Interoil Exploration And Production Asa · OSL:IOX
Interoil Exploration And Production Asa — Shareholder Meeting (June 2014)
42 slides from Interoil Exploration And Production Asa's shareholder meeting presentation, Jun 30, 2014
Slide 1: Annual General Meeting – 30 June 2014
ANNUAL GENERAL MEETING – 30 JUNE 2014 1
Slide 2: Agenda
Agenda 1. Opening of the general meeting by the chairman of the Board of Directors Anne- Grete Ellingsen 2. Presentation of list of participating shareholders, in person or by proxy 3. Appointment of person to chair the meeting and to co-sign the minutes 4. Approval of notice of meeting and agenda 5
Slide 3: Item 1 - Opening
Item 1 - Opening Opening of the general meeting by the chairman of the Board of Directors Anne- Grete Ellingsen No voting 3
Slide 4: Item 2 – List of participating shareholders
Item 2 – List of participating shareholders Presentation of list of participating shareholders, in person or by proxy Proposed resolution: It is proposed that the list of participating shareholders is approved 4
Slide 5: Item 3 – Appointment of meeting chair etc.
Item 3 – Appointment of meeting chair etc. Appointment of person to chair the meeting and a person to co-sign the minutes Proposed resolution: It is proposed that Arne Didrik Kjørnæs from Wikborg Rein law firm is appointed to chair the meeting It is proposed that that an individual amongst t
Slide 6: Item 4 – Approval of notice of meeting/agenda
Item 4 – Approval of notice of meeting/agenda Approval of notice of meeting and agenda Proposed resolution: It is proposed that the notice of meeting and agenda are approved 6
Slide 7: Item 5 - Annual General Meeting 30 June 2014
ITEM 5 - Annual General Meeting 30 June 2014 7
Slide 8: Table of contents
Table of contents 1. Highlights 2. Peru update 3. Colombia update 8
Slide 9: 2013 highlights
2013 highlights Strong financial performance USD 35 million private placement and debt maturities Norway, Oslo extended – bankruptcy avoided Headquarter Corporate overhead savings of USD 10 million p.a. achieved USD 19 million net profit on EBITDAx of USD 57 million Colombia, Puli-C & explor
Slide 10: 2013 highlights
2013 highlights New organization and governance structure New management in Peru and Colombia - increased transparency and operational control Designed new exploration and operation departments in Colombia with strong G&G capabilities Increased operational control and HSE performance Desig
Slide 11: New vision and strategy
New vision and strategy Interoil shall grow to become one of the strongest E&P companies operating in Colombia and Peru Maintain a strong balance sheet by adopting a disciplined financial philosophy that balances profitability and sustainable growth. Allocate and deploy capital with a focus on
Slide 12: 2014 highlights
2014 highlights 2014 Colombian development program on-track Targeting production increase of 40% and significantly higher reserves USD 11 mill in net capex, funded by internal cash flows Medium term target to double recovery factor to build reserves LLA-47 exploration license: Early 3D sei
Slide 13: Asset portfolio in South America
Asset portfolio in South America Operated portfolio of four licenses in Colombia Puli-C is the main producing block, (70% working interest, Ecopetrol 30%) LLA-47 exploration block in the Llanos Basin with large upside potential – to be drilled Q4 2015 Altair currently producing 130 bopd from 1
Slide 14: Reserve and resource overview
Reserve and resource overview 50 45 - 40 35 30 MMBOE 30 25 20 43 15 10 8 5 2 3 6 - Colombia Colombia Colombia Puli C LLA-47 Total oil 2P gas 2P 2P potential volume 2P/upside indication Colombia 2P reserves of 5,7 million boe Upside potential: Puli C: through increasing recovery factor from 7%
Slide 15: 2013 Key figures
2013 Key figures A 4% lower oil price and 11% fall in production, caused Figures in USD millions 2013 2012 revenues to decline 18% to USD 97 million. Realized oil price 103 107 Production (boed WI after royalty) 4 251 4 799 EBITDA adjusted for exploration reached USD 57 million, down Sales 97 11
Slide 16: Table of contents
Table of contents 1. Highlights 2. Peru update 3. Colombia update 16
Slide 17: Peru update
Peru update Both blocks operated under a 12 month contract, expiry in April 2015 Working Interest Production, bbl/day Investments to be kept at a minimum 3 500 7,0 Continued production decline to be expected 3 000 6,0 2 500 5,0 Capex (USD mill) Full focus on cash flow optimization 2 000 4,0
Slide 18: Peru update
Peru update The International Chamber of Commerce (ICC) Arbitral Tribunal dismisses Perupetro’s claim for alleged financial damages against IOX arising out of the force majeure injunction. Block III 18
Slide 19: Table of contents
Table of contents 1. Highlights 2. Peru update 3. Colombia update 19
Slide 20: 2013 Drilling program - Evaluation
2013 Drilling program - Evaluation 2013 Net Oil Production - Puli-C - Colombia 12 well drilling program profitable on all metrics: 1 400 IRR of 50% 1 200 NPV(10%) of USD 10 mill (net, after tax) 1 000 Oil Production, bopd 735 Mboe of net reserves added 800 Net capex of USD 15 mill 600 Ex
Slide 21: 2014 Development program
2014 Development program The 2014 development plan designed to optimize production and reserves growth: Operational activities aimed at reducing decline rates, increasing production and reducing operating expenses The drilling of 2-3 strategic wells to increase production and reserves Operat
Slide 22: Production update
Production update 2 800 2 600 2 400 2 200 2 000 Gross Oil Gross BOEP 1 800 1 600 1 400 1 200 1 000 1-May-14 16-May-14 31-May-14 15-Jun-14 Production increase in June: Flow optimization project delayed due to Ecopetrol issues Perforation activities initiated in mid-June. 3 day shut-down for eac
Slide 23: LLA-47 Exploration license
