northern petroleum plc - cabot energy plc€¦ · 14 fully awarded permits 3 applications contested...

Northern Petroleum Plc

AGM

June 29th 2011

January 2010

• Geesbrug gas field on-stream for first month of commercial production

• Tiendeveen-1 reaches Total Depth after drilling difficulties. Made ready to test

Slide 2

March 2010

• Northern as Operator completed 1,520 km² 3D

seismic survey offshore Sicily

paid by Shell

• Zuid Friesland III licence

awarded with 2 gas discoveries

(NAM, Total & Suncor as

partners)

Slide 3

April 2010

• Baxter’s Copse existing oil discovery on new UK onshore permit assessed by RPS to give Northern

2.66 million barrels of 2P reserves

• Nigel Wright joins the Board

Slide 4

June 2010

• Place 11,764,706 shares to raise €11.5 million

• Co-operation Agreement concluded with PGS

Slide 5

July 2010

• New Italian Decree introducing

offshore drilling constraints

affecting Northern less than

Market chatter and Daily Telegraph

article unfortunate headline

suggest. The New regulations

affect inshore waters, but are often

reported as relating to all offshore

or a deepwater drilling ban.

Slide 6

August 2010

• Nigel Wright leaves the Board. Chris Foss resumes previous role.

Slide 7

September 2010

• Brakel gas field starts commercial production.

Slide 8

November 2010

• UK sales efforts discontinue as drilling starts at Markwells Wood

• Operations generally harmonious with local residents

Slide 9

December 2010

• The drilling of the La Tosca prospect is farmed out to Orca Exploration Group Inc

• The Wijk en Aalburg gas field is placed on-stream, Northern’s fourth

Slide 10

January 2011

• Oil discovery at Markwells Wood confirmed.

Commencement of core analysis and development of

acidizing programmes prior to testing

Slide 11

March 2011

• Farmout of seismic programmes

in Southern Adriatic to Azimuth Limited

Slide 12

March 2011

• Drilling operations start of the

Zædyus prospect offshore Guyane

Slide 13

April 2011

• Shell becomes Representivo Unico for Joint Venture offshore West Sicily

Slide 14

May 2011

• 12.6% downgrade of 2P reserves and reduction to 2011 production forecasts for Netherlands.

Company considered well placed to absorb this change and after reassessment of technical factors

continue to develop fields in the Netherlands.

• Reserve base is now 89.44 million barrels oil equivalent

• The Company holds interest in 6 previous gas discoveries in the Netherlands which are currently

outside the reserve evaluation of which 4 have been independently assessed as a combined 52 Bcf

contingent resource to the company

Slide 15

89.4 Millions Barrels at 31st December 2010Operator 50 Licences/Non Operator 3 Licences

Slide 16

Guyane:1.25% interest in offshore

licence operated by Tullow

Oil. Shell and Total are

partners. Drilling 300-700

million bbl prospect

Netherlands:6 onshore production licences

1 offshore production licence

3 onshore exploration licences

6 gas fields in production

2P reserves:

29.3 million boe

Italy:

14 Fully awarded permits

3 Applications contested

20 Applications un-contested

2P reserves, 100% Oil;

53.2 million bbls

Prospective resources:

8.4 billion boe identified to date

Large exploration potential

United Kingdom:

10 onshore exploration

and production licences

1 offshore application

2P reserves:

7.0 million boe

100% Oil

Planned Activities

Farmout of 15% of 2 Permits in Southern Adriatic to Azimuth, plan to acquire a 2D and two 3-D seismic surveys

Working with Shell on a drilling decision/forward plan for offshore west of Sicily fold and thrust belt

Drilling of La Tosca prospect in the Longastrino permit with farmin partner Orca Exploration

Ongoing discussions for the farmout of other permits in Italy

Project with EBN to study West Netherlands Basin shale oil potential

New production well at Geesbrug gas field in Netherlands

Drilling first Papekop oil field production well in Netherlands

Long term test of Ottoland oil well in Netherlands

Workover and field development planning for Woudsend and Oppenhuizen discoveries in Netherlands

