Seascape Energy Asia Plc · LSE:SEA
Seascape Energy Asia — Longboat Energy — Investor Presentation (June 2021)
30 slides from Seascape Energy Asia's investor presentation, June 2021
Slide 1: Longboat Energy plc
Longboat Energy plc A unique, multi-well Norwegian exploration drilling opportunity June 2021
Slide 2: Disclaimer
DISCLAIMER The information contained herein has been provided solely for information purposes and does not purport to be comprehensive or contain all the information that may be required by recipients to evaluate Longboat Energy plc (the “Company”). This presentation and the information contained in
Slide 3: Introduction
Long boat Introduction
Slide 4: Longboat team
Longboat team Ex-Faroe team has a proven track record of resource growth on the NCS Executives Non-Executives Helge Hammer - Chief Executive Officer COO of Faroe Petroleum since entry into Norway in 2006 until 2019 sale Over 30 years’ technical & business experience, incl. Shell (Norway, Oman, A
Slide 5: Delivering energy responsibly
Delivering energy responsibly Longboat is committed to supporting the energy transition Longboat is committed to delivering energy responsibly Global CO2/boe Ranking Corporate ‘Net Zero’ target (Scope 1 & 2) by 2050 Exploration success crucial to reducing CO2/boe through Global average (18 kg/boe
Slide 6: Transactions
Long boat Transactions
Slide 7: Near-term, low-risk, multi-well drilling programme
Near-term, low-risk, multi-well drilling programme A unique opportunity Bilateral transactions agreed with three companies to acquire a Transactions Prospective Resources (Mean) significant, near-term, low-risk exploration drilling programme on the Norwegian Continental Shelf (NCS) Liquid Seven (7
Slide 8: Portfolio designed by Longboat
Portfolio designed by Longboat Three counterparties, eight licences, seven wells Transactions all negotiated on a bilateral basis – not in auctions Tailored portfolio with balanced risk/reward profile Clear and deliberate selection criteria Post-tax acquisition cost carry of $7.8 million (~$35 m
Slide 9: Prospect selection criteria
Prospect selection criteria Bespoke portfolio designed to test near-term value catalysts Prospect Selection Criteria Egyptian Vulture Rødhette Ginny/Hermione Mugnetind Cambozola Kveikje Copernicus Strong operator Committed well1 - Material WI% available - - Additi
Slide 10: Significant catalysts over next 18 months
Significant catalysts over next 18 months Anticipated drilling schedule LBE Gross/Net Gross 2021 2022 Prospect Operator Risk WI% Well Cost1 Resources Q3 Q4 Q1 Q2 Q3 Q4 Egyptian Vulture Equinor 15% $31/$5 103 25% rig booked Firm well Potential well Rødhette Vår 20% $35/$7 41 41% rig booked Ginny/Herm
Slide 11: Exploration wells
Long boat Exploration wells 11
Slide 12: Seven high quality, near-term exploration wells
Seven high quality, near-term exploration wells Ginny/Hermine Egyptian Vulture Copernicus Rødhette Longboat (9%) Longboat (20%) Equinor Longboat (15%) Longboat (10%) Equinor Concedo Harbour Equinor PGNiG Equinor OKEA PGNiG Vår Mean mmboe 3U Upside Mean mmboe 3U Upside Mean mmboe 3U Upside Mean mmboe
Slide 13: First well: Egyptian Vulture
First well: Egyptian Vulture Medium risk, high reward in prior Faroe play Licence PL939 Egyptian Vulture AVO Anomaly Prospect(s) Egyptian Vulture Partners Longboat (15%), Equinor (55%), PGNiG (30%) Upper Cretaceous turbidite play bounded within a regional graben Located in the prolific Halten-Dø
Slide 14: Prolific Barents Play: Rødhette
Prolific Barents Play: Rødhette Goliat tie-back potential with high chance of success Licence PL901 Rødhette 3D Seismic Depth Map Prospect(s) Rødhette Partners Longboat (20%), Vår (50%), Concedo (20%), Equinor (10%) Proven Jurassic Play in Hammerfest Basin Structural trap – rotated fault block
Slide 15: Infrastructure Led Exploration: Ginny/Hermine
Infrastructure Led Exploration: Ginny/Hermine Fenja analogue on the migration route to Draugen Licence PL1060 Ginny Geoseismic Cross Section Prospect(s) Ginny, Hermine Partners Longboat (9%), OKEA (40%), Equinor (31%), Harbour (20%) A A’ Upper Jurassic Ginny prospect on trend and analogue to Fenja
