Orcadian Energy Plc · LSE:ORCA
Orcadian Energy — Investor Presentation (December 2022)
21 slides from Orcadian Energy's investor presentation, Dec 1, 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION December 2022 1
Slide 2: Disclaimer
Disclaimer This presentation and its enclosures and appendices (the “presentation”) have been prepared by Company have not since changed, and the Company does not intend, and does not assume any Orcadian Energy plc (the “Company”) exclusively for information purposes. This presentation has not oblig
Slide 3: Why invest in Orcadian?
Why invest in Orcadian? ● Substantial audited Proven & Probable Reserve base with significant exploration and appraisal upside ● Pilot project well advanced and will deliver on the NSTA’s Net Zero agenda and Government’s Energy Security goals ● Core projects alone have a NPV10 of $1.5 billion at $70
Slide 4: Experienced leadership team and Board
Experienced leadership team and Board ● Former Chief Executive of LASMO plc. ● Trained as a lawyer and now a Qualified Chartered Accountant with 30 years Joe Darby Tim Feather of experience in the financial industry. ● Worked for Shell Petroleum before becoming Managing Director of ● Currently the C
Slide 5: Scale matters in offshore oil, and core asset is the Pilot oilfield with 79MMbbl of 2P reserves
Scale matters in offshore oil, and core asset is the Pilot oilfield with 79MMbbl of 2P reserves ● Key asset is the Pilot oilfield which has a substantial audited reserve: 79 MMbbl 2P (proven & probable) ● Pilot field is well appraised and development ready, project NPV10 $937m at $70/bbl, NPV10 brea
Slide 6: Licence & CPR Summary
Licence & CPR Summary 2C 2C 2U Licence and Operator Licence 2P Contingent Contingent Prospective Orcadian Term Phase block Status Area Discoveries Reserves Resources Resources Resources or admin. Interest Expiry* Expiry ¶ numbers (km2) MMbbl (On hold) (Technical) (Unrisked) MMbbl MMbbl MMbbl P2244 P
Slide 7: Pilot is fully appraised following its discovery by Petrofina in 1989
Pilot is fully appraised following its discovery by Petrofina in 1989 331200 332000 332800 333600 334400 335200 3360 6331200 Pilot Parameter Units ● Pilot discovered by Fina in 1989 10 6330400 Oil water contact 2724 feet 12º–14º API. ● Fully appraised with 7 wells and 10 10 10 600–1,200 cP 20 Oil co
Slide 8: New geophysical and geological interpretation supports an uplift to reserves
New geophysical and geological interpretation supports an uplift to reserves Pilot Field - Heterogeneous mid Pilot North ● Interpreted new seismic 331200 332000 332800 333600 334400 335200 336000 database to build structure and 6331200 0 0 thickness maps 10 0 6330400 10 10 0 Pilot Main P29 6329600 0
Slide 9: Updated reservoir models include multiple geological realisations based on real world analogues
Updated reservoir models include multiple geological realisations based on real world analogues ● Worked with TRACS to generate a range of potential geological realisations based upon geological analogues ● Five different static reservoir models generated covering extensive heterolithic through to h
Slide 10: Pilot field development works best with alternating production and injection horizontal wells
Pilot field development works best with alternating production and injection horizontal wells 331200 332000 332800 333600 334400 335200 336000 ● Thirty four horizontal wells planned to sweep the 6331200 6331200 reservoir efficiently 10 6330400 6330400 10 10 10 20 ● Tight well spacings maximise retur
Slide 11: IMEX Full Field Model Well pattern and spacing
IMEX Full Field Model Well pattern and spacing ● 18 producers, 16 injectors ● 100m spacing to North ● 150m spacing to South ● Injectors low, producers high ● Maximum length 6,000ft 🔝🔙
Slide 12: Pilot Field Development Plan
Pilot Field Development Plan Wind turbine Jack-up FPSO WHP ● FPSO located at least two kilometres from platforms and wind turbine ● Floating wind turbine supplies power to platforms and FPSO, onboard power generation from highly responsive gas reciprocating engines with batteries for frequency contr
Slide 13: Emissions reduced to almost a tenth of the North Sea average by using floating wind power
Emissions reduced to almost a tenth of the North Sea average by using floating wind power ● Multiple opportunities to 30 Scope 1 Benchmarks reduce emissions adopted ● Integration of aggressive 25 process heat management Pilot field development with high efficiency back- 20 up power generation Shorte
Slide 14: New oil developments can have dramatically lower emissions than mature fields
New oil developments can have dramatically lower emissions than mature fields ● Data collected by the North Sea Transition Authority for emissions intensity, CO2, CH4, SOx and NOx in CO2eq terms, per barrel of oil equivalent produced in 2021 ● UKCS average is 25 kgCO2e/boe ● This dataset demonstrate
Slide 15: Agreement with TGS to access the very best seismic data for Pilot and the surrounding assets
Agreement with TGS to access the very best seismic data for Pilot and the surrounding assets ● June 2022, TGS and Orcadian signed a royalty agreement ● In return for a 1% royalty over Orcadian’s Western Platform licences, TGS: ● Deferred an amount of the licence fees due in 2022 ● Undertook to repro
Slide 16: MoU with SLB to enhance the Pilot development plan and to deliver the Pilot wells
MoU with SLB to enhance the Pilot development plan and to deliver the Pilot wells ● SLB will provide subsurface petro-technical expertise, production technology, well and completions engineering resources to ● Identify, design, and deploy appropriate subsurface, surface and wellbore technologies ● P
Slide 17: The British government is strongly supportive of new O&G investment with the introduction of the EPL
The British government is strongly supportive of new O&G investment with the introduction of the EPL ● Government now strongly supportive of new oil and gas investment ● Energy profits levy introduced with investment incentives for tax paying companies ● Licence round launched and energy security st
Slide 18: Impact of Energy Profits Levy on the cost of Pilot development to a UK tax-paying operator
Impact of Energy Profits Levy on the cost of Pilot development to a UK tax-paying operator ● 35% additional tax on profits, but with 100% excellent investment reliefs ● Due to the 2028 “sunset” clause, impact on 75% Pilot standalone NPV is minimal c. 1% to 2% ● But the impact of tax status is very s
Slide 19: Sources of finance
Sources of finance ESG focussed nance Farm-in partner(s) FPSO contractor FWT c. $60m First WHP Jack-up (leased) FPSO c. $600m c. $110m Infrastructure Equity raise Mooring et al c. $140m Investors First ve wells c. $100m Bank Lending Bond issuance Contractor support Costs based upon development scena
Slide 20: Summary – Objectives and Strategy
Summary – Objectives and Strategy Deliver a high return for investors ● Fully finance the polymer flood project for Pilot, multi-strand approach: ● Seek farm-in partners and project investors ● Structure a contractor alliance to deliver the project ● Engage with financing partners, lenders, infrastr
Slide 21: Q&A
Q&A 21
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