Meren Energy Inc. · TSX:MER
Meren Energy — Africa Oil — Investor Presentation (April 2024)
30 slides from Meren Energy's investor presentation, Apr 17, 2024
Slide 1: The Next Phase of Value Creation - Town Hall Presentation
Africa Oil Corp. THE NEXT PHASE OF VALUE CREATION TOWN HALL PRESENTATION 17th April 2024 WWW.AFRICAOILCORP.COM
Slide 2: Presenters and Agenda
Town Hall Presentation | April 2024 AFRICA OIL CORP. PRESENTERS AGENDA Roger Tucker President & CEO • CEO’s Introduction • Core Assets Overview and Updates Pascal Nicodeme • Financial Management and Shareholder Returns CFO • Commercial Perspectives and Updates • Concluding Remarks • Q&A Oliver Quinn
Slide 3: Forward-Looking Statements
Town Hall Presentation | April 2024 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 subsid
Slide 4: CEO's Introduction
A AfricaOil Corp. CEO'S INTRODUCTION
Slide 5: Developments Since the Leadership Change
Town Hall Presentation | April 2024 AFRICA OIL CORP. DEVELOPMENTS SINCE THE LEADERSHIP CHANGE JUL 2023 New President and CEO JAN 2024 appointed, marking the Implemented a strategic MAR 2024 New strategy approved and new next phase of growth and OCT 2023 farm down agreement for Farm down agreement Ex
Slide 6: Our Strategic Principles
Town Hall Presentation | April 2024 AFRICA OIL CORP. OUR STRATEGIC PRINCIPLES Value Creation & Growth Growth through focused exposure to world- class assets Target sustainable Partner with tier-1 operators, shareholder capital returns whose budgets and timetable are not disrupted by cyclical factors
Slide 7: Portfolio of Material Assets to Deliver Transformational Growth
Town Hall Presentation | April 2024 AFRICA OIL CORP. PORTFOLIO OF MATERIAL ASSETS TO DELIVER TRANSFORMATIONAL GROWTH Tier-1 Operators Chevron, TotalEnergies World Class Production Assets 3 of the top 5 fields in Nigeria with production base through to 2040s NIGERIA1 World Class Discovery Venus with
Slide 8: Core Assets Overview and Updates
CORE ASSETS OVERVIEW AND UPDATES
Slide 9: High Return and Short Cycle Growth of the Top Fields in Nigeria
Town Hall Presentation | April 2024 AFRICA OIL CORP. HIGH RETURN AND SHORT CYCLE GROWTH 3 of the Top 5 Fields in Nigeria ~310k bopd Aggregate gross field production Operators Highly experienced World-class Production facility hubs ~60% of 2P reserves1 base is Proven category (P90) Low risk & high IR
Slide 10: PMLs 2/3/4 & PPL 261: Low Risk & Short-Cycle Return Opportunity Set
Town Hall Presentation | April 2024 AFRICA OIL CORP. PMLS 2/3/4 & PPL 261: HIGHLY ATTRACTIVE LOW RISK & SHORT- CYCLE RETURN OPPORTUNITY SET • Rig contract extended to drill 5 wells from Feb’24 through to end Oct’24 • Egina ‒ Three infill wells drilled in 2023 ‒ Producer achieved daily rate of ~5 kbo
Slide 11: Preowei (PML 4): Low Risk Development Project
Town Hall Presentation | April 2024 AFRICA OIL CORP. PREOWEI (PML 4): LOW RISK DEVELOPMENT PROJECT • Located 29km north of Egina in water depths ranging between 1,100m and 1,300m • End of FEED exercise expected in Q3’24 & FID in Q4’24 • Main development phase with 16 wells • The subsea wells will be
Slide 12: Orange Basin: A New Petroleum Province
Town Hall Presentation | April 2024 AFRICA OIL CORP. ORANGE BASIN: A NEW PETROLEUM PROVINCE Major Discoveries Venus, Feb’22 Mopane, Jan’24 2 3 4 5 Graff, Feb’22 Jonker, Mar’23 Mangetti, Feb’24 Block 2913B/2912, Namibia Block 3B/4B, South Africa • Farm down with TotalEnergies and QatarEnergy • Carrie
Slide 13: Blocks 2912/2913B: World-Class Acreage with Significant Potential
Town Hall Presentation | April 2024 AFRICA OIL CORP. BLOCKS 2912/2913B: WORLD-CLASS ACREAGE WITH SIGNIFICANT POTENTIAL “At least 1-2 bn barrels1” • Venus: major discovery, TotaleEnergies’ CEO on the scale of Venus TotalEnergies (operator) has confirmed that the development is very likely “We will co
Slide 14: Infrastructure-Led Exploration in EG
