Etablissements Maurel & Prom Sa · EURONEXT:MAU

Etablissements Maurel & Prom Sa — Maurel & Prom — Merger or Acquisition (November 2015)

31 slides from Etablissements Maurel & Prom Sa's merger presentation, November 2015

  1. Slide 1: Maurel & Prom to merge with MPI

    Maurel & Prom to merge with MPI Creating a leader among junior oil companies November 2015

  2. Slide 2: Environment

    Environment Oil price since 2008 (Brent) Worldwide rig count 140 4000 $ 3500 120 3000 2500 100 2000 1500 80 1000 60 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. Avg. 40 Today’s challen

  3. Slide 3: Actions

    Actions 1- Merger between MPI and Maurel & Prom - Strengthen financial means of both groups - Offer a strong combination of already developed assets 2- Focus efforts and capex on high potential assets - Oil producting assets in Gabon - Gas producing assets in Tanzania - Stake in Seplat (21.76%) in N

  4. Slide 4: A leader among independent European E&Ps

    A leader among independent European E&Ps The combined group ranks in the top tier among listed mid-cap oil and gas companies in terms of market capitalisation and EV 3-month average market capitalisation ($bn) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 - Merged Group 3-month average enterprise value ($

  5. Slide 5: Merger operation

    Merger operation The planned merger is in line with a strategy of sector consolidation and would allow the new entity to enjoy: 1- financial means strengthened by: • a sound balance sheet and a combination of substantial cash flow from production in Gabon and Tanzania and dividends from Seplat in Ni

  6. Slide 6: Contemplated transaction summary

    Contemplated transaction summary  Merger of Maurel & Prom (“M&P”) and MPI, M&P being the acquiring company Transaction  Listed on Euronext Paris  Distribution by MPI of a €0.45 exceptional cash dividend per share before the merger, subject to Key Terms shareholders’ approval  Contemplated exchan

  7. Slide 7: Cash-flows of both entities

    Cash-flows of both entities €m 450 400 350 300 Dividendes Dividends 250 Service de la dette Interests Investissements Capex 200 Others Autres 150 Operatingcash Operating cashflow flow 100 50 0 In Out In Out In Out In Out Maurel & Prom MPI Maurel & Prom MPI 2013 2013 2014 2014 • M&P has generated > €

  8. Slide 8: Dividend policy

    Dividend policy Historical dividends came from capital Historical dividends came from capital gain from asset disposal in Congo and gain from Seplat share disposal in 2013 Colombia Current situation: Distribution capacity: Current situation: €0.45 per share, to be paid after the No capacity to distr

  9. Slide 9: Balance sheet and potential synergies

    Balance sheet and potential synergies The new Group will benefit from a robust balance sheet and cost synergies Balance sheet (€m, 30/06/2015) Debt repayments(1) (€m) 2,277 2,277  No major debt instalment before YE 2018 Shareholder equity 368 Debt Other liabilities 350 923 Exploration 300 Developme

  10. Slide 10: Summary exchange parity

    Summary exchange parity Following pre-merger distribution of an exceptional €0.45/share exceptional dividend by MPI Final parity: M&P vs MPI share exchange parity 1.75x 2.3 Spot - as of 27/08/2015 2.3 2.5 Spot - 1-month average as of 27/08/2015 2.3 2.7 (min, max) 2.5 2.7 1-month 3-month average aver

  11. Slide 11: Focus on already developed assets

    Focus on already developed assets The combined group benefits from material 2P reserves, mainly oil… Combined WI 2P reserves pre-royalties at 01/01/2015 (mmboe) 61 * 289 31 66 23% 228 30 gas 35 35 77% 223 193 193 oil M&P Gabon M&P Tanzania M&P MPI Nigeria Illustrative combined 2P reserves Oil Gas *

  12. Slide 12: A first-class portfolio of producing assets

    A first-class portfolio of producing assets Production Exploration NIGERIA (61mmboe(1)) Gas Oil  Production 51% 49% • 45% OML 4, 38, 41 • 40% OPL 283 • 40% OML 53 • 22.5% OML 55 GABON (193mmbbl(2)) TANZANIA (35mmboe(2))  Production Oil • 80% Ezanga ← Op 100%  Production Gas • 100% Banio ← Op • 48

  13. Slide 13: A first-class portfolio of assets offering near-term and long-term growth opportunities

    A first-class portfolio of assets offering near-term and long-term growth opportunities Production Exploration CANADA  Exploration • 50% Gaspésie • 21.7% Anticosti  Appraisal (SAGD pilot) • 25% 12 blocks in Alberta NIGERIA  Exploration Gas Oil • OML 4, 38, 41: 45 % 51% 49% • OML 53: 40 % • OML 55

  14. Slide 14: Cost control

    Cost control Decrease in opex - Decrease of production cost by 20% per barrel expected in 2016 versus 2015 - Closure of certain subsidiaries - Sale of certain assets Cost synergies after the merger: €2.5m - MPI G&A - MPI listing costs Tax savings - About €5m for the first half 2015 14 M&P to merge w

  15. Slide 15: Long term strategy: become a first class leader in the oil and gas sector

    Long term strategy: become a first class leader in the oil and gas sector Long term strategy intact  Manage for growth  Generate cash flow  Provide returns to shareholders Adapt to new commodity prices  Refocus investments on three main productive assets  Solid balance sheet with a strong cash

