United Oil & Gas Plc · LSE:UOG
United Oil & Gas — Investor Presentation (November 2021)
23 slides from United Oil & Gas's investor presentation, November 2021
Slide 1: Corporate Presentation
Corporate Presentation [ ] November 2021 CORPORATE PRESENTATION November 2021 www.uogplc.com AIM: UOG
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is being supplied to you solely for The Presentation may not be reproduced or redistributed, in whole These risks include, but are not limited to, risks associated with the your information. The Presentation has been prepared by, and is the or in part, t
Slide 3: United Board - 120+ Years Combined Industry Experience
UNITED BOARD - 120+ YEARS COMBINED INDUSTRY EXPERIENCE Brian Larkin, Chief Executive Officer David Quirke, Chief Financial Officer Jonathan Leather, Chief Operating Officer Skills and Experience Skills and Experience Skills and Experience Strategic Planning, executive and public Treasury, corporate
Slide 4: Sustainable, Cash Generative Portfolio with High Reward Upside
SUSTAINABLE, CASH GENERATIVE PORTFOLIO WITH HIGH REWARD UPSIDE Full-cycle, cash-generative asset Development and exploration growth 8 producing fields High-impact, PRODUCTION exploration 21 producing wells Existing production DEVELOPMENT EGYPT EXPLORATION generating cashflow JAMAICA (22% WI) (100% W
Slide 5: Significant Value Upside - Compelling Value
SIGNIFICANT VALUE UPSIDE - COMPELLING VALUE Multiple upcoming value accretive catalysts $10m Higher revenues and cash flow driven by production 1H 21 Revenue growth and increasing commodity prices $8m PROCEEDS FROM DIVESTMENTS OF NON - CORE INTERESTS $4.61/boe Low-cost cash opex enables resilient ne
Slide 6: Commitment to Operating a Sustainable Business
COMMITMENT TO OPERATING A SUSTAINABLE BUSINESS Egypt Jamaica Social ZERO $50,000 2 Al Amal Mentoring Capacity Building $100,000 $400,000 Programme Sponsor Contributed by JV to LTI’s1 Annual Training JV Annual contribution to contribution for Sponsorship supporting ~40 th 4 Upstream Technical Trainin
Slide 7: Appendix: Egypt
APPENDIX EGYPT CASH GENERATIVE PORTFOLIO NEAR TERM DEVELOPMENT /EXPLORATION UPSIDE FAST TURNAROUND FROM DISCOVERY TO REVENUES www.uogplc.com AIM: UOG
Slide 8: Egypt Highlights
EGYPT HIGHLIGHTS ABU SENNAN HIGHLIGHTS Reserves and Attractive Exploration Stable Egyptian Production Base Economics Upside E&P Environment ü Production base of c. 2,100-2,300 ü Low operating costs of <$5/bbl in ü Significant prospect/ lead portfolio ü One of the lowest-cost operating boepd1 1H 21 b
Slide 9: Low-Cost Organic Production Growth Potential ~4,000 boepd Net
LOW-COST ORGANIC PRODUCTION GROWTH POTENTIAL ~4,000 boepd net Illustrative potential net production growth at Abu Sennan United 22% Working Interest Production 4500 36-month forward Production (boepd) Baseline Development Exploration programme of at least 13 wells Egypt acquisition effective date 0
Slide 10: Path to Significantly Increasing Production in Under 24 Months
PATH TO SIGNIFICANTLY INCREASING PRODUCTION IN UNDER 24 MONTHS Scalable| Low cost | Efficient Operations >80% 3-12 Month <$5 12.3% $1m ABU SENNAN Historical Typical Per bbl Recovery Attractive LICENCE drilling payback Operating factor well cost P+D+A+E success1 on wells costs at end-20202 (net) PROD
Slide 11: Path to Increasing Production - Low Risk Exploration
PATH TO SIGNIFICANTLY INCREASING PRODUCTION IN UNDER 24 MONTHS - LOW RISK EXPLORATION 100% Exploration success rate since 20181 ABU SENNAN PROSPECTIVITY Upside (3U) Volumes vs Chance of Success3 § Existing infrastructure: fast-tracking of commercial discoveries § ASX-1X well brought onstream within
