Savannah Energy PLC · LSE:SAVE
Savannah Energy — Savannah Petroleum — Investor Presentation (December 2014)
25 slides from Savannah Energy's investor presentation, December 2014
Slide 1: Corporate Presentation December 2014
Corporate Presentation DECEMBER 2014
Slide 2: Disclaimer
Disclaimer These presentation materials (the “Presentation Materials”) do not constitute or form any part of any offer or invitation or inducement to sell or issue or purchase or subscribe for any shares in Savannah Petroleum plc (“Savannah”) nor shall they or any part of them, or the fact of their
Slide 3: Contents
Contents Agadem Area Overview 6 R1 / R2 PSC Economics 16 Appendix 19 3
Slide 4: Introduction and Overview
Introduction and Overview Savannah Petroleum (“Savannah”) UK oil & gas company focused around the exploration, appraisal and development of the R1/R2 PSC in Niger Listed on the AIM market of the London Stock Exchange, raising $50m with a strong institutional investor base Experienced board a
Slide 5: Indicative Work Programme
Indicative Work Programme Activity Q1 ‘15 Q2 ‘15 Q3 ‘15 Q4 ‘15 Legacy seismic data re-processing and interpretation Updated leads and prospects inventory FTG survey acquisition and interpretation 3D seismic acquisition Exploration well drilling Potential partner introduction Potential new venture ac
Slide 6: Agadem Area Overview
Agadem Area Overview ——
Slide 7: Agadem and the Central African Rift System
Agadem and the Central African Rift System Bongor Trough Termit Trough (i.e. Agadem) 417 mmbbls 832 mmbbls 2P reserves Melut Basin 1,782 mmbbls Doba Trough Muglad Basin 1,059 mmbbls 2,053 mmbbls The R1/R2 permit is located in the Agadem Area of South East Niger Agadem sits on the most westerly r
Slide 8: Agadem – Exploration and Activity History
Agadem – Exploration and Activity History Pre-CNPC Era (1975 – 2004) 5 discoveries made from 25 exploration wells (i.e. 20% success rate) CNPC Era (2008 – 2013) US$300m signature bonus paid 77 exploration discoveries from 99 exploration wells (i.e. 78% success rate) 30 appraisal wells dr
Slide 9: Agadem Area Geology
Agadem Area Geology The Agadem area is contained within the Termit Trough area of the Chad Basin, itself part of the wider Bagarra Trough Sediments range from Early Cretaceous to Holocene, mainly clastics with minor marine carbonates and volcanics, chiefly lacustrine and deltaic in origin Rich
Slide 10: Agadem Area Stratigraphy
Agadem Area Stratigraphy Main Prospective Intervals Base Tertiary Base Upper Cretaceous SOURCE: IHS, SAVANNAH ESTIMATES 10
Slide 11: Stylised Agadem Area Cross Section
Stylised Agadem Area Cross Section SOURCE: GOVERNMENT OF NIGER, SAVANNAH ESTIMATES 11
Slide 12: Seal Imagery the Principal Agadem Exploration Issue
Seal Imagery the Principal Agadem Exploration Issue 3D SEISMIC KEY SOLUTION PROVIDER STYLISED AGADEM EXPLORATION PLAY TYPE CARTOON Historically, the major exploration risk within Agadem has centred around fault seal failure Good seals are provided by juxtaposition of sand against shale, preventi
Slide 13: Agadem Area Background Maps
Agadem Area Background Maps AGADEM EXPLORATION MAP AGADEM SEISMIC MAP SOURCE: GOVERNMENT OF NIGER, SAVANNAH ESTIMATES 13
Slide 14: Agadem Area Field Characteristics
Agadem Area Field Characteristics FIELD CHARACTERISTICS CNPC EXPLORATION WELL Average Eocene discovery size is c.11mmbbls, with no discoveries to date having been greater than 60mmbbls Typical discoveries in the primary Eocene play have an API of >31 degrees, a wax content of c.12 – 18%, a mid-2
Slide 15: Chinese Led Pipeline Export Route on Track for 2017
Chinese Led Pipeline Export Route on Track for 2017 FIRST AGADEM OIL EXPORTS EXPECTED 2017 PROPOSED PIPELINE EXPORT ROUTES CNPC currently sells domestically to the c.20kbd Zinder refinery, via a 463km pipeline CNPC intends to commence Agadem exports in 2017 Agreements were reached in June 2012
Slide 16: R1 / R2 PSC Economics
R1 / R2 PSC Economics 16
Slide 17: Production Sharing Contract (PSC) Overview
Production Sharing Contract (“PSC”) Overview Phase 1 Phase 2 Phase 3 4 year term 2 year term 2 year term Minimum work programme: at Minimum work programme: at Minimum work programme: at least 2,000km 2D seismic, least 1,000km 2D seismic, 500km2 least 500km 2D seismic, 500km2 1,000km2 3D
Slide 18: Overview of Main PSC Terms
Overview of Main PSC Terms Net After Royalty Signature bonus and related expenditure of US$38m Work commitment of c.US$100m over 8 years Royalties: Oil – 12.5% Profit Oil Cost Oil Gas – 2.5% Cost Oil: Recovery of 100% of capital and operating costs (capped at 70% of net after royalty r
Slide 19: Appendix
Appendix 19
Slide 20: Board and Management
Board and Management STEVE JENKINS, CHAIRMAN ANDREW KNOTT, CEO PHIL MAGOR, CHIEF GEOLOGIST Steve is recognised as one of the most Andrew is the CEO and principal founder of Phil has enjoyed a 34 year career in the capable oil and gas executives in the UK Savannah Petroleum global oil & gas ind
Slide 21: Niger – Current Licensing Position
Niger – Current Licensing Position License Information Name Principal Owner Nationality R1/R2 Savannah Petroleum British Aborak International Petroleum Australian Achegour Akata Resources Australian Agadem CNPC Chinese Bilma CNPC Chinese Dallol Labana Nigerian Dibella 1 Labana Nigerian Djado 3 Shens
Slide 22: Niger – Key Facts
Niger – Key Facts 2012 population estimated at 17m people (61st largest country in the world Landlocked country in West Africa covering 1,267,000km2 (22nd largest country in the world) Terrain mainly desert, with arable land in the South West and South East Former French colony, now boasts a
Slide 23: Niger – Key Economic Statistics (1)
Niger – Key Economic Statistics (1) 2000 2005 2010 2011 2012 Population, total (millions) 10.99 13.18 15.89 16.51 17.16 Population growth, annual (%) 3.6 3.7 3.8 3.8 3.8 GNI, Atlas Method (current US$, billions) 1.91 3.35 5.07 5.48 6.43 GNI per capita, Atlas method (current US$m) 170 250 320 330 370
Slide 24: Niger – Key Economic Statistics (2)
Niger – Key Economic Statistics (2) 400 20,000 12 300 15,000 9 200 10,000 6 100 5,000 3 0 0 0 Niger Africa World Niger Africa World World Africa Niger GDP (US$BN) GDP PER CAPITA (US$) 2012 GDP GROWTH RATE (%) 50 4 80 40 3 60 30 2 40 20 1 20 10 0 0 0 Industry Agriculture Services World Africa Niger N
Slide 25: Savannah Petroleum
Corporate Presentation SAVANNAH PETROLEUM
Savannah Petroleum — Investor Presentation (December 2014) on 6ix