Orcadian Energy Plc · LSE:ORCA
Orcadian Energy — Investor Presentation (July 2021)
21 slides from Orcadian Energy's investor presentation, Jul 21, 2021
Slide 1: Investor Presentation July 2021
INVESTOR PRESENTATION July 2021 1
Slide 2: Disclaimer
Disclaimer This presentation and its enclosures and appendices (the “presentation”) have been prepared by Company have not since changed, and the Company does not intend, and does not assume any Orcadian Energy plc (the “Company”) exclusively for information purposes. This presentation has not oblig
Slide 3: Company highlights
Company highlights Orcadian Energy Licences Oil Discoveries Oil Prospects 0 2 4 6 kilometers 8 10 W1 W5 W2 M 6 k 2A W 10Z M 1 MG3Z M 7 ● Substantial audited reserve: 79 MMbbl 2P (proven & probable L 8Y W3 M 9Z Thornham 1 W4 W ● Pilot field is well appraised and development ready, project 21/22a Titc
Slide 4: Orcadian Team
Orcadian Team innaker Opportunities Plc cash shell listed on London Stock Exchange, Standard List segment Company ● Experienced team & strong board with Steve Brow PresentationAlan Hum Greg Hardin CEO PART I CFO LETTER FROM THE CHAIRMAN Technical track record in industry and markets Xtract Energy pl
Slide 5: An oilfield developer's view of oil prices
An oilfield developer’s view of oil prices $160/bbl ● The average price in times of abundance $140/bbl has risen with the Oil Price, nominal Oil Price $US 2021 Averages cost of the marginal $120/bbl barrel $105 $100/bbl ● A reasonable forecast for the $80/bbl $78 current period of abundance is c. $6
Slide 6: Licence & CPR Summary
Licence & CPR Summary 2C 2C 2U Licence and Operator Licence 2P Contingent Contingent Prospective Orcadian Term Phase block Status Area Discoveries Reserves Resources Resources Resources or admin. Interest Expiry* Expiry ¶ numbers (km2) MMbbl (On hold) (Technical) (Unrisked) MMbbl MMbbl MMbbl P224 Pi
Slide 7: Pilot field seismic and well log
21/27-3 Isochore Top Tay 0.2 ILM 200 1.8 RHOB 2.8 Shale Coloured Brine < Oil << Inversion Gas Sand Lithology 0 GR 150 0.2 ILM 200 0.6 NPHI 0 Oil Facies Core 6 Caliper 16 MD TVDSS 0.2 MSFL 200 -1.0 DRHO 0.2 180 DT 80 Water 21/27-2 1 1 21/27a-6 Field : Pilot Class II AVO - increased amplitude on Fars
Slide 8: Pilot Field summary
Pilot Field summary Pilot Parameter Units ● Pilot discovered by Fina in 198 Oil water contact 2724 feet ● Fully appraised with 7 wells and 1 12º–14º API. 600–1,200 cP Oil column >100 feet modern 3D seismic 1 Gross sand thickness 50-60 feet 1 ● 5 wells were cored, 2 wells were 15.8º API,409 cP Net to
Slide 9: Polymer flooding research
the multiphase extension of Darcy’s and during polymer flooding for (a) Expe Total Pag experi- we do not expect a Darcy-type to be valid when fingers are gene formulation is not appropri covery during unsteady-state displacements. Different oil viscosities up to 303 cp and injection rates up to tify
Slide 10: Polymer flooding – Captain field
Polymer flooding – Captain field ● Completed in 2013, focused on a well pair in the Southern Upper Captain sand, separated by ≈125 ● Dramatic acceleration of waterflood reserve ● Significant increment to expected waterflood recovery (16% ● Excellent analogue to Pilot, much to learn and copy Chart ex
Slide 11: Pilot field development plan
Pilot field development plan FPP Jack-up FPSO WHP 11
Slide 12: A project delivering on OGA's Net Zero agenda
A project delivering on OGA’s Net Zero agenda ● Many opportunities to 35 reduce emissions identifie Scope 1 Scope 2 Benchmarks 30 ● Integration of aggressive process heat management Pilot field development 25 with high efficiency back- up power generation and Kg CO2/bbl 20 electrification has the Sh
Slide 13: Upstream carbon intensities
Global oil production emissions Global field-level upstream carbon intensity supply curve (2015) Contribution of high flaring (labeled “Flare” with FOR >75th percentile of all fields) and oil density (labeled ”Heavy” with API gravity ≤22°). Bar width reflects the oil production of a particular field
Slide 14: A highly profitable project
A highly profitable project $ 1,600 m ● Pilot low salinity polymer flood is a robust and Elke & Narwhal (factored by chance of development) highly profitable project with a NPV10 Pilot breakeven below $40/bbl ● Next step is to secure development partners $ 1,200 m (oil company or an alliance of cont
Slide 15: Potential area production
Potential area production 60,000 ● Bowhead success would prompt 2U facility debottleneckin 2C 50,000 2P ● Scope for optimisation of development timin 40,000 Bowhead ● Further potential in Pilot bbls/day 30,000 channels and Elke satellites 20,000 Pilot Elke, Narwhal & Blakeney 10,000 0 Year 1 Year 3
Slide 16: Bowhead Prospect
Bowhead Prospect ● Pilot look-alike on northern side of salt swell from Pilot which shows up brightly on the top reservoir far stack amplitudes ● New seismic, which will help derisk the prospect and enable selection of the best well location available, to be purchased with IPO proceed ● 43 MMbbl pro
Slide 17: Objectives and Strategy
Objectives and Strategy ● Deliver a high return for investor ● Fully finance the polymer flood project for Pilot, two parallel approaches ● Seek oil companies as farm-in partner ● Structure a contractor alliance to deliver the project with a minimised equity requiremen ● Add value through focussed e
Slide 18: Forward programme
Forward programme ● Completion of concept confirmation work programme leading to OGA Pilot Bowhead endorsemen Prospect ● Purchase and interpretation of new seismic over Bowhead & Pilot, Pilot Preparing the evaluation and field determination project for FDP pre-drill submission planning ● Vessel sele
Slide 19: Comparable companies value per barrel
Comparable companies value per barrel 300 $2.00 ● Comparables are non-producing, London Market cap divided by recoverable volumes noted Funded, risked 2U listed, oil and gas companies, with clear 2C Contingent Resources statements about their resource bas 2P Reserves Mkt cap/(2P+2C+FR2U) Recoverable
Slide 20: Why Orcadian?
Why Orcadian? ● Substantial reserve base with significant exploration and appraisal upsid ● Pilot project well advance ● Core projects with NPV10 of over $1.0 billion at $60/bbl and $1.4 billion at $70/bbl* ● Multiple paths forward to finance the projec ● Highly experienced management team focussed
Slide 21: Orcadian Energy Plc
Auditor: PKF Littlejohn Broker: WH Ireland Banker: Barclays 15 Westferry Circus 24 Martin Lane, Level 25, 1 Churchill Place, London E14 4HD London EC4R 0DR London, E14 5HP Lawyer: Hill Dickinson Lawyer: TandonHildebrand Registrar: Neville The Broadgate Tower, 20 Primrose Stree Labs Atrium, Chalk Far