United Oil & Gas Plc · LSE:UOG
United Oil & Gas — Merger or Acquisition (February 2020)
14 slides from United Oil & Gas's merger presentation, February 2020
Slide 1: Completion of Rockhopper Egypt Acquisition
A Full-cycle E&P Business COMPLETION OF ROCKHOPPER EGYPT ACQUISITION February 2020 www.uogplc.com AIM:UOG
Slide 2: Disclaimer
Disclaimer ▪ This presentation (“Presentation”) is being supplied to you solely for your information. The Presentation has been prepared by, and is the sole responsibility of, United Oil & Gas Plc (the “Company”, “UOG”, “United”, or “United Oil & Gas”). The directors of the Company have taken all re
Slide 3: United Oil & Gas 2020
United Oil & Gas 2020 Rapidly-growing full-cycle AIM-listed oil and gas company with the energy and capability to build on our track record of delivery 8 licences 3.1 mmboe 84.9 mmboe 4 countries 2P net reserves1 net unrisked contingent and prospective resources2 17 producing wells >1,700 boepd >$10
Slide 4: Transformational Acquisition of Rockhopper Egypt
Transformational Acquisition of Rockhopper Egypt 100% of Rockhopper Egypt Pty acquired for US$16m Includes 22% non-operating interest in the Abu Sennan Concession ACQUISITION METRICS $16m 2.66mmboe1 >1,700boepd $26.6m2 Acquisition Cost 2P Working Current Net 2P NPV10 Interest Reserves Production 1Wo
Slide 5: Transaction Rationale
Transaction Rationale ▪ Consistent with strategy to build a balanced full-cycle portfolio of assets to High quality significantly increase shareholder value potential portfolio ▪ Value creation through active management of production, development and low- risk exploration/appraisal assets in Europe/
Slide 6: Abu Sennan Licence Summary
Abu Sennan Licence Summary Robust production base with exciting infill and development potential KEY LICENCE ELEMENTS 7 Development Concessions 20 year concession life (2032-39 expiry) 5 year extensions possible 17 Producing Wells Pay typically found in multiple stacked reservoirs within each well 6
Slide 7: Reserves and Production Summary
Reserves and Production Summary Gross Oil Production History2 7,000bopd (8,000boepd) achieved in January 2020 post ASH-2 Gross oil production c.4,000bopd (>5,000boepd) 10.56 mmbbl + 2.66mmboe1 since June 2019 7.8 Bscf1 2P Working 2P Gross Reserves Interest Reserves Mid-YearMid-Year 2019 Gross 20Rese
Slide 8: Valuation
Valuation NPV CASES FINANCIAL METRICS $26.6m $42.2m >$50m >$10m $6.5 $3-4m <$30 Net 2P NPV1 Net 3P NPV1 NPVs possible in Annual net revenue4 Low operating Low drilling Break-even oil- upside scenarios3 costs / boe1 costs1 price2 ECONOMICS VALUE BUILD-UP ▪ Model inputs (Production, Capex, Opex, Abex)
Slide 9: Upside Potential
Upside Potential Significant infill potential from bypassed pay and previously untargeted reservoirs; Material exploration upside KEY FIGURES 7,900boepd >3,000bopd 29mmboe 80% Gross production. Significant ASH-2 production levels from Gross unrisked mean prospective Historic success rate1 increase f
Slide 10: ASH-2 Well
ASH-2 Well Source for figure: Abu Sennan TCM Presentation, December 2019 ASH-2 KEY FACTS 4,030m 49.5m 7,027 bopd >3,000bopd Total depth of the well in the Net pay encountered in the Maximum gross rate achieved Production rate from the well Alem Al Bueib (AEB) Formation well on test1 since 2nd Jan 20
Slide 11: Abu Sennan 2019-20 Drilling and Newsflow
Abu Sennan 2019-20 Drilling and Newsflow Robust production base, low-cost operating environment, exciting infill and exploration upside potential, plus significant newsflow from ongoing operations 2019 2020 Well Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Al Jahraa-11 Dev Producing at >780bopd in June Al Jahra
Slide 12: Key Commercial Terms
Key Commercial Terms Transaction Funding US$16m US$8m Consideration for the Combination of prepayment BP provided a senior secured purchase of Rockhopper finance and equity funding prepayment acquisition financing Egypt Pty Ltd for the acquisition structure based on a floor of $60/bbl US$4.5m Jan 20
Slide 13: Investment Case Summary
Investment Case Summary Transformational acquisition of first producing asset via 22% interest in the Abu Sennan concession United is now a full-cycle E&P company with a portfolio of production, development and low–risk exploration/ appraisal assets Strong track record of raising capital in challeng
Slide 14: www.uogplc.com
UNITED OIL & GAS www.uogplc.com
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