Oando Plc · NSENG:OANDO
Oando — Oando Energy Resources — Investor Presentation (May 2015)
37 slides from Oando's investor presentation, May 2015
Slide 1: Corporate Presentation
Energy Resources Inc. CORPORATE PRESENTATION May 2015
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 Net Debt Enterprise Value 1.47 796,049,213 2.29/0.75 8,410,000 344,673,441 $ 1,017 M $ 545 M $ 1,562 M Share Trading History 2.5 2 g j h e b c f k 1.5 i d 1 a 0.5 0 30 Jul-2012 30 Aug-2012 30 Sep-2012 30 Oct-2012 30 Nov-2012 30 Dec-20
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 OML 56 OML 13 NGL 5% 1% 7% OML 63 OML 125 6% 5% 2C Resources OML 62 Production 1% 53,731 OML 60 16% 53,731 Oil & boepd boepd Condensate 37% OML 61 Gas Sales 66% 56% OML125 OML 56 OML 13 2% 2% 0% OML 13 OML 134 1% 1% OML 125 2C Resources 0% OML 122 2P Reserves 0%
Slide 7: Capital Structure
Capital Structure OER Senior Structured Facility LIBOR + 5% RBL Facility LIBOR 1 Year Tenor + 8.5% Market Capitalisation Public 5.5 Year Tenor 6.2% Net Debt US$ 1,017 M US$ 545 M Oando PLC Senior Corporate 93.8% Facility LIBOR + 9.5% 6 Year Tenor Market Capitalization 65% Enterprise Value 1,562 US$
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 30 25 25 20 20 18.07 17.14 15 15 12.38 10 7.19 10 6.16 2.88 2.52 3.46 4.08 5 2.40 5 2.42 3.71 3.69 0.32 0 0 OER Afren Seplat Eland Heritage Mart Tullow OER Afren Seplat Eland Heritage Mart
Slide 9: Key Metrics & Comparables
Key Metrics & Comparables OER COMPANY Afren Seplat Eland O&G Heritage Oil Mart Tullow Average OER Avg. Daily Prod. (boepd; net) 31,819 36,000 3,500 14,000 6,469 75,200 27,831 53,731 2P Reserves (mmboe) 162 281 31 412 11 345 207 420 2P+2C Reserves (mmboe) 438 562 50 454 26 1254 464 542 Base Currency
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 $/bbl Production Sharing Contract (PSC) 65.00 5.20 21.45 Government Royalty: 0-16.67% 13.43 Over-riding Royalty: N/A 9.27 3.13 12.52 Petroleum Profit Tax (PPT): 50% Revenue Royalty OPEX CAPEX Tax NNPC
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% Over-riding Royalty: N/A 65.00 13.00 6.50 45.50 0.89 0.59 2.60 40.77 0.65 40.77 34.65 Petroleum Profit Tax (PPT): 85% Cost Recovery: 100% 6.12 Oil Revenue Royalties Non- Assessable
Slide 13: Board of Directors & Advisers
Board of Directors & Advisers OER Wale Tinubu | Chairman, Director Omamofe Boyo | Director Wale Tinubu has pioneered the execution of world-class Omamofe Boyo is a Director of Oando Energy Resources as Independent initiatives in the region as an ethical business leader, well as the Deputy Group Chie
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 Focused Portfolio in Prove, hydrocarbon Basin the Prolific Niger Nigeria has the largest oil & gas reserves in Africa with 37 billion barrels of oil and 179 tcf of gas Delta Tenth most petroleum-rich nation in the world producing 2.3 mmbbl/d of liquids and 3.5 bcf/d of gas in
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 Independent Reserves Evaluator report dated 31st December 2014 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 10.3 10th in World 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: 2015 CAPEX Plan
2015 CAPEX Plan OER Development OML 134 & EEL $ 3.7m $ 59.7m drilling, completions & Other Assets recompilations OMLs 60-63 environmental & safety projects 138.7 $ m Total CAPEX 2015 $ 0.6 m Facility Enhancements Drilling & OML 13 Completion of Abo 12 Upper & Abo 13, FPSO life extension, & $ 67.1m g
Slide 28: Focused & Prolific Niger Delta Portfolio
Focused & Prolific Niger Delta Portfolio OER 28
Slide 29: 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 30: 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 OMLs 60-63 are in a favourable location 1. Close to export terminals 2. With a developed network of processing faciliti
Slide 31: Future Growth Opportunities
Future Growth Opportunities OER 31
Slide 32: Future Growth Opportunities
Future Growth Opportunities OER 32
Slide 33: Bunkering Considerations
Bunkering Considerations OER OER is committed to aggressively focus on limiting bunkering Estimated Oil & Condensate Bunkering & Losses - OML 60 - 63 Oil & Condensate Rate (bpd, OER W.I.) Theft (% of Potential) 33
Slide 34: Operating Environment - NAOC JV
Operating Environment - NAOC JV OER 34
Slide 35: 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 36: Strategic Relationships Provide Market Access
Strategic Relationships Provide Market Access OER 36
Slide 37: Contact
OER Contact Contact Details Tokunboh Akindele Head, Corporate Development & Investor Relations +234 (1) 2702496 takindele@oandoenergyresources.com Energy Resources 37
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