Panoro Energy ASA · OSL:PEN
Panoro Energy ASA — Investor Presentation (January 2015)
34 slides from Panoro Energy ASA's investor presentation, Jan 12, 2015
Slide 1: Investor Presentation
Investor Presentation 12 January 2015
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA (“Company”). This presentation contains certain statements that are, or may be deemed to be, “forward-looking statements”, which include all statements other than state
Slide 3: Panoro Energy ASA – Company snapshot
Panoro Energy ASA – Company snapshot Key Facts Oil and Gas E&P Company Listed in Norway, currently focused on West Africa OSE ticker code: PEN Shares outstanding: 234.5 million Renewed Board of Directors elected in October 2014 Market Cap (09/01/2015): ~USD 47.4 million Experienced Management
Slide 4: Executive Management Team
Executive Management Team Nishant Dighe, Chief Executive Officer. Nish has over 20 years of experience in oil and gas. He has Masters degrees in Chemical Engineering and Petroleum Engineering from Imperial College, London, and an MBA from Warwick University. Originally trained as a reservoir enginee
Slide 5: Panoro Board of Directors (Non-Executive)
Panoro Board of Directors (Non-Executive) Mr. Julien Balkany, Chairman of the Board, French citizen resident in London, he has served as managing member and Founder of Nanes Balkany Partners LLC, a NY-based activist hedge fund which primarily pursues value investments in publicly traded oil and gas
Slide 6: Panoro Assets in Africa
Panoro Assets in Africa Two core Assets in West Africa with discovered resources under development and significant exploration upside Nigeria: OML 113, offshore Western Nigeria Geologically part of the West African Transform Margin Gabon: Dussafu Permit, offshore Southern Gabon Geologically in the
Slide 7: Financial Snapshot
Financial Snapshot Low G&A Panoro Core G&A trend 3,500 Clear trend of reducing cost 3,000 base with reduction initiatives 2,500 2,000 continuing 1,500 Focused Management team. All 1,000 500 staff based in London - Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 G&A-USD 000 Q3 Financi
Slide 8: OML 113
OML 113 Near term Aje field oil development followed by gas/condensate development and strong exploration upside Project Status West African Gas Pipeline Partners are currently focused on delivering 2015 oil production from Aje field BENIN NIGERIA Initial 2 well Cenomanian oil project: Aje-4 re-
Slide 9: Aje Progress Report Summary
Aje Progress Report Summary Field Development Plan – Diagrammatic Representation Aje Status FPSO Cenomanian Oil Development: (Water depth approx. 100m) Field development plan Government Approval Field development FID Decision Flexible Production Riser First Oil Q4 2015 Flexible Gas Lift Ri
Slide 10: Aje Cenomanian Oilfield Development
Aje Cenomanian Oilfield Development Aje Field Appraisal and Development Scheme Key Subsea Equipment and Contracts: Trees and Subsea Manifold purchased Flowlines and umbilicals ordered Front puffin FSPO Front puffin FSPO Transport and Installation Contract awarded FPSO vessel contracted and
Slide 11: Aje New 3D Seismic
Aje New 3D Seismic OML 113 Prospectivity 7 leads in post-rift middle cretaceous section have been identified from existing seismic data At least further 2 leads have been identified in syn-rift Ogo 2013 Discovery in OPL 310 Ogo-1 and Ogo-1ST were drilled by Afren on OPL 310 in 2013. Afren
Slide 12: Joint Venture Metrics for Aje Oil Development