Exploration wells on Drenthe III, Utrecht and Oosterwolde licences in Netherlands

Testing Markwells Wood oil discovery

Drilling Havant exploration well

Appraisal/development well at Baxters Copse

Appraisal of Hedge End oil discovery

Slide 17


29th June 2011

AGM – Financial Summary

Northern Petroleum Plc – AGM Resolutions Slide 19

2010 Financials - Summary

(i) Earnings before interest (and other finance income and costs), tax, depreciation, depletion, amortisation and write offs of oil and gas assets.

(ii) In addition to the above, is calculated before share based payments and pre-licence costs.

Year ended Year ended

31 December 31 December

2010 2009

€’000 €’000

Revenue 14,968 5,084

Gross profit 6,697 1,482

EBITDA (i) 5,083 (2,231)

Adjusted EBITDA (ii) 6,475 (174)

Loss for the year (1,155) (2,151)

Basic loss per share on result for the year (1.3) € cents (2.9) € cents

Capital expenditure 13,688 29,707

Cash and cash equivalents 21,430 15,002

Other working capital 2,466 3,476

Net assets 85,371 73,764

Total Group distributable reserves 54,039 54,769


2010 Financials - Highlights

• The Group achieved record revenues of €15 million;

• Northern made a pre tax loss of €0.02 million for the year, as a consequence of

additional non cash depletion and impairment charges of approximately €3 million;

• The Group made capital investments of €13.7 million to develop its reserves and

resources; and

• At the end of 2010 Northern had €21.4 million of cash, plus €2.4 million of working

capital.


Financials – Current and Forward

• As at 27 June 2011 Northern had €24.5 million of cash;

• The forecasted range for 2011 Group production is now 1,550 to 1,650 boepd;

• Northern expects to make capital investments of approximately €15 million in 2011

developing its reserves and resources; and

• Northern has no external debt, but has the production and reserve base to in due

course obtain debt on appropriate terms.


29th June 2011

End of Presentation


29th June 2011

AGM Resolutions


Resolution 1 - Ordinary

“To receive the report of the Directors and the audited accounts for

the year ended 31 December 2010.”



“To re-appoint KPMG Audit Plc as auditors and to authorise the

Directors to fix their remuneration.”



“To re-elect A N Brewer (who retires from office in accordance with

Article 108 of the Company's Articles) as a Director of the

Company.”



“To authorise the Directors, pursuant to and in accordance with section 551 of

the Companies Act 2006 (the “Act”) to exercise all powers of the Company to

allot ordinary shares in the capital of the Company and grant rights to

subscribe for or convert any security into ordinary shares up to a maximum

aggregate nominal value of £1,162,500 (being approximately 25% of the

Company’s issued share capital as at the date of this notice), provided that

such authority shall expire at the conclusion of the next Annual General

Meeting of the Company, except that the Directors may, before such expiry,

make offers or agreements which would or might require ordinary shares to

be allotted or rights to be granted after such expiry and allot ordinary shares

or grant rights in pursuance of such offers or agreements.”


Resolution 5 - Special

“To authorise the Directors, pursuant to and in accordance with section 570

and 573 of the Act, to allot equity securities (as defined in section 560 of the

Act) for cash as if sub-section 561 of the Act did not apply to the allotment

of equity securities pursuant to the authority conferred on them under

section 551 of the Act up to the aggregate nominal value of £465,000 (being

approximately 10% of the Company’s issued share capital as at the date of

this notice), such power to expire on the earlier of the conclusion of the next

Annual General Meeting of the Company and 15 months after the date of the

resolution (but so as to enable the Company, before the expiry of such

power, to make offers or agreements which would or might require equity

securities to be allotted after such expiry and to enable them to allot equity

securities for cash pursuant to such offers or agreements as if the power

conferred thereby had not expired).”


