Serica Energy Plc · LSE:SQZ
Serica Energy — FY2018 Earnings Presentation
30 slides from Serica Energy's earnings presentation, 2019
Slide 1: Serica Energy Plc Full Year Results 2018
SERICA ENERGY PLC 2018 NEW IMAGE HERE FULL YEAR RESULTS A Year of Achievement
Slide 2: Disclaimer
Disclaimer • This document is personal to the recipient and has been issued by Serica Energy plc • Certain statements, beliefs and opinions in this document, are forward-looking, and is directed only at, in the United Kingdom, qualified investors who are persons (the "Company"). This document does n
Slide 3: 2018 Financial Results
01 2018 Financial Results 3 2018 Annual Results Presentation
Slide 4: 2018: The Start of a New Era for Serica
2018: The Start of a New Era for Serica Spectacular growth during 2018 31 December 2018 68.8 mmboe 25k boe/d $55m 140 31 December 2017 3.1 <2k $34m 7 mmboe boe/d NET 2P RESERVES AVG. NET PRODUCTION CASH AND DEPOSITS EMPLOYEES • 2018 has been a year of real achievement for all Serica stakeholders, em
Slide 5: 2018 Highlights
2018 Highlights A year of achievement EARNINGS PER SHARE CASH AND DEPOSITS ACQUISITION 2P RESERVES PRODUCTION DEVELOPMENT +337% +62% 30.11.18 68.8 mmboe >25,000 boe/d 2018 basic EPS on profit for Total cash balances and The acquisition of BP, Total net 2P reserves have Combined full year productio
Slide 6: Group Income Statement
Group Income Statement 2018 2017 US$000 US$000 Revenue 45,747 31,966 2.5 months production from Erskine and 1 month from BKR Cost of Sales (20,543) (12,668) Mainly operating cost, some Erskine costs reduced during 9.5 month shut-in Gross profit 25,204 19,298 Heavily curtailed Erskine income plus 1 m
Slide 7: Cash Position
Cash Position Sustained and growing cash build Cash, cash equivalents and term deposits US$million US$ US$ 21.7m US$ US$ 91.8m 16.3m 23.8m US$ cash Consideration Drawdown 36.9m +67 % of BP facility US$ Increase in cash 54.9m US$ Revenues less 50.0m Opex & Capex position in the first 3 months US$ BKR
Slide 8: 2018 Year End Net 2P Reserves
2018 Year End Net 2P Reserves Independent CPRs show significant reserves upgrade • Erskine net 2P reserves have increased from 3.1 1 mmboe at the end of 2017 to 5.7 mmboe at the Erskine end of 2018. This revision is due to increased 5.7 mmboe uptime (delivered by the Erskine bypass pipeline) As at 3
Slide 9: Bruce, Keith and Rhum
02 Bruce, Keith and Rhum 9 2018 Annual Results Presentation
Slide 10: A Series of Acquisitions in 2018 Delivering Material Value
A Series of Acquisitions in 2018 Delivering Material Value Strategically important transactions to purchase interests in Bruce, Keith and Rhum • Serica’s strategy has been to reduce reliance on a single Additional revenue streams diversify producing asset (Erskine) by gaining interests in three prod
Slide 11: 2018 Financial Impact of Bruce, Keith and Rhum Transactions
2018 Financial Impact of Bruce, Keith and Rhum Transactions >US$45/boe $50 million >24,000 boe/d 60 mmboe US$139.3 million realised price BKR adjustment 2018 net production increased reserves Serica’s tax losses 2018 commodity prices were Under the net cash flow sharing Full year production (net to
Slide 12: Serica 2018 and Q1 2019 Production Performance
Serica 2018 and Q1 2019 Production Performance Strong production during first 4 months of Serica BKR operatorship BKR Under BP operatorship Serica operatorship 40 35 2018/9 Average Net Production (boe/d) 30 Net Serica Production (kboe/d) Field Jan – Nov ’18 Dec ‘18 – Mar ‘19 25 Erskine 500 3,100 20
Slide 13: Transition Completed November 2018
Transition Completed 30 November 2018 114 BP staff transferred 23 new jobs created 315,000 controlled documents transferred 1.8 million BP project files received and processed 138 procurement contracts in place 13 2018 Annual Results Presentation
Slide 14: BKR Deals Take Serica Into New Era
BKR Deals Take Serica Into New Era Serica is now re-positioned as one of the leading independent companies operating on the UKCS 14 2018 Annual Results Presentation
Slide 15: Operations
03 Operations A full lifecycle portfolio 15 2018 Annual Results Presentation
Slide 16: A Value-Generating Portfolio in the UKCS