Slide 12: Appendix: Jamaica
APPENDIX JAMAICA HIGH REWARD UPSIDE www.uogplc.com AIM: UOG
Slide 13: High Impact Exploration Potential - Walton Morant Licence, Jamaica
HIGH IMPACT EXPLORATION POTENTIAL - WALTON MORANT LICENCE, JAMAICA 400 MMstb 3D seismic (2018) GCA PRR 2020 Prospect/Lead GCA PRR 2020 Prospect/Lead Colibri drill-ready prospect prospective Additional leads Identified Lead resources1 WAMT18 3D Survey 2.4 Billion barrels unrisked mean prospective Gol
Slide 14: High Impact Exploration Potential - Walton Morant Licence, Jamaica
HIGH IMPACT EXPLORATION POTENTIAL - WALTON MORANT LICENCE, JAMAICA Unlocked basin-wide potential is transformative § Farm-out process launched in April 2021, with interest shown from a number of companies Walton & Morant Licence Production Potential Mean Unrisked (Gross) § Basin-opening Colibri pros
Slide 15: Appendix: Financial Discipline
APPENDIX FINANCIAL DISCIPLINE SAFEGUARDING CAPITAL CAPITAL ALLOCATION TO GENERATE RETURNS www.uogplc.com AIM: UOG
Slide 16: Funding Cycle - Disciplined Capital Allocation for Best Returns
FUNDING CYCLE - DISCIPLINED CAPITAL ALLOCATION FOR BEST RETURNS Balance Sheet Capital Growth Maximising Cashflow From production Operations Active Portfolio Free Cash Flow Management Growth through Investing in our development business Debt Capacity Low cost , low risk Cost Control Exploration On go
Slide 17: Financial Strategy - Investment and Safeguarding Capital
FINANCIAL STRATEGY - INVESTMENT AND SAFEGUARDING CAPITAL Measurement Delivery Mix of Debt & ü 50:50 Debt/Equity Split Egypt Acquisition Capital Structure ü Financing Partner BP Equity Funding ü $20m Equity raised to date ü Egypt Acquisition $16m Portfolio Proactively manage asset ü UK Divestments $8
Slide 18: 1H 2021 Financial Summary
1H 2021 FINANCIAL SUMMARY Production1 Realised Oil Price Realised Gas Price 2,730 boepd $63/bbl $2.6/mmbtu (1H 2020: 1,975)2 (1H 2020: $28/bbl) Group Revenue Gross Profit CashNet fromProfit operations 1H 2021 capex spend Egypt $1.1m $10m $6m $6m § Workovers and facility upgrades (1H 2020: $2m)2 (1H
Slide 19: Value Opportunity
VALUE OPPORTUNITY Trading at discount of c.60% to Core NAV at $65/bbl oil price $8m SELF FUNDING FLEXIBLITY 30.00 Source: Cenkos 8 /08/2021 Portfolio management Funding Exploration & to respond to 2.48 0.21 0.15 0.10 0.19 0.03 0.32 27.18 proceeds to be deployed to Development Wells from commodity pr
Slide 20: Appendix: Value Realisation and Opportunity
VALUE REALISATION AND APPENDIX OPPORTUNITY COMPELLING VALUE NEAR TERM VALUE DRIVERS www.uogplc.com AIM: UOG
Slide 21: Compelling Value
COMPELLING VALUE 1 VALUE OPPORTUNITY Trading at c.60% discount to Core NAV at $65/bbl § Oil prices hit a seven-year high in October and demand is now back above 100 million bbls a day 2 MANAGED RISK ACROSS PORTFOLIO Producing business, generating cash with development exploration upside 3 PORTFOLIO
Slide 22: Appendix
APPENDIX APPENDIX www.uogplc.com AIM: UOG
Slide 23: Egypt Fiscal Terms - Production Sharing Contract
Egypt Fiscal terms - Production Sharing Contract (“PSC”) 100% Oil & Gas Revenues Contractor’s Effective Take 42.53% Profit Oil – 70% Cost Oil – 30% Profit Oil – 70% X Contractor – 17.9% Interest + Cost Oil – 30% EGPC – 82.1% Contractor – Opex Interest 17.9% Interest § Contractors (joint venture part
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