Serica Energy Plc · LSE:SQZ
Serica Energy — Investor Presentation (April 2017)
13 slides from Serica Energy's investor presentation, April 2017
Slide 1: Corporate Presentation April 2017
Corporate Presentation April 2017 Serica has established a sound base from which to build further
Slide 2: Disclaimer
DISCLAIMER The information presented herein is subject to amendment and has not been independently verified. Serica Energy plc (“Serica”) does not represent that the information and opinions contained herein are necessarily adequate or accurate and no liability is accepted for any errors or omission
Slide 3: Highlights
HIGHLIGHTS Profitable oil 2016 Profit after tax of Strong balance and gas sheet supports producer US$10.8M further growth Q1 2017 Cash balance of Columbus Production over US$25.7M progressing 3,200boepd at end March 2017 towards FDP 3 Strong balance sheet, low overhead, value driven
Slide 4: Financials: Profit and Loss
FINANCIALS Profit and Loss 2016 2015 ($Million) ($Million) Revenue 21.4 24.0 2016 income restricted by 6 month Erskine shut in 2015 includes 7 month post-acquisition Erskine income Operating costs (13.5) (6.6) Average 2016 opex of $23/boe reduced to $14/boe during periods of uninterrupted production
Slide 5: Financials: Balance Sheet
FINANCIALS Balance sheet 2016 2015 ($Million) ($Million) Exploration and evaluation assets 53.2 51.9 Columbus investment to-date plus retained exploration PP&E 9.1 8.9 Erskine acquisition net of DD&A Deferred tax 9.9 2.4 Partial recognition of future benefits from tax losses Total non-current assets
Slide 6: Erskine Building Cash Resources
ERSKINE BUILDING CASH RESOURCES • Production • Over 3,200 boe/d efficiencies rebuilt net in Q1 2017 since acquisition • $14/boe OPEX • Strong cash and since Aug ‘16 profit generator restart • Further value • Net remaining targeted through reserves improved uptime 3.8mmboe (1 Jan 2017) /third party b
Slide 7: Serica Performance
SERICA PERFORMANCE Share price performance since Erskine acquisition in June 2015 Q1 2017 Cash build STEADY CASH $9.1M GENERATION 2017 Guidance 2,500 - 3,000 boepd Since acquisition Erskine EXTENDED reserves increased from Market cap May 2015 £15 million LIFE 3.3mmboe to 5.0mmboe * Current market ca
Slide 8: Columbus Offtake Routes and Timing
COLUMBUS OFFTAKE ROUTES AND TIMING Serica holds 50% equity and operates Columbus, an undeveloped gas condensate field located in UK Central North Sea, 8km north of the Lomond Platform Ongoing engineering work on two Columbus production would available off-take routes: diversify Serica’s sources of 1
Slide 9: Developing Columbus from Lomond
DEVELOPING COLUMBUS FROM LOMOND A long reach well drilled from the Lomond platform offers the opportunity of an earlier first gas date – possibly by 2019 Extended reach well trajectory Columbus via Lomond could also extend economic life of the Lomond/Erskine facilities by lowering opex per boe Heavy
Slide 10: Serica Exploration
SERICA EXPLORATION UK Exploration: Rowallan carried well • 22/19c fully carried well could deliver 20mmboe net to Serica • Site survey and long-lead items underway in 2017 • Drilling targeted for 2018 Namibia • Luderitz licence extended into next two-year phase • No well commitment but Serica seekin
Slide 11: Corporate Strategy
CORPORATE STRATEGY • Continue to optimise Erskine and Columbus potential • Fully utilise Serica balance sheet strength and low cost base • Limit financial downside, spread operational risk and increase upside exposure through value accretive acquisitions as North Sea restructures • Extract full valu
Slide 12: Positioned to Expand Through Acquisition
POSITIONED TO EXPAND THROUGH ACQUISITION Financial credibility and strength UKCS focus and opportunity • Strong share performance in a tough market • Smaller players have a role to play as assets adds credibility become less material for majors • Healthy balance sheet builds confidence • Demonstrate
Slide 13: Summary
SUMMARY Serica is emerging from the industry downturn considerably stronger Improved production uptime, stronger commodity prices, lower operating costs and extensive tax losses support continuing cash flow generation With growing cash resources, a low-cost production base and pending Columbus devel