Slide 1: Investor Presentation March 2011
Investor Presentation March 2011
Slide 2: Disclaimer
Disclaimer The information contained in these slides and this presentation is being supplied to you by Ascent Resources plc on behalf of itself and its subsidiaries (together “the Company”) solely for your information and may not be reproduced or redistributed in whole or in part to any other person
Slide 3: Overview
Overview • Balanced portfolio with a number of near term, high impact opportunities – prioritising on-shore gas production, appraisal and exploration • Primary objective to rapidly advance the Petišovci/Lovászi/Ujfalu, Slovenia/Hungary Tight Gas Project - current independent P50 estimate of gas-in-p
Slide 4: Large European project portfolio
Large European project portfolio European oil and gas exploration and production = Core project = Other project 4
Slide 5: An attractive business model
An attractive business model European oil and gas exploration and production • Leveraging strong European gas prices • Geographically spread portfolio across on-shore Europe - operating in stable fiscal and legislative regimes • Balanced portfolio targeting productive formations in areas with existi
Slide 6: Strong European gas market
Strong European gas market Our pricing environment expected to remain strong EU27 Import Dependency to 2030 80% • > 50% of European gas is imported – forecast to 70% be c.75% by 2030 with declining North Sea 71% 74% 68% production 60% 60% 50% 48% 40% • Gazprom has 23% of the import market, with 41%
Slide 7: Petišovci/Lovászi/Ujfalu
1st Core Project Petišovci/Lovászi/Ujfalu Slovenia/Hungary Tight Gas Exploration and Development 7
Slide 8: Slovenia/Hungary
Slovenia/Hungary Slovenia Hungary Politically stable 9 9 Member of the Eurozone 9 8 Member of the EU 9 9 Access to industry infrastructure and services 9 9 Favourable historic licence terms 9 9 Favourable new licence terms 9 8 Dependent on energy imports 9 9 8
Slide 9: Petišovci-Lovászi/Ujfalu
Petišovci-Lovászi/Ujfalu Positioned to exploit a significant opportunity • 200 km2 project area straddling Hungary/ Slovenia border • Contains three former oil and gas fields: • Petišovci - SLO • Lovászi - HU • Ujfalu - HU • On-going Pg-11 well - the first drilled in the Petišovci field in 22 years,
Slide 10: Petišovci-Lovászi
Petišovci-Lovászi Slovenia/Hungary 10
Slide 11: Petišovci, Slovenia
Petišovci, Slovenia Positive results confirmed in first well, Pg-11 • Phase-1 of Pg-11 well completed in February 2011 - results exceed expectations – state of the art data set collected • Six Middle Miocene reservoirs targeted - all found to be gas bearing • Gas and condensate sampled and flared fr
Slide 12: Exploiting Petišovci
Exploiting Petišovci Detailed engineering and assessment work in progress • Integrating new data into geological model for preparation of Field Development Plan • Simple pipeline connection required to Geoplin national pipeline in field area • Modifications to existing facilities planned for condens
Slide 13: Lovászi/Ujfalu, Hungary
Lovászi/Ujfalu, Hungary Contiguous to play to Petišovci, Slovenia • Look-a-like structure within 10km of Petišovci in Hungary • Last well in Miocene section drilled in 1977 with gas shows • Ujfalu-III targets dual prospect with Miocene prospects as well as amplitude anomaly driven prospect • Potenti
Slide 14: Hermrigen/Essertines/Linden
2nd Core Project Hermrigen/Essertines/Linden Switzerland Oil & Gas Appraisal 14
Slide 15: Switzerland
Switzerland Low risk participation • Gas discovery by Elf Aquitane in 1972 and HYDROCARBON CONCESSIONS 1982 in Linden and Hermrigen – unexploited IN SWITZERLAND due to low price and no pipeline infrastructure Seeland – Freinisberg at that time FRANCE Hermrigen Entlebuch • Oil discovered by BEB in 19
Slide 16: Switzerland
