Slide 1: Investor Presentation 1Q 2020
Investor Presentation 1Q 2020
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by Echo Energy plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers giv
Slide 3: Who We Are
Who We Are Key Echo Energy is a full-cycle, exploration-led, gas Proven hydro- carbon basins focused AIM-listed E&P company with an Northern pipeline Southern pipeline exciting onshore asset base in Latin America • Latin America focused • Production: 2,481 boepd net (including c.560 bbls/d oil)1 Net
Slide 4: Full Cycle Strategy
Full Cycle Strategy 1 2 Echo seeks to acquire PRODUCE EXPLORE producing assets which strengthen our position Echo is exploration-led, and cash flow. Echo looks targeting acreage to grow these assets in positions that can deliver the first instance by enhancing production 3 substantial portfolio valu
Slide 5: Adding Value Across Risk/Potential Continuum
Adding Value Across Risk/Potential Continuum Bold growth strategy driven by our core values of commercial innovation, technical excellence, partnership and integrity LOWER RISK /LOW COST OPTIONS AVAILABLE NEAR TO MID TERM • Workovers – 15 candidates identified, programme optimised with cost vs upsid
Slide 6: Our Assets - At A Glance
Our Assets - At A Glance Argentina - Tapi Aike Location: Austral Basin Status: Exploration Area: 5,187 km2 Geology: Upper Cretaceous –Tertiary sandstone reservoir targets Gas in Place: 7.7 Tcf P50 gross gas in place (GIIP)* Interest: 19% Term: 3 years + 1 year for tight gas (effective September 2017
Slide 7: Recent & Near Term Newsflow
6 2020 Echo Energy Tapi A ike (“TA”) seismi c acqu Initial isition seismi compl c proce ete 19 Jun ssing o Surfac n TA E e locat astern ion pe Block c omple rmits & EIA su te 29 Jul bmitte d for T A East ern Blo Presen tation ck 3 Sep given t Acquis o YPFB on Rio 2H 2019 – 1H 2020 ition o Salado f S
Slide 8: Santa Cruz Sur - Overview
Santa Cruz Sur - Overview Package of five production concessions in Infrastructure already in place - oil trucked the Austral Basin, Santa Cruz province to the Punta Loyola terminal Blocks consist of 12 oil and gas fields with Gas piped primarily through the San Martin 7 significant production from
Slide 9: Santa Cruz Sur - Consistent Production Figures
Santa Cruz Sur - Consistent Production Figures Reserves Production • Net (70%) 1P reserves of 4.3 • Net (70%) production of 2,481 MMboe and 2P reserves of boepd including c.560 bbl/d of 13.7 MMboe1 oil and condensate2 • Opportunity to commercialise • Substantial existing infrastructure existing 2P r
Slide 10: Santa Cruz Sur - Upsides
Santa Cruz Sur - Upsides Significant Lower Cost/Low Risk Upside Opportunities Workovers & pulling jobs Potential for significant upside using streamlined operational expertise 15 wells currently identified with workover potential Use of Electrical Submersible Pumps (ESP) New perforations and use of
Slide 11: Tapi Aike - Overview
Tapi Aike - Overview Multiple independent play types with gas indications in legacy wells offering high impact exploration potential 10 • Multiple independent plays identified: 41 leads1 Echo Energy • Aggregated gross GIIP on block (P50): 7.7 Tcf 1 2020 • Over 1200km of new 3D seismic shot over East
Slide 12: Tapi Aike - First Well – First Gas Discovery
Tapi Aike - First Well – First Gas Discovery CLM.x-1 – Proving gas in Tapi Aike’s eastern Chiripa Oeste area Targeting: Sand lobes of Lower Magallanes formation in stratigraphic traps Aim: Extend gas play in offset well to Tapi Aike where there are improved geophysical signatures CLM.x-1 Exploration
Slide 13: Tapi Aike - Western Exploration
Tapi Aike - Western Exploration Frontier scale exploration with de-risked petroleum system New 3D Seismic (Travesia de Arriba) Leads Identified by GCA on 2D Key Wells TA.x-1001 TA.x-1 CC.es-1 • Tapi Aike West offers frontier exploration in a lower cost onshore setting • Petroleum system has been de-
Slide 14: Tapi Aike - Western Exploration
Tapi Aike - Western Exploration Travesia de Arriba offers frontier scale exploration, de-risked by gas in offset wells Targeting: U. Cretaceous turbidites and shallow marine sandstones Aim: Open up frontier region in western Tapi Aike de-risked by gas indications in numerous offset wells Gas Indicat
Slide 15: Bolivia - Study Agreements
Bolivia - Study Agreements Study agreements offer low-risk exploration options which can be monetised • Huayco & Rio Salado blocks lie in the south of Bolivia within the sub-Andean foothills of the Tarija Basin 14 • Established hydrocarbon province with multi Tcf gas resources – adjacent blocks incl
Slide 16: M&A is in our DNA
M&A is in our DNA Echo team are well positioned to further strategy of delivering shareholder value and growth from existing assets and new opportunities • Team with strong track record in structuring sophisticated transactions - delivered 2 deals in 2019 (CGC renegotiation and acquisition of Santa
Slide 17: Newsflow, catalysts and value build up
Newsflow, catalysts and value build up 2020 – 2021 Clearly defined potential milestones TAPI AIKE FIRST DRILL & TESTING CAMPO LIMITE EXPLORATION WELL SANTA CRUZ SUR REVENUES COME ON STREAM SANTA CRUZ SUR WORKOVER PROGRAMME - 15 WELLS ALREADY IDENTIFIED WITH POTENTIAL CONFIRM / OPEN UP NEAR FIELD OIL
Slide 18: Investment Case
Investment Case • Strong focused regional player with stable forecast self-funding production • Very active operationally – 6 wells drilled in the last 18 months & ongoing active drilling campaign • Business with strong foundation of cash generation that is developing multiple risk- reducing revenue