Resolution 6 - Special

“To authorise the Company, generally and unconditionally, to make marketpurchases (within the meaning of section 693(4) of the Act) pursuant to andin accordance with section 701 of the Act of fully paid ordinary shares in thecapital of the Company upon and subject to the following conditions butotherwise unconditionally:

• maximum of 4.65m shares;

• maximum price of 105% of the average of the middle market quotations for

an ordinary share for the five business days immediately preceding the day

on which such ordinary share is contracted to be purchased;

• minimum price shall be the nominal value of such ordinary share; and

• authority to expire earlier of i) next AGM or ii) 15 months.”


The AGM is now closed


Post AGM Presentation

Netherlands: Potential to Increase Production

Slide 32

Good inventory of new production

projects

ProducingWaalwijk

P12

Drenthe IV- Grolloo

Drenthe III – Geesbrug

Brakel

Andel III - Wijk en Aalburg

Reserves under developmentDrenthe III - Geesbrug expansion

Papekop

Andel III – Ottoland

Project Development of existing discoveries Zuid Friesland - Woudsend Gas

- Oppenhuizen Gas

Utrecht – North Ottoland Gas

Andel III – Kerkwijk Gas

Utrecht – Willeskop Gas

Exploration ProspectsOosterwolde Gas

Utrecht – Everdingen South Gas

Utrecht – Meerkerk South Gas

Drenthe III - Lhee Gas

Shale Oil Potential

Netherlands Gas Prices 2010 - 2011

Slide 33

West Netherlands Basin – unconventional oil shale potential

NuTech Energy Alliance report quote based on the analysis of eightwells in the Northern operated licences in the West Netherlands Basin

“In further analysing the shale, the histograms comparing the various aspects of the shale with the Eagle Ford and the Niobrara – two of the best shales in the US – are so favourable that we consider this to be an even better quality of shale for production purposes. The hydrocarbon potential certainly looks to be mostly oil, and with very high porosity and permeability in the shale by comparison to the US plays.”

Further work is being undertaken to quantify the oil resource potential of this shale which is present in all the Northern licences in the West Netherlands Basin; Andel III, Engelen, Waalwijk and Utrecht.

Slide 34

ITALY Prospects, leads and fields distribution

Slide 36

ITALY Prospects, leads and fields distribution

Slide 37

Southern Adriatic – Fields and Prospects

Slide 38

53.16 million barrels of Probable Reserves

in Rovesti and Giove discoveries

Real potential in the exploration upside

estimated at 8.5 billion barrels of oil in

place and 10 TCF of gas in place

Top Pliocene

Top Messinian

Top Carbonate

Top Jurassic/ dolomites?

Top Triassic?

Rovesti-1

Rovesti

NNWSSE

Oil presence in

Rovesti = 2370m

TVDSS

Spill points =

2562m TVDSS,

ODT = 2562m

from log data

11.725 km2

Areal extent

based upon ODT

Rovesti – In Place volumes & Reserves

• STOIIP (million of barrels)

• P90: 144 MMbbls

• P50: 199 MMbbls

• P10: 256 MMbbls

• Mean: 199 MMbbls

Reserves calculation – Blackwatch Petroleum Services

• Reserves based upon

a Productivity Index of

1.5 (horizontal wells)

Giove

Depth structure map – Top Carbonate sequence

• Drilled 1998 Enterprise Oil

• Water depth c. 600m

• Platform margin build-up

• Oligocene to Cretaceous reservoir

• Trap located on flank of basin.

