Deltic Energy Plc · LSE:DELT
Deltic Energy — Investor Presentation (March 2023)
21 slides from Deltic Energy's investor presentation, March 2023
Slide 1: Corporate Presentation March 2023
CORPORATE PRESENTATION MARCH 2023
Slide 2: Important Notice
Important Notice The information contained in this document (the “Presentation”) has been prepared and distributed by Deltic Energy PLC (the “Company”). It has not been fully verified and is subject to material updating, completion, revision, verification and further amendment. This Presentation has
Slide 3: Board & Management
Board & Management Driven and highly competent management team with >100 years of UKCS Experience Graham Swindells Mark Lappin Chief Executive Officer Non-Executive Chairman Graham joined Deltic as Chief Financial Officer in 2013 and became Chief Mark has over 35 years of experience in the oil and g
Slide 4: Our DNA
Our DNA St Fergus Syros DELTIC ENERGY Small team of explorationists with over 100 years of experience within the E&P industry Dedicated to high quality technical work and identification of robust drilling opportunities Proven ability to attract world class partners in Shell and Capricorn providing v
Slide 5: Strategy
Strategy Gas dominated portfolio ▪ Increasingly important transition fuel Identify. Explore. Monetise. Repeat. ▪ High petrochemical / hydrogen demand ▪ UK increasingly reliant on foreign gas imports/LNG ▪ Positive medium to long term pricing trends Exploration and appraisal > ORGANIC PORTFOLIO BUILD
Slide 6: Commitment to ESG
Commitment to ESG Governance ▪ Strong corporate governance Health & Safety. Environment. Net Social Benefit. ▪ Board supported policies for H&S, Environment & ESG ▪ Assessment of the ESG issues plays a central role in strategic decision making ▪ Climate related disclosures in Annual Reports from 202
Slide 7: Importance of UK Natural Gas
Importance of UK Natural Gas Security of supply, UK jobs and tax revenues 2022 British Energy Security Strategy ▪ Recognises the role and requirement of natural gas for decades to come ▪ Prioritises UK domestic gas production over imported gas ▪ Confirmed new licensing round which commenced in Octob
Slide 8: Southern North Sea Licence Portfolio
Southern North Sea Licence Portfolio Strategic acreage position in underexplored area of world class gas basin P2428 (40% DELT, 60% Capricorn) P2252/8: Pensacola (30% DELT, 65% Shell, 5% ONE-Dyas) ▪ 680km2 of new 3D data shot in 2021 ▪ February 2023 - Shell operated well discovered 302 BCF (P50 ▪ Pr
Slide 9: Pensacola – P2252 (30% WI)
Pensacola – P2252 (30% WI) Exploration success with first well 302 BCF Gas Discovery in the SNS – Feb 2023 ▪ Our first well has resulted in a major discovery on a prospect generated in-house by Deltic ▪ Shell operated exploration well targeted the Hauptdolomit in a down dip location on the flank of
Slide 10: Pensacola: Preliminary Post Well Update
Pensacola Preliminary Post Well Update Pensacola 41/05a-2 Well Location ▪ Drilled on the western fringe of the structure to ▪ Differentiate between possible geological models ▪ Demonstrate presence of gas & define minimum commercial volume ▪ Prove moveable hydrocarbons on well test Well Results ▪ We
Slide 11: Pensacola: Next Steps
Pensacola Next Steps Appraisal Planning ▪ Complete and integrate all post-well analysis ▪ Revise the conceptual development plan – confirm requirement for appraisal ▪ Determine appraisal objectives and design programme ▪ Potential appraisal activity in 2024, subject to JV approval Potential Monetisa
Slide 12: P2437 – Selene (50% WI)
P2437 – Selene (50% WI) Shell Operated Exploration Well – 2024 Selene Prospect ▪ 4-way dip closed structure in the proven Leman Sandstone with 100% 3D seismic coverage ▪ Gross P50 Prospective Resources of 318 BCF (P90-P10 Range = 132 to 581 BCF) ▪ GCoS* of 70% - upgraded from 30% as a result of deta
Slide 13: Impact of Gas Price on Project Economics
Impact of Gas Price on Project Economics Structural changes in gas pricing creates significant uplift in economics for both Selene and Pensacola UK Natural Gas – NBP Historic & Forward Curve (p/therm) Success Case Illustrative Valuation (p/share) January 2020 - December 2028 6 March 2023 48 - UK Gas
Slide 14: Energy Profits Levy (‘EPL’)
Energy Profits Levy (‘EPL’) Super-deduction presents significant opportunity for Deltic Illustrative Example Tax Super-Deduction: £100 spend costs an Operator ~£9 after tax relief Future Scenario: Syros potential ILX tie-back development £100 spend £25m well cost ▪ Incoming party takes 60% WI in a D
Slide 15: Capricorn JV
Capricorn JV Carried pre-drill work programme with the potential to deliver multiple additional wells P2560 – Breagh South P2428 – Cupertino Area ▪ 30% Deltic, 70% Capricorn (Operator) ▪ 40% Deltic, 60% Capricorn (Operator) ▪ Underexplored area with proven hydrocarbon system ▪ 680km2 new 3D seismic
Slide 16: P2542 - Syros (100% Deltic)
P2542 - Syros (100% Deltic) Central North Sea Oil Prospect Updated interpretation using newly available 3D seismic dataset ▪ Rotated Fulmar fault block imaged on newly reprocessed Cornerstone Evolution 3D seismic ▪ Interpretation of newly re-processed seismic data demonstrates a robust structure ▪ S
Slide 17: 33rd Offshore Licensing Round
33rd Offshore Licensing Round Opportunity to further expand asset base New UK Energy Strategy Accelerates Timing of 33rd Round ▪ 33rd licensing round applications closed in January 2023 ▪ Licences expected to be awarded from Q2 2023 ▪ Provides a low cost opportunity to re-build the operated portfoli
Slide 18: Indicative Operational Timeline
Indicative Operational Timeline Active schedule with conveyor belt of drilling opportunities Q4 Q1 Q2 Q3 Q4 H1 H2 Gross P50 Resource 2022 2023 2023 2023 2023 2024 2024 2025 BCF / MMBOE / WI% P2252 PENSACOLA Post Well Studies Appraisal Well Planning *1 Discovered EUR 302 / 50 / 30% P2437 SELENE Permi
Slide 19: Deltic is delivering on its business plan
Deltic is delivering on its business plan Uniquely poised for exploration success Right product – gas is recognised as key transition fuel Right place – world class gas basin Right time – proposition de-risked following first discovery & further high impact catalysts in next 12 months First explorat
Slide 20: Deltic Energy Plc
DelticEnergy EnergyPlc Plc Investor Relations Queries Deltic Camarco First Floor First Floor The Old Fire Station 107 Cheapside 150 Waterloo Road 150 Waterloo Road London London London EC2V 6DN SE1 8SB SE1 8SB United Kingdom United Kingdom United Kingdom Tel: +44 (0)20 7887 2630 Tel: +44 (0)20 7887
Slide 21: Investor Base and Capital Structure
Investor Base and Capital Structure Strong and supportive shareholder base Key shareholders * Capital Structure Shares in issue 1,862m IPGL (Michael Spencer) 18.8% Options 163m Free float 80.8% Holders of <3% 39.5% Cash at 30th June 2022 £7.6m Richard Sneller 9.5% Placing and Open Offer net proceeds