Panoro Energy ASA · OSL:PEN

Panoro Energy ASA — Investor Presentation (November 2018)

46 slides from Panoro Energy ASA's investor presentation, November 2018

  1. Slide 1: Acquisition of OMV Tunisia Upstream GmbH – $30 Million Private Placement

    ACQUISITION OF OMV TUNISIA UPSTREAM GMBH $30 MILLION PRIVATE PLACEMENT November 2018 OSE Ticker PEN www.panoroenergy.com Investor Presentation |

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation (the "Presentation") has been produced by Panoro Energy ASA (the "Company") with assistance from Pareto Securities AS and SpareBank 1 Markets AS (the "Managers") solely for information purposes. This Presentation has not been approved, reviewed or registered with any pub

  3. Slide 3: Risk Factors

    RISK FACTORS An investment in the Shares involves a high level of risk. Several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and inform

  4. Slide 4: Risk Factors (Cont'd)

    RISK FACTORS (CONT’D)  The Company will have guarantee and indemnity obligations FINANCIAL RISKS  The Company is exposed to political and regulatory risks, including risks and uncertainties relating to  The Company is exposed to credit risk regional (area) electrification  The Company may have d

  5. Slide 5: Transaction

    Investor Presentation TRANSACTION Structure & overview Investor Presentation |

  6. Slide 6: Investment Highlights

    INVESTMENT HIGHLIGHTS  Panoro has entered into an agreement to acquire 100% of the shares of OMV Tunisia Upstream GmbH Strategic acquisition unlocking greater  High quality conventional oil production with long field life, low decline, and high operational margins value  OMV assets strategically

  7. Slide 7: Private Placement – Summary of Key Terms

    PRIVATE PLACEMENT – SUMMARY OF KEY TERMS Issuer Panoro Energy ASA Share capital and Pre-money number of ordinary shares outstanding: 46,807,600 shares outstanding with a par value of NOK 0.051 market capitalization Pre-money market capitalisation: USD 92 million / NOK 772 million1,2 Transaction size

  8. Slide 8: Transformational Acquisition of OMV Tunisia Upstream

    TRANSFORMATIONAL ACQUISITION OF OMV TUNISIA UPSTREAM PORTFOLIO OF LOW COST ONSHORE AND NEAR SHORE OIL PRODUCING ASSETS IN TUNISIA  Panoro has entered into an agreement to acquire 100% of OMV Tunisia OMV TUNISIA – PORTFOLIO OVERVIEW Upstream GmbH – 49% interest in five low risk, producing onshore an

  9. Slide 9: Strategic Transaction with OMV and Private Placement

    STRATEGIC TRANSACTION WITH OMV AND PRIVATE PLACEMENT KEY COMMERCIAL TERMS OF ACQUISITION FINANCING OF THE $65 MILLION ACQUISITION  Panoro to purchase OMV Tunisia Upstream GmbH (“OMV Tunisia”) for $65 million - Net consideration of ~$50 million after working capital ~$15m ~$17m adjustments Working C

  10. Slide 10: Strong Asset Economics

    STRONG ASSET ECONOMICS KEY ECONOMICS PER BARREL FREE CASH FLOW – OMV TUNISIA1 $m $m Assuming Brent price 20 140 120 of $65/bbl 15 100 80 10 60 5 40 20 0 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 MARGIN CF/yr Cummulative CF ~$18-23  Rapid payback period of ~3.5 years  Strong net back

  11. Slide 11: Panoro Energy

    Investor Presentation PANORO ENERGY Company overview Investor Presentation |

  12. Slide 12: Panoro at a Glance – Post OMV Acquisition

    PANORO AT A GLANCE – POST OMV ACQUISITION KEY STEP TOWARDS ESTABLISHING A “FULL-CYCLE E&P” WITH ASSETS IN TUNISIA, GABON AND NIGERIA GEOGRAPHICAL OVERVIEW ILLUSTRATIVE 2019 AND FUTURE NET PRODUCTION BY REGION1 Bopd 4,500 4,000 On-stream from 3,500 2020 Tunisia 3,000 2,500 Including 1,900-2,100 minor

  13. Slide 13: Transaction Is a Key Step Towards a Material Full-Cycle E&P

    TRANSACTION IS A KEY STEP TOWARDS A MATERIAL FULL-CYCLE E&P DELIVERING ON ITS STRATEGY OF BECOMING A FULL-CYCLE E&P WITH MATERIAL PRODUCTION AND EXPLORATION  Strategy of becoming a full-cycle Tunisian E&P MILESTONES AND UPCOMING TRIGGERS player announced in connection with the acquisition of DNO Tu

