Energean Plc · LSE:ENOG
Energean — Pareto Conference (January 2019)
22 slides from Energean's conference presentation, January 2019
Slide 1: Corporate Presentation January 2019
Corporate Presentation January 2019
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements and information that both represents management’s current expectations and beliefs and are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business and with any statemen
Slide 3: Energean at a Glance: a strong, effective operator in the Med
Energean at a Glance: a strong, effective operator in the Med FTSE 250 (LN:ENOG) and TASE (TA: )אנאגlisted Operational Strength 4 c. 350 385 Countries, an mmboe 2P Highly skilled approved operator employees Effective $1.8bn $1.4bn $13bn execution ongoing investment in EPCIC contract with revenue
Slide 4: Growth and Performance at the Heart of Energean
Growth and Performance at the Heart of Energean Historical delivery: 75% 2P + 2C CAGR ‘08 – ‘18 (mmboe) mmboe $/bbl Prinos Karish – Tanin acquisition acquisition 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Brent Price - $/bbl Prinos Basin 2P Prinos Basin 2C Katakolo 2P Karish and Tanin 2P
Slide 5: Production & cash flow from Greece
Production & cash flow from Greece Recent progress and work programme Quarterly production growth 6000 • 40 mmboe of 2P resource across Prinos and Epsilon. EL-1 has identified reserve upside in the Epsilon Main and Deep reservoirs 5000 • Six sequential quarters of production growth 4000 • 2019 full
Slide 6: Optimising production: Prinos financial highlights
Optimising production: Prinos financial highlights Production Costs Down Cash Flows Up 2019 17.0 expected production costs range • Targeting production of more than 10,000 bopd by 2021 6 6
Slide 7: Developing reserves – optionality at Katakolo
Developing reserves – optionality at Katakolo Katakolo overview • 2P reserves of 10.5 mmbbls • c.$100 million NPV • $60 million development capex • 2 wells tested • Development plan would likely is to drill the first pilot hole to be converted to an injection well shortly after FID • Environmental a
Slide 8: Adding more hydrocarbons - Western Greece and Montenegro
Adding more hydrocarbons - Western Greece and Montenegro Western Greece JV with Repsol Montenegro Key Highlights • Repsol 60% partner and operator; pays 90% of costs to • Blocks 4218-30 and 4219-26 awarded March 2017 (Energean $49.9 million cap 100%) • Seismic exploration activities have commenced •
Slide 9: Developing reserves - a $1.6bn de-risked project in Israel
Developing reserves - a $1.6bn de-risked project in Israel Energean WI: 70% - Karish-Tanin Regulatory FDP approved August 2017 EPCIC Lump sum turnkey EPCIC Contract Drilling 4 firm, 6 optional wells GSPAs 4.2 bcm/yr (16yr av) $12bn revenue Project Financing $1.275 billion Equity $460 mn ra
Slide 10: Downside protected through gas sales contracts
Downside protected through gas sales contracts Volume 4.6 bcm/yr (+0.7 bcm/yr Or Contingent Contract) Tenor Min: 7 years -- Weighted Average: 16 years -- Max: 20 years Weighted Avg Take-or-Pay 75% Weighted Avg Current Price $4.1 / mmbtu Weighted Avg Floor Price > $4 / mmbtu Largest private industria
Slide 11: Karish Development Plan
Karish Development Plan 11 11
Slide 12: Development risk mitigated through Technip EPCIC turnkey contract
Development risk mitigated through Technip EPCIC turnkey contract ENERGEAN POWER 12 12
Slide 13: On track to deliver First Gas in 1Q 2021
On track to deliver First Gas in 1Q 2021 March 2018 Q2 2019 Q3/Q4 2019 Q2 2020 • FID • Pipeline beach • Sales-gas • Installation of crossing at Dor pipeline production installation Dor manifold and to Karish other sub-surf structures 2018 2019 2020 First gas: Q1 2021 26 Nov 2018 Q1 2019 Q3 – Q4 2019
Slide 14: 2019 – Drilling Four Wells In Israel
2019 – Drilling Four Wells In Israel • 1st Step: Karish North - March 2019 1.3 Tcf gas & 16.4 mmbls liquids 69% chance of success Single well development in success case • Next Steps: Karish Main – 2019 3 development drilling wells Upside potential for Karish Main*: 46 bcm (1.6 Tcf) GIIP
Slide 15: Adding more hydrocarbons - committed well at Karish North
Adding more hydrocarbons - committed well at Karish North Strong DHI conforming to structure Karish North Karish North • Spud: March 2019. Estimated drill time 45 days • 1.3 Tcf + 16.4 million bbls gross recoverable prospective resources (Energean 70%) Karish Main • High Geological Chance of Success
Slide 16: Significant near-field prospective resources
Significant near-field prospective resources Targeting multiples of upside through infrastructure-led exploration 16 1. NSAI August 2018 16
Slide 17: Adding more hydrocarbons – additional tie-backs
Adding more hydrocarbons – additional tie-backs Zeus 17 17
Slide 18: Adding more hydrocarbons: our infrastructure opportunity
Adding more hydrocarbons: our infrastructure opportunity Additional FPSO capacity 9 8 7 3.4 BCM/yr Spare Capacity 6 Net Cash Flow Margin > 50% 5 0.4 BCM/y BCM/y Contingent upon 4 future gas from Karish North 3 4.2 BCM/yr Gas Sales Contracted 2 Net Cash Flow Margin c.25% 1 0 2021 2022 2023 2024 2025
Slide 19: Adding more hydrocarbons – commercialisation options
Adding more hydrocarbons – commercialisation options Meeting Growing Israeli Gas Demand Export Options 35 30 25 20 bcma 15 10 5 0 Energean Contracted Energean Available Capacity Rest of Market per Adiri Additional demand per BDO • A market that has grown by an average 15% CAGR for the last 10 years
Slide 20: The next 18 months: what to watch out for
The next 18 months: what to watch out for • 2 development wells in Greece Drilling 6 wells • 3 development+ 1 exploration in Israel • FPSO hull completed & topsides integration, Developing Karish Subsea & Pipeline completion under EPCIC • Epsilon project on stream Developing Prinos • Katakolo farm o
Slide 21: Energean's success in 2018 to be continued…
Energean’ s success in 2018 to be continued… Company of the Year – Small Cap Energy Company of Oil & Gas Deal of the Deal of the Year the Year Year Executive of the Year 21 21
Slide 22: Thank you
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