Europa Oil & Gas (holdings) Plc · LSE:EOG
Europa Oil & Gas (holdings) — Investor Presentation (May 2012)
42 slides from Europa Oil & Gas (holdings)'s investor presentation, May 2012
Slide 1: Company Presentation May 2012
Company Presentation May 2012
Slide 2: Disclaimer
Disclaimer The information contained in these slides and this presentation is being supplied to you by Europa Oil & Gas plc on behalf of itself and its subsidiaries (together “the Company”) solely for your information and may not be reproduced or redistributed in whole or in part to any other person
Slide 3: AIM listed oil and gas exploration and production company
Europa Oil & Gas plc is an AIM listed oil and gas exploration and production company with a significant portfolio of multi-stage hydrocarbon assets focussed on the UK and France 3 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 4: Key Data
Key Data Share Price 6.75p Market AIM Ticker EOG Market £9.3 million Capitalisation Ordinary 137,855,504 Shares in Issue 4 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 5: Overview
Overview AIM listed cash generative oil and gas exploration and production company focussed on UK and France Balanced portfolio of multi stage assets including production Producing assets in UK generating approximately £5m in annual sales – covers corporate overheads Profitable in 3 of the l
Slide 6: Board of Directors
Board of Directors Hugh Mackay Hugh Mackay, a geologist, joined Europa in 2011. He has a wealth of experience in the oil and gas sector, including eight years CEO at BP in a variety of roles in the UK, the Oman and Egypt, then at Enterprise Oil in leadership roles, culminating as head of the SE Asia
Slide 7: Strategy
Strategy Focus on France and the UK Area of interest Europe, North Africa, Mediterranean Maintain and augment existing production levels Apply disciplined risk management policy to existing projects - implement drill, drop, divest, dilute decisions Progress existing exploration portfolio t
Slide 8: Portfolio
Portfolio “Broad spread of prospects in recognised hydrocarbon systems” The Irish Atlantic Margin East Midlands Oilfields and Exploration Weald Basin Exploration Romanian Carpathian Aquitaine Exploration Basin Appraisal and Exploration 8 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 9: Multi-Stage Portfolio of Assets
Multi-Stage Portfolio of Assets Asset Country Working Stage Interest West Firsby UK 100% Production Crosby Warren UK 100% Production Whisby UK 65% Production Berenx Deep Bearn des Gaves Licence France 100% Appraisal Berenx Shallow, Bearn des Gaves Licence France 100% Appraisal Jacques, Tarbes Val d’
Slide 10: Production: Onshore UK
Production: Onshore UK Three onshore UK projects in the East Midlands: Crosby Warren, West Firsby, Whisby Mean net risked reserves 0.61 million barrels On target to achieve 200 bopd forecast for full year to 31 July 2012 Revenues cover corporate overheads and help fund exploration Business
Slide 11: Production CPR figures
Production CPR figures CPR Europa Asset Mean net risked EMV risked NAV Risked NAV reserves mmbl £mm p/share West Firsby 0.43 2.55 1.8 Crosby Warren 0.08 0.52 0.4 Whisby 0.14 0.89 0.6 0.65 million barrels £3.96 million 2.8p/share 11 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 12: Exploration: Wressle Prospect, UK
Exploration: Wressle Prospect, UK Located in the East Midlands Petroleum Province PEDL 180/182 HUMBER BASIN Europa 33.3% working interest (Egdon Resources 33.3% & Celtique 33.3%) 49 km2 3D seismic acquired January 2012, processing completed in May, drillable prospect by mid year, leading to we
Slide 13: Appraisal: Broughton UK
Appraisal: Broughton UK Located in the East Midlands Petroleum Province PEDL 180/182 HUMBER BASIN Drilled by BP in 1984 – flowed oil Europa 33.3% working interest (Egdon Resources 33.3% & Celtique 33.3%) 49 km2 3-D seismic acquired January 2012, interpretation ongoing leading to new prospect
Slide 14: Exploration: Holmwood Prospect, UK
Exploration: Holmwood Prospect, UK 7.5 km2 Holmwood Prospect in the Weald Basin, Surrey PEDL 143 WEALD BASIN Jurassic sandstone reservoirs Europa 40% working interest (Egdon Resources 38.4%, Altwood Petroleum 1.6%, Warwick Energy 20%) CPR mean gross unrisked prospective resources 5.6 mmbo, 3
Slide 15: Nr. Top Portland: Europa Mapping (May 12)
Nr. Top Portland : Europa Mapping (May 12) Closure 7.5 sq kms 15 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 16: UK Exploration CPR figures
UK Exploration CPR figures CPR Europa Prospect Mean gross Mean net EMV risked Risked NAV unrisked risked NAV £mm p/share prospective prospective resources resources mmbl mmbl Wressle* 2.4 0.27 3.9 2.2 Broughton* 1.9 0.21 3.0 2.9 Holmwood 5.6 0.6 8.8 6.4 9.9 million 1.08 million £15.7 million 11.5p/s
Slide 17: Notional UK small field cashflow
Notional UK small field cashflow - 1.7 million barrel net reserves, 5 million barrel gross 17 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 18: Appraisal: Berenx, France - A Company Maker?