  14. Slide 14: Transaction Is a Key Step Towards Building a Full-Cycle E&P

    TRANSACTION IS A KEY STEP TOWARDS BUILDING A FULL-CYCLE E&P PRODUCTION WELLS RESERVES EMPLOYEES LICENCES bopd MMboe January ~400 2 21.6 5 2 2018 January 2019 ~3,000+ 18 29.2 28 9 (Prospective) Including minority (After adjusting for (not including TPS) interest 2018 production) Note: Panoro to hold

  15. Slide 15: Tunisia Offers a Favorable Operating Environment

    TUNISIA OFFERS A FAVORABLE OPERATING ENVIRONMENT OFFERS OPPORTUNITIES FOR GROWTH-ORIENTED E&P INDEPENDENTS  Tunisia has a strong rule of law and international MAP WITH O&G ACTIVITIES AND IMAGES support – Considered to be the only full democratic regime in the Arab world – Association agreement with

  16. Slide 16: Full Operating Organization in Place

    FULL OPERATING ORGANIZATION IN PLACE THE ADDITION OF THE TPS ORGANIZATION SIGNIFICANTLY STRENGTHENS OPERATING CAPABILITIES IN TUNISIA  DNO transaction established Panoro with a full SIMPLIFIED ECONOMIC OWNERSHIP STRUCTURE2 operating organization in Tunisia – 25 staff in Tunisia transferred to Panor

  17. Slide 17: Team with Strong Track-Record of Value-Creation

    TEAM WITH STRONG A TRACK-RECORD OF VALUE-CREATION EXECUTIVE MANAGEMENT TEAM John Hamilton Qazi Qadeer Richard Morton Chief Executive Officer Chief Financial Officer Technical Director BOARD OF DIRECTORS Mr. Julien Balkany Ms. Alexandra Herger Mr. Torstein Sanness Mrs. Hilde Ådland Mr. Garrett Soden

  18. Slide 18: Portfolio

    Investor Presentation Portfolio Asset overview Investor Presentation |

  19. Slide 19: Portfolio Overview

    PORTFOLIO OVERVIEW EXISTING PRODUCTION, DUSSAFU CAME ON STREAM 2H18 AND SEVERAL DEVELOPMENT AND EXPLORATION UPSIDES TARGETED 1 TUNISIA –TPS ASSETS (OMV ASSETS) GEOGRAPHICAL LOCATIONS Five low-cost and cash-generative producing assets with material exploration potential – located onshore and in shall

  20. Slide 20: Overview of Tunisia Operations

    OVERVIEW OF TUNISIA OPERATIONS OMV ACQUISITION ESTABLISHES PANORO AS A MATERIAL PLAYER IN TUNISIA  100% of OMV Tunisia Upstream GmbH to be acquired ASSETS LOCATION – 49% interest in five oil field concessions – 50% equity interest in Thyna Petroleum Services (“TPS”), a JV 3 1 operating company mana

  21. Slide 21: Establishing a New Core Area

    ESTABLISHING A NEW CORE AREA HIGHLY PROSPECTIVE AREA WITH SUBSTANTIAL RECENT M&A ACTIVITY AREA OVERVIEW AND HIGH TRANSACTION ACTIVITY  Area subject to extensive M&A activity last two years with TRANSACTION June 2018 Chergui (45%) Panoro and Perenco moving into Buyer: Perenco Seller: Petrofac the ar

  22. Slide 22: Overview of TPS Assets

    OVERVIEW OF TPS ASSETS TPS CURRENTLY PRODUCES FROM ALL FIVE OF ITS CONCESSIONS  TPS assets are one of the main oil producing fields TPS CONCESSIONS in Tunisia – Estimated to contribute ~9% of Tunisia's liquid production Gremda/ El Ain Cercina & Cercina Sud  Cumulative oil production of 52.7 MMbbl

  23. Slide 23: Material Upside Potential of TPS Assets

    MATERIAL UPSIDE POTENTIAL OF TPS ASSETS BEYOND THE 2P PROVEN AND PROBABLE  3P Proven Probable and Possible GROSS 2P AND 3P PRODUCTION PROFILE PER GCA – High case additional 6.8 MMbbl gross beyond 2P kboepd 8 – Assumes 36% vs. 33% Recovery Factor (24% to date) 6 – Analogue fields in region have 35%

  24. Slide 24: Future Upside Activity

    FUTURE UPSIDE ACTIVITY El Ain 01 and El Ain 03 workovers Cercina Salloum Infill Drilling FDP and early production Chergui South Appraisal Hbara Guebiba Workovers Exploration Well and appraisal Ras El Besh FDP revision and FID Other Cretaceous leads Jawahara Development Concept Investor Presentation

