Mature
World Class Hydrocarbon System
Extensive Infrastructure
Many Remaining Opportunities
Stable Political Environment
Responsive Government
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Understanding the Evolution

• Majors interest changing - Core vs non-Core,
  competition for funds, etc.
• Opportunities via
• Company/Asset sales
• Licence Rounds
• Farm ins
• Fallow process
• DTI setting framework and accelerating process

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Promote Licence tap into new thinking
Promote Licensees (21st Round)
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23rd Licensing Round

• 152 Production licences
• 246 blocks
• 70 Traditional licences (38 more than 22R)
• 76 Promote Licences (18 more than 22R)
• 6 Frontier licences (1 less than 22R)
• 17 firm wells (3 in 22R)
• 94 companies
• 24 New Entrants

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Fallow Initiative Outcome successes since 2002

• 31 Exploration wells drilled on fallow B blocks
• One new field on production
• 3 under development
• 3 exploration discoveries
• 2 successful appraisals
• 14 exploration wells drilled on fallow A blocks
• 3 successful appraisal wells
• 153 blocks relinquished
• 16 re-licensed in 21/22R
• All rescued blocks have a drill or drop decision
  point

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Unlocking Future Potential

• Broad spectrum of opportunities remain only 50
  of potential reserves produced
• Realising Value
• Speed and ease of the deal crucial
• Cutting costs overheads, technology
• Utilising the consultant/contractor expertise
• Right company mix
• Licences in hands of those best suited
• Government industry collaboration
• High oil price

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NEW BUSINESS PRACTICE