Seascape Energy Asia Plc · LSE:SEA
Seascape Energy Asia — Longboat Energy — FY2021 Earnings Presentation
22 slides from Seascape Energy Asia's earnings presentation, Mar 22, 2022
Slide 1: Year End 2021 Results Presentation
Longboat Energy plc Year End 2021 Results Presentation
Slide 2: Disclaimer
DISCLAIMER The information contained herein has been provided solely for information purposes and does not purport to be comprehensive or contain all the information that may be required by recipients to evaluate Longboat Energy plc (the “Company”). This presentation and the information contained in
Slide 3: Longboat strategy: full cycle E&P, delivered responsibly
Longboat strategy: full cycle E&P, delivered responsibly Longboat is committed to supporting the energy transition Focus on growth and value Norwegian Discovery Rates Remain High in 2021 Create significant value with near-field exploration Targeting value accretive M&A transactions Delivering en
Slide 4: Highlights 2021
Highlights 2021 A transformational year with two potentially commercial discoveries out of four wells Safely & successfully drilled four exploration wells1 in Norway Norwegian Discoveries 2021 Egyptian Vulture: material discovery near infrastructure, significant upside, maturing appraisal strategy
Slide 5: Year end results 2021
Year end results 2021 Maintaining strong balance sheet despite high levels of activity £ million Notes Cash £26.3 Includes fundraise (£32.5 million net) and tax refund of £18.6 million Year-end tax receivable £8.1 ‘Negative tax instalments’ to be received H1-22 in respect of E&A spend in 2021 No dra
Slide 6: Positive Norwegian tax changes underway
Positive Norwegian tax changes underway Proposed changes positive for Longboat’s full-cycle E&P strategy Proposed Norwegian petroleum tax system from 2022 Current vs Proposed Norwegian Tax System Same marginal rate (78%) Move to immediate expensing of investments 71.8% repayment of all losses
Slide 7: Discoveries
Long boat Discoveries
Slide 8: Egyptian Vulture results summary
Egyptian Vulture results summary Material discovery with substantial upside Licence PL939 Light oil discovery in Lower Cretaceous Equinor (Op. 55%) 13m net sand in a 36m hydrocarbon filled gross interval Partners PGNiG (30%) Longboat (15%) High net-to-gross in upper reservoir section with porosi
Slide 9: Egyptian Vulture: in the right postcode
Egyptian Vulture: in the right postcode Significant hub area actively focused on incremental tiebacks Heidrun Egyptian Vulture resources Fogelberg In-place volumes: 220-440 mmboe Iris/Hades Reserves range: 19-63 mmboe Morvin PVT analysis confirms light oil Egyptian Vulture Appraisal well strat
Slide 10: Rødhette discovery
Rødhette discovery Minor oil & gas discovery near to infrastructure Well results 29m hydrocarbon column in Stø Formation (11m oil) High net-to-gross, moderate-to-good quality reservoir Preliminary resource estimate at 9-12 mmboe (gross) Activities & opportunities Highlighted by Vår Energi in
Slide 11: Exploration
Long boat Exploration 11
Slide 12: Kveikje prospect
Kveikje prospect Located in exciting Equinor operated hub area License PL293B Kveikje (LBE, 10%) Longboat (10%) Paleocene injectite play Equinor (Op. 51%) Partners Upside in underlying Late Cretaceous DNO (29%) Idemitsu (10%) Gross resources 36–79*mmboe Several secondary targets CoS: 55%
Slide 13: Two significant gas wells drilling imminently
Two significant gas wells drilling imminently Both prospects have play-opening potential near infrastructure Longboat is participating in two of the largest gas prospects drilling in Norway in 2022 Cambozola (LBE, 25%) Play-opening Lower Cretaceous submarine fan Clear amplitude anomaly, possible
Slide 14: Outlook & Summary
Longboat Outlook & Summary 14
Slide 15: Market outlook
Market outlook Increased M&A opportunities driven by market and Longboat positioning Increasingly active North Sea M&A market UK NBP Premium/Discount to Brent (%) Deal space continues to be dominated by private companies 500% Continued consolidation – large companies getting larger 450% Increa
Slide 16: Summary
Summary Increased M&A opportunities driven by market and Longboat positioning Focused on value-accretive growth Create value through the drill-bit with near-field exploration Copernicus Targeted M&A transactions 254* mmboe Committed to delivering energy responsibly with net zero target Commodi
Slide 17: Appendix
Appendix 17
Slide 18: Remaining exploration wells
Remaining exploration wells Anticipated 2022 drilling cost schedule Gross/Net Pre-Tax Gross Mean Prospect Operator LBE WI% Well Cost1 Resources2 Risk $mm mmboe Kveikje Equinor 10% $24/$2 36 55% Cambozola Equinor 25% $80/$20 159 15% Copernicus PGNiG 10% $25/$3 254 26% Total pre-tax remaining carry of
Slide 19: Cambozola
Cambozola Play opener close to infrastructure Licence PL1049, PL1049B Partners Longboat (25%), Equinor (Op. 35%), Petoro (20%), Lower Cretaceous submarine fan in Magne Sub- Spirit (20%) basin sourced from Gullfaks High Stratigraphic trap with potential structural element Clear amplitude anomal
Slide 20: Significant gas potential: Copernicus
Significant gas potential: Copernicus Medium risk – high reward opportunity Licence PL1017 Copernicus Location Map Partners Longboat (10%), PGNiG (50%), Equinor (40%) Miocene–Pliocene lowstand wedge with amplitude anomaly Play-opener with large potential and follow-up opportunities Tie-back to
Slide 21: Proposed Norwegian tax change summary
Proposed Norwegian tax change summary Move to a ‘cash based’ system seems to have broad political support Proposal recently announced to change Norwegian petroleum tax system from 2022 onwards Move to a ‘cash based’ system (i.e. immediate expensing of investments) Improved alignment between gove
Slide 22: Proposed Norwegian tax change impact
Proposed Norwegian tax change impact Small increase in near-term cash costs offset by improved development economics Cash impact of Proposed Fiscal Regime Fiscal Regime Comparison: Subsea tie-back2 $/boe IRR % Exploration rebate = 70 Current (NPV 7.5%) 7 0.5 Corporate rebate = ~51 regime = 75 44% $6