Serica Energy PLC · LSE:SQZ
Serica Energy — Shareholder Meeting (June 2009)
35 slides from Serica Energy's shareholder meeting presentation, Jun 25, 2009
Slide 1: Serica 2009 Annual General Meeting
Serica 2009 Annual General Meeting 25 June 2009 •08 SERICA ENERGY Serica 2009 Annual General Meeting 25 June 2009
Slide 2: Disclaimer
DISCLAIMER ! ! The information presented herein is subject to amendment and has not been independently verified. Serica does not represent that the information and opinions contained herein are necessarily adequate or accurate and no liability is accepted for any errors or omissions. ! ! This presen
Slide 3: Highlights of the Last 12 Months
HIGHLIGHTS OF THE LAST 12 MONTHS Operational Highlights ! ! Proved & Probable Reserves increased by 48% to 28.5 mm boe ! ! Kambuna Development close to first production ! ! Columbus Field Development Programme filed ! ! Farm-outs concluded for Kutai, Chablis, Bandon and Vietnam ! ! Awarded offshore
Slide 4: Objectives for the Next 12 Months
OBJECTIVES FOR THE NEXT 12 MONTHS Objectives ! ! Achieve first production from Kambuna field, giving Serica its first significant revenue stream ! ! Progress Columbus field development, negotiate transportation and process agreements ! ! Prepare for 2010 drilling programme: ! ! UK East Irish Sea – C
Slide 5: Main Projects 2009/10 – UK and Ireland
MAIN PROJECTS 2009/10 – UK AND IRELAND Columbus FDP approval Conan farm-out Oates exploration well FEL 1/06 exploration/appraisal wells Chablis appraisal evaluation 5
Slide 6: Main Projects 2009/10 – South East Asia
MAIN PROJECTS 2009/10 – SOUTH EAST ASIA Vietnam 06/94 PSC Two exploration wells East Seruway Seismic Survey Kutai PSC Three exploration wells Kambuna production 6
Slide 7: Net 2P Reserves Increase 48%
NET 2P RESERVES INCREASE 48% 2P Reserves (mmboe) Columbus Kambuna Total On 1st January 2008 0 19.3 19.3 Disposals 0 (4.5) (4.5) Additions & Revisions 8.9 4.8 13.7 On 31st December 2008 8.9 19.6 28.5 ! ! Serica 2P reserves increase by 48% over 2007 ! ! Serica holds 50% interests in both fields ! ! Sa
Slide 8: Development Update
— DEVELOPMENT UPDATE
Slide 9: Columbus Field Update (Serica 50%)
COLUMBUS FIELD UPDATE (Serica 50%) ! ! Field Development Programme filed ! ! Reserves booked for first time ! ! Field Proved & Probable Reserves Gas 77.4 bcf Oil 4.76 mm bbl Total 17.7 mm boe ! ! BG drilled 23/21-7 in December 2008 with four penetrations of Forties sand, results are under evaluation
Slide 10: Kambuna Field Update (Serica 50%)
KAMBUNA FIELD UPDATE (Serica 50%) ! ! Field Proved & Probable Reserves Gas 132.8 bcf (2007 119.4 bcf) Oil 11.6 mm bbl (2007 9.9 mm bbl) Total 39.3 mm boe (2007 29.7 mm boe) ! ! First gas scheduled for mid 2009 ! ! Terms for first 40+ mmscfd agreed ! ! Gas price c. US$6/mcf + 3% p.a. Condensate near
Slide 11: Kambuna Field Development Schematic
Kambuna Field Development Schematic T68 T67 T42
Slide 12: Pangkalan Brandan tank farm
Pangkalan Brandan tank farm
Slide 13: Early Production Processing Facility
Early Production Processing Facility Leased until permanent facility completed. Phased out as permanent facility is completed
Slide 14: Kambuna Development Status
Kambuna Development Status •! Wellhead platform and wells hooked up •! All major equipment necessary for production is on site. •! Equipment, pipeline and control systems hook-up to continue into July. •! Commissioning followed by ramp-up to DCQ shortly thereafter.