A Value-Generating Portfolio in the UKCS Rhum Bruce, Keith PRODUCE OPERATE DEVELOP EXPLORE BKR and Erskine BKR Columbus: FDP 30th Round Serica now has Serica now operates approved Serica will continue to production from four one of the major As operator with a target exploration fields into two offs
Slide 17: Bruce, Keith and Rhum Reservoir Management
Bruce, Keith and Rhum Reservoir Management Serica has 98% of Bruce, 100% Keith and 50% of Rhum Rhum produces gas and is a subsea tie-back to Bruce Bruce produces oil and gas Rhum is capable of producing from over 20 wells: platform over 30,000 boe/d gross and subsea from two subsea wells, R1 and R2
Slide 18: Erskine Field Flowing at Increased Rates
Erskine Field Flowing at Increased Rates A 26km section of the condensate export line from Lomond to the CATS Riser Platform has been replaced Intervention has delivered The cost to Serica of the bypass pipeline was consistent net production of 3,000+ boe/d comparable to 40 days of Serica Erskine fi
Slide 19: Erskine Reserves Increase
Erskine Reserves Increase Demonstrates the ability of focused operators to add value to mid & late life assets Field in Resulting in Efficiencies significant decline prolong reserves unless action Mitch Comment: life of field upgrade taken Elsewhere we use mmboe rather than mboe The independent CPR
Slide 20: Columbus Development (Serica 50%)
Columbus Development (Serica 50%) Columbus development sanctioned by Serica and Columbus Partners FDP submitted in June 2018 and approved by OGA in October 2018 The Columbus development area will be drained by a single producing well tied into the recently approved Arran to Shearwater pipeline and p
Slide 21: Rowallan: UK Block 22/19c (Serica 15%)
Rowallan: UK Block 22/19c (Serica 15%) Well 22/19c-7 spudded on 30 December 2018 The well targeted the High Temperature and High Pressure Rowallan prospect The well reached a total depth of 4,641m on 3 April 2019 182m section of sandstone and shale was encountered but no hydrocarbons were present 22
Slide 22: Strategy
04 Strategy 22 2018 Annual Results Presentation
Slide 23: A Corporate Strategy with Production at its Heart
A Corporate Strategy with Production at its Heart Serica’s M&A strategy utilises the flexibility provided by operational capability and strong cash flow from production. These combined resources mean that the Company is superbly positioned to react quickly when attractive growth opportunities arise
Slide 24: The Right Assets in the Right Hands at the Right Time
The Right Assets in the Right Hands at the Right Time Serica’s strategy is to identify and acquire assets where we can add value. This started with the 2015 Erskine acquisition and continued with the 2018 BKR transactions Serica has demonstrated the ability to unlock value by solving commercial and
Slide 25: A Strategy to Deliver Growth
A Strategy to Deliver Growth Optimise team and technology to maximise efficiency • talented, motivated team in place and Aberdeen HQ fully operational • focus on economic recovery of oil & gas • harness technology and creativity to extend life of fields • establish hub strategy for Bruce facilities,
Slide 26: Appendix
05 Appendix 26 2018 Annual Results Presentation
Slide 27: Our Board
Our Board Tony Craven Walker Mitch Flegg Neil Pike Executive Chairman Chief Executive Non-executive Director • A leading figure in the British independent oil • Over 35 years’ experience in the upstream oil • Involved in the global petroleum business as a industry since the early 1970s, having start
Slide 28: Our Board
Our Board Ian Vann Trevor Garlick Malcolm Webb Non-executive Director Non-executive Director Non-executive Director • Joined BP in 1976 • Over 35 years’ experience in North Sea • Joined Burmah Oil in 1974 as a legal adviser • Directed and led BP's global exploration Upstream operations and developme
Slide 29: Senior Management Team
Senior Management Team Andy Bell Stephen Lambert Clara Altobell Mike Killeen VP Finance VP Commercial VP Technical VP Operations Danny Fewkes Carol Stewart Fergus Jenkins Group Treasurer Business Manager Manager of Projects 29 2018 Annual Results Presentation
Slide 30: For further information visit www.serica-energy.com
For further information visit www.serica-energy.com or email info@serica-energy.com 30 2018 Annual Results Presentation