Savannah Energy PLC · LSE:SAVE
Savannah Energy — Savannah Petroleum — Investor Presentation (November 2016)
28 slides from Savannah Energy's investor presentation, November 2016
Slide 1: Corporate Presentation
Corporate Presentation NOVEMBER 2016
Slide 2: Disclaimer
Disclaimer These presentation materials (the “Presentation Materials”) do not constitute or form any part of any offer or invitation or inducement to sell or issue or purchase or subscribe for any shares in Savannah Petroleum plc (“Savannah”) nor shall they or any part of them, or the fact of their
Slide 3: Corporate Overview
Corporate Overview SAVANNAH PETROLEUM (“SAVANNAH”) Market Statistics Focused around the exploration of the R1/R2 and R3/R4 PSC areas in the Agadem Rift Listing AIM (SAVP) Basin (“ARB”) of South East Niger Shares Outstanding 274,621,447 Listed on the AIM market of the London Stock Exchange with a
Slide 4: Agadem and the Central African Rift System
Agadem and the Central African Rift System Bongor Trough Agadem Rift Basin 417 mmbbls 975 mmbbls 2P reserves c.50 kbd production capacity 20 kbd current production1 Melut Basin 1,782 mmbbls c.250 kbd max. production capacity Doba Trough Muglad Basin 1,059 mmbbls 2,053 mmbbls c.100 kbd current produc
Slide 5: ARB Exploration and Activity History
ARB Exploration and Activity History PRE-CNPC ERA (1975 – 2004) 5 discoveries made from 25 exploration wells (i.e. 20% success rate) CNPC ERA (2008+) US$300m signature bonus paid 93 exploration discoveries from 124 exploration wells (i.e. 75% success rate) Over 225 wells drilled in total (i.
Slide 6: The Scale of the Basin: Agadem vs UK CNS
The Scale of the Basin: Agadem vs UK CNS Also a Rift Basin ‘Slow burn’ early exploration limited by data quality Dozens of successful plays proven through application of modern methods Focus play not yet creamed Two more key plays proven Multiple additional upside plays to explore Mode
Slide 7: Key ARB Workstreams Completed
Key ARB Workstreams Completed Over 2,200 man days of work has been completed on the project since inception, by a core 10 person technical team Principal workstreams completed over the past year include: Interpretation of core seismic, FTG and magnetic datasets Rock physics and reservoir geo
Slide 8: Simplified ARB Geological Model
Simplified ARB Geological Model EXISTING BASIN PLAY TYPES AND POTENTIAL UPSIDE STYLISED CARTOON OF ARB GEOLOGY To date, oil discoveries in the ARB have been in structural trapping configurations, whereby oil has been trapped across a fault against shale in sandstone reservoirs The principal form
Slide 9: CGG Prospective Resource Assessment
CGG Prospective Resource Assessment CGG Robertson (“CGG”) has utilised its proprietary statistical “yet to find” methodology to estimate best estimate mean gross prospective risked resource Structural play estimate for Savannah’s licenses at 2.2bn bbls trends CGG has also audited 12 example targ
Slide 10: R1 Example Target: Damissa
R1 Example Target: Damissa Substantial structure with significant resource potential DAMISSA SEISMIC PROFILE Situated within main source kitchen fairway with proven Base Miocene oil accumulations within c.10km Excellent reservoir potential proven in offset wells Stacked pay with targets at U
Slide 11: R3 Example Target: Bushiya
R3 Example Target: Bushiya Substantial structure with significant resource BUSHIYA SEISMIC PROFILE potential Situated within main source kitchen fairway with proven oil accumulations c.10km along strike to NW and SE Excellent reservoir potential proven in offset wells Stacked pay with target
Slide 12: R3 Example Target: Kunama
R3 Example Target: Kunama Substantial structure with significant resource KUNAMA SEISMIC PROFILE potential WSW ENE Situated within main source kitchen fairway with proven oil accumulations within c.14km. Excellent reservoir potential proven in offset wells Stacked pay with targets at Upper Sok
Slide 13: Oil Export Infrastructure
Oil Export Infrastructure INFRASTRUCTURE ACCESS Under the terms of the R1/R2 and R3/R4 PSCs, the Petroleum Code of Niger and its Implementing Decree, Savannah is entitled to access third party infrastructure Under the terms of the proposed Agadem Region Infrastructure Agreement between Savannah
Slide 14: Expansion into Nigeria