Slide 15: Exploration Update
EXPLORATION UPDATE
Slide 16: North Sea – Block 22/19c (Serica 100%)
NORTH SEA – BLOCK 22/19c (Serica 100%) ! ! 25th Round award – Palaeocene Forties sand prospects as at Columbus ! ! Amplitude anomaly at Oates – 2P prospective resources 180bcf or 60mmbbl ! ! One well commitment to test the Forties sand 16
Slide 17: North Sea Block 15/21g (Serica 30%)
NORTH SEA BLOCK 15/21g (Serica 30%) ! ! 25th Round award - Large Jurassic Fulmar sand stratigraphic play ! ! 3D seismic reprocessing commitment to refine the Spaniards lead into a prospect 17
Slide 18: East Irish Sea – Conan Prospect (Serica 100%)
EAST IRISH SEA – CONAN PROSPECT (Serica 100%) ! ! Conan prospect farm-out programme ongoing. Rig available late 2009 ! ! World class petroleum system (Sherwood) with prospective gas in place of 1,000 bcf 18
Slide 19: East Irish Sea – 110/2d (Serica 100%)
EAST IRISH SEA – 110/2d (Serica 100%) ! ! 25th Round award – Sherwood sandstone seismic anomalies ! ! Watson prospects could be tied back to the Morecambe field if successful 19
Slide 20: North Sea – Chablis Field (Serica 65%)
NORTH SEA – CHABLIS FIELD (Serica 65%) ! ! Well 48/16b-3 drilled – P&A January 2009. Top reservoir lower than forecast ! ! Gas in place in central area est. at 30 bcf – further evaluation of results in progress ! ! Possible additional gas in eastern and western areas 20
Slide 21: Ireland - Bandon Oil Discovery (Serica 50%)
IRELAND - BANDON OIL DISCOVERY (Serica 50%) ! ! Bandon oil discovery announced 9 June 2009 ! ! Results held confidential due to surrounding open acreage 21
Slide 22: Ireland – Serica Prospects
IRELAND – SERICA PROSPECTS Serica Licence FEL 1/06
Slide 23: Ireland – Slyne Basin Open Acreage
IRELAND – SLYNE BASIN OPEN ACREAGE Existing Licence Serica Licence FEL 1/06 Existing Licence
Slide 24: Vietnam - 06/94 PSC (Serica 10% post farmout)
VIETNAM - 06/94 PSC (Serica 10% post farmout) ! ! Tuong Vi wildcat well reached TD at 2762 metres – now logging ! ! New oil discovery by Premier at Ca Rong Do, 25 km south of Block 06/94 24
Slide 25: Indonesia – Kutai PSC (Serica 54.6%)
INDONESIA – KUTAI PSC (Serica 54.6%) ! ! Kutai offshore 3D acquired in 2008 (Area 5) and 2D just completed (Area 1) ! ! Interpretation shows a variety of prospects. Farm-out programme underway 25
Slide 26: Indonesia - East Seruway PSC (Serica 100%)
INDONESIA - EAST SERUWAY PSC (Serica 100%) ! ! East Seruway PSC awarded to Serica (100%) in October 2008 ! ! Approx 5,800 sq km with prospects similar to those in the Glagah-Kambuna TAC ! ! One well commitment in first three years, planning seismic in 2010 26
Slide 27: Morocco – Foum Draa/Sidi Moussa (Serica 25%)
MOROCCO – FOUM DRAA/SIDI MOUSSA (Serica 25%) ! ! Recent award of 12,700 sq km area offshore Morocco in the Atlantic Margin ! ! Virtually unexplored area equivalent to 60 full UK blocks or 2 whole UK quadrants ! ! Multiple play possibilities in geology analogous to the salt basins of West Africa 27
Slide 28: Financial Highlights 2008
FINANCIAL HIGHLIGHTS 2008 Financial Position ! !US$56.8 million cash and US$32.1 million of debt at 31 December ! !US$49 million net placing in January 2008 ! !US$52.7 million cash received from disposal of 15% of Kambuna ! !Bank facility extended by 1 year ! !Significant financial contribution from
Slide 29: Income Statement
INCOME STATEMENT Group Consolidated Income Statement 2008 2007 (US$000) (US$000) Continuing operations 2008 Notes: Administrative expenses (8,628) (7,813) Limited increase despite greater activity. Pre-licence costs (1,150) (287) Successful applications in UKCS and Indonesia. Asset write offs (24,03
Slide 30: Balance Sheet
BALANCE SHEET Balance Sheet 2008 2007 (US$000) (US$000) Non Current Assets 2008 Notes: Exploration & evaluation assets 69,711 71,874 E+E spend net of US$24mm write-offs. Property, plant and equipment 68,526 19,543 Kambuna development costs net of part disposal. Goodwill 295 768 Part allocated to Kam
Slide 31: Cash Flow Statement
CASH FLOW STATEMENT Cash Flow Statement 2008 2007 (US$000) (US$000) ______________ ______________ 2008 Notes: Net cash outflow from operations (5,338) (10,169) Cash flows from investing activities: Purchase of property, plant and equipment (62,605) (185) Kambuna development (classified as E&E in 200
Slide 32: Resource Management During Market Downturn
RESOURCE MANAGEMENT DURING MARKET DOWNTURN APRIL 2008 – MARCH 2009 (All figures in $000) Cash Debt Net Cash (Debt) Notes: At 1 April 2008 50,931 (9,829) 41,102 Cash From Operations (5,921) - (5,921) Excluding non-cash items Kambuna Development (25,485) (37,821) (63,306) Period of major investment pr
Slide 33: Major Shareholders
MAJOR SHAREHOLDERS No. of shares % holding Canadian Depository 36,536,951 20.7 Caledonia Investments 25,501,736 14.4 Fidelity International Ltd 23,021,998 13.0 AXA Financial 10,722,079 6.1 Cenkos 8,528,644 4.8 Cede & Co 8,509,497 4.8 JP Morgan Asset Management 6,705,271 3.8 Mr A Craven Walker 5,704,
Slide 34: Key Events for the Next Twelve Months
KEY EVENTS FOR THE NEXT TWELVE MONTHS ! ! 2009 ! ! Mid-year – Kambuna production starts ! ! Results of Tuong Vi well ! ! Evaluation of Bandon results – new drilling programme ! ! Conan prospect farm-out - East Irish Sea ! ! Columbus development plan approval ! ! Kutai farm-out ! ! 2010 ! ! Ireland S
Slide 35: Summary
SUMMARY Serica is confident of growth ! ! First production revenue expected shortly from Kambuna ! ! Finances strengthened through: ! ! 2008 asset sales ! ! Successful farm-outs ! ! Extension of debt facility ! ! Near term exploration (Ireland, Conan, 22/19c, Kutai, Vietnam) ! ! Columbus development