Orcadian Energy Plc · LSE:ORCA
Orcadian Energy — Investor Presentation (April 2024)
25 slides from Orcadian Energy's investor presentation, Apr 4, 2024
Slide 1: Investor Update April 2024
INVESTOR UPDATE April 2024 1
Slide 2: Investor Update
INVESTOR UPDATE April 2024 1
Slide 3: Important Information
IMPORTANT INFORMATION This presentation has been prepared by Orcadian Energy plc (“Orcadian” or the “Company”) and the (ii) approved for the purposes of section 21 of FSMA by, a person authorised under FSMA or (iii) information contained herein is restricted and is not intended for distribution to,
Slide 4: Summary – Objectives and Strategy
Summary – Objectives and Strategy Objective to deliver a high return for investors ● Support Ping in delivering the polymer flood project for Pilot ● Particular focus on sub-surface aspects of the project ● Maximise value from Elke & Narwhal and seek to re- license discoveries and prospects surround
Slide 5: Experienced leadership team and Board
Experienced leadership team and Board ● Former Chief Executive of LASMO plc. ● Trained as a lawyer and now a Qualified Chartered Accountant with 30 years of Joe Darby Tim Feather experience in the financial industry. ● Worked for Shell Petroleum before becoming Managing Director of ● Currently, the
Slide 6: Transforming resources into reserves
Transforming resources into reserves Prospects Discoveries Commercial discoveries Developments Commitment to Geological chance Commercial risk proceed of success factor Proven Proven Contingent Contingent & probable & probable Prospective Dev. resources, Dev. Finance Drilling resources, Concept Plan
Slide 7: Orcadian North Sea licences and summary
Orcadian North Sea licences and summary Orcadian Energy Licences Oil Discoveries Pict Oil Prospects 0 2 4 6 8 10 kilometers Saxon Cla Sheryl Thornham ● Pilot field development carried by Ping Petroleum UK Titchwell Guille plc until first offload of production Fynn Award: Bowhead Blakeney 21/28b Fyne
Slide 8: Pilot Field summary
Pilot Field summary Pilot Parameter Units ● Pilot Main discovered by Fina in Oil water contact 2724 feet 1989, fields appraised by five wells, plus two sidetracks/horizontals, Oil column >100 feet Pilot South discovered in 1990; Gross sand thickness 50-60 feet two 3D surveys Net to gross ratio 0.95
Slide 9: Pilot farm-in deal summary
Pilot farm-in deal summary ● 81.25% interest in P2244 successfully farmed out to Ping Petroleum UK plc ● Orcadian has an 18.75% carried interest to first oil, and retains 13.6 MMbbl of 2C resources (development pending) in Pilot, fully carried to first oil, ● Carry is repaid by an increase in Ping’s
Slide 10: Pilot field phased development plan
Pilot field phased development plan, subsea wells with platform wells in second phase ● Five subsea wells before first oil Illustration of how the project may be phased to minimise upfront costs 9
Slide 11: Pilot field phased development plan
Pilot field phased development plan, subsea wells with platform wells in second phase ● Five subsea wells before first oil ● Five further subsea wells after first oil Illustration of how the project may be phased to minimise upfront costs 9
Slide 12: Pilot field phased development plan
Pilot field phased development plan, subsea wells with platform wells in second phase ● Five subsea wells before first oil ● Five further subsea wells after first oil ● Twenty-two platform wells to complete development Illustration of how the project may be phased to minimise upfront costs 9
Slide 13: Pilot field potential production
Pilot field potential production ● Potential production profile from Pilot based on modified development plan ● Revised drilling schedule and facility capacities ● Potential to significantly reduce fluid handling requirements on the FPSO by injecting more viscous water than previously assumed ● Crea
Slide 14: Illustrative Pilot net asset value based on Pilot audited resources
