Slide 1: Analyst and Investor Visit to Greece
Analyst and Investor Visit to Greece Wednesday 10 October 2018
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 Management Team
Energean Management Team Executive Committee Senior Management David Donaldson Mathios Rigas Managing Director Prinos Asset Chief Executive Officer • Petroleum Engineer with over 30 years of industry experience • Founding Shareholder • Held senior drilling engineer positions at Shell, Eni and • Petr
Slide 4: HSE Performance
HSE Performance Implementation of the Offshore Safety Directive Fatality Participation in the EU Emissions Trading System Participation in EU Blue Growth Policy through Lost Time Injuries Horizon 2020 program Compliance with National legislation and European Rest workday cases Directives O
Slide 5: Prinos Development Overview
Prinos Development Overview Recent progress and work programme Quarterly production growth • 40 mmboe of 2P resource across Prinos and Epsilon 5.0 • 2018 full year guidance narrowed to 4,000 – 4,250 bopd due to 4.5 replacement of Prinos infill drilling with Epsilon Extended Reach 4.0 • Production co
Slide 6: Reserves Growth History
Reserves Growth History 100 80 75 z, “ °° 60 i= — 30 40 24 7 41 20 7 1 5 ee 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 @Prinos Basin2P mPrinosBasin2C =m Katakolo 2P
Slide 7: History of Prinos
History of Prinos Prinos and Katakolo Production Profile 15,000 Life of Field Prinos Production Profile 30,000 20,000 bopd 10,000 12,000 0 1981 1991 2001 2011 2021 2031 Prinos Prinos North Epsilon 9,000 December 2007 March 2013 • Acquisition of Kavala Oil • 25 years > 10,000 bopd by bopd for $1.5 mn
Slide 8: Basic Terms for Prinos Asset
Basic Terms for Prinos Asset Fiscal Terms • Special income tax at a rate of 20% plus a regional tax at a rate of 5% (exclusively) • The imposition of the income tax exhausts the income tax obligations of each Co- Lessee as well as its shareholders/partners/members, with respect to the profits result
Slide 9: Commercial Agreements
Commercial Agreements BP Offtake Agreement • The agreement was signed in April 2013 and remains in full force, as amended, until November 2025 or delivery of 25 mmbbls of oil to BP • c.5.0 mmbbls have been delivered to date • Cargo sizes are scheduled for amounts not to exceed 350,000 bbls • The US$
Slide 10: EPCIC and Financing Terms
EPCIC and Financing Terms Key EPCIC Terms • Contractor: GSP Offshore • Scope: Production Facilities (Lamda Platform) and three production wells • Lump Sum: $88.25mn (61% Construction, 39% Drilling) • Warranty: 2 years post Practical Completion • LD: Liquidated damages based on day-rate for delays be
Slide 11: Financial Highlights
Financial Highlights Efficient and Cost Conscious Revenue, EBITDAx and OCF Cost of Production Breakdown Operator (US$mn) (US$mn) 30 25.3 24.3 80 57.8 21.7 2.7 2.4 1,459 3,490 2,803 80 2.0 2.5 20 2.1 60 50 1.4 2.2 1.7 60 39.7 1.7 41.0 US$mn $/boe 5.8 40 6.0 40 5.7 22.0 24.3 24.7 25.3 28.4 29.1 19.1 3
Slide 12: Prinos Basin Regional Review
Prinos Basin Regional Review • Prinos Basin is formed as a result of big scale extension, rotation and basement exhumation tectonics, on the North Aegean during Miocene-Pleistocene. • Steep normal NE-SW and NW-SE faults form the deep and narrow NE-SW trending Prinos Basin (30km long and 15km wide),
Slide 13: Production Offshore: Delta Complex and the Energean Force
Production Offshore: Delta Complex and the Energean Force Production Figures 3Q18: • Oil Production: 4080 bopd Derrick & Drill floor • Water Production: 10500 bwpd • Water Injected: 17500 bwpd • Gas Injected: 11000 Nm3/hr Flare BETA ENERGEAN FORCE How it Works ALPHA DELTA • Prinos Does not have a su
Slide 14: Production Onshore: Sigma Plant
Production Onshore: Sigma Plant 1. Crude Stabilization 2. Crude Storage Sigma is self sufficient: 3. Sour Gas Treatment • Maintenance & Inspection 4. NGL Recovery • Testing & Compliance • Diving & Surveying 5. Sulphur Plant • Training & Competency 6. Gas Recycle For Gas Lifting • Well Maintenance &
Slide 15: Own Drilling Rig - Energean Force
Own Drilling Rig - Energean Force • Accommodation for 110 POB • Purchased from KCA Deutag in 2014 • Normal POB while Drilling 68 • Refurbished in Piraeus Greece in 2015 • Rig & PSV Dayrate: $59k/day • Drilling in Prinos 2015 to Present • Departments • 9 wells & 3 workovers • Drilling • Multiple Inte
Slide 16: Prinos North
Prinos North • Energean 100% working Interest, • 3.3 mmbbls 2P Reserves (NSAI CPR 2017), • New Well PNA-H4 drilled 2018. • Expected production ~1500 bopd in 2H18 from PNA-H4, • Current cumulative production 4.4 and STOIIP 24.3 mmbbls Eastern Saddle • Recovery Factor to date 18% • Expected Recovery F
Slide 17: Epsilon – Key Highlights
