Etablissements Maurel & Prom Sa · EURONEXT:MAU
Etablissements Maurel & Prom Sa — Maurel & Prom Nigeria — Investor Presentation (October 2012)
38 slides from Etablissements Maurel & Prom Sa's investor presentation, October 2012
Slide 1: MP Nigeria Management presentation
MP Nigeria Management presentation October 2012
Slide 2: Key Investment Highlights
Key Investment Highlights ATTRACTIVE ASSETS Landmark transaction: the first successful Shell divestment transaction. Transaction price: $4.5/bbl without taking into account 2C resources Asset quality: Light oil production (premium to Brent), inter-connected blocks will all necessary infrastruc
Slide 3: MPN overview
1 1 MPN overview French listed company Access to attractive assets Experienced board members October 2012 3
Slide 4: A powerful partnership: M&P's technical expertise / Partners' strong local knowledge
A powerful partnership: M&P’s technical 1 expertise / Partners’ strong local knowledge PLATFORM PETROLEUM SHEBAH PETROLEUM MPN S.A. JOINT VENTURES Ltd DEVELOPMENT Co Ltd 45% 24% SEPLAT PETROLEUM 31% DEVELOPMENT COMPANY Ltd 45% NATIONAL PETROLEUM 55% OIL MINING LICENSES (OML) 4, DEVELOPMENT 38, 41 CO
Slide 5: MPN shareholder breakdown
1 MPN shareholder breakdown Shareholder composition Geographical breakdown Non identified Unidentified 3.18% 6.04% Rest of the Americas Domestic Institutions 3.42% Retail Holders 31.8% 29.0% Norway 2.81% France 81.84% Switzerland 1.91% Treasury Rest of Europe shares 1.79% Company 2.80% Related South
Slide 6: M&P forces are committed to the success of MPN in various ways
M&P forces are committed to the success 1 of MPN in various ways Designated Direct involvement of Maurel & Prom technical experts Chief Executives through the Transitional Services Agreement Management of Operations Technical Supervision Mr. Jean-François Hénin 1 Reservoir Engineer Exploration Cha
Slide 7: SEPLAT as an OPERATOR
2 2 SEPLAT as an OPERATOR October 2012 7
Slide 8: MPN partners are recognized Nigerian E&P companies
MPN partners are recognized Nigerian 2 E&P companies… The cooperation between MPN and PLATFORM PETROLEUM Ltd SHEBAH EXPLORATION & PRODUCTION Ltd its Nigerian partners is comforted by Platform Petroleum Joint Ventures Ltd is part of the Shebah Petroleum Ltd is part of the Shebah cross participati
Slide 9: A growing indigenous oil & gas player of high impact
A growing indigenous oil & gas player of high 2 impact Production increase since assets takeover (Seplat WI in bopd) Nigerian indigenous producers (2011-bopd) South Atlantic [35,000] 18,000 Steady production increase Conoil Producing [25,000] since taking over the fields SEPLAT [18,000] 16,000 Famfa
Slide 10: Corporate governance
2 Corporate governance Existing Governance Process (1) Shareholder Agreement New Board Appointments • The Seplat Board of Directors is • There is a Shareholders • New procedures to comply composed of five members, with Shareholders Agreement between with the applicable laws and two directors represe
Slide 11: SEPLAT has proven competencies as community organisers
SEPLAT has proven competencies as 2 community organisers Community relations strategy The SEPLAT/NPDC JV is committed to conducting operations SEPLAT leverages the successful onshore track record of to the utmost HSSE standards obtainable internationally in Platform (Asuokpu/Umutu Marginal Field
Slide 12: ATTRACTIVE ASSETS
3 3 ATTRACTIVE ASSETS OML 4, 38 and 41 October 2012 12
Slide 13: Asset overview
3 Asset overview Overview Asset location • Production – 4 producing fields: Oben, Amukpe, Ovhor and Sapele – 1 undeveloped field to be put onstream (Okporhuru) – 3 undeveloped fields brought on production in the near –mid term: Ubaleme, Mosogar and Okoporo • Infrastructures – Oil and Condensate from
