Ascent Resources Plc · LSE:AST
Ascent Resources — H1 2011 Earnings Presentation
26 slides from Ascent Resources's earnings presentation, September 2011
Slide 1: Pure European Oil and Gas
“Pure European Oil and Gas” September 2011
Slide 2: Overview
Overview • Balanced Portfolio with a number of near term, high impact opportunities – prioritising on-shore European gas production, appraisal and exploration Netherlands Switzerland • Primary Objective to Increase Cash Flow by ramping up production & increase value across the portfolio through deve
Slide 3: Slovenia / Hungary
Slovenia / Hungary Petišovci Lovászi Introduction Block Block • 200 km2 project area straddling Slovenia/Hungary border • Contains three former oil and gas fields: • Petišovci - SLOVENIA • Lovászi - HUNGARY • Ujfalu - HUNGARY • Full 3-D seismic acquired across the complete Pannonian Basin Project ar
Slide 4: Petišovci Closure & Reservoirs
Petišovci Closure & Reservoirs • Primary Proven/Producing Middle Miocene •Stacked A – F sands A •Primary E sand producer • Pg-11A & Pg-10 wells •Confirmed gas pay in Middle Miocene reservoirs Pg-11A well •Encountered deeper Middle/Lower Miocene with extra reserve potential •‘K’ sand produced 0.9 Mcf
Slide 5: Petišovci Project
Participation 16% 100% 50% 50% 25% 75% Petišovci Project 48.25% 5
Slide 6: Petišovci – Historical Production
Petišovci – Historical Production 2000 100 1800 90 1600 80 1400 70 1200 60 1000 50 16% 800 40 600 30 400 20 200 10 0 0 1940 1950 1960 1970 1980 1990 2000 2010 5.0 4 4.5 3 y) 4.0 3 3.5 3.0 2 ( 2.5 2 2.0 1.5 1.0 0.5 5 0.0 0 Pontian Production 5.6 MMbbl; 34.3 Bcf Badanian Production 8.7 Bcf 6
Slide 7: Wells
Wells Positioned to exploit a significant opportunity • Pg-1, 5 and 7 historical wells produced total 8 Bcf from Middle Miocene RPS Audit (P90) E1 Sand with minor production from Pg- Pg-11A well Mid Miocene 250m net Mid Miocene 3,6,and 9 114m net Lwr Miocene Reserve Area ~ Est. 400 GIP • Pg-11A test
Slide 8: Pg-11,11A Well results
Pg-11,11A Well results Increasing pressure with depth means lowest sands should flow more easily but not all can I be frac’ed at the same time N C R 'A' Sands tested dry gas to surface E A S Pg-11A I well N 'B' Sands gas bearing G Original (RPS) Mid Miocene Pay P Lwr Miocene 'C' Sands gas bearing Se
Slide 9: Comparison of Pg-11A & Pg-5 Reservoirs
Comparison of Pg-11A & Pg-5 Reservoirs Pg-11A ‘K’ Sand (+ Example Pay Section) Pg-5 ‘E1’ sand log comparison Pg-11A well Example of one net K sand pay section equivalent to the 25m pay interval that flowed gas from the E1 sand in the Pg-5 well Pg-5 well Produced c.4 Bcf with an initial rate of Pg-11
Slide 10: Pg-11,11A Results on Seismic
Pg-11,11A Results on Seismic Pg-11A well Pg-11 & Pg-11A Middle Miocene Independent RPS W 400+ Bcf in place E 1.5 Sec Top A sand Lower Miocene Undefined pre- Top D sand Unconformity Reserve potential ??? Top E sand Mapped spill point at top 2 ‘K’ Sand Sec Top K sand Middle / Lower Miocene Potential t
Slide 11: Forward Plan
Forward Plan Drilling, detailed engineering & assessment work in progress Work Programme • Preparation of a new Appraisal & Development plan incorporating results from the Middle and Lower Miocene pay defined by Pg-11A & Pg-10 wells. • Both wells will be fracture stimulated before production testing
Slide 12: Fracture stimulation design
Fracture stimulation design • Xf = 135 m (propped length) • FCD = 10 (@90% damage) • Average prop. Conc. = 0.7 lb/ft2 • Payzone coverage = 100 % • 74 tonnes in formation • Perforations: – Assuming 21 open holes, Ø 0.5 in ‐> total open area: 26.6 cm2 Production Forecast
