Deltic Energy Plc · LSE:DELT
Deltic Energy — Investor Presentation (April 2022)
20 slides from Deltic Energy's investor presentation, April 2022
Slide 1: Corporate Presentation April 2022
CORPORATE PRESENTATION APRIL 2022
Slide 2: Important Notice
Important Notice By accepting this document, and in consideration for it being made available to such recipient, each recipient agrees to keep strictly confidential the information contained in it and any information otherwise made available by Deltic Energy Plc (the "Company"), whether orally or in
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 Dewar SMALL TEAM We are a small, focussed group of driven and respected industry professionals with over 100 years of experience within the E&P industry. The team is focussed on producing high quality technical work which advances the exploration portfolio at low cost. HIGH-I
Slide 5: Investor Base and Capital Structure
Investor Base and Capital Structure Strong and supportive shareholder base Key shareholders * Capital Structure IPGL (Michael Spencer) 16.8% Shares in issue 1,406m Options 129m Richard Sneller 10.5% Free float 72.3% Hargreaves Lansdown 10.1% Cash at 31st December 2021 £10.1m Canaccord 7.8% Debt NIL
Slide 6: Strategy
Strategy Gas dominated portfolio Identify. Explore. Monetise. Repeat. ▪ Increasingly important transition fuel ▪ High petrochemical / hydrogen demand ▪ UK increasingly reliant on foreign gas imports ▪ Positive medium to long term pricing trends > ORGANIC PORTFOLIO BUILD Exploration and appraisal > C
Slide 7: Commitment to ESG
Governance Commitment to ESG ▪ Strong corporate governance ▪ Board supported policies for H&S, Environment & ESG Health & Safety. Environment. Net Social Benefit. ▪ Assessment of the ESG issues plays a central role in strategic decision making ▪ Climate related disclosures in Annual Reports from 202
Slide 8: 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 commencing Autumn of 202
Slide 9: Southern North Sea Licence Portfolio
Southern North Sea Licence Portfolio Strategic acreage position in underexplored area of world class gas basin P2252/8 – Pensacola (30% DELT, 70% Shell) P2428 – Plymouth (40% DELT, 60% Capricorn) ▪ Zechstein Carbonate Reef ▪ Prospects in Carboniferous, Zechstein and Leman ▪ Gross P50 Prospective Res
Slide 10: P2252 – Pensacola (30% WI)
P2252 – Pensacola (30% WI) Fully funded well being drilled in Q3 2022 Fully funded, high impact exploration well operated by Shell ▪ High impact prospect in emerging Zechstein Reef fairway ▪ Gross P50 Prospective Resources of 309 BCF (P90-P10 Range = 39 to 1,181 BCF) ▪ GCoS upgraded to 55% following
Slide 11: P2437 – Selene (50% WI)
P2437 – Selene (50% WI) S N Large unappraised discovery in Leman fairway Missed pay opportunity unlocked by modern depth conversion ▪ Previously overlooked due to depth conversion challenges – resolved with modern workflows ▪ Updated depth structure maps explains gas presence in the legacy 48/8b-2 w
Slide 12: P2428 - Plymouth (40% WI)
P2428 - Plymouth (40% WI) Multiple prospects being matured on new 3D data Cupertino Partnered with Capricorn Energy following August 2021 farm out Plymouth ▪ Attracted quality partner in Capricorn Energy following 2021 farm out process Richmond ▪ Capricorn acquired 60% working interest and operators
Slide 13: P2567 - Cadence (40% WI)
P2567 - Cadence (40% WI) Cupertino TCF scale potential across multiple prospects Richmond Partnered with Capricorn Energy following August 2021 farm out Cordova ▪ Diverse and material range of opportunities in Carboniferous and Triassic on block Cadence ▪ Located close to recent Pegasus discovery an
Slide 14: P2560, 2561 & 2562 (30% WI)
P2560, 2561 & 2562 (30% WI) South Breagh Area – future drilling opportunities Breagh Field Partnered with Capricorn Energy following August 2021 farm out ▪ Capricorn acquired 70% working interest in return for back costs and a full carry through to well investment decision on each licence ▪ Large un
Slide 15: Central North Sea Licence Portfolio
Central North Sea Licence Portfolio Low risk gas / condensate prospects close to existing infrastructure P2542 – Syros (100% DELT) ▪ Fulmar / Skagerrak Rotated Fault Block Prospect ▪ Analogous to adjacent Cayley Field (first gas June 2021) ▪ Newly reprocessed seismic purchased Q1 2022 ▪ Currently up
Slide 16: 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 due to launch in Autumn 2022 ▪ Expectation is that new licences would be awarded in Q2 2023 ▪ Provides a low cost opportunity to re-build the operated
Slide 17: Indicative Operational Timeline
Indicative Operational Timeline Active schedule with a funded pathway to drilling activity Gross P50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 H1 Prospective Resource 2022 2022 2022 2023 2023 2023 2023 2024 BCF / MMBOE / WI% P2252 PENSACOLA *1 309 / 58.7 / 30% P2437 SELENE WID Site Survey & Well Planning *2 318 / 60.4 /
Slide 18: Strong UK Gas Price Outlook
Strong UK Gas Price Outlook Structural changes in gas pricing enhances Deltic project economics UK Natural Gas – NBP Historic & Futures (p/therm) Valuation at different gas prices shown as p/share 83 25 Pensacola Selene Plymouth 50 15 50.00 36 27 ▪ Gas prices rebounded dramatically in 2021 as global
Slide 19: Key Investment Highlights
Key Investment Highlights Strategic licences, world class partners, firm drilling activity and running room Small Team High Impact Portfolio ▪ Extensive UKCS exploration experience ▪ Existing portfolio of operated and non-operated assets ▪ Strong track record of acquiring assets in competitive in SN
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