Oando Plc · NSENG:OANDO
Oando — Oando Energy Resources — Investor Presentation (October 2014)
38 slides from Oando's investor presentation, October 2014
Slide 1: Corporate Presentation October 2014
Energy Resources Inc. CORPORATE PRESENTATION October 2014
Slide 2: Disclaimer
Disclaimer OER This presentation includes certain forward looking statements with respect to This presentation does not constitute an certain development projects, potential collaborative partnerships, results of Possible Reserves: Possible reserves are quantities of recoverable operations and certa
Slide 3: Capital Market Overview
Capital Market Overview OER Share Structure Market Capitalization Debt Enterprise Value 1.66 2.29/1.07 8,506,666 344,673,441 C$ 1,320 MM C$ 980 MM C$ 2,300 MM Share Trading History g b f c d e a S/N Date Event/Activity S/N Date Event/Activity Reverse take-over of Exile Resources Inc OER Completes US
Slide 4: Historical Context
Historical Context OER Formation of the largest indigenous oil and gas producer in Nigeria Ebendo production ramp up 4
Slide 5: Asset Portfolio
Asset Portfolio OER NIGERIA Asset W.I. Operator OML 125 OML 60 20% AGIP OML 56 - Ebendo Field O OML 61 20% AGIP OPL 321 & 323 M OML 60 OML 90 - Akepo Field L OML 62 20% AGIP 62 CAMEROON OML 61 OML 13 - Qua Ibo Field OML 134 OML 63 20% AGIP OML 122 - Bilabri Field OML 63 OML 125 15% ENI OML 56 42.75%
Slide 6: Production, Reserves & Resources
Production, Reserves & Resources OER NGL OML 125 Production by Product (boepd) OML 56 5% 3% 8% OML 63 Production by OML 6% OML 60 OML 62 16% 1% 45,416 45,416 boepd boepd Oil & OML 61 Gas Sales Condensate 66% 67% 28% OML 13 OML 60 OML125 OML 90 5% 3% 0.3% 1% OML 134 2C Resources (MMboe) OML 56 2P Res
Slide 7: Capital Structure
Capital Structure OER Senior Structured Facility LIBOR + 5% RBL Facility LIBOR 1 Year Tenor + 8.5% Market Capitalisation Public (US$100m) 5.5 Year Tenor 6.2% (US$450m) (49.3m shares) 1,185 941 Debt US$ MM US$ MM Oando PLC Senior Corporate Oando PLC Facility LIBOR + 9.5% 93.8% Convertible Loan 6 Year
Slide 8: Peer Valuation
Peer Valuation OER Enterprise Value / 2P+2C (US$/boe) Market Capitalization / 2P (US$/boe) 45 45 40 40 35 35 30 28.17 30 23.77 20.23 25 25 20 20 15 15 9.96 10.20 8.29 10 6.34 10 6.89 3.26 4.08 5.13 3.69 5 2.68 2.45 5 0 0 OER Afren Seplat Eland Heritage Mart Tullow OER Afren Seplat Eland Heritage Mar
Slide 9: Key Metrics & Comparables
Key Metrics & Comparables OER COMPANY Afren Seplat Eland O&G Heritage Oil Mart Tullow Average OER Proforma Avg. Daily Prod. (bopd; net) 47,112 23,100 3,500 14,000 4,000 78,400 30,790 45,416 2P Reserves (mmboe) 286 201 24 412 18 369 220 231 2P+2C Reserves (mmboe) 1096 279 69 454 18 1396 584 778 Base
Slide 10: Exploration & Production Growth Strategy
Exploration & Production Growth Strategy OER Growing Reserves & Resources Competitive Advantage Value Drivers Indigenous status and capacity De-risk existing resources portfolio Presence in local communities, local and bring both existing and new partnerships and relationships assets on-stream Capit
Slide 11: Comparative Netbacks
Comparative Netbacks OER Attractive marginal field ensures a significant growth opportunity for OER $/boe Production Sharing Contract (PSC) $100.00 ($7.60) ($12.00) ($34.30) ($2.30) $43.90 Government Royalty: 0-16.67% Over-riding Royalty: N/A Petroleum Profit Tax (PPT): 50% Revenue Royalty Opex Tax
Slide 12: Illustrative Profit & Tax Allocation Based on Fiscal Terms OMLs 60-63
Illustrative Profit & Tax Allocation Based on Fiscal Terms OMLs 60-63 OER Oil $/bbl Concession Government Royalty: 20% $100.00 $70.00 ($0.90) ($4.00) Over-riding Royalty: N/A ($1.00) $62.73 ($53.32) $62.73 Petroleum Profit Tax (PPT): 85% $9.41 Cost Recovery: 100% Oil Revenue Royalties Non- Assessabl
Slide 13: Board of Directors & Advisers
Board of Directors & Advisers OER Wale Tinubu | Chairman, Director Omamofe Boyo | Director Independent Wale Tinubu has pioneered the execution of world-class Omamofe Boyo is a Director of Oando Energy Resources as Auditors initiatives in the region as an ethical business leader, well as the Deputy G
Slide 14: Management
Management OER Experienced Management Team with Significant Nigerian Relationships & Enterprise Pade Durotoye | President, CEO, Director Deola Ogunsemi | CFO Served as the CEO of OEPL from June 2010 until July 2012. Mr. Ogunsemi has served as the Financial Controller of OEPL. Until 2010, Mr. Durotoy
Slide 15: NAOC JV Highlights