Slide 13: European Gas Opportunity
European Gas Opportunity European oil and gas exploration and production EU27 Import Dependency to 2030 The Opportunity 80% • Leveraging strong European gas prices 70% • Geographically spread portfolio across on-shore Europe - 71% 74% 68% operating in stable fiscal and legislative regimes 60% 60% •
Slide 14: Slovenian Gas Pricing
Slovenian Gas Pricing One of the highest gas price environments in Europe Source: eurogas 14
Slide 15: Switzerland
Switzerland Low risk, high upside participation • Substantial resources with low risk participation: • Hermrigen & Linden estimated at over 360 Bcf, both undeveloped discoveries Hermrigen SEELAND- Field FRIENISBERG made by Elf Aquitane & Amoco in PERMIT 1972/1982 • FinnCap risked NAV of 1.4p per sha
Slide 16: Italy
Italy Onshore Italy in highly prospective regions • Four key assets, all with low cost, high upside potential Bastiglia & Cento Licences • Key focus in 2011/12 on Ripi Fiume, Frosinone Development & Frosinone Exploration: & Strangolagalli Licences Strangolagalli Licence • Redevelopment in proven Rip
Slide 17: Netherlands
Netherlands Shallow off-shore southern north sea. M10 & M11 Licences • Large 135 Bcf appraisal project in two blocks, M10/M11 • 3 Gas Discovery wells drilled in 1985 and 1992 by Nederlandse Aardolie Maatschappik (NAM) • Application made for licence extension formal reply from authorities pending 17
Slide 18: Shareholder value creation
Shareholder value creation • finnCap project risked NAV of core projects of 25.5p 30 offering significant near term upside Project risked value per share Petisovci – SLO/HU 23.3p 25 Ripi - Latina Valley 0.8p Hermrigen – Switzerland 1.4p Share Price (pence) 20 • Prudently managed to maximise sharehol
Slide 19: Ascent is well funded
Ascent is well funded • Recent £17m fund raising in March 2011 • Designed to cover a three well programme • Two redevelopment wells in Petišovci, Slovenia • One exploration/appraisal well on other side of the border in Ujfalu, Hungary • With our current thinking around simple vertical fracs in the n
Slide 20: Current detailed work programme
Current detailed work programme Significant newsflow in 2011 & 2012 20
Slide 21: Commerciality report
Commerciality report Confirmation of substantial potential • PDC undertook a commerciality review of the Petišovci Gas Field Assumptions: Modelled four scenarios • Case 1: 3 K-sand wells and no further field development • Case 2: 15 K-sand wells only • Case 3: 15 K-sand wells, subsequent E1 and D2 r
Slide 22: Petišovci production profiles
Petišovci production profiles
Slide 23: Economic Summary
Economic Summary Strong projected returns for shareholder • Each scenario modelled by PDC offers a strong rate of return for shareholders, with Cases 2, 3 and 4 offering very high shareholder value creation: • Fracture stimulation work being carried out on Pg-11A and Pg-10 later this and next month
Slide 24: Plenty of future optionality
Plenty of future optionality Optimising our field development plan Project Free Cashflow Financing/Debt Equity Farm-out 24
Slide 25: Summary and Conclusion
Summary and Conclusion • Exciting results with data from Pg-11A and Pg-10 increasing our confidence of commercial exploitation of the Petišovci asset. • Resources appears to be substantially bigger than first thought. • Aggressive exploitation and development programmes planned for 2012, commerciali
Slide 26: Disclaimer
Disclaimer The information contained in these slides and this presentation is being supplied to you by Ascent Resources 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