Slide 16: Emerging play: Kveikje
Emerging play: Kveikje Low risk, medium reward in emerging injectite play Licence PL293B Kveikje Geoseismic Cross Section Prospect(s) Kveikje Partners Longboat (10%), Equinor (51%), DNO (29%), Idemitsu (10%) Paleocene injectite play with multiple targets Located near recent Røver North discovery
Slide 17: Leveraging experience: Mugnetind
Leveraging experience: Mugnetind Low risk amplitude support in salt cored interpod setting Licence PL906 Interpod structure with upside potential Prospect(s) Mugnetind Partners Longboat (20%), AkerBP (60%), DNO (20%) Upper Jurassic Ula reservoir in interpod basin 4-way structural trap with fault
Slide 18: Play opener: Cambozola
Play opener: Cambozola Higher risk, higher reward in newly-identified play Licence PL1049, PL1049B Cambozola Seismic Cross Section Prospect(s) Cambozola, Fontina-Burrata Partners Longboat (25%), Equinor (35%), Petoro (20%), Spirit (20%) Cretaceous fan system fed from nearby structural highs (Gullf
Slide 19: Significant gas potential: Copernicus
Significant gas potential: Copernicus Medium risk – high reward opportunity Licence PL1017 Significant potential with follow up Prospect(s) Copernicus Partners Longboat (10%), PGNiG (50%), Equinor (40%) Miocene – Pliocene lowstand wedge with amplitude anomaly Play-opener with large potential and
Slide 20: Finance
Longboat Finance 20
Slide 21: Blue chip shareholders, aligned management
Blue chip shareholders, aligned management Longboat capital structure & major shareholders Listed on London Stock Exchange AIM Substantial Shareholder Register at 30 Apr 20211 Ticker: LBE Shareholder % OSC Blackrock 13.8% Canaccord Genuity Wealth Management 10.0% £35 million equity raise supported
Slide 22: Exploration Finance Facility (EFF)
Exploration Finance Facility (EFF) Reducing the working capital required Longboat has secured a NOK 600 million (£52m)1 EFF with Norway Exploration Fiscal Regime two banks, SR and ING Available for drawing from 2022 until end-2023 Final maturity in 2024 Cash tax rebate = 78 Exploration Expenditu
Slide 23: Solid financing foundation
Solid financing foundation Transaction sources & uses Initial total pre-tax costs (including acquisition and Transaction Sources & Uses drilling) of ~£87 million (~$122 million)1 ~£87m Initial exploration wells: ~£39 million (pre-tax)2 Carry cost: ~£25 million (pre-tax)3 Equity Raise Carry Cost
Slide 24: Summary
Longboat Summary 24
Slide 25: Delivering the potential
Delivering the potential Seven prospects with more follow-on potential Exploration Technical Success Rates 1 High activity levels Seven wells drilling between Q3-21 and Q4-221 Additional drilling during period likely upon success 2 Targeting significant upside 73 mmboe follow-on prospectivity
Slide 26: Appendix
Appendix 26
Slide 27: Strategic rationale
Strategic rationale Ticking the IPO boxes Investment Objective Transaction Delivery Transactions: unique sourcing, aligned Three bilateral deals leveraging long-term relationships partners and re-establishing key ‘Faroe’ partnerships Entry into Norway cornerstone of Faroe’s success, North Sea: Norwa
Slide 28: Why Norway?
Why Norway? Consistent exploration delivery at above-industry-rates Large opportunity set, ability to leverage relationships Norway Discovery Volumes Significant “yet-to-find” resources 23 billion boe – of which ~36% located in mature areas well-known to Longboat Recent average discovery siz
Slide 29: Faroe exploration track record
Faroe exploration track record Industry leading results in Norway Faroe consistently had one of the leading NCS Faroe Historic Exploration Success exploration track records Consistently drilled 4-5 exploration wells per year with discoveries every year between 2010-2018 Finding costs per barrel
Slide 30: Faroe select monetisation examples
Faroe select monetisation examples Uniquely achieving two NCS-discovery-for-production swaps Maria Discovery Swap Njord Area Redevelopment Swap Cashless swap by Faroe of Maria discovery for Cashless swap by Faroe of Njord redevelopment diversified production portfolio from Petoro for production port