NAOC JV Highlights OER ~39,000boepd (45% liquids) On a consolidated basis (including COP acquisition) in 2013, OER generated > $650 million of revenue, net of royalties, and > $250 million of cash flow from Operations Experienced board of seven directors, of whom four are independent 15
Slide 16: Appendix
Appendix All Reserves & Resources estimates are classified in line with NI 51-101 regulations and Canadian Oil & Gas Evaluation Handbook standards. All estimates are from Petrenel Report dated 31st December 2013 16
Slide 17: The Nigerian Operating Environment
The Nigerian Operating Environment 17
Slide 18: Nigeria Overview
Nigeria Overview OER Oil Reserves (bnboe) Oil Production (mmboe/day) 297 11.2 265 10th in World 10.3 7.8 10th in World 2nd in Africa 4.3 1st in Africa 175 4.1 151 143 3.5 3.3 102 98 88 2.9 2.9 2.8 47 37 2.7 2.3 Saudi Arabia Canada Iran Iraq Kuwait UAE Russia Libya Nigeria Venezuela Russia Saudi Arab
Slide 19: Africa's Most Prolific Hydrocarbon Basin
Africa’s Most Prolific Hydrocarbon Basin OER Nigeria is the largest, most proven & prolific oil and gas basin in Africa 19
Slide 20: Nigerian Regional Geology
Nigerian Regional Geology OER 20
Slide 21: IOCs Targeting Deepwater & Divesting of Onshore Fields
IOCS Targeting Deepwater & Divesting of Onshore Fields OER mbpd 3000 Onshore Militancy had major Deepwater production, Stalled investment Offshore impact on production, increasingly important from PIB uncertainty Deepwater especially onshore 2500 2000 1500 1000 500 0 1995 2000 2005 2010 2015 2020 34
Slide 22: Fiscal Term Policy
Fiscal Term Policy OER Illustrative comparison of oil production allocation outlined below Allocation of Oil Production Allocation of Oil Production Allocation of Oil Production under under Joint Venture (JV) under Marginal Field Licenses Production Sharing Contracts (PSCs) Oil Oil Oil Revenue Reven
Slide 23: Fiscal Terms: OML 60-63
Fiscal Terms: OML 60-63 OER 23
Slide 24: Fiscal Terms: Other Assets
Fiscal Terms: Other Assets OER OML 145 OML 131 OML 134 24
Slide 25: Fiscal Term: Marginal Fields
Fiscal Term: Marginal Fields OER 25
Slide 26: OER Portfolio - Exploration Assets
OER Portfolio - Exploration Assets* OER 26
Slide 27: 2013 Capex Breakdown
2013 Capex Breakdown OER Q1 Q2 Q3 Q4 Total Abo-9 Work Over Abo (OML 125) Abo-4 Side Track Abo-8 Re-entry $67.6MM Up-dip side track of Abo-3 Exploratory drilling on Oberan (OML 134) Mindiogoro Prospect $7.3MM Drilling of Ebendo 5 & 6 Wells - $19.1MM Ebendo (OML 56) $22.9MM Umugini Pipeline: $3.7MM Qu
Slide 28: 2014 Capex Plan - Legacy Assets
2014 Capex Plan - Legacy Assets OER Q1 Q2 Q3 Q4 Total Abo (OML 125) Abo-8 Reentry & Abo 12 drilling - $37.5MM $37.5MM Mindiogoro Well Drilling - Oberan (OML 134) $7.4MM $7.4MM Drilling of Ebendo 7 Well - $8.7MM Ebendo (OML 56) Umugini Pipeline $4.3MM $22.7MM Maintenance CAPEX - $9.7MM Akepo Marine S
Slide 29: Focused & Prolific Niger Delta Portfolio
Focused & Prolific Niger Delta Portfolio OER 29
Slide 30: Near Term Value Drivers
Near Term Value Drivers OER Near Term Increased production & resource commercialization: Improved and sustained production levels from Abo wells (OML125) New drilling campaign to increase production from Ebendo field (OML 56). Facilities development, Pipeline laying and Well hook-up at the Akepo fie
Slide 31: Extensive, Owned Infrastructure
Extensive, Owned Infrastructure OER Almost all of OER’s production is processed through NAOC JV owned infrastructure; estimated replacement value, net to OER of USD$277m, or higher 31
Slide 32: Future Growth Opportunities
Future Growth Opportunities OER 32
Slide 33: Future Growth Opportunities
Future Growth Opportunities OER 33
Slide 34: Bunkering Considerations
Bunkering Considerations OER OER is committed to aggressively focus on limiting bunkering 34
Slide 35: Operating Environment - NAOC JV
Operating Environment - NAOC JV OER 35
Slide 36: Long-Term Contracts Minimize Price Volatility
Long-Term Contracts Minimize Price Volatility OER Existing Commercial Agreements Gas volumes sold on long term contracts; 85% of sales to NLNG at US$2.69/mcf (2013); oil sold into the spot market at a premium to Brent (~2% premium in 2013) Existing Commercial Agreements Description Term (Expiration)
Slide 37: Strategic Relationships Provide Market Access
Strategic Relationships Provide Market Access OER 37
Slide 38: Contact
Contact OER Contact Details Tokunboh Akindele Head, Corporate Development & Investor Relations +234 (1) 2702496 takindele@oandoenergyresources.com Energy Resources 38
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