Meren Energy Inc. · TSX:MER
Meren Energy — Africa Oil — Investor Presentation (September 2023)
33 slides from Meren Energy's investor presentation, September 2023
Slide 1: Africa Oil Corp. - The Next Phase of Value Creation
Africa Oil Corp. THE NEXT PHASE OF VALUE CREATION CORPORATE PRESENTATION September 2023 WWW.AFRICAOILCORP.COM
Slide 2: Balanced Portfolio to Deliver Transformational Value Creation
Corporate Presentation | September 2023 AFRICA OIL CORP. BALANCED PORTFOLIO TO DELIVER 2P Reserves 1 55.6MMBOE TRANSFORMATIONAL VALUE CREATION Q2’23 Production2 Exploration Development Production 22.4 KBOE/d AOC’s 50% shareholding in Liquidity (end Q2’23) Prime Oil & Gas accounts for $375.7m SENEGAL
Slide 3: Foundations for Value Creation
Corporate Presentation | September 2023 AFRICA OIL CORP. FOUNDATIONS FOR VALUE CREATION STRONG BALANCE SHEETS ADVANTAGED BARRELS SIGNIFICANT LIQUIDITY (Q2’23) HIGH NETBACK PRODUCTION • AOC debt free with cash balance of $175.7m • Attractive fiscal regime with premium Brent pricing • Undrawn corporat
Slide 4: Foundations Drive Superior Performance
Corporate Presentation | September 2023 AFRICA OIL CORP. FOUNDATIONS DRIVE SUPERIOR PERFORMANCE 300 Notable Outperformer 250 Over the Full Business Cycle 200 Strong Organic Opportunity Set With the Ability to Grow Inorganically 150 New CEO, New Focus 100 Right Pathway to Deliver Maximum Value 50 0 0
Slide 5: Strategic Option Sets
Corporate Presentation | September 2023 AFRICA OIL CORP. STRATEGIC OPTION SETS Existing Growth Opportunities Business Development Prime: • The market for individual asset acquisitions is competitive • Low risk/high IRR development opportunities – infill drilling • Stay focused on jurisdictions where
Slide 6: High Return and Short Cycle Growth
Corporate Presentation | September 2023 AFRICA OIL CORP. HIGH RETURN AND SHORT CYCLE GROWTH Top oil fields In Nigeria Operators Highly experienced World-class Production facility hubs 62% of 2P reserves1 base is Proven category (P90) Low risk & high IRR Development projects OML 127 Infill drilling S
Slide 7: Venus, a Unique World-Class Opportunity
Corporate Presentation | September 2023 AFRICA OIL CORP. VENUS, A UNIQUE WORLD-CLASS OPPORTUNITY Namibian Orange Basin (Blocks 2913B/2912) • Potential multi-billion barrels recoverable development • Average indirect 6.0% interest in the two blocks through AOC’s 31.0% shareholding in Impact • Operate
Slide 8: Significant Orange Basin Exposure
Corporate Presentation | September 2023 AFRICA OIL CORP. SIGNIFICANT ORANGE BASIN EXPOSURE Block 3B/4B • AOC operated with a 26.25% interest1 • On trend with Venus, Graff, La Rona and Jonker oil discoveries • Most of the block is covered by 3D seismic • P50 prospective resources of ~4 billion boe2 •
Slide 9: Infrastructure-Led Exploration in EG
Corporate Presentation | September 2023 AFRICA OIL CORP. INFRASTRUCTURE-LED EXPLORATION IN EG Block EG-31 • AOC operated with an 80% interest • Significant gas prospectivity identified in a proven basin and benign shallow water environment • Located adjacent to high-performing EG LNG plant with incr
Slide 10: Growth Beyond the Current Portfolio
Corporate Presentation | September 2023 AFRICA OIL CORP. GROWTH BEYOND THE CURRENT PORTFOLIO World Class Organic Opportunity Set Inorganic Business Development With Strictest Discipline Asset Acquisition • Focus on jurisdictions where we have a competitive advantage and can leverage our banking rela