Appraisal: Berenx, France - A Company Maker? Located in very close proximity to giant gas fields - low geological risk Fractured carbonate reservoir, hot and sour, similar to nearby Lacq (9tcf) and Meillon (2tcf) fields Berenx deep CPR gross unrisked mean contingent resources 277 bcf Close t
Slide 19: General Geological Setting
General Geological Setting Lacq Field 9 TCF Meillon Field 2 TCF 19 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 20: 2D line: 83HBS-01 (Time)
2D line : 83HBS-01 (Time) Play 1 Allochtonous Neocomian (shallow) Play 2 Autochthonous Barremian –Kimmeridgian (Deep) SW Berenx 1 Berenx 2 Sainte Suzanne Thrust NNE Salies Thrust Albian event Gas shows Neocomian event Gas test Lower Kimmeridgian event 83HBS-01 20 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 21: Play 1 Allochtonous Neocomian (shallow) Form Map
Play 1 Allochtonous Neocomian (shallow) Form Map: TWT 83HBS-01 Mapping at the Neocomian level suggests an area Yellow thrust and or salt of ~12km2 provides up dip seal to west. 3D seismic limit, Data used in mapping 21 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 22: Play 2 Lower Kimmeridgian (Deep) TWT map
Play 2 Lower Kimmeridgian (Deep) TWT map HSB-01 Lead area of ~ 20sq kms Western closure formed by dipping thrust plane of the Sante Suzanne fault 22 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 23: France CPR contingent resources
France CPR contingent resources CPR Europa Prospect Mean gross Mean net EMV risked Risked NAV unrisked risked NAV £mm p/share contingent prospective resources bcf resources mmbl Berenx deep 277 23.5* £29.5 million* 21.4p/share* * Assumes Europa equity reduced to 25% after farming down 23 | EUROPA OI
Slide 24: France Europa in-house contingent resources
France Europa in-house contingent resources Europa Europa Prospect Mean gross Mean net EMV risked Risked NAV unrisked risked NAV £mm p/share contingent contingent resources resources mmbbl/bcf mmbbl/bcf Berenx shallow 59 bcf 7.8* 10.1* 7.3* Jacque 1.7 0.1+ 1.5+ 1.1+ Osmets 3.4 .3+ 3.8+ 2.8+ £15.4 mi
Slide 25: Exploration: The Irish Atlantic Margin
Exploration: The Irish Atlantic Margin “Potential high impact blocks, low initial expenditure” Viable petroleum system - previous discoveries of Connemara, Spanish Point and Burren 100% equity in two exploration Licensing Options covering two four-block parcels on the margins of the Porcupine Ba
Slide 26: The Irish Atlantic Margin
The Irish Atlantic Margin 26 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 27: The Irish Atlantic Margin
The Irish Atlantic Margin 27 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 28: Exploration: SADR
Exploration: SADR 100% interests in Western Sahara licensed by the Sahrawi Arab Democratic Republic Covers approximately 80,000 sq km of exploration acreage, crossing the Tindouf and Aaiun basins Significant potential for both conventional and unconventional gas resources, specifically shale g
Slide 29: Bir Lahlou Licence – Silurian hot shale
Bir Lahlou Licence – Silurian hot shale Bir Lahlou >10,000 km2 Hagounia in open SADR Berm Shale gas potential in 29 | EUROPA OIL AND GAS PLC | MAY 2012 Silurian hot shale
Slide 30: Europa Value NAV based on CPR and in-house risked volumes