Slide 14: Asset description
3 Asset description Summary data OML 4 OML 38 OML 41 Discovery date 1972 1970 1969 Production start 1974 1972 1971 Area 267 km² 2,094 km² 291 km² Producing fields Oben Amukpe; 50% Ovhor Sapele; 50% Ovhor Export terminal Forcados Forcados Forcados Gross oil & cond. 2P reserves 70 mmbbl 30 mmbbl 51.4
Slide 15: Proposed Pan Ocean Operated Pipeline to Escravos
3 Pipeline availability and capacity ELP’S WAGP Ajaokuta Steel Plant/Obajana cement Oben Node Oredo Oghareki (NPDC) (Pan Ocean) Oben 90mm scfd (NAG) 26mmscfd (AG) 60mmscfd(NAG) 14mmscfd (AG) 60,000 bbl/d Proposed Pan Ocean Operated Pipeline to PHCN Sapele Platform Petroleum Sapele Umutu 60,000 bbl/d
Slide 16: SIGNIFICANT GROWTH POTENTIAL
4 SIGNIFICANT GROWTH 4 POTENTIAL Petroleum Industry Bill (PIB) Contingent resources Exploration upsides Gas exploitation October 2012 16
Slide 17: OML 4, 38 and 41 wide potential upsides
4 OML 4, 38 and 41 wide potential upsides NEW PETROLEUM Promotion of indigenous players expected to benefit to SEPLAT and therefore MPN INDUSTRY BILL 2 production fields to be developed per year, starting 2H 2012 ACCELERATE SHORT PRODUCTION Oil production expected to grow significantly to 50,0
Slide 18: A number of unexplored reservoirs, numerous prospects and leads
A number of unexplored reservoirs, 4 numerous prospects and leads OBEN SAPELE OKPORHURU MOSOGAR AMUKPE UBALEME OVHOR OKOPORO Producing fields Undeveloped discoveries Un-appraised discoveries Exploration prospects and leads October 2012 18
Slide 19: Accelerated production ramp-up through an active drilling program
Accelerated production ramp-up through 4 an active drilling program in boepd Hydrocarbon production at year end 120,000 Natural decline 105-110,000 3 rigs contracted 100,000 100,000 1 rig to be contracted Q2/Q3 11 production wells 2 workovers 2 appraisal wells 80-85,000 $400m capex (100%) 80,000 65-
Slide 20: Gas commercialization
4 Gas commercialization Gas sales contracts Gas sales in 2016 > 6% of revenue and 20% of net profit Extension of the contract signed with the Nigerian Gas Company. Price of $0.88 per thousand cubic feet. Increase in volumes sold: x3 Negotiations with PHCN Sapele and PHCN Geregu Royalties: 7% c
Slide 21: A favourable regulatory framework, particularly for local companies
A favourable regulatory framework, 4 particularly for local companies Petroleum Act (1969) Defines regulation for the exploration of petroleum onshore and offshore Regulates exploration, OEL, OML, refining, transport, disputes, etc. There is a strong Nigerian Oil & Gas Industry Content Developme
Slide 22: Niger Delta last transactions
5 5 Niger Delta last transactions October 2012 22
Slide 23: Comparable transactions
5 Comparable transactions 1 5 4 SEPLAT – Jan 10 - OPERATOR 40 4,2$/bo 2P 49 38 Heritage – Jul 12 4,5$/bo 2P 41 2,2$/bo 2P+2C Elcrest - Apr 11 39 43 Niger Delta P + Petrolin - Mar 11 34 20 Escravos 42 30 60 FHN (Afren+Naconde) – Oct 10 64 3,7$/bo 2P 26 Warri 15 53 SHELL remaining acreage 45 4,6$/bo 2
Slide 24: MPN key financial items
6 6 MPN key financial items October 2012 24
Slide 25: MPN figures
6 MPN figures In millions of euros 1H 2012 2011 2010 1H 2012 2011 2010 Number of days d 182 365 128* Sales 97 146 28 Operating expenses (46) (69) (13) Reconciled entitlements b 5,328,516 8,623,338 2,256,958 Gross operating surplus 51 77 15 bopd 29,278 23,626 17,632 Amortisation of depletion (12) (18
Slide 26: MPN net debt
6 MPN net debt As of 30 June 2012 MPN SEPLAT @ 45% MPN SA Cash at bank +€183m +$79m +€245m Receivables +$47m +€36m Bank loan -$103m -€82m SPDC earn-out -$15m -€11m +€188m POSITIVE NET CASH POSITION €1.6 per share 25/9/2012 share price €2.08 Number of shares 115.336.534 Capitalization €240m = 2,2 $/b
