Savannah Energy PLC · LSE:SAVE
Savannah Energy — Investor Presentation (January 2022)
30 slides from Savannah Energy's investor presentation, Jan 4, 2022
Slide 1: Restoration to AIM and major acquisition
Restoration to AIM and major acquisition December 2021
Slide 2: Disclaimer
Disclaimer These presentation materials (the “Presentation Materials”) do not constitute or form any part of any offer or invitation or inducement to sell or issue or purchase or subscribe for any shares in Savannah Energy PLC (“Savannah”) nor shall they or any part of them, or the fact of their dis
Slide 3: Overview
Overview1 Savannah Energy plc Market statistics • British energy company focused around the delivery of Projects that Matter in Africa. Pre-suspension 996.4m shares outstanding Acquiring ExxonMobil’s and PETRONAS’ assets in Chad and Cameroon (the “Acquisition Assets”) New shares to be 309.7m • Consi
Slide 4: Transaction and financing details
Transaction and financing details Key acquisition statistics Post transaction geographic footprint ExxonMobil PETRONAS Total 1 Gross purchase price US$m 372 278 650 Oil price contingent payment US$m up to 50 up to 50 Total gross purchase price US$m up to 422 278 up to 700 Transaction type Corporate
Slide 5: Combined business financial and operational metrics
Combined business financial and operational metrics1,2,3,4 Savannah Savannah ExxonMobil PETRONAS (post-deals) (pre-deals) acquisition acquisition Production, throughput, reserves and resources 2022F upstream production (Kboepd) 38.6 +141% 16.0 12.0 10.5 2022F midstream throughput (Kboepd) 112.3 +628
Slide 6: Combined business free cashflow and PV10 sensitivities
Combined business free cashflow and PV10 sensitivities1,2,3 Average 2P asset level free cashflow 2022F to 2030F CPR asset level PV10 US$m US$m 400 376 3,000 349 2,716 322 2,500 2,500 2,281 295 300 279 269 2,061 1,936 1,853 226 2,000 200 1,663 173 1,447 129 146 1,228 200 120 1,500 1,008 883 800 1,000
Slide 7: Combined business scale transformation in charts
Combined business scale transformation in charts1,2 Net 2022F production (W.I.) Avg. 9-year revenues3 Avg. 9-year asset FCF US$m US$m Kboepd 300 279 40 800 751 250 +250% +96% 30 600 236 200 149 +141% 142 20 150 38.6 400 215 100 85 514 10 200 129 16.0 110 50 105 57 - - - Savannah Savannah Savannah Sa
Slide 8: Significant existing business progress in last 6 months
Significant existing business progress in last 6 months Strong 2020 and 10M 2020 financial guidance significantly exceeded, industry leading 2020 ESG performance reported 2021 10M 2021 production up 16% year-on-year and Total Revenues up 7% year-on-year. Financial and First gas delivered to FIPL Com
Slide 9: Post-acquisition 2022F-30F asset level business plan
Post-acquisition 2022F-30F asset level business plan1,2 Net operating Pre-financing Post-acquisition Net production Costs Capex cashflow3 cashflow3 Savannah US$1.5bn US$1.2bn US$0.7/boe gas (base case) (base case) 56 MMboe gas over 9 years over 9 years Upstream + US$18.7/bbl Average of + US$1.9bn US
Slide 10: 2022 financial guidance
2022 financial guidance Existing business Acquisitions 2 Total Total revenue1 >=US$215m US$381m >= US$596m Opex and G&A <=US$75m US$151m <= US$226m US$21m US$47m DD&A US$26m +US$2.3/boe +US$2.3/boe (Nigeria) Capex <=US$85m US$30m 3 <= US$115m 10 Savannah Energy PLC
Slide 11: Combined business debt capital structure
Combined business debt capital structure1 Simplified debt capital structure2 CPR asset level cashflow US$m US$32m Savannah 350 1 300 250 200 Nigeria Niger Chad/Cameroon 150 CPR asset level cashflow 100 Average asset level 80% 80% 50 cashflow - Accugas Uquo Stubb Creek R1234 Doba/ETS1 2022F 2023F 202
Slide 12: Post-deal combined business debt capital structure
Post-deal combined business debt capital structure1 2P case asset level post debt service free cashflow Potential refinanced 2P case asset level post debt service free cashflow3 US$m US$m Potential Accugas debt refinancing expected to further increase annual 450 450 free cashflow by US$27m over the
Slide 13: Combined asset base upside potential
Combined asset base upside potential Indication of potential upside Chad CPR production profile 1 Examples of potential sources of additional production upside Kbopd • Application of alternative well completion and intervention technologies. 50 40 • Additional infill drilling activity. 30 20 • Optim
Slide 14: Sources of further growth potential
STRICTLY PRIVATE AND CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY Sources of further growth potential Future growth opportunities Savannah’s core strength matrix Oil & Gas • Globally, the major energy companies have announced their intentions to divest over Passion for the US$100bn¹ of upstream oil and
Slide 15: Savannah is a purposeful and sustainable company