Europa Value NAV based on CPR and in-house risked volumes* *75% of risked volume Mean risked Portfolio NAV 66 £million audited in CPR Median (P50) Portfolio NAV 43 £million 30 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 31: Europa Value p/share based on CPR and in-house risked volumes
Europa Value p/share based on CPR and in- house risked volumes 31 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 32: 2012 – 2013 Highly Active
2012 – 2013 Highly Active Drill Wressle exploration well in PEDL180 UK in 2H 2012 Consider follow up well at nearby Broughton prospect if Wressle successful Support PEDL 143 Holmwood planning appeal, hearing in July 2012, planning decision in Q4 2012, if positive drill in 2013 Farm-out Beren
Slide 33: Timeline
Timeline 2012 2013 2014 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec UK Wressle UK Broughton UK Holmwood France Berenx shallow France Tarbes France Berenx deep firm well possible well 33 | EUROPA OIL A
Slide 34: Investment Summary
Investment Summary Combines stable production and highly prospective low risk exploration Aiming to drill up to 5 wells in next 18 months 1 firm well in 2H 2012, fully funded from existing financial resources High impact news flow expected – including farm-outs Disciplined, process driven,
Slide 35: Appendix
Appendix 35 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 36: Europa UK + France Volumes & Risk
Europa UK + France Volumes & Risk Risk (Chance Resource Gross Unrisked Resources Net Unrisked Resources Net Risked Resources ASSET Fluid Equity cum of Discovery / Category mmbbl/Bcf mmbbl/Bcf Commerciality) mmbbl/Bcf P90 P50 P10 Mean P90 P50 P10 Mean P90 P50 P10 Mean UK West Firsby Reserve Oil 0.14
Slide 37: Europa UK + France Volumes & Risk
Europa UK + France Volumes & Risk Net Risked Mean Mean EMV EMV Resource Europa Risked ASSET Fluid Resources unrisked risked Capex net (risked (risked Category $/boe NAV mmbbl/Bcf value value NAV) NAV) Mean $mm $mm $mm $mm £mm p/share UK West Firsby Reserve Oil 0.43 10.00 4.30 4.30 0.00 4.30 2.81 2.0
Slide 38: Europa Value NAV based on CPR risked volumes
Europa Value NAV based on CPR risked volumes Mean risked Portfolio NAV 67 £million 38 | EUROPA OIL AND GAS PLC | MAY 2012 Median (P50) Portfolio NAV 43 £million
Slide 39: Europa Value p/share based on CPR risked volumes
Europa Value p/share based on CPR risked volumes 39 | EUROPA OIL AND GAS PLC | MAY 2012
Slide 40: Oil & Gas Fiscal Regimes for UK, France and Ireland
Oil & Gas Fiscal Regimes for UK, France and Ireland UK Effective rate 62% Exploration & CAPEX 100% deductible in first year Small fields allowance (<45mmbbl) reduces rate to 30% for first £150m of profit for new developments France Effective rate 34.4% Royalty 5% (for gas >10.6 BCF/yea
Slide 41: Profitable in 3 of the last 4 years
Profitable in 3 of the last 4 years £,000 6 months to 31 Year to 31 July 11 Year to 31 July 10 Year to 31 July 09 Year to 31 July 08 January 12 Production, bopd 187 167 178 213 243 Revenue 2,362 3,766 3,091 2,936 4,418 Cost of Sales (1,214) (2,216) (1,836) (1,694) (1,548) Exploration Write (6,120) -
Slide 42: For further information contact
For further information contact: Europa Oil & Gas (Holdings) PLC Porter Street, London, W1U 6DD UK Telephone +44 20 7224 3770 mail@europaoil.com www.europaoil.com Frank Buhagiar/Lottie Brocklehurst/Hugo de Salis St Brides Media & Finance Ltd Telephone +44 20 7236 1177 42 | EUROPA OIL AND GAS PLC | M
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