Tomco Energy Plc · LSE:TOM
Tomco Energy — Investor Presentation (June 2013)
18 slides from Tomco Energy's investor presentation, Jun 11, 2013
Slide 1: Corporate Presentation
Corporate Presentation 11 June 2013 TomCo Energy plc (AIM: TOM.L) • 126 million bbl oil in surface minable JORC Measured Resource • 9,800 bopd production facility planned www.tomcoenergy.uk.com
Slide 2: Disclaimer
Disclaimer Important information STRICTLY PRIVATE & CONFIDENTIAL By attending the meeting where this presentation is made, or by reading the presentation This document has not been approved by the UK Financial Conduct Authority. slides, you agree to be bound by the following limitations: This docume
Slide 3: TomCo Board
TomCo Board Sir Nicholas Bonsor Bt DL Paul Rankine Miikka Haromo Non-Executive Chairman CEO Finance Director Member of British Parliament from 1979 Formerly CEO of Cassidy Gold Corp Previously worked as a partner at Middle to 1997: Chairman of Defence Select & Zambezi Nickel & director of Europe Inv
Slide 4: Investment highlights
Investment highlights Attractive relative EV valuation of $31m* ($0.25/boe) versus: – Junior North American unconventional oils peer group comparison $1.57/boe – Red Leaf – Total JV implied valuation $640m ($5.38/boe) – Internal project NPV10% of $452m ($3.59/boe) High grade resource – 126 million b
Slide 5: Oil production from shale
Oil production from shale Company – AIM quoted (TOM.L) – Market Cap: £22m* – Strong strategic relationship with Red Leaf Utah Footprint – 2,919 acre (1,200 acre on Holliday Block) leases in Uintah County, Utah – 126 million bbl of oil in surface mineable JORC Measured Resource – 100% held Utah State
Slide 6: Oil shale process comparison
Oil shale process comparison Retorts In-situ In-capsule • Surface mining • Oil shale in place • Surface mining • Surface retort facilities • Sub-surface retorting • Sub-surface retort process Pros Cons Pros Cons Pros Cons – Rapid pyrolysis – Low quality oil – Potential for – Potential aquifer – High
Slide 7: Green River Oil Shale Formation, USA
Green River Oil Shale Formation, USA Green River Formation estimated ~1.5 trillion barrels oil in place Richest oil shale layer found in the Mahogany Zone TomCo – JORC Measured Resource of 126m bbl within Mahogany Zone on TomCo’s 1,200 acre Holliday Block – 21.0 gallons of contained oil per ton of s
Slide 8: Red Leaf / Total JV
Red Leaf / Total JV Total will pay 80% of the first $400m spent to commercially develop Red Leaf's existing surface mineable Utah assets for a 50% participating interest – The JV will invest $200m in an Early Production System (EPS) to prove the commercial scalability of Red Leaf’s EcoShale™ process
Slide 9: Planned commercial capsule characteristics
Planned commercial capsule characteristics Expected EcoShale™ capsule characteristics – Capsule dimension 900ft L x 500ft W x 153ft H – Capsule heated to 725°F (385°C) by circulating air at 900°F (482°C) – 210-day heating cycle – First oil at Day-100 – Peak oil at Day-150 – Low grade shale to be use
Slide 10: Holliday Block – key metrics
Holliday Block – key metrics Taxes & royalties Federal tax 35% State tax 5% Utah State tax refund (75% for 20 years) Red Leaf royalty 6% Production royalty (SITLA): 5% increasing after 5 years by up to 1% pa; 12.5% max; first 200,000 barrels per annum royalty free Expected CAPEX & OPEX Start-up CAPE
Slide 11: Expected TomCo & Red Leaf operational outlook
Expected TomCo* & Red Leaf operational outlook 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 JORC upgrade to Probable Reserve from Measured Resource Permitting applications lodged for large mining & water discharge DOGM* approval Notice of Intention to Commence Large Mining Operations DWQ** app
Slide 12: Relative valuation: EV/2P ($/boe)
Relative valuation Junior North American unconventional oil multiples 3.00 2.79 2.55 2.50 2.00 EV/2P ($/boe)* 1.65 Avg. $1.57/boe 1.50 1.06 1.00 0.77 0.50 0.25 ‐ PXX.TO STP.TO CLL.TO SUO.TO IE.TO TOM.L BlackPearl Resources Inc. Southern Pacific Resource Connacher Oil & Gas Ltd. Sunshine Oilsands Ltd
Slide 13: Corporate information
Corporate information • Closing share price 1.18p (10-Jun-13) • Market capitalisation £22m ($34m) • 3-month average daily liquidity £27k (10-Jun-13) • Shares – Issued & outstanding 1,869,455,744 – Fully diluted 1,896,988,348 Holding Kenglo One 492,920,548 26.4% Dominic Redfern & Sarah Cooke 183,916,
Slide 14: Contacts
Contacts Paul Rankine, CEO paul@tomcoenergy.uk.com Miikka Haromo, Finance Director miikka@tomcoenergy.uk.com Press enquiries Ed Portman / Conrad Harrington / Jos Simson Tavistock Communications +44 20 7920 3150 eportman@tavistock.co.uk 14 TomCo Energy plc Analyst presentation www.tomcoenergy.uk.com
Slide 15: Appendices
Appendices • What is oil shale? • EcoShale™ – mine plan • Seep Ridge pilot plant 15 TomCo Energy plc Analyst presentation www.tomcoenergy.uk.com
Slide 16: What is oil shale?
What is oil shale? Fine grained sedimentary rock rich in organic matter known as kerogen – Kerogen formed from decaying organic material by heat & pressure in environment similar to conventional oil – Different from shale oil (i.e. where greater depth, pressure & geologic time has already converted
Slide 17: EcoShale™ – mine plan
EcoShale™ – mine plan Strip mining process – Preliminary site preparation – Overburden is stripped, sorted & stockpiled for construction material (design requires overburden) – Stripped site used for capsule construction – Designed to minimize handling and distance ore is moved Capsule construction
Slide 18: Seep Ridge pilot plant
Seep Ridge pilot plant Heating pipes Insulation blocks (‘Flex-crete’) Capsule Control room etc. Burners/ blowers Burners/blowers Process facilities Oil storage tanks 18 TomCo Energy plc Analyst presentation www.tomcoenergy.uk.com