Town Hall Presentation | April 2024 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 increasi
Slide 15: Financial Management & Shareholder Returns
FINANCIAL MANAGEMENT & SHAREHOLDER RETURNS
Slide 16: Africa Oil Capital Framework
Town Hall Presentation | April 2024 AFRICA OIL CORP. AFRICA OIL CAPITAL FRAMEWORK Capital Allocation Priority Balance Sheet Shareholder Organic Growth M&A Strength Returns • Maintain Prime’s • Immediate focus: no • Production: short-cycle leverage: Net Debt / deals outside existing infrastructure-le
Slide 17: Prime's Competitive Debt Funding Has Enhanced Dividend Distributions to AOC
Town Hall Presentation | April 2024 AFRICA OIL CORP. PRIME’S COMPETITIVE DEBT FUNDING HAS ENHANCED DIVIDEND DISTRIBUTIONS TO AOC Four Years of Strong Dividends • Strategy of extending / optimizing maturity profiles and USD 825m vs. USD 520m enhancing dividend distributions of closing cash payment to
Slide 18: AOC's Standby Credit Facility Provides Critical Liquidity Headroom
Town Hall Presentation | April 2024 AFRICA OIL CORP. AOC’S STANDBY CREDIT FACILITY PROVIDES CRITICAL LIQUIDITY HEADROOM • Debt-free with access to an unused USD 175m standby corporate AOC’s Successful Track-Record facility of Debt Financing Jan’20 - USD 250m Loan • Commitment fees of 40% of the marg
Slide 19: Disciplined Cash Management
Town Hall Presentation | April 2024 AFRICA OIL CORP. DISCIPLINED CASH MANAGEMENT AOC’s Cash Balances & Movements ($ million) YE’23 AOC Cash Balance $232.0m (YE’22: $199.7m) 2023 cash & liquidity management focused on Impact’s capital needs, farm down agreement with TotalEnergies allowed the start of
Slide 20: Shareholder Returns
Town Hall Presentation | April 2024 AFRICA OIL CORP. SHAREHOLDER RETURNS ~$120m 01 02 Returned Since 2022 Base Dividend Policy Share Buybacks • Distributed ~$58m since 2022 • Launched new NCIB in Dec’23 Dividend Declared • Sustainable in range of stressed business scenarios • Tool for accelerating c
Slide 21: Commercial Perspectives & Updates
COMMERCIAL PERSPECTIVES & UPDATES
Slide 22: Two Strategic Commercial Agreements Executed by the New Executive Team
Town Hall Presentation | April 2024 AFRICA OIL CORP. TWO STRATEGIC COMMERCIAL AGREEMENTS EXECUTED BY THE NEW EXECUTIVE TEAM Retain Significant Upside • Focus on preserving growth catalysts whilst removing capital At no upfront cost requirements and simplifying the business: • Impact and TotalEnergie
Slide 23: AOC Offer to Impact's Minority Shareholders
Town Hall Presentation | April 2024 AFRICA OIL CORP. AOC OFFER TO IMPACT’S MINORITY SHAREHOLDERS • Calibrated capital allocation step following removal of capital exposure ‒ Reflecting significant potential of Namibia position and Impact’s ability to drive AOC’s valuation and future growth • Current
Slide 24: Evaluating Options for Further Portfolio Simplification and Growth
Town Hall Presentation | April 2024 AFRICA OIL CORP. EVALUATING OPTIONS FOR FURTHER PORTFOLIO SIMPLIFICATION AND GROWTH • Delivery of first two strategic farm down transactions provides greater financial flexibility and supports options for consolidation and growth • Enables AOC to take advantage of
Slide 25: Concluding Remarks
A AfricaOil Corp. CONCLUDING REMARKS
Slide 26: 2024 Strategic Priorities
Town Hall Presentation | April 2024 AFRICA OIL CORP. 2024 STRATEGIC PRIORITIES Consolidate, streamline and Farmout and full carry financially de-risk portfolio achieved for Namibia Acquired additional interest in our core operated Block 3B/4B Maintain financial flexibility to accelerate growth Launc
Slide 27: AfricaOil
A AfricaOil Corp.
Slide 28: Reader Advisory
Town Hall Presentation | April 2024 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 a
Slide 29: Forward-Looking Statements
Town Hall Presentation | April 2024 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 subsid
Slide 30: 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