Ithaca Energy PLC · LSE:ITH
Ithaca Energy — Shareholder Meeting (July 2008)
24 slides from Ithaca Energy's shareholder meeting presentation, Jul 16, 2008
Slide 1: Focused North Sea Oil and Gas Exploration and Production
Focused North Sea Oil and Gas Exploration and Production
Slide 2: Forward Looking Statements
Forward Looking Statements In the Interest of providing potential investors with information regarding the Company, including management’s assessment of the Company’s future plans and operations, certain statements and graphs throughout this presentation are “forward-looking statements” and represen
Slide 3: Introduction to Ithaca
Introduction to Ithaca Ithaca Energy Focused on exploration, development and production in UK North Sea Experienced management team with UK and international track record Exceptional portfolio of North Sea development and exploration assets Listed on TSX Venture and AIM – IAE 112 MM shares outstandi
Slide 4: Board of Directors
Board of Directors CEO and Director Chairman of the Board Lawrie Payne John Summers Management Chartered Accountant Director Director Director Frank Jay Zammit Michael Nobbs Lawyer Investment Banker Wormsbecker Reservoir Engineer Director Director Jack Lee Brad Hurtubise Oil Executive Investment Ban
Slide 5: Management Team
Management Team Lawrie Payne Iain McKendrick Chief Executive Officer Chief Operating Officer 40 yrs of oil industry 18 yrs oil industry exp, North experience Sea & Gulf Coast Geologist Exploration, production & commercial President/CEO of several international private and Previously VP Business Dev
Slide 6: Achievements H1 2008
Achievements H1 2008 Acquire Beatrice oil field Binding heads of terms in place Acquisition of Stella Acquire new development project Additional 9.9 MMboe (2P) reserves (Sproule, May 2008) Secured exclusive deal on FPSO Optimise Athena Significant CAPEX saving development Accelerated (end 2009) firs
Slide 7: Key Milestones
Key Milestones The key milestones for delivering value to Ithaca shareholders are FDP approval of core projects and first production H2 2008 H1 2009 H2 2009 • Close acquisitions of • Athena FDP approval • Athena project Stella and Beatrice completion and first oil • Stella appraisal drilling • Jacky
Slide 8: Ithaca's UK Portfolio
Ithaca’s UK Portfolio Greater Beatrice Area (90 - 100%) 0 100 Greater Beatrice Area kms Beatrice/Nigg Acquisition Polly Oil Discovery Jacky – First Oil end 2008 Athena (70%) Athena 3 Successful Appraisal wells Aberdeen FDP Approval Feb 2009 Scotland Stella (67%) First Oil Q4 2009 Stella Appraisal H1
Slide 9: Greater Beatrice Area
Greater Beatrice Area 1 Jacky Focus on production delivery… Discovery 12/21c Ithaca Beatrice Jacky 90% Beatrice/Nigg Acquisition Field 2,2z Pipeline 6 Effective Date 1st January 2008 11/29 11/30b 11/30a Closing August 2008 11/29 5 Ithaca Current production 1,800 bopd 82% 1 12/26c Bravo reinstatement
Slide 10: Jacky Development – Project Delivery
Jacky Development – Project Delivery Suction Bucket/Pylon Joint Ithaca’s first major operated project and production Level 17 Walkway 4.7 MMbbls net 2P reserves (Source: Sproule, May 2008) Estimated gross initial rate ±10,000 bopd Suction Bucket Number 1 Net capex US$100 million Tops of Suction Pile
Slide 11: Jacky Discovery Timeline
Jacky Discovery Timeline Jacky Well 25th Round Application (May ’08) Polly Well Beatrice/Nigg Closing Beatrice/Nigg (Aug ’08) Acquisition (Jan ’08) Jacky Platform Construction Complete (Oct ’08) Today Jacky FDP Approval Bravo Production Reinstatement Jacky First Oil (Nov ‘08) (End 2008) Estimated In
Slide 12: Athena Development Project
