Panoro Energy Asa · OSL:PEN
Panoro Energy Asa — Q1 2020 Earnings Presentation
18 slides from Panoro Energy Asa's earnings presentation, May 28, 2020
Slide 1: 2020 Q1 Results Presentation
2020 Q1 Results Presentation 28 May 2020 www.panoroenergy.com
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA (“Company”). This presentation contains certain statements that are, or may be deemed to be, “forward-looking statements”, which include all statements other than state
Slide 3: Presenting Team on Webcast
Presenting Team on Webcast EXECUTIVE MANAGEMENT TEAM John Hamilton Qazi Qadeer Richard Morton Nigel McKim Chief Executive Officer Chief Financial Officer Technical Director Projects Director Joined 2015 Joined 2010 Joined 2008 Joined 2019 First Quarter Results 2020 Slide 3
Slide 4: Corporate Highlights
Corporate Highlights Tunisia OPERATIONS OIL SALES • Staff are healthy and have adapted • All planned liftings have occurred largely as scheduled • HSE culture and systems proven resilient • Q1 oil sales limited to one Gabon cargo and • Production largely unaffected, 2000+ domestic sales in Tunisia b
Slide 5: Recent Events: Impact on the Oil Sector Generally
Recent Events: Impact on the Oil Sector Generally COVID-19 and Oil Price Shock • Logistics both on and offshore compromised • Increased HSE protocols • Challenging crew changes amidst travel restrictions • Development/drilling operations largely halted, with focus on maintaining day to day operation
Slide 6: Dated Brent (Physical) had been under huge pressure
Dated Brent (Physical) had been under huge pressure Difference between physical price and futures price 2015-2020 DATED vs ICE First Quarter Results 2020 Slide 6
Slide 7: Panoro Response to Current Environment
Panoro Response to Current Environment Proactive Initiatives to Mitigate the Dislocated Macro Environment Steps taken DURING Panoro is managed in Steps taken BEFORE Emerge from crisis Able to resume capital current crisis made to a financially prudent current crisis proving with resilient business s
Slide 8: Corporate Strategy has made Panoro more resilient to cycle
Corporate Strategy has made Panoro more resilient to cycle Strategy has been to make a more robust company PRODUCTION mmboe CASH $MM 2500 35 2300 2300 30 2000 30 25 1500 20 23 24 1000 1300 15 10 500 5 350 350 4.8 6.3 0 0 2016 2017 2018 2019 Q1 2020 2016 2017 2018 2019 Q1 2020 # PRODUCING WELLS NEW D
Slide 9: 2020 Q1 Highlights
2020 Q1 Highlights Amounts in Million USD Q1 2020 Q4 2019 Q1 2019 Revenue and other income1 3.4 13.7 16.7 EBITDA1 0.3 5.2 10.3 Net profit/(loss) after tax1 8.0 (3.5) (1.4) Net profit/(loss) after tax including discontinued operations 6.0 3.2 (1.5) Underlying net profit/(loss) before tax1,2 (0.7) 3.2
Slide 10: Loan Facilities
Loan Facilities $23m $16m $7m • Debt against Tunisian assets, provided by Mercuria • Non-recourse debt against Dussafu, as part of farm down • Repayments of $0.7m made during the quarter to BW Energy • Amortises in 2020 at $0.7m per quarter • Repayments of $1.4m made during the quarter • Effective i
Slide 11: Hedging
Hedging 2020 2021 20,200 bbls per month Settled Collars of $55 Additional Gains/loses MTM of $9 First class Taxed outside monthly on floor and 24,000 swap on P&L million at counter- petroleum Dated Brent $61 cap in July 2020 after EBIT end Q1 party regime First Quarter Results 2020 Slide 11
Slide 12: Revised 2020 Guidance
Revised 2020 Guidance • 25% increase from 2019 • ~10% lower than prior guidance PRODUCTION 2300 - 2600 due to Gabon reduction • Excludes Aje Q1 Q2 Q3 Q4 INTERNATIONAL • 4 Gabon remaining Q2-Q4 LIFTINGS 1 2 2 3 • 3 Tunisia remaining Q2-Q4 FULL YEAR $31 Million $22 Million • Gabon Capex reduced 40% CA
Slide 13: Gabon Update (Panoro 7.5% working interest)
Gabon Update (Panoro 7.5% working interest) PRODUCTION SALES & LIFTINGS FUTURE ACTIVITY • Gross production of • Lifting of 44,000 net in Q1 • Delayed due to Covid-19 11,485 bopd during at price of $32.90 • Hook up of DTM-6H quarter (net 861) • Next lifting by BP • Drilling of DTM-7H • Current produc
Slide 14: Tunisia Update (Panoro 29.4% working interest in production)
Tunisia Update (Panoro 29.4% working interest in production) PRODUCTION SALES & LIFTINGS FUTURE ACTIVITY • Gross production of • Only domestic sales of • Multiple workovers PANORO ASSETS 4,000 in Q1 (net 1,178) 27,000 barrels during Q1 during Q2/Q3 • Current production of at $54/barrel • Guebiba 10S
Slide 15: TPS Well Activities (and Proposed SMW-1)
TPS Well Activities (and Proposed SMW-1) EL AIN-03 workover Awaiting stimulation and ESP EL AIN-01 workover Awaiting stimulation and ESP Proposed SMW-1 Well To follow GUE-10 S/T, Q4 RHE-01 workover Acid stimulation success GUE-05A workover Perforated, awaiting stimulation GUE-10A sidetrack Awaiting
Slide 16: Further Corporate Updates
Further Corporate Updates FOR BLOCK 2B IN SOUTH AFRICA FOR OML 113 (Aje) SOUTH AFRICA • The application process to the Ministry • Production has continued, with some is submitted limited shut in periods • Ministry has been closed due to • Cost savings being implemented by pandemic operator • Approva
Slide 17: Strong Outlook Despite Timing Delays
Strong Outlook Despite Timing Delays PRODUCTION • Dussafu - Hook up DTM-6H CORPORATE • Drill DTM-7H • Ruche Phase 1 • Solid balance sheet • Tunisia - Bring on work over wells • Low cost production • Additional activities underway, • Supportive shareholders and lender including well at Guebiba and •
Slide 18: Contact Details
Contact Details: PANORO ENERGY 78 Brook Street London W1K 5EF United Kingdom Tel: +44 (0) 203 405 1060 Fax: +44 (0) 203 004 1130 info@panoroenergy.com