Pharos Energy Plc · LSE:PHAR
Pharos Energy — SOCO International — FY2018 Earnings Presentation
33 slides from Pharos Energy's earnings presentation, Mar 6, 2019
Slide 1: 2018 Full Year Results: Repositioned for growth
INTERNATIONAL 2018 Full Year Results Repositioned for growth 6 March 2019
Slide 2: Disclaimer
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 2 Disclaimer Nothing in this presentation or in any accompanying management discussion of this presentation constitutes, nor is it intended to constitute: (i) an invitation or inducement to engage in any investment activity, whethe
Slide 3: 2018 Key highlights
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 3 2018 Key highlights • Shareholder approval of the Merlon Transaction in Egypt with completion on track for 1H 2019 STRATEGIC • Portfolio optimisation through divestment of non-core interests in Congo (Brazzaville) and Angola • Co
Slide 4: A year in review
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 4 A year in review M&A Our Vision ACTIVITY Full-Cycle and Growth Orientated E&P of Scale Portfolio balance across CAPITAL ORGANIC field life cycle STRUCTURE & GROWTH PORTFOLIO Geographic diversification OPTIMISATION Scale & resourc
Slide 5: Financial Review
INTERNATIONAL FINANCIAL REVIEW
Slide 6: 2018 Finance Results
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 6 2018 Finance Results Oil Price Realised($/bbl)* Revenue ($m) *Realised oil price per barrel is the average proceeds received for each barrel of oil sold in the period 200 80 175 74.34 150 175.1 60 125 156.2 56.43 100 40 75 50 20
Slide 7: 2018 Finance results
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 7 2018 Finance results Cash, Cash Equivalents and Liquid Investments ($m) 300 275 23.3 1.3 0.9 250 225 95.6 240.1 200 22.4 1.2 175 55.9 150 125 137.7 100 75 50 25 0 Cash at Cash from continuing Investments in Assets Disposal of Net
Slide 8: Capital allocation
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 8 Capital allocation 2019 GUIDANCE- VIETNAM Capital Low Cash Operating Cost Discipline $13.6/boe 125 & 126 $12m Capex Spend Capital Investment in Assets (including abandonment) TGT Allocation $22.4m $33m $21m Capital Dividend Distr
Slide 9: Vietnam
INTERNATIONAL VIETNAM
Slide 10: Vietnam
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 10 Vietnam • Net production average of 7,274 boepd ‐ TGT production average 5,686 boepd net ‐ CNV production average 1,588 boepd net • Activity and investment for 2019 to include: ‐ CNV - No drilling activity ‐ TGT - 2 firm wells (
Slide 11: CNV 2018 well programme
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 11 CNV 2018 well programme 2018 production averaged 1,588 boepd net CNV Well Programme 2018 Well Results CNV Field Performance – Low decline rate CNV-5P-ST2 sidetrack • Onstream late 2018 at 1,100 bopd, the well 22,500 Updated to 2
Slide 12: TGT 2018 well programme
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 12 TGT 2018 well programme 2018 production averaged 5,686 boepd net TGT Cross Section S N Well Results TGT- 16 AP TGT-16AP - on stream Oct 2018 • Produced an average oil rate in Nov and Dec 2018 of 618 and 520 bpd respectively with
Slide 13: Third party business
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 13 Third party business TIA and Gas compressors • TGT production in 2018 was impacted by performance issues with the field’s gas compressors, which suffered unplanned outages and delivered lower gas lift • This in turn has increase
Slide 14: Third party business
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 14 Third party business Test Results Export Gas Specific Gravity & Gas Flare Correlation Gas flare rate reduced from 14-15 to < 1 mmscfd Shut in Shut in Shut in Trial test was conducted to: • Identify cause of gas compressor ineffi
Slide 15: The way forward
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 15 The way forward Test result confirms TLJOC production impacts on gas compressor efficiency and TGT oil production HLJOC will install two Manual Control Valves on the TGT-H1-WHP: - One is to allow control of the total amount of h
Slide 16: TGT and CNV production forecasts
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 16 TGT and CNV production forecasts Simulated production forecasts for TGT have a large uncertainty range driven by future activities Gross Gross 2P Profile assumptions: 2P Simulated Profile assumptions: • Well 5P-ST2 continues to
Slide 17: TGT & CNV JOC approved 2019 budget (gross)