Switzerland Low risk participation Flowed gas from Muschelkalk Only one Swiss gas field has been Boreholes produced despite Surface oil seeps extensive evidence of Surface gas seeps the presence of Jurassic oil and Bunter and Malm Flowed gas from Triassic gas gas shows U. Jurassic Tertiary-Mesozoic
Slide 17: Frosinone/Strangolagalli
3rd Core Project Frosinone/Strangolagalli Latina Valley, Italy Oil Exploration & Redevelopment 17
Slide 18: Latina Valley
Latina Valley Onshore Italy in highly prospective region Strangolagalli Concession with the Ripi oilfield • Proven oil producing area • Redevelopment of the Ripi field • Good quality oil from shallow (<1,000m) reservoirs • Original development in 1960 without any seismic • New seismic shot last year
Slide 19: Latina Valley
Latina Valley Onshore Italy in highly prospective region Anagni-2 Anagni-1 Fontana-1 New satellite data processing reveals additional prospect; new seismic commissioned 19
Slide 20: Eastern Hungary
Gas Production Eastern Hungary Penészlek 20
Slide 21: Penészlek, Hungary
Penészlek, Hungary Current production covering overheads • Production from PEN-101 and PEN-105 currently about 2.5 MMscfd (420 boepd) • Gas sales of approximately €550,000 per month • Fully automated production facility results in low overheads and high profitability • Production expected to continu
Slide 22: Detailed work programme
Detailed work programme Significant newsflow in 2011 and 2012 Activity 2011 2012 Cost Q1 Q2 Q3 Q4 Q1 Q2 €m Proposed Pg‐11 Sidetrack 2.5 Pg‐11 Completion 1.5 Pg‐I0 Drilling 3.6 Pg‐I0 Completion 1.5 Ujfalu‐III Drilling 4.0 Contingent Frosinone ‐ Drilling Frosinone ‐ Seismic Cento ‐ Seismic Ujfalu‐II D
Slide 23: Use of proceeds
Use of proceeds High drill bit exposure to core projects Allocation Action Budget 1st Core Project Pg-11 sidetrack & completion € 4.0m Petišovci/ Lovászi/ Ujfalu Pg-10 drilling & completion € 5.1m Slovenia/Hungary Ujfalu-III € 4.0m Fund Raising Expenses € 6.9m /Working Capital/G&A Including on-going
Slide 24: Success Case Economics
Success Case Economics Expected Typical Petišovci Well • Each successful well could yield net to Ascent (based on revenue price of €7/Mscf flat):2-6 MMscfd (350-1000 barrels of oil equivalent) • Net operating cash flow* of €5-11m per year • Well life expectancy of ~5-7 years depending on subsequent
Slide 25: Shareholder value creation
Shareholder value creation • finnCap project risked NAV of core projects of 22p offering significant near term upside • Significant cashflow generation expected within the next 18 months on success of Petišovci drilling • Prudently managed to maximise shareholder value and minimise dilution; • Havin
Slide 26: Placing details
Placing details Transaction size • Primary equity raise of €20m Deal Structure • Split placing • 100m shares placed firm • Balance conditionally placed, subject to shareholder approval • Non-underwritten Indicative Timetable • Commence confidential marketing 28 February 2011 • Pricing and allocation
Slide 27: Summary and Conclusion
Summary and Conclusion • Success of aggressive exploitation and development programmes planned for 2011 and 2012 expected to deliver strong operating cashflows • Balanced portfolio targeting known formations in productive areas mitigating risk • Operating in stable, highly prospective European count
Slide 28: Appendix
Appendix ascent resources plc
Slide 29: Ascent Asset Portfolio
Ascent Asset Portfolio Working Unrisked Resources Country Concession Type Key Future Wells Operator Interests (Net to AST)* (%) (Bcf) (MMbo(e)) Hungary Peneszlek - Nyírség Gas Production PEN-105A 49 Ascent 0.7 0.117 Lovaszi/Ujfalu** Gas E & P Ujfalu-II and III 50 Ascent 75 13 Igal-II Oil Exploration
Slide 30: Board of Directors
Board of Directors John Kenny - Non-Executive Chairman John has enjoyed an extensive career in the oil and gas sector where he has an excellent record of creating shareholder value. He co-founded the JP Kenny Group of Companies, which traded internationally in oil and gas engineering, sub-sea survey