Meren Energy Inc. · TSX:MER
Meren Energy — Africa Oil — Investor Presentation (October 2023)
35 slides from Meren Energy's investor presentation, October 2023
Slide 1: Africa Oil Corp. Corporate Presentation
Africa Oil Corp. THE NEXT PHASE OF VALUE CREATION CORPORATE PRESENTATION October 2023 WWW.AFRICAOILCORP.COM
Slide 2: Portfolio of Material Assets to Deliver Transformational Growth
Corporate Presentation | October 2023 AFRICA OIL CORP. PORTFOLIO OF MATERIAL ASSETS TO 2P Reserves 2 DELIVER TRANSFORMATIONAL GROWTH 55.6MMBOE Q2’23 Production3 22.4 KBOE/d Liquidity (end Q2’23) $375.7m NIGERIA1 Near-Term Catalysts Agbami, Akpo and Egina Oil Fields EQUATORIAL GUINEA Namibia E&A Bloc
Slide 3: Foundations for Value Creation
Corporate Presentation | October 2023 AFRICA OIL CORP. FOUNDATIONS FOR VALUE CREATION STRONG BALANCE SHEETS ADVANTAGED BARRELS SIGNIFICANT LIQUIDITY (Q2’23) HIGH NETBACK PRODUCTION • AOC debt free with cash balance of $175.7m • Attractive fiscal regime with premium Brent pricing • Undrawn corporate
Slide 4: Foundations Drive Superior Performance
Corporate Presentation | October 2023 AFRICA OIL CORP. FOUNDATIONS DRIVE SUPERIOR PERFORMANCE 300 Notable Outperformer 250 Over the Full Business Cycle 200 Strong Organic Opportunity Set With the Ability to Grow Inorganically 150 100 New CEO, New Focus Right Pathway to Deliver Maximum Value 50 0 Rec
Slide 5: Strategic Option Sets
Corporate Presentation | October 2023 AFRICA OIL CORP. STRATEGIC OPTION SETS Existing Growth Opportunities Africa Oil Assets & Partners Prime: • Highly experienced and well-resourced Majors operate the • Low risk/high IRR development opportunities – infill drilling producing assets, offshore Nigeria
Slide 6: Emergence of a New Petroleum Province
Corporate Presentation | October 2023 AFRICA OIL CORP. EMERGENCE OF A NEW PETROLEUM PROVINCE String of Big Discoveries Field Resources (P90 OIIP1, barrels) Graff-1X 2.6 bn Mangetti Venus-1X 5.1 bn Damara Jonker-1X 2.5 bn South Lesedi 0.3 bn Damara Source: National Petroleum Corporation of Namibia (“
Slide 7: Namibia: Towards Development
Corporate Presentation | October 2023 AFRICA OIL CORP. NAMIBIA: 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”, Patrick
Slide 8: Namibia World-Class Opportunity Set
Corporate Presentation | October 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 • Complete the work to confirm the resource base for Venus • Attractive follow
Slide 9: High Return and Short Cycle Growth
Corporate Presentation | October 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 & high
Slide 10: Committed to Managing Emissions Responsibly
Corporate Presentation | October 2023 AFRICA OIL CORP. COMMITTED TO MANAGING EMISSIONS RESPONSIBLY GHG Performance (Scope 1 & 2)* Gas Flare Volume Trend 140,000 14 150 120,000 12 Minimise through 100,000 10 efficiency 100 kgCO2e/boe Mmscf/d MtCO2e 80,000 8 60,000 6 Displace with lower- 50 emissions
Slide 11: Infrastructure-Led Exploration in EG
Corporate Presentation | October 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 increa
Slide 12: Growth Beyond the Current Portfolio
Corporate Presentation | October 2023 AFRICA OIL CORP. GROWTH BEYOND THE CURRENT PORTFOLIO World Class Organic Opportunity Set Inorganic Business Development With Strictest Discipline • The market for individual asset acquisitions is competitive • Stay focused on jurisdictions where the Company can
Slide 13: Conclusion
Corporate Presentation | October 2023 AFRICA OIL CORP. CONCLUSION Returns Sustainable shareholder returns – High netback production from high distributed more than $90m since Mar’22 quality offshore assets SHAREHOLDER PRODUCTION RETURNS duction Growth Cashflow Pro Low risk development opportunities
Slide 14: Appendix
A AfricaOil Corp. APPENDIX
Slide 15: Market Snapshot
Corporate Presentation | October 2023 AFRICA OIL CORP. MARKET SNAPSHOT Market Cap. (end Aug’23) • 462.3m shares in issue (free-float: 363.3m) $0.9bn ‒ Fully-diluted 467.8m shares Dual-Listed ‒ Management & Board: ~1.8% shareholding TSX & Nasdaq • Major shareholders: Helios, Fidelity, Janus Henderson
Slide 16: Executive Management Team
Corporate Presentation | October 2023 AFRICA OIL CORP. EXECUTIVE MANAGEMENT TEAM Dr. Roger Tucker President & CEO Dr. Tucker has more than three decades executive management experience in the international energy sector. He has held positions in companies ranging scale from Majors, independents, and
Slide 17: Executive Management Team
Corporate Presentation | October 2023 AFRICA OIL CORP. EXECUTIVE MANAGEMENT TEAM Dr. Oliver Quinn SVP Corporate Development Dr. Quinn brings 20 years’ experience in the energy industry across technical, commercial and executive leadership roles. He began his career as a geologist for Shell before mo
Slide 18: Board of Directors