Slide 11: Investing in Emissions Management
Corporate Presentation | September 2023 AFRICA OIL CORP. INVESTING IN EMISSIONS MANAGEMENT GHG Performance (Scope 1 & 2)* GHG Management Plan (Scope 1 & 2) 140,000 120,000 Minimise through 100,000 efficiency 2023+: Direct investment in Nigeria: Focus Avoid by offset projects 80,000 on flaring design
Slide 12: Substantial Reduction in Flaring
Corporate Presentation | September 2023 AFRICA OIL CORP. SUBSTANTIAL REDUCTION IN FLARING Gas Flare Volume Trend (mmscf/d) • Gas flaring reduced Agbami Akpo Egina 150 from 44 in 2021 to 34 mmscf/d in 2022. • Flare YTD 1 July is ~18 mmscf /d. 100 50 0 2017 2018 2019 2020 2021 2022 2023* * Average fla
Slide 13: Conclusion
Corporate Presentation | September 2023 AFRICA OIL CORP. CONCLUSION Returns Sustainable shareholder returns – High netback production from high distributed more than $90m since Mar’22 quality offshore assets SHAREHOLDER PRODUCTION RETURNS duction Growth Cashflow Pro Low risk development opportunitie
Slide 14: Appendix
A AfricaOil Corp. APPENDIX
Slide 15: Market Snapshot
Corporate Presentation | September 2023 AFRICA OIL CORP. MARKET SNAPSHOT Market Cap. (end Aug’23) • 462.3m shares in issue (free-float: 363.3m) $1.1bn ‒ Fully-diluted 467.8m shares Dual-Listed ‒ Management & Board: ~1.8% shareholding TSX & Nasdaq • Major shareholders: Helios, Fidelity, Janus Henders
Slide 16: Executive Management Team
Corporate Presentation | September 2023 AFRICA OIL CORP. EXECUTIVE MANAGEMENT TEAM Dr. Roger Tucker President & CEO Dr. Tucker has more than three decades executive management experience in the international energy sector. He has held positions in companies ranging scale from Majors, independents, a
Slide 17: Board of Directors
Corporate Presentation | September 2023 AFRICA OIL CORP. BOARD OF DIRECTORS John Craig Chairman Mr. Craig is the Chairman of the Board and has been since 2016. He is also Counsel to Cassels Brock & Blackwell LLP. He was a practicing lawyer and partner of Cassels Brock & Blackwell LLP until 2016 in t
Slide 18: Board of Directors
Corporate Presentation | September 2023 AFRICA OIL CORP. BOARD OF DIRECTORS Erin Johnston Director Ms. Johnston serves as MD of Lundin Foundation, a Canadian not-for profit organization that develops market-based programs to maximize benefits to communities surrounding resource operations. In this r
Slide 19: 2023 Management Guidance
Corporate Presentation | September 2023 AFRICA OIL CORP. 2023 MANAGEMENT GUIDANCE Notes: (1) The Company’s 2023 production will be contributed solely by its 50% shareholding in Prime. (2) Approximately, 82% expected to be light and medium crude oil and 18% conventional natural gas. (3) Net entitleme
Slide 20: H1'23 Production Performance
Corporate Presentation | September 2023 AFRICA OIL CORP. H1’23 PRODUCTION PERFORMANCE Full year 2023 production outlook remains within management guidance 25500 W.I. Production (BOE/d) 25500 Entitlement Production (BOE/d) 23500 23500 21500 21500 19500 19500 17500 17500 Q1'23 H1'23 9M FY'23 Q1'23 H1'
Slide 21: OML 130 Multi-Well Drilling Campaign
Corporate Presentation | September 2023 AFRICA OIL CORP. OML 130 MULTI-WELL DRILLING CAMPAIGN • Infill program commenced in late February 2023 • Up to 9 wells on Egina and Akpo • Two Egina water injector wells completed with the impact expected to be seen during Q3’23 • First Egina infill production
Slide 22: Oil Sales