  25. Slide 25: Overview of SOEP Assets

    OVERVIEW OF SOEP ASSETS THREE EXISTING DISCOVERIES AND 250 MMBBL OF EXPLORATION INVENTORY – ADJACENT TO EXISTING INFRASTRUCTURE SALLOUM DISCOVERY – CORE ASSET OF DNO TUNISIA ASSET OVERVIEW  Discovered in 1991 by BG and 3D seismic in 2007  Potential for production wells to be drilled from onshore a

  26. Slide 26: Dussafu – Producing Asset, Significant Discovered Upside

    DUSSAFU – PRODUCING ASSET, SIGNIFICANT DISCOVERED UPSIDE  Multiple discoveries located offshore Gabon FIELD OVERVIEW – Positioned in a proven fairway within the Southern Gabon Basin – Operated by BW Energy Gabon1 (91.66%) with Panoro holding 8.33%. Tullow holds a 10% back-in right2 – 23.5 MMbbl 2P

  27. Slide 27: Tortue Is Just the Beginning: Recent Oil Discovery Announced

    TORTUE IS JUST THE BEGINNING: RECENT OIL DISCOVERY ANNOUNCED  Potential to become a world-class asset FIELD OVERVIEW - 12 robust prospects and more than 14 leads identified within the Ruche EEA1 area, in addition to the recent Ruche NE discovery Ruche Area EEA1 - Potential to include all discoverie

  28. Slide 28: Dussafu Has an Outstanding Drilling Success Rate

    DUSSAFU HAS AN OUTSTANDING DRILLING SUCCESS RATE NINE CONSECUTIVE SUCCESSFUL WELL PENETRATIONS (2011-2018) RUCHE TORTUE 3D SEISMIC DTM 2-H Ruche NE PRODUCTION WELL DTM 3-H DISCOVERY DISCOVERY DISCOVERY 2011 2013 2014 2018 2018 2018 + Sidetrack 1 + Sidetrack DTM 3 + DRNEM-1 + + Appraisal Sidetrack Si

  29. Slide 29: Dussafu Development Plan

    DUSSAFU DEVELOPMENT PLAN 1 Tortue Phase 1  First oil announced 17 Sep. 2018 2 Tortue Phase 2  Up to 4 additional 3 Ruche Complex and Further upside  Ruche viewed a possible production second development hub  Project on time and on  First oil from Phase 2  Recent discovery at Ruche budget tenta

  30. Slide 30: OML 113 'Aje' License Overview

    OML 113 “AJE” LICENSE OVERVIEW PRODUCING FIELD WITH SIGNIFICANT OIL AND GAS POTENTIAL  Large oil and gas accumulation offshore Nigeria FIELD OVERVIEW – Discovered in 1997 in water depth of 100-1,500m – Fully appraised field by four wells in three reservoirs – 127.1 MMboe certified 2P reserves (20.0

  31. Slide 31: Summary & Outlook

    SUMMARY & OUTLOOK PANORO IS DELIVERING ON ITS STRATEGY OF BECOMING A FULL-CYCLE E&P WITH MATERIAL PRODUCTION AND EXPLORATION  Complementary acquisition unlocks greater NEAR AND MEDIUM-TERM CORPORATE DEVELOPMENT PLAN value in Tunisia – highly accretive also on standalone basis  Multiple opportuniti

  32. Slide 32: Appendix

    Investor Presentation APPENDIX Investor Presentation |

  33. Slide 33: Executive Management

    EXECUTIVE MANAGEMENT Mr. John Hamilton, Chief Executive Officer, has considerable experience from various positions in the international oil and gas industry. Prior to joining Panoro Energy as Chief Executive Officer in May 20015, John was Chief Executive Officer of UK AIM listed President Energy PL

  34. Slide 34: Board of Directors

    BOARD OF DIRECTORS Mr. Julien Balkany, Chairman, is a French citizen resident in London, has been serving as a managing partner of Nanes Balkany Partners, a group of investment funds. Mr Balkany has been from March 2015 to May 2016 a non-executive Director of Norwegian Energy Company ASA (Noreco), a

  35. Slide 35: Key Financial Partners

    KEY FINANCIAL PARTNERS STRONG LOCAL PARTNER AND WELL-KNOWN OFF-TAKER BEENDER PETROLEUM LTD MERCURIA An exploration and production oil company that One of the four largest privately-held energy focuses on marginal field opportunities through the traders globally, with a diversified business model dev

  36. Slide 36: Robust Financial Position: Selected 3Q18 Information

    ROBUST FINANCIAL POSITION: SELECTED 3Q18 INFORMATION STRENGTHENED THROUGH THE DNO TUNISIA ACQUISITION AND ASSOCIATED PRIVATE PLACEMENT CONSOLIDATED STATEMENT OF FINANCIAL POSITION  Panoro has a robust financial position June 30, March 31, December 31, – Over $18 million in cash at September 30, 201

