Union Jack Oil PLC · LSE:UJO
Union Jack Oil — Merger or Acquisition (March 2021)
11 slides from Union Jack Oil's merger presentation, March 2021
Slide 1: Acquisition of Claymore and Piper Complex Royalty Units
Acquisition of Claymore and Piper Complex Royalty Units
Slide 2: What is a Royalty Interest?
What is a Royalty Interest? A royalty interest in the oil and gas industry refers to ownership of a portion of a resource, or the revenue it produces A company or person that owns a royalty interest does not bear any of the operational costs needed to produce the resource, yet they still own a porti
Slide 3: The Claymore and Piper Complex Royalty
The Claymore and Piper Complex Royalty • The Claymore, Piper and Scapa oilfields are located in the Central North Sea (the “Claymore and Piper Complex”) • Produced to date: in excess of 1.7 billion barrels of oil and 262 billion cubic feet of gas • Approximately 6 million barrels of oil and 2 billio
Slide 4: Benefits of Ownership of the Royalty
Benefits of Ownership of the Royalty • Generation of an annuity type cash flow • No exposure of the royalty investor to: • Capital expenditure • Operating costs • Decommissioning costs • Payments made to the royalty investor in cash and net of Petroleum Revenue Tax 4
Slide 5: Location of the Claymore and Piper Complex
Location of the Claymore and Piper Complex 5
Slide 6: Typical North Sea Production Installation
Typical North Sea Production Installation 6
Slide 7: The Claymore and Piper Complex
The Claymore and Piper Complex Claymore Complex Piper Complex Scapa Field • The Claymore complex is located • Piper was initially authorised • The Scapa Field is located within block 14/19 of the UK for development in 1974 and in UK North Sea Block 14/19 Continental Shelf in the Central lies within
Slide 8: Claymore and Piper Complex Economic Production Estimate
Claymore and Piper Complex Economic Production Estimate • Independent analysis estimates a minimum 10 years remaining economic production life in the Claymore and Piper Complex • Observed financial characteristics applied: • Forward curves for future price of oil and gas • Publicly available cost da
Slide 9: Royalty Generates Superior Financial Returns
Royalty Generates Superior Financial Returns • An attractive, cash generating and high yielding investment, consistent with Union Jack’s wider strategy and objectives to invest in the UK oil and gas sector • Offers superior financial returns from North Sea oil and gas production over a minimum of 10
Slide 10: Glossary
Glossary Internal Rate of Return or IRR The internal rate of return is a financial metric used to assess the attractiveness of a particular investment opportunity. The IRR for an investment effectively estimates the rate of return of that investment after accounting for the initial investment and al
Slide 11: 6 Charlotte Street Bath BA1 2NE
6 Charlotte Street Bath BA1 2NE England Telephone: + 44 (0) 1225 428139 Facsimile: + 44 (0) 1225 428140 Email: info@unionjackoil.com Website: www.unionjackoil.com