LLA-47 Exploration license Copa´s - C3, C5 y C7 Remaches - C5 Mapache - C7/Mirador 9390 BOPD - API 32 to 40 757 BOPD - API 33.9 677 BOPD - API 34 4.3+3.2+3.1 MMBbls 5.1+3.9 MMBbls 2.58 MMBbls Adalia - C5 License situated in prolific neighborhood: Oropendola - C7 1856BOPD - API 24.5 2000 BOPD - API
Slide 24: LLA-47 – Interpretation results
LLA-47 – Interpretation results Seismic processing with encouraging results Several opportunities mapped: 11 opportunities in one Tertiary reservoir 12 opportunities in one Cretaceous reservoir T1 Another 3 possible reservoirs with large potential T2 upside K1 Large area per opportunity
Slide 25: LLA-47 E&P – Project timeline
LLA-47 E&P – Project timeline License process Phase I ends 3D Seismic acquisition completed. Final volume processing in interpretation G&G Interpretation confirms 2P reserve potential of more than 30 million barrels Timing of drilling dependent on obtaining the necessary ANLA permits Permits
Slide 26: 26
26
Slide 27: Item 6 – Annual Accounts
Item 6 – Annual Accounts Approval of the annual accounts for 2013 for the Company and the group, and the directors’ report for 2013, including the allocation of the result for the year Proposed resolution: The Board of Directors proposes that the general meeting approves the annual accounts fo
Slide 28: Item 7 – Corporate Governance
Item 7 – Corporate Governance Presentation of the Company’s principles for corporate governance by the Chairman of the Board of Directors, Anne Grete Ellingsen No voting 28
Slide 29: Corporate Governance
Corporate Governance General meeting in Interoil Exploration and Production ASA 30 June 2014 Ms Anne Grete Ellingsen – Chairman 29
Slide 30: General
General In the beginning of 2013, the Company had an unclear strategy and corporate governance policy. The current Board of Directors believes sound principles for corporate governance are an important prerequisite for building trust between the Company and its stakeholders and securing sharehol
Slide 31: The work of the Board of Directors
The work of the Board of Directors The Board of Directors leads the Company’s strategic planning and make decisions that form the basis for the executive personnel to prepare and implement investments and structural measures. The Board is a collegiate body and an individual Board member may not
Slide 32: The work of the Board of Directors continued
The work of the Board of Directors continued The Chief Executive Officer is responsible for the Company’s daily operations and ensures that all necessary information is presented to the Board of Directors. Clear command lines/responsibilities and reporting routines have been established. The C
Slide 33: Information and Communications
Information and Communications Interoil’s information policy is based on transparency and on providing the shareholders, investors and financial market with correct and timely information, in a way that safeguards the principle of equal treatment of all shareholders and satisfies the regulations a
Slide 34: Item 8.1 – Remuneration to Board of Directors
Item 8.1 – Remuneration to Board of Directors Remuneration to members of the Board of Directors Proposed resolution: In accordance with the proposal from the nomination committee, the general meeting resolved the following remuneration to the members of the Board of Directors for the period fr
Slide 35: Item 8.2 – Remuneration to the audit committee
Item 8.2 – Remuneration to the audit committee Remuneration to the audit committee Proposed resolution: The remuneration to the Board of Directors under section 8.1 has been proposed based on an assumption that all directors and the alternate director will be participating in the audit committ
Slide 36: Item 8.3 – Remuneration nomination committee
Item 8.3 – Remuneration nomination committee Remuneration to the members of the nomination committee Proposed resolution: The nomination committee has proposed the following remuneration to the members of the nomination committee: • NOK 10,000 to the chairman of the nomination committee for th
Slide 37: Item 9 – Auditor’s fee
Item 9 – Auditor’s fee Approval of the auditor’s fee Proposed resolution: The Board of Directors proposes that the general meeting approves the auditor’s fee for 2013 for Interoil Exploration and Production ASA in accordance with the invoice from the auditor. 37
Slide 38: Item 10 – Board members
Item 10 – Board members Election of board members Proposal from the nomination committee: It is proposed that the general meeting appoint the following directors for a period of two years: • Jean-Philippe S. Flament (proposed chairman) • Lindsay Trzaska • Silje Augustson • Thor Kristian Haugna
Slide 39: Item 11 – Nomination committee
Item 11 – Nomination committee Election of members to the nomination committee Proposal from the nomination committee: It is proposed that the general meeting appoint the following members to the nomination committee for a term of two years: • Hans Bjerke • Khing Oei • Colin Whipp Alternativ
Slide 40: Item 12 – Declaration on remuneration
Item 12 – Declaration on remuneration The Board of Directors’ declaration on salary and other remuneration for the management in Interoil Exploration and Production ASA Proposed resolution: It is proposed that the general meeting endorses the Board’s statement regarding the determination of sa
Slide 41: Item 13 – Authorization for increase in share capital
Item 13 – Authorization for increase in share capital Board authorisations to increase the share capital Proposed resolution: 1. In accordance with the Public Limited Liability Act Section 10-14 the Board is authorized to execute a share capital increase on the total amount of NOK 4,036,159.
Slide 42: 42
42
Interoil Exploration and Production — Shareholder Meeting (June 2014) on 6ix