Corporate Presentation | October 2023 AFRICA OIL CORP. BOARD OF DIRECTORS John Craig Chairman Mr. Craig is the Chairman of the Board and has been since 2016. He is also Counsel to Cassels Brock & Blackwell LLP. He was a practicing lawyer and partner of Cassels Brock & Blackwell LLP until 2016 in the
Slide 19: Board of Directors
Corporate Presentation | October 2023 AFRICA OIL CORP. BOARD OF DIRECTORS Erin Johnston Director Ms. Johnston serves as MD of Lundin Foundation, a Canadian not-for profit organization that develops market-based programs to maximize benefits to communities surrounding resource operations. In this rol
Slide 20: 2023 Management Guidance
Corporate Presentation | October 2023 AFRICA OIL CORP. 2023 MANAGEMENT GUIDANCE Notes: (1) The Company’s 2023 production will be contributed solely by its 50% shareholding in Prime. (2) Approximately, 82% expected to be light and medium crude oil and 18% conventional natural gas. (3) Net entitlement
Slide 21: H1'23 Production Performance
Corporate Presentation | October 2023 AFRICA OIL CORP. H1’23 PRODUCTION PERFORMANCE Full year 2023 production outlook remains within management guidance 25500 W.I. Production (BOE/d) 25500 Entitlement Production (BOE/d) 23500 23500 21500 21500 19500 19500 17500 17500 Q1'23 H1'23 9M FY'23 Q1'23 H1'23
Slide 22: OML 130 Multi-Well Drilling Campaign
Corporate Presentation | October 2023 AFRICA OIL CORP. OML 130 MULTI-WELL DRILLING CAMPAIGN • Infill program commenced in late February 2023 • Up to 9 wells on Egina and Akpo • Two Egina water injector wells completed with the impact expected to be seen during Q3’23 • First Egina infill production w
Slide 23: Oil Sales
Corporate Presentation | October 2023 AFRICA OIL CORP. OIL SALES New Oil Marketing Strategy Has Improved Sales Price Margins Q2’23 average sales price 120 Sales Price Dated Brent $85.3/bbl (Q2’23 Dated Brent: $78.0/bbl) 100 Two cargoes sold during Apr’23 80 $89.0/bbl (achieved sales price) USD/bbl 6
Slide 24: Capital Expenditure
Corporate Presentation | October 2023 AFRICA OIL CORP. CAPITAL EXPENDITURE (NET TO AOC’S 50% SHAREHOLDING) CAPEX increasing mainly due to Q2’23 CAPEX OML 130 drilling campaign ($ million) $38.9m 45 (Q2’22: $3.2m) 40 Q2’23 CAPEX amount includes 35 the OML130 license renewal Fee1, which has been capit
Slide 25: Africa Oil Financial Highlights
Corporate Presentation | October 2023 AFRICA OIL CORP. AFRICA OIL FINANCIAL HIGHLIGHTS Net Income ($ million) Q2’23 net income of $106.9m 150 (Q2’22: $5.7m) 100 End Q2’23 cash balance of 50 106.9 38.9 38.4 58.5 54.9 45.6 70.6 $175.7m 5.7 21.9 (Q2’22: $191.0m) 0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3
Slide 26: Prime Financial Highlights
Corporate Presentation | October 2023 AFRICA OIL CORP. PRIME FINANCIAL HIGHLIGHTS (NET TO AOC’S 50% SHAREHOLDING) Q2’23 EBITDAX1 EBITDAX1 and CFFO2 ($ million) $117.0m (Q2’22: $127.2m) 250 Q2’23 CFFO2 200 $88.7m (Q2’22: $51.3m) 150 End Q2’23 cash balance of 100 $108.8m (Q2’22: $330.6m) 50 End Q2’23
Slide 27: Strong Net Debt Position
Corporate Presentation | October 2023 AFRICA OIL CORP. STRONG NET DEBT POSITION Net debt position Prime - net to AOC Net debt position AOC Q2’23 AOC net cash 300.0 AOC net debt including 50% Prime net debt $175.7m 200.0 (YE’’22 : $199.7m) 100.0 0.0 Q2’23 Prime net debt (50%) -100.0 $266.2m $ million
Slide 28: Corporate Structure
Corporate Presentation | October 2023 AFRICA OIL CORP. CORPORATE STRUCTURE Notes: (1) In accordance with the PIA, renewal shall be granted for 20 years if the lessee has paid all rent and royalties due and has otherwise performed all its obligations under the lease. A renewal of OML 130 was obtained
Slide 29: Corporate Structure
Corporate Presentation | October 2023 AFRICA OIL CORP. CORPORATE STRUCTURE SLIDE 29 Notes: Entities are owned 100%, unless noted otherwise.
Slide 30: Nigeria Ownership Overview
Corporate Presentation | October 2023 AFRICA OIL CORP. NIGERIA OWNERSHIP OVERVIEW SLIDE 30
Slide 31: Africa Oil Exploration Inventory and Equity Investments
Corporate Presentation | October 2023 AFRICA OIL CORP. AFRICA OIL EXPLORATION INVENTORY AND Africa Oil has an active EQUITY INVESTMENTS exploration portfolio in West Africa and Guyana through AOC-Operated exploration licenses, and indirect interests SENEGAL Prime Energy (~8-16%) through: OML127 & OM
Slide 32: Responsible Steward of Investments
Corporate Presentation | October 2023 AFRICA OIL CORP. RESPONSIBLE STEWARD OF INVESTMENTS HSE Performance Our Values Metric 2021 2022 H1 2023 TRIR (#/200k hours) 0.18 0.35 0.16 Fatality Rate 0.00 0.05 0.00 Spills (#) 4 2 0 Volume (bbls) 13.9 1.6 0.0 Social Investment 915.4 624.3 TBD* (US$K) Alignmen
Slide 33: Forward-Looking Statements
Corporate Presentation | October 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 subs
Slide 34: Reader Advisory
Corporate Presentation | October 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 Prime is
Slide 35: 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