Jersey Oil & Gas Plc · LSE:JOG
Jersey Oil & Gas — Investor Presentation (October 2017)
22 slides from Jersey Oil & Gas's investor presentation, October 2017
Slide 1: Investor Presentation
Investor Presentation October 2017
Slide 2: Disclaimer
Disclaimer This document is confidential and has been provided to each recipient at their request, solely for their information, and may not be reproduced, copied, published, distributed or circulated, to any third party, in whole or in part, or published in whole or in part for any purpose, without
Slide 3: Stage Set for Growth
Stage Set for Growth 2017 -‐ 2018 Appraise & Define P2170 / October 2017 Acquire produc*on assets Verbier Discovery October 2016 Farm-‐Out to Statoil December 2015 Farm-‐Out to Azinor Catalyst August 2015 Reverse into Trap Oil March 2014 JOG Incep*on Strategy: North Sea focused mid cap E&P company
Slide 4: Board and Key Management
Board and Key Management Non-‐Exec. Directors Marcus Stanton, Non Exec. Chairman Andrew Benitz, CEO Ron Lansdell, COO ScoY Richardson Brown, CFO Strengths: Investment Banking, Finance, Corporate Strengths: Commercial, Corporate, Team Strengths: Geophysics, Explora*on Project Strengths: Finance, Cor
Slide 5: All Eyes on Verbier
JERSEY OIL&GAS All Eyes on Verbier
Slide 6: The Verbier Discovery Well
The Verbier Discovery Well IdenJfying Value in Verbier Verbier Discovery October 2017 • Collabora*ve technical partnership in UKCS 28th • Proven a hydrocarbon accumula*on in good Licensing Round that led to the award of quality sands Licence P2170 Blocks 20/5a & 21/1d • Evalua*on of the well results
Slide 7: JOG's P2170 Licence
JOG’s P2170 Licence JOG E&P Acreage • This discovery provides valuable informa*on to help beher understand the prospec*vity of the licence area, which includes the Cor*na prospect and the Meribel lead. JOG holds an 18% working interest in the licence. • Knowledge gained can also be used to Discovery
Slide 8: P2170 Low Case
P2170 Low Case P2170 NoJonal Gross ProducJon Forecast Low Case boe/d¹ 40,000 35,000 Verbier 30,000 25 MMboe 25,000 20,000 CorJna 15,000 39 MMboe 10,000 Meribel 5,000 6 MMboe 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Other Satellites / New Discoveries Verbier Oil Equival
Slide 9: P2170 Mid Case
P2170 Mid Case* P2170 NoJonal Gross ProducJon Forecast Mid Case boe/d¹ 70,000 Verbier 60,000 67 MMboe 50,000 40,000 CorJna 30,000 63 MMboe 20,000 Meribel 10,000 13 MMboe 0 Other Satellites / 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 New Discoveries Verbier Oil Equivalent
Slide 10: P2170 Upside Case
P2170 Upside Case P2170 NoJonal Gross ProducJon Forecast Upside Case boe/d¹ 140,000 Verbier 120,000 130 MMboe 100,000 80,000 CorJna 60,000 124 MMboe 40,000 Meribel 20,000 19 MMboe 0 Other Satellites / 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 New Disco
Slide 11: P2170 The Next Phase – JOG Indicative Appraisal Programme
P2170 The Next Phase – JOG Indicative Appraisal Programme • Possible Future Work Programme that JOG envisages • Operator has not yet outlined plan Appraise & Define Execute Operate • Mid 2018 – Verbier Appraisal well and • 2019-‐2022 • First Oil 2022 Drill Stem Test commences • Design Development •
Slide 12: Ongoing Work Programme to Appraise the Verbier Discovery
Ongoing Work Programme to Appraise the Verbier Discovery Preliminary Discovery Outline • Update Verbier 3D seismic interpreta*on using recent calibra*on points plus local well control • Update Cor*na 3D seismic interpreta*on with knowledge from Verbier • Evaluate poten*al for exploita*on of rock phy
Slide 13: P2170 – Cortina Prospect
P2170 – Cortina Prospect CorJna Prospect South North P2170 LocaJon ERCE Pmean ProspecJve Resources of 124 MMboe1 Note seismic character similarity with calibrated Verbier seismic character 1 CPR report by ERCE 2017 * All Images Sourced from CGG TOMO ML data 2014 13
Slide 14: Verbier – Appraise & Define Funding Requirements
Verbier – Appraise & Define Funding Requirements Appraise & Define Execute Operate • Mid 2018 – Verbier Appraisal well and • 2019-‐2022 • First Oil 2022 Drill Stem Test commences • Design Development • Payback – 2 years • Drill Cor*na Q1 2019 • Pre Drilling 20201 • Drilling Con*nues • Define Developm
Slide 15: Verbier Development Costs
Verbier Development Costs The values and parameter on this slide are based on a stand alone development concept Verbier Gross Development Costs – Upside Case1 • Lifecycle costs is just under £22 /boe. This is the total CAPEX, OPEX and ABEX for the development • In absolute terms this is circa £1 bil
Slide 16: Production Asset Acquisition Strategy
Production Asset Acquisition Strategy
Slide 17: JOG – Production Asset Acquisition Rationale
JOG – Production Asset Acquisition Rationale • JOG is a public alternaJve to private equity • Excellent technical and commercial knowledge of the UKCS • Decades of management experience • JOG has reviewed and evaluated in excess of 50 produc*on JOG presents an aYracJve field interests in the UKCS inv
Slide 18: North Sea Production Acquisition Rationale
North Sea Production Acquisition Rationale Total Remaining Reserves by Maturity (MMboe)1 Illustra*ve Project Lifecycle E&Ps have the ability to maximise tail Undeveloped produc*on through incremental 4 investment and deferral of decom 1,384 Pre-‐Production 2,469 Early-‐Life 888 Mid-‐L ife 876 1,5
Slide 19: Current Live Production Asset Targets
Current Live Production Asset Targets* • JOG has numerous live acquisi*on targets it is evalua*ng • They range in reserves from 2 to 24 MMboe • The 2018 daily produc*on for each target ranges from 1,000 to 3,800 boe/d • The produc*on system of the targets is a mixture of subsea *e-‐backs, produc*on
Slide 20: Additional Funding Support
Additional Funding Support Oil Major Pre-‐Payment Bank RBL Facility Agreements Reserve Based Lending Pre-‐Payment Agreements • Excellent rela*onship with a major bank for RBL • Strong working rela*onship with Major trading facili*es for produc*on asset acquisi*ons division keen to fund JOG using p
Slide 21: Use of Proceeds
Use of Proceeds Appraise & Define Stage Produc*on Acquisi*on Indica*ve Funding Strategy indica*ve Funding Requirements Requirements • JOG technical studies £0.5 million • Verbier 2 well appraisal programme £11 • Working Capital £2.5 million million • Produc*on acquisi*on £5 million • Cor*na P2170 exp
Slide 22: Jersey Oil and Gas
Jersey Oil and Gas • Management team with over 100 years combined experience in the North Sea People • Key management have significant shareholdings (17.2%) • JOG has diversified and has a nimble and tenacious team • Licence P2170 -‐ Verbier – Discovery October 2017 Valuable Explora*on • Licence P217
Jersey Oil & Gas — Investor Presentation (October 2017) on 6ix