Borders & Southern Petroleum Plc · LSE:BOR
Borders & Southern Petroleum — Investor Presentation (June 2024)
20 slides from Borders & Southern Petroleum's investor presentation, June 2024
Slide 1: Corporate Presentation
Corporate Presentation June 2024
Slide 2: Important Notice
Important Notice These materials (these "Materials") have been prepared by Borders & Southern Petroleum PLC (the "Company"). These Materials are confidential and may not be reproduced or otherwise distributed or disseminated, in whole or part, without the prior written consent of the Company, which
Slide 3: Corporate Overview
Corporate Overview Capital Structure Directors Board of Directors Ordinary shares in issue 730,814,456 Harry Dobson Non-Executive Chairman Top 10 Share Price (June 2024) 2.5p shareholders Harry Baker Chief Executive Market Capitalisation £18.8 million Peter Fleming Finance Director Cash balance (31
Slide 4: Investment Case
Investment Case What makes Borders & Southern a sound investment and why now? BOPD Large, well Upstream A phased defined liquids $650 MM CAPEX Significant near investment has Enhanced industry development rich gas 1-2 Year payback field, low risk declined in recent activity in the creates a range of
Slide 5: Darwin's Appraisal and Development
Darwin’s Appraisal and Development The Darwin East discovery is located in the South Falkland Basin in 2,000 m of water. Seismic and drilling operations have taken place throughout the year with metocean conditions similar to the North Sea. We are planning to extend the current phase of the Licenses
Slide 6: Darwin Field: A Large Liquids Rich, Gas Condensate Discovery
Darwin Field: A Large Liquids Rich, Gas Condensate Discovery Darwin is a rich gas condensate field which is a very marketable product sold into refineries around the world at close to Brent prices. This is a large resource, the size of which has been verified by an independent third party. Estimated
Slide 7: Darwin Field: Exceptionally Imaged on 3D Seismic
Darwin Field: Exceptionally Imaged on 3D Seismic The seismic images of Darwin are exceptionally clear and illustrate very clearly the quality of the reservoir. Physical data recorded at the Darwin East well indicates that high production rates should be achieved. Production rate risk is low but it w
Slide 8: Darwin Field: Appraisal and Phased Development Scheme
Darwin Field: Appraisal and Phased Development Scheme To reduce upfront capital costs, we worked with an independent engineering company to design a phased development using existing technology that would result in a fast payback of the capital. The first phase of the development would strip the con
Slide 9: Darwin Field: Initial Phase Costs & Payback
Darwin Field: Initial Phase Costs & Payback The phased development provides a very quick payback (1-2 years). The capital and operating costs would largely be fixed pre-production but the reservoir (production rate) risk would be eliminated after testing the first appraisal well so there will be hig
Slide 10: Darwin Field: Project Expansion
Darwin Field: Project Expansion Following the initial development of Darwin East the project can be expanded using free cash flow by drilling additional wells on Darwin East or by incorporating Darwin West into the development. This ability to expand is a key value driver for Darwin. Initial Phase D
Slide 11: Organic Upside: Shelf and Near Field
Organic Upside: Shelf and Near Field In addition to the Darwin Field there are many other near field prospects that could potentially be brought into production using the Darwin cash flows. This optionality is a key feature of Borders & Southern Petroleum. The Aptian aged shelf prospects target the
Slide 12: Other Organic Growth: Slope and Fold Belt
Other Organic Growth: Slope and Fold Belt Beyond the immediate near field targets there are numerous low and high-risk targets within the prospect portfolio. West East North South Multiple well defined slope fans at a similar • Structural plays: > 5 billion barrels * Martin age to the main Darwin re
Slide 13: Next Phase Drilling Options
Next Phase Drilling Options We have recently conducted a study of the global rig market to assess availability of suitable rigs and prices. There are several drilling options depending on budget, risk and reward. Once Darwin East has been tested, engineering for the development could commence. Singl
Slide 14: Global Oil & Gas Upstream Capex
Global Oil & Gas Upstream Capex Over the last ten years investment has reduced with lower oil prices and the transition away from upstream to renewables but this trend is transitioning back towards upstream as it becomes clear that oil and gas will still be required for longer than initially envisag
Slide 15: Global Exploration Spend
Global Exploration Spend Exploration spend has also reduced with lower oil prices and the transition so if the industry wants to increase production it cannot rely on exploration projects as the lead time is too long. U.S. shale boom, 2010-2014 Financial crisis, 2008 $140 Exploration spend(US$ billi
Slide 16: Projected Declines in Non-OPEC Production Assuming No Additional Drilling
Projected Declines in Non-OPEC Production Assuming No Additional Drilling If upstream capital does not increase, production will decline quickly during this decade and beyond. The industry therefore needs to look at projects it can bring into production in the near term - Darwin is such a project. J
Slide 17: Global IOC Peer Group Free Cash Flow
Global IOC* Peer Group Free Cash Flow The reduction in capex and exploration has resulted in large increases in free cash flow so the industry has capital to spend on upstream projects. Oven ready prospects like Darwin with organic growth potential fit the bill for an industry that will be looking f
Slide 18: Industry valuations based on asset maturity are generally predictable
Industry valuations based on asset maturity are generally predictable based on precedent transactions A full carry by an incoming partner on Darwin on three appraisal wells is $2/BOE so comparable to other similar transactions. Source: LAB Energy June 2024 18
Slide 19: Investment Case
Investment Case What makes Borders & Southern a sound investment and why now? • Farm-out process continues – appraisal program cost in line with industry valuations › new industry entrants › new strategies • In conjunction with exploring alternative funding options June 2024 19
Slide 20: Borders & Southern Petroleum plc
Borders & Southern Petroleum plc 33 St James’s Square London SW1Y 4JS Telephone: 020 7661 9348 www.bordersandsouthern.com info@bordersandsouthern.com Tavistock (Financial PR) Telephone 020 7920 3150 June 2024 20
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