Expansion into Nigeria NNDC/NNPC PARTNERSHIP Savannah has entered into a MOU with the New Nigeria Development Company Ltd (“NNDC”), a company owned by the 19 northern states of Nigeria and focused on the economic development of the north of Nigeria, and the Nigerian National Petroleum Corporation
Slide 15: Indicative Work Programme
Indicative Work Programme Activity 2H 2016 1H 2017 2H 2017 R3 East Seismic Acquisition R3 East Seismic Processing & Interpretation OPTION: R3 Central 3D Seismic Acquisition OPTION: R1 North 3D Seismic Acquisition Exploration Well Drilling (3 well initial programme) OPTION: Further exploration well d
Slide 16: Board and Management
Board and Management A geologist by profession Steve is widely recognised as one of the most capable oil and gas executives in the UK Steve Jenkins, Chairman Previously Founder and CEO of Nautical Petroleum which was sold for £414m to Cairn Energy in Q3 2012 Geologist by profession, currently
Slide 17: Appendix (1) – Additional Niger License Area Information
Appendix (1) – Additional Niger License Area Information 17
Slide 18: Overview of Main PSC Terms
Overview of Main PSC Terms Net After Royalty Signature bonus and related expenditure: US$34m R1/R2 (40% cost recoverable) US$28m R3/R4 (60% cost recoverable) Royalties: Profit Oil Cost Oil Oil – 12.5% Gas – 2.5% Cost Oil: Recovery of 100% of capital and operating costs (capped at 70%
Slide 19: PSC Phases and Work Programme – R1/R2 vs. R3/R4
PSC Phases and Work Programme – R1/R2 vs. R3/R4 R1/R2 R3/R4 4 year term 4 year term Minimum work programme: Minimum work programme: 500km2 3D seismic 750km2 3D seismic Phase 1 2 wells 3 wells 50% relinquishment of land at end of phase, excluding land already 50% relinquishment of
Slide 20: CGG Robertson Audited Example Exploration Target List
CGG Robertson Audited Example Exploration Target List Target Name Block Unrisked Mean STOIIP, Unrisked Mean Assessed Risk Factor mmbbls Recoverable (30% RF), mmbbls Damissa R1 310 93 Low Guiwa R1 293 88 Low Jimna R2 271 81 Low Adal R3 160 48 Low Efital R3 152 46 Low Alam R1 148 44 Low Mena R1 134 40
Slide 21: Potential Development Economics – Kaduna Trucking
Potential Development Economics 1 – Kaduna Trucking Development Statistics Assumes early production facilities giving production start- up within 2 years of discovery Reserves (mmbbls) 70 Plateau production of 10kbd is reached in 2020 for 10 Peak Oil Production (kbd) 10 years, declining thereaft
Slide 22: Potential Development Economics – Kaduna Pipeline
Potential Development Economics 2 – Kaduna Pipeline Development Statistics Assumes early production facilities giving production start- up within two years of discovery Reserves (mmbbls) 73 Plateau production of 18kbd is reached in 2020 for 2 years, Peak Oil Production (kbd) 18 declining thereaf
Slide 23: Potential Development Economics – Chad-Cameroon Pipeline
Potential Development Economics 3 – Chad-Cameroon Pipeline Development Statistics Assumes early production facilities giving production start- up within two years of discovery Reserves (mmbbls) 73 Plateau production of 18kbd is reached in 2020 for 2 years, Peak Oil Production (kbd) 18 declining
Slide 24: Appendix (2) – Niger Country Information
Appendix (2) – Niger Country Information 24
Slide 25: Niger – Current Licensing Position
Niger – Current Licensing Position License Information Name Principal Owner Nationality 6 1 R1/R2 Savannah Petroleum British 2 R3/R4 Savannah Petroleum British 4 5 3 Agadem CNPC Chinese 1 3 4 Bilma CNPC Chinese 2 5 Tenere CNPC Chinese 6 Kafra Sonatrach Algerian Savannah, alongside CNPC and Sonatrach
Slide 26: Niger – Key Facts
Niger – Key Facts 2015 population of 19.9m people (61st largest population in the world) Landlocked country in West Africa covering 1,267,000km2 (21st largest country in the world) Terrain mainly desert, with arable land in the South West and South East Former French colony, now boasts a “re
Slide 27: Niger – Key Economic Statistics
Niger – Key Economic Statistics 2000 2005 2010 2015 Population, total (millions) 10.99 13.18 15.89 19.90 Population growth, annual (%) 3.6 3.7 3.8 4.1 GDP (current US$, billions) 1.80 3.41 5.72 7.14 GDP growth, annual (%) (1.4) 4.5 8.4 (13.4) Inflation, GDP deflator (annual %) 4.5 6.6 2.6 2.6 Extern
Slide 28: Corporate Presentation
Savannah Petroleum 40 Bank Street Corporate Presentation London E14 5NR T: +44 (0) 20 3817 9844 ir@savannah-petroleum.com www.savannah-petroleum.com
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