Nativo Resources Plc · LSE:NTVO
Nativo Resources — Echo Energy — Investor Presentation (January 2022)
16 slides from Nativo Resources's investor presentation, January 2022
Slide 1: Q1 2022 Investor Presentation
Q1 2022 Investor Presentation January 2022
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by Echo Energy plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers giv
Slide 3: Echo Energy: a cash generative energy company
Echo Energy: a cash generative energy company o An AIM listed energy company with production of 1,555 boepd Financial Metrics o Strong Reserves and Resources platform: 2P Reserves of 4.06 MMboe Ticker (LSE: AIM) ECHO and 2C Resources of 6.51 MMboe Share price1 0.71 cents/share USD o Increased revenu
Slide 4: Management team
Management team Strong track record of building relationships and executing transactions in Latin America Leadership Team Martin Hull Dr. Julian Bessa Robert Brown CEO VP Technical CFO o Over 19 years in oil & gas o 25 years experience o Over 20 years' experience as either investment banking at Fina
Slide 5: 2020-2021: Delivering a robust base business
2020-2021: Delivering a robust base business Production Base Cash Flow Optimisation Portfolio Growth & Restructuring Cost reductions provide strengthened o Successful completion of financial o Robust base business, geared to o leverage commodity price increases base from which to look forward – G&A
Slide 6: Infrastructure expansion has unlocked additional cashflow in base business
Infrastructure expansion has unlocked additional cashflow in base business o Pipeline installed in H1 2021 on time and on budget WELLS NOT YET ONLINE o Enabled liquids production to increase by c. 50% as additional wells are brought online o In combination with premium pricing of gas sales agreement
Slide 7: Santa Cruz Sur – Production enhancement opportunities
Santa Cruz Sur – Production enhancement opportunities Low cost, mid-high reward workovers and overlooked commercialisation options in Santa Cruz Sur Gas to Buenos Aires Campo Bremen Block o 6 gas opportunities across three fields o 3 high grade opportunities could add 1.3-2.0 MMscf/d additional prod
Slide 8: Asset Vision: Potential of Santa Cruz Sur base business
Asset Vision: Potential of Santa Cruz Sur base business Net Production Potential Build-up Net Production (boepd) 3,000 Base Additional Oil & Workover New Development Production Cycling Wells programme wells on existing producing assets Based on Company estimated reserves and resources as at 31 Decem
Slide 9: Rationale to diversify into Chilean solar in 2022
Rationale to diversify into Chilean solar in 2022 Low risk launch pad for Echo’s renewables strategy o Diversification brings greater value than for similar sized deals available in oil and gas space o Entry to a high-growth low-risk sector whilst continuing to invest in the core business • Tangible
Slide 10: Why Renewables in Latin America? Complementary, Scalable & Investable
Why Renewables in Latin America? Complementary, Scalable & Investable o ESG is a dominant investment theme and Latin America has world o Attractive risk - returns profile class resources with bullish demand forecasts o Scalable – pipeline of further renewables opportunities can lead to o Complementa
Slide 11: Why Chile?
Why Chile? Ranked 1st worldwide by Bloomberg’s Climatescope report for Clean Energy Investment Attractiveness o World class renewable energy resources Photos: Solek, OEnergy o Ambitious energy transition targets and government support aims to change historic reliance on fossil fuels: • 70% of electr
Slide 12: Headline deal terms
Headline deal terms Proposed Corporate Structure: o Agreement to purchase and form a JV partnership to construct a 3MW solar project in central Chile Solar Project A o Echo obtains 70% interest in Vincente Mendez project, where: • All further expenses to Ready-To-Build (RTB) paid by LAS At sale: at
Slide 13: Project location
Project location Example 3 MW Project Location: Chile Electricity Grid: 2.5 km Possible second project: San Carlos II Firm Project: Vincente Mendez Chillán Pop: 175,000 o Located in central Chile, south of Santiago: • Solar resource on par with the Mediterranean • Less competition for connection poi
Slide 14: Strategic local partner
Strategic local partner o Land and Sea Energy, established in 2017 o Small outfit, specialists in the development of 3-9 MW solar projects in Chile’s central regions o Further pipeline of small projects in Chile. Plus, long term vision of larger scale projects in Chile and beyond o Complementary ski
Slide 15: Project timelines
Project timelines Phase 1: Ready to Build (RTB) Phase 2: Project Financing & Final Phase 3: Construction Investment Decision Q4 2021: Q2 2022 –Q3 2023: Negotiation on agreement to acquire with Transaction Solar project construction terms defined Q1 2022 Raise project financing for project Capex, app
Slide 16: Echo Energy post-transaction
Echo Energy post-transaction o Cash generating, diversified energy company o Robust base business geared to leverage increase in commodity prices CASH GENERATING ASSETS EXPERIENCED TEAM o Delivered new opportunities in renewable energy, with large growth potential in pipeline o Value accretive upsid