Borders & Southern Petroleum Plc · LSE:BOR
Borders & Southern Petroleum — Investor Presentation (September 2024)
23 slides from Borders & Southern Petroleum's investor presentation, September 2024
Slide 1: Corporate Presentation
Corporate Presentation September 2024
Slide 2: Important Notice
Important Notice These materials (these "Materials") have been prepared by Borders & Southern Petroleum PLC (the "Company"). These Materials are confidential and may not be reproduced or otherwise distributed or disseminated, in whole or part, without the prior written consent of the Company, which
Slide 3: Opportunity Summary
Opportunity Summary • Prime focus continues to be the monetisation of the Darwin gas Condensate discovery o 462 MM bbls of recoverable liquids (1.3 Bn bbls recoverable liquids in adjacent structures) o Working with a large global advisor to bring in a partner to appraise the discovery o Once apprais
Slide 4: Corporate Overview
Corporate Overview Financial Summary Directors Board of Directors 30 June 2024 31 Dec. 2023 Harry Dobson Non-Executive Chairman Cash Balance $0.756 million $1.9 million Top 10 Operating Loss $0.578 million $1.06 million Shareholders Harry Baker Chief Executive Admin. Expense $0.58 million $1.14 mill
Slide 5: Darwin's Appraisal and Development
Darwin’s Appraisal and Development PL 018, 019, 020: 40 Blocks (c.10,000 sq. km) Darwin discovery and near-field prospects 2,517 sq.km. 3D seismic Sea Lion Darwin Scotia Stanley Loligo • Our Production Licences and Discovery Area were extended in December 2022. The revised expiry date is 31 December
Slide 6: Darwin Field: A Large Liquids Rich, Gas Condensate Discovery
Darwin Field: A Large Liquids Rich, Gas Condensate Discovery Darwin is a rich gas condensate field which is a very marketable product sold into refineries around the world at close to Brent prices. This is a large resource, the size of which has been verified by an independent third party. Estimated
Slide 7: Darwin Field: Exceptionally Imaged on 3D Seismic
Darwin Field: Exceptionally Imaged on 3D Seismic The seismic images of Darwin are exceptionally clear and illustrate very clearly the quality of the reservoir. Physical data recorded at the Darwin East well indicates that high production rates should be achieved. Darwin East Well Data Darwin East-1
Slide 8: Darwin Field: Initial Phase Costs & Payback
Darwin Field: Initial Phase Costs & Payback The phased development provides a very quick payback (1-2 years). The capital and operating costs would largely be fixed pre-production but the reservoir (production rate) risk would be eliminated after testing the first appraisal well so there will be hig
Slide 9: Organic Upside: Shelf and Near Field
Organic Upside: Shelf and Near Field In addition to the Darwin Field there are many other near field prospects that could potentially be brought into production using the Darwin cash flows. This optionality is a key feature of Borders & Southern Petroleum. The Aptian aged shelf prospects target the
Slide 10: Other Organic Growth: Slope and Fold Belt
Other Organic Growth: Slope and Fold Belt Beyond the immediate near field targets there are numerous low and high-risk targets within the prospect portfolio. West East North South Multiple well defined slope fans at a similar • Structural plays: > 4.6 billion barrels * Martin age to the main Darwin
Slide 11: Investment Case
Investment Case What makes Borders & Southern a sound investment and why now? • Technically sound discovery which can be developed using conventional technology • Fast payback of capital from production • Large number of growth options • Increased industry activity September 2024 11
Slide 12: Appendices
Appendices September 2024 12
Slide 13: Darwin Field: Project Expansion
Darwin Field: Project Expansion Following the initial development of Darwin East the project can be expanded using free cash flow by drilling additional wells on Darwin East or by incorporating Darwin West into the development. This ability to expand is a key value driver for Darwin. Initial Phase D
Slide 14: Industry Activity in the South Atlantic
Industry Activity in the South Atlantic NOAA ETOPO1 Global Relief Model Orange Basin Uruguay South Atlantic Ocean Outeniqua Basin Sea Lion Development Malvinas Basin Scotia Sea Pacific SF Ocean AP Weddell Sea September 2024 14
Slide 15: Current Industry Trends
Current Industry Trends • Investors don’t seem to believe market conditions will continue Little share price appreciation despite high dividends and buy backs • Capital had been diverted from upstream to ESG projects Many companies are rebalancing back to upstream • Due to depleted growth portfolios
Slide 16: Darwin is in 6500ft of Water Depth
Darwin is in 6500ft of Water Depth Source: Enverus (Bloomberg) September 2024 16
Slide 17: South Falkland Basin Met Ocean Conditions
South Falkland Basin Met Ocean Conditions World map of average wave heights (Blackledge et al 2012) 0° South American ‘Breakwater’ 30° Westerlies “Roaring Forties” 60° PD Glorioso (2005) South North Temp Burdwood Bank https://earth.nullschool.net/ RP Matano (2019) September 2024 17
Slide 18: Global Oil & Gas Upstream Capex
Global Oil & Gas Upstream Capex Over the last ten years investment has reduced with lower oil prices and the transition away from upstream to renewables but this trend is transitioning back towards upstream as it becomes clear that oil and gas will still be required for longer than initially envisag
Slide 19: Global Exploration Spend
Global Exploration Spend Exploration spend has also reduced with lower oil prices and the transition so if the industry wants to increase production it cannot rely on exploration projects as the lead time is too long. U.S. shale boom, 2010-2014 Financial crisis, 2008 $140 Exploration spend(US$ billi
Slide 20: Projected Declines in Non-OPEC Production Assuming No Additional Drilling
Projected Declines in Non-OPEC Production Assuming No Additional Drilling If upstream capital does not increase, production will decline quickly during this decade and beyond. The industry therefore needs to look at projects it can bring into production in the near term - Darwin is such a project. S
Slide 21: Global IOC Peer Group Free Cash Flow
Global IOC* Peer Group Free Cash Flow The reduction in capex and exploration has resulted in large increases in free cash flow so the industry has capital to spend on upstream projects. Oven ready prospects like Darwin with organic growth potential fit the bill for an industry that will be looking f
Slide 22: Industry valuations based on asset maturity are generally predictable
Industry valuations based on asset maturity are generally predictable based on precedent transactions A full carry by an incoming partner on Darwin on three appraisal wells is $2/BOE so comparable to other similar transactions. Source: LAB Energy September 2024 22
Slide 23: Borders & Southern Petroleum plc, 70 Pall Mall, London
Borders & Southern Petroleum plc 70 Pall Mall London SW1Y 5ES Telephone: 0207 071 6984 www.bordersandsouthern.com info@bordersandsouthern.com SP Angel Corporate Finance LLP Telephone 0203 470 0470 Tavistock (Financial PR) Telephone 0207 920 3150 September 2024 23
Borders & Southern Petroleum — Investor Presentation (September 2024) on 6ix