Slide 27: APPENDIX
APPENDIX October 2012 27
Slide 28: SEPLAT – Experienced & well connected
SEPLAT – Experienced & well connected Board Dr. A.B.C. Bryant Mr. Jean-François Mr. Michel Orjiako Hénin Hochard Chairman of SEPLAT Chairman & CEO CFO of Of Maurel & Prom Maurel & Prom - Trauma / Orthopaedic surgeon - Former CEO of Altus Finance - Board member of Pebercan Inc. - 20 years of experien
Slide 29: SEPLAT – A seasoned and successful management team
SEPLAT – A seasoned and successful management team Mr. Austin O. Mr. Stuart Connal Mr. Edward Skene Avuru COO CFO Managing Director - 26 years experience in E&P and the - Former MD/CEO of Platform Petr. – Engineer with 30 years of service sector of Oil & Gas - 31 years in Oil & Gas industry experien
Slide 30: Shebah Exploration & Production company Limited
Shebah Exploration & Production company Limited Key highlights • Main assets – 40% participating interest in the Ukpokiti oil field on OML 108, located offshore in the western Niger Delta while carrying partners’ 60% interest and sharing 80% revenue interest – 100% interest in the FPSO Trinity Spiri
Slide 31: Platform Petroleum Limited
Platform Petroleum Limited Key highlights • Main assets – 60% participating interest in the Asuokpu/Umutu Marginal Field, located in Nigeria’s Western Niger Delta • Reserves and production – Remaining 2P reserves estimated at 15 mmbbl as at 1st January 2010 – Net Production currently averaged to 1,6
Slide 32: Nigeria is one of the most prolific Oil & Gas country in Africa
Nigeria is one of the most prolific Oil & Gas country in Africa… Oil proved reserves by country in Africa (Top 5) Oil production by country in Africa (Top 5) Nigeria is the largest (2010, in thousand Mbbls) (2010, in kboepd) Oil & Gas reserves +17% 2,402 holder in Africa, and 46 vs 2009 the largest
Slide 33: …where the largest O&G companies operate onshore…
…where the largest O&G companies operate onshore… Majors are also very Focus on onshore acreages active on large 1 Key players’ reserves (2011, Mboe) offshore blocks 5 4 NNPC 5,000 40 49 38 Shell 3,671 Total 2,551 41 39 2,129 Chevron 43 34 20 Exxon Mobil 1,995 Escravos 42 64 60 Eni 1,103 Warri 26 45
Slide 34: …benefiting from a dense transport infrastructure
…benefiting from a dense transport infrastructure Oil field Gas field Source: Wood Mackenzie October 2012 34
Slide 35: Gas infrastructure
Gas infrasctructure Gas network in the Niger delta Pre-DG4 Cluster gas area Lagos Industry Papalnto (CNL) Existing Power/Industries WAGP Existing LNG Pipelines Egbin/AES Agura (CNL) Omotosho Abuja Planned LNG Pipelines (CNL) Notional LNG Pipe/Bulk lines Ajoakuta Eyean (Pan Ocena/CNL) ELPS Steel Clus
Slide 36: Nigerian Oil and Gas sector key points
Nigerian Oil and Gas sector key points Nigeria is the largest oil market in Sub-Saharan Africa (38% of Current Nigerian all production) and within Nigeria accounts for 95% of foreign production is exchange earnings and 85% of government revenues. It is 2,339mbbl per day ranked No.15 in the world o
Slide 37: Energy sector trends and regulatory issues
Energy sector trends and regulatory issues Energy trend: indigenisation Regulatory changes The Nigerian government has driven for Petroleum Industry Bill (PIB) local capacity development in the oil & – Failed to pass into law by outgone gas sector, helping indigenous players legislators in May 2
Slide 38: Important notice
IMPORTANT NOTICE By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and qualifications: The information in this presentation has been prepared by the Company and is the responsibility of the Company; non
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