  37. Slide 37: Onshore Producing Fields in Tunisia

    ONSHORE PRODUCING FIELDS IN TUNISIA THE TPS ASSETS ARE ONE OF THE MAIN ONSHORE OIL PRODUCTION FIELDS IN TUNISIA AND ARE ESTIMATED TO CONTRIBUTE C.9% OF TUNISIA’S LIQUID PRODUCTION1 REMAINING RESERVE RANKING (IN MMBOE) OF PRODUCING ONSHORE FIELDS IN TUNISIA (SOURCE: WOODMAC) Commercial reserves, MMbo

  38. Slide 38: Onshore Guebiba / El Hajeb

    ONSHORE GUEBIBA / EL HAJEB RESERVES AND RESOURCE POTENTIAL 2018 ONWARDS GROSS RESERVES AND RESOURCE POTENTIAL GROSS OIL PRODUCTION PROFILE kbopd 3.0 Base Case Base 1  NFA case: 6.5 MMbbl 2.5 Immediate opportunities Case Near term opportunities 2.0 1.5 2  Production System Optimisation Immediate (E

  39. Slide 39: Offshore Cercina

    OFFSHORE CERCINA RESERVES AND RESOURCE POTENTIAL 2018 ONWARDS GROSS RESERVES AND RESOURCE POTENTIAL GROSS OIL PRODUCTION PROFILE kbopd 4.5 Base 1  NFA case: 2.6 MMbbl 4.0 Base Case Immediate opportunities Case 3.5 Near term opportunities 3.0 Licence extension 2.5 Immediate  Production System Optim

  40. Slide 40: Onshore Rhemoura

    ONSHORE RHEMOURA RESERVES AND RESOURCE POTENTIAL 2018 ONWARDS GROSS RESERVES AND RESOURCE POTENTIAL GROSS OIL PRODUCTION PROFILE (EXCL. E&A) kbopd 0.35 Base Case 0.30 Immediate opportunities Base 1  NFA case: 0.4 MMbbl Near term opportunities Case 0.25 0.20 0.15 0.10 Immediate opportunities 2  Pro

  41. Slide 41: Onshore El Ain

    ONSHORE EL AIN RESERVES AND RESOURCE POTENTIAL 2018 ONWARDS GROSS RESERVES AND RESOURCE POTENTIAL GROSS OIL PRODUCTION PROFILE (EXCL. E&A) kbopd 0.6 Base Case 0.5 Immediate opportunities Near term opportunities Base 0.4 1  NFA case: 0.04 MMbbl (to end 2018) Case 0.3 0.2 0.1 0.0 Immediate  El Ain-0

  42. Slide 42: Existing TPS Crude Processing and Exports

    EXISTING TPS CRUDE PROCESSING AND EXPORTS EXISTING INFRASTRUCTURE IS UNIQUE SOLUTION TO COMMERCIALISE SFAX DISCOVERIES TPS ASSETS SFAX NEAR FIELD OPPORTUNITES Investor Presentation | 42

  43. Slide 43: Panoro's Non Recourse Loan from BW Energy

    PANORO’S NON RECOURSE LOAN FROM BW ENERGY PANORO’S SHARE OF CAPITAL EXPENDITURE COVERED BY BW ENERGY GABON FOR UP TO $12.5MM  Total Phase 1 development expenditure estimated at ca $160-170 million, including contingency − Panoro’s share is ~ $13.5 million  Non-recourse loan capped by BWEG of up to

  44. Slide 44: Panoro Energy – Group Structure (Post Acquisition)

    PANORO ENERGY – GROUP STRUCTURE (POST ACQUISITION) Panoro Energy ASA (Norway) 100% 100% 100% 100% Pan-Petroleum Nigeria Pan-Petroleum Services Pan-Petroleum Gabon Holding B.V. Panoro Energy Holding B.V. Holding B.V. (Netherlands) Tunisia BV (Netherlands) (Netherlands) 100% (Netherlands) 100% 100% Pa

  45. Slide 45: Top Shareholders

    TOP SHAREHOLDERS # Shareholder1 # Shares (%) 1 F2 FUNDS AS 2,991,000 6.39 % 2 JULIEN BALKANY AND ASSOCIATED INVESTMENT COMPANIES 2,681,253 5.74 % 3 DNO ASA 2,641,465 5.64 % 4 DANSKE INVEST NORGE VEKST 1,590,785 3.40 % 5 STOREBRAND VEKST VERDIPAPIRFOND 1,107,470 2.37 % 6 KLP AKSJENORGE 833,341 1.78 %

  46. Slide 46: Contact Details

    Contact Details: PANORO ENERGY 78 Brook Street London W1K 5EF United Kingdom Tel: +44 (0) 203 405 1060 Fax: +44 (0) 203 004 1130 info@panoroenergy.com Investor Presentation | 46

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