Joint Venture Metrics for Aje Oil Development Cenomanian Oil Development only1 Aje Value net to Panoro 300 Gross Field Development Metrics 250 Phase 1 and 2, Cenomanian P50 (50.88MMbbls2) – Aje 4, 5, 6 and 7 Break even $45 200 Break even $31 CAPEX from 1/10/2014 to first oil = $211MM3 Net Present Va
Slide 13: Turonian Gas Condensate Field
Turonian Gas Condensate Field Concept Evaluation Stage AGR TRACS Stand-alone Gas Development Concept Example1 (JV will be evaluating this development concept as well as other alternatives) Turonian Gas is rich in valuable liquids AGR TRACS concept includes: Subsea wells tied back via a subse
Slide 14: Full Field Aje Metrics
Full Field Aje Metrics1 TRACS Cenomanian Oil plus Turonian Gas Condensate Development TRACS competent persons report in July 2014 which includes a development of Cenomanian Oil as well as separate conceptual development Turonian Gas and Condensate confirms significant value in the discovered resourc
Slide 15: Dussafu
Dussafu Large exploration and development block with multiple discoveries and prospects Dussafu (Gabon) Project Status Operator Harvest Natural Resources (66.67%) 2,775km2 license in Southern Gabon pre-salt fairway Working Interest 33.33% Total of five pre-salt discoveries (4 oil, 1 gas) with Ba
Slide 16: Dussafu – The Etame Analogue
Dussafu – The Etame Analogue Etame is a Proven Producer 40km North of Ruche The initial development in the Etame License just north of Dussafu was based on 25MMbbl field with high uncertainty. Replicating early success of Etame would create significant shareholder value for Panoro. Etame discovery
Slide 17: Dussafu – Exclusive Exploitation Authorisation (EEA)
Dussafu – Exclusive Exploitation Authorisation (EEA) EEA awarded 17th July 2014 (Ruche C) Area of 850.5 km2 Dussafu JV can exploit hydrocarbon resources in EEA area for up to 20 years (Ruche D) Detailed development and production program approved (FDP) Single FPSO with tiebacks Central R
Slide 18: Full 3D Seismic Coverage over License
Full 3D Seismic Coverage over License Inboard 3D Acquired in 2005 Covers the GMC 1-X gas discovery Central area 3D 31 Acquired in 2011 33 28 550km2 mainly targeting synrift exploration M’Bya opportunities identified on 3D M’Wengui Dussafu 3D Acquired in 1995 32 1200 km2 3D seismic
Slide 19: Gamba Oil Fields and near-field Gamba prospects
Gamba Oil Fields and near-field Gamba prospects Panoro has 3 small Gamba reservoir oil fields within the EEA area1. Gamba production is well established. Many Gamba reservoir oil fields (Ruche D) currently producing in Gabon Reservoir is very high quality Numerous Gamba Prospects within EEA:
Slide 20: Dussafu Dentale Potential
Dussafu Dentale Potential Dentale has become an additional major contributor to value in Dussafu Moubenga Dentale discovery (Ruche C) is part of FDP, and tested at 3700bopd. Tortue Dentale Sand 6, reservoir has very good reservoir quality. Other Tortue sands were also oil bearing and Ruche also
Slide 21: Dentale Outboard Leads 1 & 2
Dentale Outboard Leads 1 & 2 (3D PSTM-Aug 2014) Lead 2 Lead 1 Lead 1 Lead 2 Lead 1 Lead 2 Salt Salt Dentale Dentale Mobile Shale Mobile Shale 8 km 21
Slide 22: Dussafu Progress Report Summary
Dussafu Progress Report Summary Cluster Development: Declaration of commerciality Award of Exclusive Exploitation Authorisation Field development plan Government Approval Field development Decision Point Q1 2015 Exploration Seismic acquisition Seismic final PSDM processing Q4 201
Slide 23: Dussafu FID Considerations
Dussafu FID Considerations Under the terms of the EEA JV has until mid 2018 to commence production. Operator estimates 21 months from FID to first oil. Seismic interpretation underway. Early indications that material near field prospects will emerge Material near field discoveries may impact t