Corporate Presentation | September 2023 AFRICA OIL CORP. OIL SALES New Oil Marketing Strategy Has Improved Sales Price Margins Q2’23 average sales price 120 Sales Price Dated Brent $85.3/bbl (Q2’23 Dated Brent: $78.0/bbl) 100 Two cargoes sold during Apr’23 80 $89.0/bbl (achieved sales price) USD/bbl
Slide 23: Capital Expenditure
Corporate Presentation | September 2023 AFRICA OIL CORP. CAPITAL EXPENDITURE (NET TO AOC’S 50% SHAREHOLDING) CAPEX increasing mainly due to Q2’23 CAPEX OML 130 drilling campaign ($ million) $38.9m 45 (Q2’22: $3.2m) 40 Q2’23 CAPEX amount includes 35 the OML130 license renewal Fee1, which has been cap
Slide 24: Africa Oil Financial Highlights
Corporate Presentation | September 2023 AFRICA OIL CORP. AFRICA OIL FINANCIAL HIGHLIGHTS Net Income ($ million) Q2’23 net income of $106.9m 150 (Q2’22: $5.7m) 100 End Q2’23 cash balance of 50 106.9 38.9 38.4 58.5 54.9 45.6 70.6 $175.7m 5.7 21.9 (Q2’22: $191.0m) 0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22
Slide 25: Prime Financial Highlights
Corporate Presentation | September 2023 AFRICA OIL CORP. PRIME FINANCIAL HIGHLIGHTS (NET TO AOC’S 50% SHAREHOLDING) Q2’23 EBITDAX1 EBITDAX1 and CFFO2 ($ million) $117.0m (Q2’22: $127.2m) 250 Q2’23 CFFO2 200 $88.7m (Q2’22: $51.3m) 150 End Q2’23 cash balance of 100 $108.8m (Q2’22: $330.6m) 50 End Q2’2
Slide 26: Strong Net Debt Position
Corporate Presentation | September 2023 AFRICA OIL CORP. STRONG NET DEBT POSITION Net debt position Prime - net to AOC Net debt position AOC Q2’23 AOC net cash 300.0 AOC net debt including 50% Prime net debt $175.7m 200.0 (YE’’22 : $199.7m) 100.0 0.0 Q2’23 Prime net debt (50%) -100.0 $266.2m $ milli
Slide 27: Corporate Structure
Corporate Presentation | September 2023 AFRICA OIL CORP. CORPORATE STRUCTURE Notes: (1) In accordance with the PIA, renewal shall be granted for 20 years if the lessee has paid all rent and royalties due and has otherwise performed all its obligations under the lease. A renewal of OML 130 was obtain
Slide 28: Corporate Structure
Corporate Presentation | September 2023 AFRICA OIL CORP. CORPORATE STRUCTURE SLIDE 28 Notes: Entities are owned 100%, unless noted otherwise.
Slide 29: Nigeria Ownership Overview
Corporate Presentation | September 2023 AFRICA OIL CORP. NIGERIA OWNERSHIP OVERVIEW SLIDE 29
Slide 30: Africa Oil Exploration Inventory and Equity Investments
Corporate Presentation | September 2023 AFRICA OIL CORP. AFRICA OIL EXPLORATION INVENTORY AND Africa Oil has an active EQUITY INVESTMENTS exploration portfolio in West Africa and Guyana through AOC-Operated exploration licenses, and indirect interests SENEGAL Prime Energy (~8-16%) through: OML127 &
Slide 31: Forward-Looking Statements
Corporate Presentation | September 2023 AFRICA OIL CORP. FORWARD-LOOKING STATEMENTS This document has been prepared and issued by and is the sole responsibility of Africa Oil Corp. (the Actual results may differ materially from those expressed or implied by such forward-looking “Company”) and its su
Slide 32: Reader Advisory
Corporate Presentation | September 2023 AFRICA OIL CORP. READER ADVISORY Accounting for Africa Oil’s (Africa Oil, AOC or the Company) Oil and Gas Information Interest in Prime The reserves estimates presented have been evaluated by RISC in accordance with NI 51-101 and The 50% shareholding in Prime
Slide 33: Thank You
AFRICA OIL CORP. THANK YOU For further information, please contact: SHAHIN AMINI Investor Relations shahin.amini@africaoilcorp.com +44 (0) 20 8017 1511 WWW.AFRICAOILCORP.COM