Athena Development Project 1 Athena Athena Development 70% Beatrice 14/18b-12 (Upper Jurassic Test: 1302 BoPD) Net 2P reserves 20.8 mmbbls Aberdeen Stella (source: Sproule, May 2008) 14/18b-18 E 5 producers and 1 water injector 14/18b-16 Net Capex $ 290 million (Test: 1375 BoPD) KEY 14/18b-7z Develo
Slide 13: Athena Timeline
Athena Timeline 14/18b-15A Well FPSO Option 16 Well 17 Well FPSO Secured 18 Well Uisge Gorm Today FDP Approval (Feb ’09) P4, P5 and Athena First Oil complete WI Well Athena (End 2009) Estimated Initial Rate 21,000 bopd 13
Slide 14: Stella
Stella Stella Discovery (66.67%) Gas / Condensate (Tested: 2,750 BoPD Robust closed structure Stella & 23 MMscfPD) Discovery ~300 feet established gas/oil column Potentially ~900 feet gas/oil column Joanne (Tested 3,200 BoPD & Appraisal Drilling H1 2009 17 MMscfPD) 9.9 mboe Net 2P Reserves (Source:
Slide 15: Stella Timeline
Stella Timeline Acquired 66.67% WI 1 Appraisal Well H1 ‘09 Today Maersk Rig Available 2009 FDP Approval 2 Development Stella First Gas Wells (H2 2010) Purchased 66.67% interest Estimated Gross Initial for initial $15 million, $15 Rate 19,500 boepd million at FDP and 5% ORRI 15
Slide 16: Exploration - Carna
Exploration - Carna Garrow Field Carna Prospect 112 Bcf gross reserves Kilmar Field Carboniferous and Leman Reservoirs 43 /21 Robust Structure b 43 /22 c Garrow and Kilmar potential 50-75 MMscf/d (Source: ATP Oil and Gas) Ithaca pays 30% for 40% Drill Q4 2008 16
Slide 17: Exploration - Hypnos
Exploration - Hypnos P50 reserves 167 Bcf Hypnos Leman Reservoir Robust Structure Ithaca pays 25% for 34% Drill Q4 2008 17
Slide 18: Operational Timeline
Operational Timeline 2008 ~ H2 2009 ~ H1 2009 ~ H2 Athena Athena Test #18 FDP Approval Drill Drill Drill FIRST OIL Beatrice Jacky Workover Campaign Jacky Jacky FDP Approval Tie Back FIRST OIL Deal Stella A Drill FDP Approval Polly Drill Carna Carna Drill Drill (non (non op) op) Hypnos Triton Drill (
Slide 19: 2008 Reserves Growth
2008 Reserves Growth Net Reserves May 2008 (Sproule) Net Reserves End 2007 (Sproule) Proven (MMboe) Total Probable Total (MMboe) 66.6 MMboe 39.3 MMboe Possible (MMboe) 51% Net 2P Reserves Growth 69% Net 3P Reserves Growth 19
Slide 20: Ithaca Production Profile
Ithaca Production Profile lo ration nd exp 35 o jec ts a Barbara pr New 30 boepd (‘000) Stella 25 20 Athena 15 Jacky 10 5 Bravo 0 Beatrice Alpha H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2008 2009 2010 2011 2012 Source: Ithaca estimate production profile 20
Slide 21: Debt Funding
Debt Funding US$240 million debt funding commitments secured, conditional upon final documentation: Bank club formed comprising leading oil sector banks Société Générale HBOS BNP Paribas Lloyds TSB Natixis Facility comprises three components US$180 million borrowing base US$30 million pre-developmen
Slide 22: Relative Valuation
Relative Valuation Producing companies trade at a premium to developers As Ithaca moves towards first production it expects to close the valuation gap Producers Average ~ $22 / boe 40 Developers Average 35 TEV / 2P boe (US$) 30 ~ $12 / boe 25 20 15 10 5 0 P eer A P eer B P eer C P eer D P eer E P ee
Slide 23: Value Creation
Value Creation 2008 ~ H2 2009 ~ H1 2009 ~ H2 Athena Athena FDP first oil approval Value Jacky Jacky first oil Stella FDP FDP approval approval 23
Slide 24: Reasons to Invest in Ithaca Energy
Reasons to Invest in Ithaca Energy Production from four developments starting end 2008 Production growth 12,500 boepd (exit 2008); 21,000 boepd (exit 2009) 2P reserves of 39.6 MMboe, up 51% from end 2007 Reserves growth Proved reserves represent 29% of 3P (66.6 MMboe) Jacky (Q3 2008) and Athena (Q1