Ithaca Energy PLC · LSE:ITH

Ithaca Energy — Shareholder Meeting (June 2015)

17 slides from Ithaca Energy's shareholder meeting presentation, Jun 24, 2015

  1. Slide 1: 2015 Annual General Meeting

    2015 Annual General Meeting 24 June 2015

  2. Slide 2: Disclaimer

    Disclaimer This proprietary presentation (including any accompanying oral presentation, question and answer session and any other document or materials distributed at or in connection with this presentation) (collectively, the “Presentation”) has been prepared by Ithaca Energy Inc. (“Ithaca” or the

  3. Slide 3: Building a highly profitable 25kboe/d North Sea oil and gas company

    Building a highly profitable 25kboe/d North Sea oil and gas company Clear strategy – Lower risk UK North Sea production and development-led growth Simple plan – Deliver step change in free cashflow generation through Greater Stella Area start-up Financial discipline – Fully funded, strong liquidity

  4. Slide 4: 2014 highlights

    2014 highlights Strong cashflow generation – $182M1 underlying 2014 cashflow from operations Summit acquisition – Broadening of the portfolio and further strengthening of the business Strong reserves growth – 70MMboe2 2P reserves, 400% reserves replacement ratio in 2014 $300M senior notes issuance –

  5. Slide 5: Strong production growth trajectory

    Strong production growth trajectory Production (kboe/d) Broad producing asset portfolio  Reduces asset concentration risk 12.5kboe/d Solid Q1-2015 performance – 12.5kboe/d Q1-2015 Production 10.9kboe/d 10.4kboe/d 2016 step change driven by Stella field start-up Wytch Farm  ~16kboe/d net initial an

  6. Slide 6: Business positioned for low Brent price environment

    Business positioned for low Brent price environment Unit Operating Expenditure ($/boe) Committed Capital Expenditure (M$) $370M $320M 49$/boe 40$/boe 40$/boe GSA 30$/boe $150M ~35$/boe1 Q1-2015 $50M Producing Assets 2013 2014 2015 2016 2013 2014 2015 2016 Falling unit operating expenditure profile E

  7. Slide 7: Sale of Norwegian business… maximising value from Valiant acquisition

    Sale of Norwegian business… maximising value from Valiant acquisition Norwegian licence portfolio comprehensively restructured following Valiant acquisition in 2013 Sale delivers accelerated monetisation of non-core business  $60M consideration plus additional $30M upside potential from 2015-17 wel

  8. Slide 8: Greater Stella Area development… driving long term growth

    Greater Stella Area development… driving long term growth Ithaca operated production hub – 54.66% interest  Monetising >30MMboe1 net 2P reserves  ~16kboe/d forecast net initial annualised production from Stella Capital efficient development strategy  Initial production from Stella field, followed

  9. Slide 9: Development programme highly advanced… route to first hydrocarbons

    Development programme highly advanced… route to first hydrocarbons Development status Remaining key milestones  Stella drilling campaign completed  Complete subsea installation works – Q3-2015  ~90% subsea infrastructure installed  FPF-1 mechanical completion – Q3-2015  FPF-1 modifications prog

  10. Slide 10: Stella drilling programme completed

    Stella drilling programme completed Five Stella production wells completed, tested and ready for start-up  Four Andrew sandstone reservoir / one Ekofisk chalk reservoir  Long horizontal reservoir sections maximise well deliverability Strong clean-up flow test results achieved – de-risking initial

  11. Slide 11: Subsea infrastructure… limited installation activities remaining

    Subsea infrastructure… limited installation activities remaining >90% subsea infrastructure installation Final subsea works to be completed when works completed FPF-1 arrives on location 2015 installation campaign  FPF-1 mooring – pull in anchor chains  Install and hook-up dynamic risers /   Wel

  12. Slide 12: FPF-1 modifications in Gdansk, Poland

    FPF-1 modifications in Gdansk, Poland FPF-1 top deck from flare boom ITHACA ENERGY 2015 Annual General Meeting | 12

  13. Slide 13: FPF-1 modifications

    FPF-1 modifications Gas processing plant View of processing plant from above the power generators ITHACA ENERGY 2015 Annual General Meeting | 13

  14. Slide 14: FPF-1 modifications

    FPF-1 modifications Electrical / instrumentation cabling Switchgear room ITHACA ENERGY 2015 Annual General Meeting | 14

  15. Slide 15: FPF-1 modifications

    FPF-1 modifications HVAC units Uninterruptable power supply battery room ITHACA ENERGY 2015 Annual General Meeting | 15

  16. Slide 16: FPF-1 modifications

    FPF-1 modifications Instrument and end device installation ITHACA ENERGY 2015 Annual General Meeting | 16

  17. Slide 17: 2015 key priorities

    2015 key priorities Production – Maximise operational performance of all fields Stella – Deliver milestones required to achieve start-up in Q2-2016 Operating expenditure – Reduce cost base to enhance cashflow from producing assets Capital expenditure – Maintain strict discipline and control over all

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