Ithaca Energy PLC · LSE:ITH
Ithaca Energy — Investor Presentation (September 2013)
13 slides from Ithaca Energy's investor presentation, September 2013
Slide 1: Corporate Presentation
Corporate Presentation September 2013
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
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 North Sea ‘pure play’ strategy… Maximise cashflow and production from existing assets Grow via lower risk undeveloped discoveries and production acquisitions Deliver first hydrocarbons from the Greater Stella Area Drill-out
Slide 4: Highly cash generative business established
Highly cash generative business established Ithaca Today 14.3kboe/d* production in H1-2013, ~95% oil High netback production, ~$70/boe* H1-2013 - $182M* cashflow from operations $923M UK tax losses at end Q2-2013 – material value component $346M net drawn debt at end Q2-2013 – low cost senio
Slide 5: Balanced UK producing and development asset portfolio
Balanced UK producing and development asset portfolio Ithaca End-2012 Diverse production base – multiple fields 2P Reserves 69MMboe* Dons Causeway / Fionn Material production growth trajectory driven by Ithaca operated Greater Stella Area Broom 20MMboe Northern SW Heather North Sea Beatrice /Jac
Slide 6: Capital expenditure focused on delivering near term production growth
Capital expenditure focused on delivering near term production growth Pro-Forma Net Capital Expenditure (M$)* 600 Production Exploration & Net ~$500M Developments Enhancements Appraisal Exploration & Norway Explo Appraisal 500 Production 400 Enhancements 300 Dons infill drilling - Greater Stella Are
Slide 7: Fully funded business plan with robust balance sheet
Fully funded business plan with robust balance sheet $182M* cashflow from operations in H1-2013 2013-14 cashflows de-risked by hedging 4.3MMbbl @ $103/bbl** - ~30% puts / ~70% swaps $923M UK tax allowances pool at end Q2-2013 $572M cash value at 62% UK tax rate No UK tax payable over med
Slide 8: Greater Stella Area development… next major value step
54.67% Working Greater Stella Area development… next major value step Interest PHASE 1 INFRASTRUCTURE >30MMboe net 2P* reserves – delivering ~16kboe/d forecast net initial annualised production High value development solution Operated infrastructure – flexibility to optimise production Signi
Slide 9: Development drilling campaign
Development drilling campaign Development drilling campaign commenced mid June 2013 using ENSCO 100 jack-up rig (Transocean subsidiary) - manage drilling and completion operations under ‘turnkey’ contract arrangements Four initial Stella wells to be drilled for start-up of production Three h
Slide 10: Stella “A1” well… results materially de-risk overall development
Stella “A1” well… results materially de-risk overall development High quality Stella Andrew reservoir 1312ft of net pay (53%) in 2499ft horizontal reservoir section Reservoir properties in line with previous wells on field #4 Strong well test rates – production de-risking 10.8kboe/d ma
Slide 11: Subsea infrastructure installation operations
Subsea infrastructure installation operations - integrated Engineering, Procurement, Installation and Construction (EPIC) contract Main installation works completed Infield subsea structures 60km gas export pipeline - installed / trenched Infield flowline trenching Excellent weather cond
Slide 12: FPF-1 modification yard works on-going
FPF-1 modification yard works on-going - Petrofac completing FPF-1 modification works under a lump-sum contract Greater Stella Area field interest underpins performance incentives Vessel in Remontowa shipyard in Gdansk (Poland), ~10 days towing time from field Key modification work programme
Slide 13: Near term newsflow
Near term newsflow Financial Results Q1-2013 Results AGM Q2-2013 Results Q3-2013 13 May 2013 27 June 2013 13 August 2013 11 November 2013 - Ithaca Only - - Ithaca & Valiant Consolidated - Greater Stella Area Spud Well #1 Well #1 Spud Well #2 Well #2 Spud Well #3 Flow Test Flow Test Development Activ
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