Slide 24: Joint Venture Metrics for Dussafu Development
Joint Venture Metrics for Dussafu Development Ruche Area EEA1 Dussafu Value net to Panoro 600 Gross Field Development Metrics 500 JV P50 Model (37.9 MMbbls2) 400 Break even $47 CAPEX from 1/10/2014 to first oil = $287MM Net Present Value $Million Break even $36 Total CAPEX = $653MM 300 CAPEX = $17.2
Slide 25: Dussafu Resources
Dussafu Resources1 Dussafu Gross 1C Contingent Dussafu Gross 2C Contingent Dussafu Gross 3C Contingent Resources2 Resources2 Resources2 3.1 6.3 1.8 1.9 7.0 5.6 16.5 4.3 3.1 17.0 36.3 70.6 4.6 MMbbls MMbbls MMbbls 14.7 9.9 12.1 5.8 27.7 Tortue Gamba 1C Tortue Dentale 1C Tortue Gamba 2C Tortue Dentale
Slide 26: Recap of Panoro Development projects
Recap of Panoro Development projects Aje May 2013, new partnership to focus on early cash flow from Cenomanian Oil October 2013, major discovery in OPL 310 license next to OML 113 – one of the largest in 2013 globally March/April 2014 seismic acquired over OML 113 license in conjunction with
Slide 27: Panoro Reserves and Resources Snapshot
Panoro Reserves and Resources Snapshot Aje Field 1 Dussafu 2 Net Reserves and Resources, 32.7MMBOE Net Contingent Resources, 3C 12.5 MMbbls, 2C 6.8 MMbbls 1.8 1.4 Aje Cenomanian 1P Phase 1 - 2 wells, 2.0 3.2 MMbbls Aje Cenomanian 2P 3.2 Phase 2 - 2 wells, 1C = 1.2 MMbbls 15.8 Aje Cenomanian 2C 1.6 2
Slide 28: Dussafu & Aje Field Development: Cash Flows
Dussafu & Aje Field Development: Cash Flows Project Net Cash Flows at $70/Bbl from Oil Development Projects Based on Development of the Aje Cenomanian Oil and simulating Dussafu Cluster Development. Comparison of Dussafu FID in Q1 2015 or Q1 2016. JV Model Net Cash Flows JV Model Net Cash Flows P50
Slide 29: Dussafu & Aje Field Development: Cash Flow Forecast
Dussafu & Aje Field Development: Cash Flow Forecast Project Net Cash Flows based on Forward curve oil prices as of 6 Jan 2015 from Oil Development Projects Based on Development of the Aje Cenomanian Oil and simulating Dussafu Cluster Development with FID Q1 2015, current forward curve indicates cash
Slide 30: Dussafu & Aje Field Development: Cash Flows
Dussafu & Aje Field Development: Cash Flows Project Net Cash Flows at $90/Bbl from Oil Development Projects Based on Development of the Aje Cenomanian Oil and simulating Dussafu Cluster Development Comparison of FID in Q1 2015 or Q1 2016. JV Model Net Cash Flows JV Model Net Cash Flows P50 cases at
Slide 31: Panoro NAV Build-Up at $70/bbl, 10% discount rate
Panoro NAV Build-Up at $70/bbl, 10% discount rate Dussafu NAV US$m Panoro has a strong cash position with potential incremental 800 value from the Manati earn-out Substantial value exists in Panoro’s discovered resource base in Aje and Dussafu Significant Exploration upside recognised in both
Slide 32: Aje and Dussafu Project Timelines
Aje and Dussafu Project Timelines 2015 2016 2017 J F M A M J J A S O N D 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Nigeria OML 113 Seismic Processing Interpretation Exploration Drilling Drill Subsea Engineering and Procurement FPSO FPSO Refurbishment Aje 4 and 5 Drilling Drilling Installation Installation Aje First O
Slide 33: Panoro – Strengths and Objectives
Panoro – Strengths and Objectives Two West African assets with line of sight to production with additional significant exploration upside Strong track record from very experienced Management and Board Take advantage of all opportunities Management and Board are fully aligned to create sharehol
Slide 34: Panoro Energy
Panoro Energy