Epsilon – Key Highlights Energean 100% working interest 18.4 mmbbls 2P reserves Expected production > 5,000 bopd in 2020 Three vertical wells tied to Lamda platform & one Extended Reach Well tied to Prinos Delta First Oil accelerated through decision to drill extended reach well: expected
Slide 18: Epsilon Development - Details
Epsilon Development - Details Epsilon field o Discovered 2001 o Appraised 2010 via ERD well drilled from Prinos o Similar reservoir setting to Prinos Development Concept and Design o Satellite tie back to Prinos complex: utilise spare capacity o Minimum manned facility with 15 well slots: contro
Slide 19: On Track
Project installation sequence 1 1. Energean Force drilling First Oil – December ‘18 EWR to accelerate production 2 2. GSP Jupiter drilling rig pre- 80% complete by YE’18 drills 3 wells 3 3. Topsides and jacket 40% complete by YE’18 fabricated at GSP shipyard 4 4. Platform piles and base frame instal
Slide 20: Lamda Platform Fabrication Site – Constanza Yard
Lamda Platform Fabrication Site – Constanza Yard GSP BASE FABRICATION FACILITY (PREVIOUS SIMILAR PROJECT) , 500 NM TRANSPORT FROM CONSTANZA AGINA, CONSTANZA ROMANIA TO PRINOS FIELD 20 20
Slide 21: Exploration (Finding The Next Epsilon)
Exploration (Finding The Next Epsilon) Prinos & South Kavala Blocks: • Booked (NSAI CPR 2017): • Contingent Resources: o 22,9mmbbls • (Athos, Delta, Kazaviti Discoveries etc.) • Prospective Oil Resources: o 8,9mmbbls • (Alpha, Prinos SE B&C) • Internal Estimates of Known • Discoveries/Prospects/Lead
Slide 22: Maximising Recovery (IOR/EOR Potential)
Maximising Recovery (IOR/EOR Potential) • Prinos Field: • P50 STOOIP = 289 mln bbls • Production to date = 112 mln bbls, Recovery Factor(Rf) = 39% • Water injected to maintain pressures and optimise sweep • IOR potential: • Contingent Resources assume Rf can be increased to ~50% through further deve
Slide 23: Calfrac Exploration Licenses
Calfrac Exploration Licenses Calfrac Licenses (Ownership - Hellenic Petroleum 25%, Calfrac 75%) 23 23
Slide 24: Underground Gas Storage Project
Underground Gas Storage Project Field Key Facts Current Status • South Kavala is an almost depleted, offshore gas • Currently, Hellenic Republic Asset field producing since 1981 (89 % RF; 52 m water Development Fund (HRADF) is tendering for depth; GIIP 0.96*109 m3 ) an external consultant to provide
Slide 25: 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 26: 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 $49.9 million cap • (Energean 100%) • Seismic exploration activities have commenced
Slide 27: Prinos: Oil & Gas, Tourism And Environment Coexist
Prinos: Oil & Gas, Tourism And Environment Coexist Gulf of Kavala: Over 10 Blue Flags Every Energean’s HSE Thasos: Traditional tourist destination in Year for the Last 10 Years Mission the Aegean Transfer 37 years experience of working safely in environmentally sensitive locations in NE Greece to ev
Slide 28: Energean and TEI Kavala
Energean and TEI Kavala Oil & Gas Technology • Under graduate programme started in 1981 • Post-graduate program started in 2012 • Company’s contribution o Teaching & Lectures o Internships o Scholarships 99 people are currently working in the company • 26 from Oil & Gas Technology 28 28 • 73 from ot
Slide 29: Strong Relationships With The Local Communities
Strong Relationships With The Local Communities Kavala, Donation for the replacement of Support Petrochem Day, organized by students Donate difibillators to municipalities of the tires for the only crane vehicle of the Fire of the Chemical Engineering School of the Ioannina Prefecture, Western Greec
Slide 30: Conclusions
Conclusions Investment in the field is attractive because of: i. High operational leverage (UOC goes down as production grows) ii. Very good fiscal term iii. Energean’s operating capabilities Future growth potential is significant; of the three reservoirs (A, B &C) only the A reservoir has been
Slide 31: Thank You for your attention!
Thank You for your attention! 31 31
Slide 32: Appendix
Appendix 32 32
Slide 33: The Asphaltene Challenge
The Asphaltene Challenge The Ashpaltene problem & how we addressed it FLOW ASSURANCE Xylene treatments Asphaltene Precipitation is the major flow assurance challenge in Prinos pumped into well Asphaltene A complex tar like substance within the produced fluid. • Pressure & temperature changes • Preci
Slide 34: Asphaltene Management Strategy
Asphaltene Management Strategy FBHP maintained above the Asphaltene Onset Pressure (AOP) and bubble point: – AOP measurements/ Phase Behaviour P&T per reservoir – Pressures and temperatures closely monitored. – Stabilize the decline in the reservoir pressures via water injection. Surveillance Da