Savannah is a purposeful and sustainable company Savannah as a purposeful company Savannah 2020 Sustainability report • Savannah and our people are passionate about the development of Africa and being involved in Projects that Matter throughout the continent. • Our projects are making a material con
Slide 16: Savannah in action: sector leading 2020 ESG performance
Savannah in action: sector leading 2020 ESG performance Savannah vs. Supermajors' carbon intensity Savannah vs. Supermajors' senior management Savannah’s lost time injuries (LTIR) (kg CO₂e/boe)1 female gender diversity (%)2 (per 200,000 hours worked)2 35% 27.3 -12% +40% 0.23 24.1 +10% 25% 23% -24% 2
Slide 17: Strong focus on talent
Strong focus on talent Combined business to have approximately 790 employees • In 2020 the company made a large counter-cyclical investment in our people as we increased group headcount by 25% at a time when the wider industry reduced headcount by 10%. • In 2021 we have continued to hire, having inc
Slide 18: Assets overview
Assets overview 18 Savannah Energy PLC
Slide 19: Existing assets – Nigeria
Existing assets – Nigeria1 Nigerian upstream and midstream business Nigeria asset map • Upstream Business comprises: • 80% economic interest in the Uquo gas field. • 51% interest in the Stubb Creek oil and gas field. • Midstream Business comprises an 80% interest in the Accugas gas processing, trans
Slide 20: Existing assets – Niger
Existing assets – Niger1 R1234 PSC asset Map of R1234 PSC • Savannah has under license 13,655 km2 of land under the new R1234 PSC in the highly oil prolific Agadem Rift Basin of South East Niger.2 • To date Savannah has successfully discovered five oil fields (100% success rate) – Kunama, Amdigh, Er
Slide 21: Acquisition assets: Chad upstream
Acquisition assets: Chad upstream1 Upstream asset overview Doba oil project • The Chad upstream assets comprise interests in seven producing fields – Kome, Miandoum, Bolobo, Moundouli, Maikeri, Nya and Timbre – with a combined gross 2P Reserve base of 138.4 MMstb and 2022F forecast production of 30.
Slide 22: Acquisition assets: Chad/Cameroon midstream
Acquisition assets: Chad/Cameroon midstream1 Chad/Cameroon midstream asset Pipeline shippers • Savannah is acquiring a 70.3% interest in the Chad Pipeline Company and a 70.8% interest in the Cameroon Pipeline Company which collectively own the Chad-Cameroon Export Transportation System which compris
Slide 23: 2022/23 corporate and asset activities
2022/23 corporate and asset activities1 2022 2023 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Corporate Trading Updates/ Results Sustainability Report Potential oil and gas BD activity Potential renewables BD activity Chad/Cameroon Transactions completion Asset re-development and optimisation studies Well comp
Slide 24: Savannah Energy - a compelling investment opportunity
Savannah Energy - a compelling investment opportunity Purpose driven focused around Projects that Matter in Africa US$279m of CPR average asset free cashflow between 2022F-30F 54% of CPR average asset free cashflow between 2022F-30F non-oil price correlated US$1.1bn debt adjusted asset level PV10 at
Slide 25: Appendix
baa SAVANNAH ENERGY Appendix 25
Slide 26: Appendix: Key macro-economic statistics
Appendix: Key macro-economic statistics Niger 2016 2017 2018 2019 2020 Population, total (millions) 20.79 21.60 22.44 23.31 24.21 Population growth, annual (%) 3.86 3.84 3.82 3.79 3.77 GDP (current US$bn) 10.36 11.19 12.85 12.91 13.68 GDP growth, annual (%) 5.71 5.00 7.22 5.90 1.50 Inflation, GDP de
Slide 27: Appendix (continued): Key macro-economic metrics
Appendix (continued): Key macro-economic metrics Chad 2016 2017 2018 2019 2020 Population, total (millions) 14.56 15.02 15.48 15.95 16.43 Population growth, annual (%) 3.14 3.08 3.02 2.99 2.96 GDP (current US$bn) 10.10 10.00 11.24 11.31 10.09 GDP growth, annual (%) (6.26) (2.99) 2.37 3.25 (0.89) Inf
Slide 28: Footnotes
Footnotes Slide 3 1. Note, no contribution is assumed from the Niger assets in relation to forecast future production, revenues or cashflows. These assets currently contain only 2C and prospective resources as opposed to 2P reserves. Upon the formal sanctioning of the R3 East development production
Slide 29: Footnotes (continued)
Footnotes (continued) Slide 7 1. Numbers in all graphs in this slide are based on CPR. 2. Note, no contribution is assumed from the Niger assets in relation to forecast future production, revenues or cashflows. These assets currently contain only 2C and prospective resources as opposed to 2P reserve
Slide 30: Footnotes (continued)
Footnotes (continued) Slide 13 1. Production and throughput graphed as per Chad/Cameroon CPR from 1 July 2022, the indicative closing date of the Transactions. 2. Production profile graphed from Nigeria CPR. 3. Niger R3 East production graphed from Niger CPR. Slide 14 1. Source: CNBC. 2. Source: IRE
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