  16. Slide 16: Appendices

    MAURELY PROM —_ Appendices id

  17. Slide 17: Gabon: a strong producing base

    Gabon: a strong producing base Operated asset with material oil reserves and production offering long-term visibility in a stable O&G country  80% interest in onshore, operated assets  100% oil production  Gross production H1 2015: 22kbopd Ezanga  YE 2015 target production: 30kbopd 6,100km2  Su

  18. Slide 18: Gabon recent discoveries: Mabounda (EZMA) and Niembi (EZNI)

    Gabon recent discoveries: Mabounda (EZMA) and Niembi (EZNI) Production to start in 2015 AEDE OMGW Production centre OMBG ONAL OMKO OMOC-NORD OMOC EZMAB-1  Mabounda (EZMAB): Test : 1,002bopd  25km from the production centre ONAL Pressure: 9 bars  EZMAB-1D well, drilled in January 2015 EZNI-1 Test

  19. Slide 19: Gabon: daily production since first January 2015

    Gabon: daily production since first January 2015 And production covenant Daily gros production in Gabon 35 000 30 000 25 000 23,750 Production covenant 20 000 bopd 15 000 10 000 5 000 0 01/01/2015 01/02/2015 01/03/2015 01/04/2015 01/05/2015 01/06/2015 01/07/2015 01/08/2015 01/09/2015 01/10/2015 01/1

  20. Slide 20: Gabon exploration upside: Kari and Nyanga Mayombe

    Gabon exploration upside: Kari and Nyanga Mayombe Kari M&P 100% Nyanga Mayombe M&P 100% 20 M&P to merge with MPI

  21. Slide 21: Tanzania: a new source of cashflows

    Tanzania: a new source of cashflows  48% interest in operated assets  Significant 2P reserves  WI 2P reserves pre-royalties: 35mmboe (63% P1)  Production started in August 2015  Expected production: 80mmcfpd by YE 2015  Pipeline providing access to market  Government-owned 36’’ pipeline from

  22. Slide 22: Nigeria – Seplat (22% stake)

    Nigeria – Seplat (22% stake) Seplat’s assets portfolio WI reserves (01/01/2015) OML 4, 38, 41 2P reserves: 2P reserves: 281mmboe (49% liquids) 281mmboe (49% liquids)  45% WI (operator) OPL 283  129mmbbl (liquids) 8%23mmboe  747bcf (gas) 40% liq.  Production Seplat: 30,176boepd OML 38 21% OML 4 5

  23. Slide 23: Nigeria – Seplat: contingent resources and exploration upside

    Nigeria – Seplat (22% stake): contingent resources and exploration upside Large contingent resources and numerous unexplored prospects Undeveloped / unexplored reservoirs and prospects Seplat WI 2C contingent resources (281mmboe)(2)  Drilled Seplat’s first exploration well on OML 38 Liquids (mmbbl)

  24. Slide 24: Nigeria – Seplat: focused acquisition strategy

    Nigeria – Seplat (22% stake): focused acquisition strategy Solid track-record of value accretive and price-disciplined acquisitions OML 53  40% WI with NNPC partner at 60%  Seplat operator  Estimated 151mmboe of WI recoverable hydrocarbon volumes  51mmbbl liquids (oil and condensate)  611bcf ga

  25. Slide 25: Focus on Saint-Aubin Energie

    Focus on Saint-Aubin Energie Overview Location maps Assets owned through Saint-Aubin Energie, a JV between MPI (2/3) and Myanmar (Block M2) M&P (1/3)  M&P contributes for one third of the funding and for technical support Myanmar  40% of M2 block located in the western Gulf of Martaban  Partners:

  26. Slide 26: M&P and MPI Share Price Exchange Parity Pre Merger Announcement

    M&P and MPI Share Price Exchange Parity Pre Merger Announcement M&P / MPI over 12 months 3.5 3.0 2.5 2.5x 2.3x 2.1x 2.0 1.5 1.0 27/08/2014 27/10/2014 27/12/2014 27/02/2015 27/04/2015 27/06/2015 27/08/2015 M&P/ MPI Average 1m Average 3m Average 1y M&P / MPI since MPI spin-off in Dec 2011 9.0 8.0 7.0

  27. Slide 27: Parity Based on a Multicriteria Valuation Approach

    Parity Based on a Multicriteria Valuation Approach M&P MPI Applicability (listed on Euronext Paris) (listed on Euronext Paris)  Spot, 1M, 3M, 6M, 12M averages  Spot, 1M, 3M, 6M, 12M averages Share Price  Liquidity analysis  Liquidity analysis  Gabon core value (2P reserves): DCF based on D&M re

  28. Slide 28: Maurel & Prom

    Maurel & Prom 28 M&P to merge with MPI

  29. Slide 29: MPI shareholders

    MIPI 29 Shareholders Number of | Share Exercisable Theoretical voting Pacifico S.A. 28,749,616) 24.93%] 28,749,616) 25.98%] 28,749,616] 24.93% Macif 8,324,204 7.22% 8,324,204 7.52% | 8,324,204) 7.22% Treasury shares 4,676,989 4.06% - -| 4,676,989] 4.06% Public** 73,585,725) 63.80%) 73,585,725] 66.50

  30. Slide 30: MPI + Maurel & Prom

    MPI + Maurel & Prom 30 M&P to merge with MPI

  31. Slide 31: MAURELYPROM

    MAURELYPROM MVP!

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