Meren Energy Inc. · TSX:MER
Meren Energy — Q3 2023 Earnings Presentation
22 slides from Meren Energy's earnings presentation, Nov 16, 2023
Slide 1: The Next Phase of Value Creation: Third Quarter 2023 Results
Africa Oil Corp. THE NEXT PHASE OF VALUE CREATION THIRD QUARTER 2023 RESULTS AND BUSINESS OUTLOOK 16th November 2023 WWW.AFRICAOILCORP.COM
Slide 2: Speakers and Agenda
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. SPEAKERS AGENDA Dr Roger Tucker President & CEO • Introduction • Third Quarter 2023 Results Highlights • Portfolio Overview & Business Outlook • Year Ahead Priorities • Q&A Pascal Nicodeme CFO Shahin Amini Investor Relations SLIDE 2
Slide 3: Forward-Looking Statements
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. FORWARD-LOOKING STATEMENTS This document has been prepared and issued by and is the sole responsibility of Africa Oil Corp. (the Actual results may differ materially from those expressed or implied by such forward-looking “Company”) and its
Slide 4: Foundations for Value Creation
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. FOUNDATIONS FOR VALUE CREATION STRONG BALANCE SHEETS ADVANTAGED BARRELS SIGNIFICANT LIQUIDITY (Q3’23) HIGH NETBACK PRODUCTION • AOC debt free with cash balance of $201.5m • Attractive fiscal regime with premium Brent pricing • Undrawn corpo
Slide 5: Strong Quarter with Successful Venus Catalyst
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. STRONG QUARTER WITH SUCCESSFUL VENUS CATALYST STRONG BALANCE SHEET • Positive Venus-1X test results support the commercial development case Significant Liquidity • First increase in quarterly average production since Q2’21 ADVANTAGED BARREL
Slide 6: W.I. Production Performance
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. W.I. PRODUCTION PERFORMANCE Infill Drilling Supports first increase (+4%) in FY’23 production trending to upper end of guidance quarterly average production since Q2’21 Egina 3 wells completed – 2 water injectors & 1 producer Akpo First of
Slide 7: Africa Oil Financial Highlights
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. AFRICA OIL FINANCIAL HIGHLIGHTS Net Income ($ million) Q3’23 net income of $47.1m 150 (Q3’22: $70.5m) 100 End Q3’23 cash balance of 50 106.9 38.9 38.4 58.5 54.9 45.6 70.6 47.1 $201.5m 5.7 21.9 (Q3’22: $207.3m) 0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'2
Slide 8: Changes in AOC Cash Position
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. CHANGES IN AOC CASH POSITION Shareholder Returns ~$30m 24% of Prime Dividends YTD Investments in High Impact Opportunities ~$48m 38% of Prime Dividends YTD Notes: 1 Includes the first payment of $2.5m to acquire an additional 6.25% interest
Slide 9: Progress on Nigerian Licensing Status
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. PROGRESS ON NIGERIAN LICENSING STATUS • Renewal of the OML 130 rights for 20 years and the voluntary conversion to the PIA ‒ Secures Prime’s long-term production base ‒ Facilitates the progress of the Preowei project to FID ‒ Supports furth
Slide 10: Oil Sales
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. OIL SALES Q3’23 average sales price New Oil Marketing Strategy Has Improved Sales Price Margins $84.5/bbl Sales Price Dated Brent Q3’23 Dated Brent: $86.7/bbl 120 Average Dated Brent on the cargo offtake dates: $81.5/bbl 100 2 cargoes sold
Slide 11: Prime Financial Highlights
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. PRIME FINANCIAL HIGHLIGHTS (NET TO AOC’S 50% SHAREHOLDING) Nine months ended Sep’23 CFFO2 $236.3m Strong and Steady EBITDAX1 and CFFO2 ($ million) On track to meet FY’23 CFFO Guidance Of $250.0m - $330.0m 250 Q3’23 EBITDAX1 $117.5m 200 (Q3’
Slide 12: Robust Net Debt Position
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. ROBUST NET DEBT POSITION Q3’23 AOC net cash 300.0 Net debt position Prime - net to AOC Net debt position AOC AOC net debt including 50% Prime net debt $201.5m (YE’22 : $199.7m) 200.0 100.0 Q3’23 Prime net debt (50%) 0.0 $256.1m -100.0 (YE’2
Slide 13: Portfolio of Material Assets to Deliver Transformational Growth
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. PORTFOLIO OF MATERIAL ASSETS TO 2P Reserves 2 DELIVER TRANSFORMATIONAL GROWTH 55.6MMBOE Q3’23 Production3 23.0 KBOE/d Liquidity (end Q3’23) $376.5m NIGERIA1 Near-Term Catalysts Agbami, Akpo and Egina Oil Fields EQUATORIAL GUINEA Namibia E&A
Slide 14: High Return and Short Cycle Growth
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. HIGH RETURN AND SHORT CYCLE GROWTH 3 of the Top 5 Fields in Nigeria ~320k boepd Aggregate gross field production Operators Highly experienced World-class Production facility hubs 62% of 2P reserves1 base is Proven category (P90) Low risk &
Slide 15: Emergence of a New Petroleum Province
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. EMERGENCE OF A NEW PETROLEUM PROVINCE Major Discoveries Field Resources Discovery (P90 OIIP1, barrels) Date Graff-1X 2.6 bn Feb. 2022 Venus-1X 5.1 bn Feb. 2022 Jonker-1X 2.5 bn Mar. 2023 Lesedi 0.3 bn Jul. 2023 Source: National Petroleum Co
Slide 16: Namibia World-Class Opportunity Set
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. NAMIBIA WORLD-CLASS OPPORTUNITY SET Confirming the Venus Size & Substantial Exploration Upside ~3bn1 barrels recoverable Wood Mackenzie’s estimate for recoverable oil • Venus: major discovery, operator confirmed future development • Attract
Slide 17: Year Ahead Priorities
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. YEAR AHEAD PRIORITIES • Focus on the core assets: - Retain maximum optionality over Venus for AOC shareholders NIGERIA1 - Farmouts for Block 3B/4B, EG-31 and EG-18 • Highly disciplined and focused asset acquisition: Agbami, Akpo and Egina O
Slide 18: Reader Advisory
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. READER ADVISORY Accounting for Africa Oil’s (Africa Oil, AOC or the Company) Oil and Gas Information Interest in Prime The reserves estimates presented have been evaluated by RISC in accordance with NI 51-101 and The 50% shareholding in Pri
Slide 19: Thank You
AFRICA OIL CORP. THANK YOU For further information, please contact: SHAHIN AMINI Investor Relations shahin.amini@africaoilcorp.com +44 (0) 20 8017 1511 WWW.AFRICAOILCORP.COM
Slide 20: Appendix
A AfricaOil Corp. APPENDIX
Slide 21: Venus: Towards Development
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. VENUS: TOWARDS DEVELOPMENT Namibian Orange Basin (Blocks 2913B/2912) • Successful Venus-1A appraisal well and positive Venus-1X DST results1 • “With these wells [Venus-1X and Venus-1A] there will be a development in Namibia on Venus”, Patri
Slide 22: Infrastructure-Led Exploration in EG
Q3'23 Results Presentation | November 2023 AFRICA OIL CORP. INFRASTRUCTURE-LED EXPLORATION IN EG Block EG-31 • AOC operated with an 80% interest • Significant gas prospectivity identified in a proven basin and benign shallow water environment • Located adjacent to high-performing EG LNG plant with i