Borders & Southern Petroleum Plc · LSE:BOR
Borders & Southern Petroleum — Shareholder Meeting (June 2024)
13 slides from Borders & Southern Petroleum's shareholder meeting presentation, June 2024
Slide 1: AGM Presentation
bordersésouthern AGM Presentation June 2024
Slide 2: Important Notice
Important Notice These materials (these "Materials") have been prepared by Borders & Southern Petroleum PLC (the "Company"). These Materials are confidential and may not be reproduced or otherwise distributed or disseminated, in whole or part, without the prior written consent of the Company, which
Slide 3: Corporate Overview
Corporate Overview Capital Structure Directors Board of Directors Ordinary shares in issue 730,814,456 Harry Dobson Non-Executive Chairman Top 10 Share Price (June 2024) 2.5p shareholders Harry Baker Chief Executive Market Capitalisation £18.8 million Peter Fleming Finance Director Cash balance (31
Slide 4: Investment Case
Investment Case What makes Borders & Southern a sound investment and why now? BOPD Large, well Upstream A phased defined liquids $600-700 MM Significant near investment has Enhanced industry development rich gas CAPEX field, low risk declined in recent activity in the creates a range of condensate 1
Slide 5: Farm-out Process
Farm-out Process • Seeking to get a partner to fund testing of Darwin in exchange for equity in the licenses • We have recently changed our advisor • Large international specialist in A&D • Wider range of potential partners • Will update investors when appropriate June 2024 5
Slide 6: Next Drilling Phase Options
Next Drilling Phase Options We have recently conducted a study of the global rig market to assess availability of suitable rigs and prices. There are several options depending on budget, risk and reward. Once Darwin East has been tested, engineering for the development could commence • Drill and tes
Slide 7: Global Oil & Gas Upstream Capex
Global Oil & Gas Upstream Capex Over the last ten years investment has reduced with lower oil prices and the transition away from upstream to renewables but this trend is transitioning back towards upstream as it becomes clear that oil and gas will still be required for longer than initially envisag
Slide 8: Global Exploration Spend
Global Exploration Spend Exploration spend has also reduced with lower oil prices and the transition so if the industry wants to increase production it cannot rely on exploration projects as the lead time is too long. U.S. shale boom, 2010-2014 Financial crisis, 2008 $140 Exploration spend(US$ billi
Slide 9: Projected Declines in Non-OPEC Production Assuming No Additional Drilling
Projected Declines in Non-OPEC Production Assuming No Additional Drilling If upstream capital does not increase, production will decline quickly during this decade and beyond. The industry therefore needs to look at projects it can bring into production in the near term - Darwin is such a project. J
Slide 10: Global IOC Peer Group Free Cash Flow
Global IOC* Peer Group Free Cash Flow The reduction in capex and exploration has resulted in large increases in free cash flow so the industry has capital to spend on upstream projects. Oven ready prospects like Darwin with organic growth potential fit the bill for an industry that will be looking f
Slide 11: Industry valuations based on asset maturity are generally predictable based on precedent transactions
Industry valuations based on asset maturity are generally predictable based on precedent transactions A full carry by an incoming partner on Darwin on three appraisal wells is $2/BOE so comparable to other similar transactions. Source: LAB Energy June 2024 11
Slide 12: Investment Case
Investment Case What makes Borders & Southern a sound investment and why now? • Farm-out process continues – new advisor - appraisal program cost in line with industry valuations - upstream industry is transitioning - a phased development is a very attractive investment - an investment in the licens
Slide 13: Borders & Southern Petroleum plc
Borders & Southern Petroleum plc 33 St James’s Square London SW1Y 4JS Telephone: 020 7661 9348 www.bordersandsouthern.com info@bordersandsouthern.com Tavistock (Financial PR) Telephone 020 7920 3150 June 2024 13
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