Illustrative Pilot net asset value based on Pilot audited resources $m Orcadian share $1,600 $160 Repayment of carry $1,400 $140 $1,200 $120 $1,000 $100 $800 $80 $144 $600 $1,269 $60 $400 $801 $40 $623 $200 $390 $20 $11 $- $- Revenue Field costs EBITDA Capex & Pre-Tax Tax Post-Tax Pilot NPV Market C
Slide 15: Elke, Narwhal & Prospective satellites
Elke, Narwhal & Prospective satellites 2C/2U Pool GCoS rEEI resource Narwhal 9.2 100% Elke Main 45.5 100% Elke Main West 22.8 90% Elke Updip 17.5 87% Elke Area 2 12.3 64% Elke North 10.5 66% Elke Area 3 13.3 64% Main Elke Channel 7.0 64% Spinner 4.0 38% Channel Complex 2 3.0 10% Total 145.1 Elke 2C
Slide 16: Elke, Narwhal & Prospective satellites
Elke, Narwhal & Prospective satellites 2C/2U Channel Pool GCoS rEEI resource Complex 2 Spinner Narwhal 9.2 100% Elke Main 45.5 100% Elke Main West 22.8 90% Area 2 Elke Updip 17.5 87% North Elke Area 2 12.3 64% l n e an Elke North 10.5 66% ✘ Ch ai n Elke Area 3 13.3 64% ? Area 3 M Main Elke Channel 7
Slide 17: 33rd Round
33rd Round ● Orcadian participated in the 33rd Round making three licence applications, one in partnership with Parkmead, one with Triangle and one on its own ● The Fynn award builds upon Orcadian’s viscous oil experience and previous partnership with Parkmead, Fynn Beauly is a very large discovery
Slide 18: 33rd Round offers of award: OMF: Fynn Beauly heavy oil discovery
33rd Round offers of award: OMF: Fynn Beauly heavy oil discovery 50% Orcadian and 50% Parkmead Group (Operator) ● Fynn Beauly is a very large (over 900 MMbbls in place) shallow heavy oil accumulation ● Discovered in 1974, one well was tested and did flow 10.6º API oil at c. 10 bbls/day, based on tha
Slide 19: 33rd Round offers of award: CNS: Quad 29 shallow gas
33rd Round offers of award: Aspen CNS: Quad 29 shallow gas Glenlough 50% Orcadian (Operator) and 50% Triangle Energy Pty Anasuria ● Multiple shallow gas prospects identified on seismic Blakeney Fyne Gannet Dandy N. Crinan Feugh Cenos ● Breckagh: P50 recoverable prospective resource is 138 bcf in sta
Slide 20: Licence & Resource Summary
Licence & Resource Summary2 Net 2U Net 2C Net 2C Net 2C Licence Operator Licence Key Prospective Contingent Contingent Contingent and or Phase Term Equity Status Area Discoveries Resources Resources Resources Resources Phase block Licence Expiry Expiry (km2) or Prospects (Unrisked) (Unclari ed) (On
Slide 21: Summary
Summary ● Company future is underpinned by the carried interest in the $160 Pilot project $140 ● Building an attractive portfolio of funded developments, innovative projects and compelling prospects $120 ● Some big changes coming for mature fields in the UK oil and $100 gas sector, but new low-carbo
Slide 22: Orcadian Energy Plc
Nomad & Joint Broker: Joint Broker: Auditor: PKF Littlejohn Zeus Capital Limited Novum Securities 15 Westferry Circus 125 Old Broad St. 2nd Floor, 7-10 Chandos Street London E14 4HD London EC2N 1AR London W1G 9DQ Lawyer: Hill Dickinson Lawyer: TandonHildebrand Banker: Barclays The Broadgate Tower, 2
Slide 23: Offshore viscous oil
Offshore viscous oil JUBARTE – 17º VEGA – 15.5º SZ36-1 – 14.4º BETA – 14º ATLANTA – 14º KRAKEN – 13.7º 2006 1987 1993 1981 2018 2017 PEREGRINO – 13.5º MARINER – 12º-14º SIRI – 12.3º ROSPO MARE – 12º AYATSIL - 9º-12º 2011 2018 2008 1982 2015
Slide 24: Fynn oil viscosity range
Fynn oil viscosity range Logarithmic axis Linear axis Expected range of reservoir temperature, GOR and bubble point Live oil viscosities predicted from oil gravity, GOR and temperature using Orcadian correlations based on combinations of the Bennison (1998) correlations for dead oil viscosity, which
Slide 25: UKCS viscous oil
UKCS viscous oil 19 Heavy oil fields with 9 Billion Bbl STOOIP ● Most viscous oil is found at the basin ▪ Mariner andmargins Kraken developments underway – Cold (or warm) water injection with KRAKEN ● Substantial Bentley horizontal oil producers Over – Phased developments pending MARINER opportunity