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 17 TGT & CNV JOC approved 2019 budget (gross) TGT and CNV 2P and 2C Oil & Gas Production Forecast (boedp) Approved budget TGT CNV Firm Wells 2 0 Contingent Wells 2 0 Well interventions 18 0 2019 Production Facilities Upgrade Guidan
Slide 18: Blocks 125 & 126 (SOCO WI 70%)
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 18 Blocks 125 & 126 (SOCO WI 70%) Phu Khanh Basin 125 & 126 PSC Top Basement Map • PSC signed 27 Oct 2017 • Registration Effective Date 9 Nov 2017 • Initial 4 year Term 125 & 126 Partnership • SOCO Exploration (Vietnam) Limited: 70
Slide 19: Egypt
INTERNATIONAL'
Slide 20: Egypt: Merlon Petroleum acquisition
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 20 Egypt Merlon Petroleum acquisition Operated | Low Cost | Onshore | Oil | Located in highly prospective Western Desert of Egypt Sidi Kerir Ameryia Max • Onshore, low-cost, oil producing asset with visible near term growth traject
Slide 21: El Fayum
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 21 El Fayum Development Asset Highlights Schematic Production Profile – El Fayum Concession 25,000 • Ten fields 2P • Demonstrated waterflood success in select areas 2C • Majority of fields have multiple productive 20,000 reservoir
Slide 22: El Fayum: Development plan
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 22 El Fayum Development plan Asset Highlights Silah Field • Ten Fields • Actionable location inventory Future Injector • Demonstrated waterflood success in select areas • Simple, repeatable well design Future Producer • Majority of
Slide 23: El Fayum: Planned increase in drilling activity
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 23 El Fayum Planned increase in drilling activity Al Madinah exploration well influences by SOCO Notional Third Rig contract not yet awarded Notional Third Rig contract not yet awarded
Slide 24: El Fayum: Exploration potential
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 24 El Fayum Exploration potential Prospects and Leads Locations AR “F” Resource Play Potential Proven reservoirs in the Al Madinah Western Desert New prospective play concepts (Ex: AR”F”) Al Ayyat Potential AR “F” Resource play Al
Slide 25: Exploration Block award
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 25 Exploration Block award North Beni Suef Block 5 (New Concession) Feb 2019 • Merlon announced as winning bidder for North Beni Suef (NBS) concession in February 2019 • Phase I commitments (3 years): 2 wells + additional 3D seismi
Slide 26: Egypt: Growth Strategies
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 26 Egypt Growth Strategies Potential for future Egypt consolidation Near - term growth strategy 3,500 Bubble size = Net WI remaining • Maintain strong balance sheet reserves (50 mmboe) ‐ Escalated activity key for growth 3,000 Majo
Slide 27: Strategic value creation and growth options
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 27 Strategic value creation and growth options Transformational Merger / RTO Bi-lateral third party Paper / paper mergers >$250 million negotiations …. opportunities Re-rating opportunities through portfolio synergies e.g. KEC, Oth
Slide 28: 2018 Summary and outlook
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 28 2018 Summary and outlook • Shareholder approval of the Merlon Transaction in Egypt with completion on track for 1H 2019 • Upon completion of Merlon SOCO will to provide diversity of assets - low 2018 cost development opportuniti
Slide 29: Appendix
INTERNATIONAL Appendix
Slide 30: SOCO Vietnam Portfolio
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 30 SOCO Vietnam Portfolio NHA TRANG Vietnam Blocks 125 & 126 TGT FPSO CNV WHP with PVD-1 Jack-up rig and hook-up barge HO CHI MINH CITY Block 16-1 Block 9-2
Slide 31: SOCO Vietnam Facilities Overview
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 31 SOCO Vietnam Facilities Overview The TGT & CNV fields are located in the Cuu Long Basin TGT Operated by the Hoang Long Joint Operating Company (HL JOC) SOCO WI 30.5% 30.16% unitised interest in oil & condensate and 30.06% for ga
Slide 32: Steady Finances
SOCO International plc - 2018 Full Year Results | 6 March 2019 Slide 32 Steady Finances Capital Expenditure (Cash $m)* Net Cash from Continuing Operating Activities ($m) Cash, Cash Equivalents and Liquid Investments ($m) *includes abandonment funding 60 250 50 50 55.9 240.1 200 40 40 45.0 150 30 30
Slide 33: Investor Relations
Investor Relations SOCO International plc 48 Dover Street London W1S 4FF United Kingdom Tel: 020 7747 2000 Fax: 020 7747 2001 Company No: 3300821 www.socointernational.com