• Constrained by dip and major basin margin

• Tested by Giove-1 and Giove-2

• 16o API oil

OWC 1143m

Top Pliocene

Top Eocene

Top Carbonate

Top Cretaceous

Giove-1

Seismic Cross section through Giove Discovery

SW NE

Giove – In Place volumes and Reserves

• STOIIP (Million of barrels)

• P90: 73

• P50: 135

• P10: 218

• Mean 142

Reserves calculation – Blackwatch Petroleum Services

North Sea analogue – Brae Trend

Approximate SAME SCALE

Example of oil trapped on the shelf, against the shelf margin and in the basin

Shelf margin

Shelf margin

Shelf margin

Southern AdriaticNorth Sea

Brae

Giove

Rovesti

Aquila

Cygnus

South Brae, Miller Fields – North Sea

Depositional model – South Brae field – after C.C.Turner et al

16/7a-1016/7a-8

South Brae Field Miller Field

16/8b-216/8b-3 16/8-1

Aquila field (being re-developed by Eni)

AquilaGiove

NESW

Top Pliocene

Top Messinian

Top Carbonate


Top Triassic?

Cross-section – After Enterprise Oil Italia

Aquila field structural setting analogous to Miller field, Viking Graben

Cygnus Prospect - re-sedimented carbonates as at Aquila

Area of greater erosion

– fan entry point

SENW

Erosion of the Top

Carbonate (blue)

indicating sediment entry

points to basin

Schematic of

turbidite fan

complex

Top Pliocene

Top Messinian

Top Carbonate

Giove

Aquila field

Medusa

discovery

Cygnus

Cygnus Prospect

Top Pliocene

Top Messinian

Top Carbonate


Top Triassic?

Cygnus prospect – located

down dip of platform margin –

“toe of slope” location.

Seismic character change

beneath “Top Carbonate” and

likely lateral extension

basinwards as at Aquila field

NESW

Cygnus Prospect structural setting analogous to Brae fields, Viking Graben

Medusa discovery

Cygnus

Comparison - Falklands & AdriaticSea Lion is a submarine fan, Cygnus prospect and Aquila field are submarines fans

Shelf margin

Shelf margin

Southern AdriaticFalklands

Giove

Rovesti

Aquila

Source: Rockhopper Exploration

Cygnus

Sea Lion

Approximate SAME SCALE

Southern Adriatic Analogue - Golden Lane - Mexico

POZA RICA FIELD

• STOIIP: 4810 MMbbls

• Reserves: 2070 MMbbls

• GIIP: 5502 Bcf

• Reserves: 3718 Bcf

Platform

Golden Lane

Slope and basin

Poza Rica

Example of oil trapped in carbonates on the shelf, against the shelf margin and in the basin

Data source - IHS

“The world’s largest

deepwater carbonate field”

600 million bbls

prospect in Liassic

Carbonate

450 million bbls

prospect in

Triassic Carbonate

800 million bbls

in 4 Prospects

Sicily Channel Potential – Prospects, leads and fields distribution

Slide 50

Over 1 Tcf Gas being

developed by Eni

in three discoveries

Ionian Sea – Prospects, leads and fields distribution

Slide 51

Eastern Po Valley Potential – Prospects, leads and fields

La Tosca

La Tosca – mean 44 bcf

Other 100 bcf

Slide 52

United Kingdom

Production, three oil discoveries plus exploration

Production

PL211 (Horndean) & PEDL 070 (Avington)

Exploration

PEDL155 and PEDL256 Havant Prospect

Existing Discoveries

PEDL126 Markwells Wood Oil Discovery to be tested Q3 2011

PEDL233 Baxter's Copse Oil Discovery to be drilled 2012

PEDL125 Hedge End Oil Discovery – potential drill site located

Slide 53

Guyane

Slide 54

Boundary

Settled

Disputed

Boundary

GuyaneCurrently Drilling 300-700 million bbl. Zædyus prospect

Slide 55

Northern has 1.25% interest, Tullow Oil 27.5%, Shell 45%, Total 25%

Also a billion barrel potential in giant Matamata prospect

Planned Activities

Farmout of 15% of 2 Permits in Southern Adriatic to Azimuth, plan to acquire a 2D and two 3-D seismic surveys

Working with Shell on a drilling decision/forward plan for offshore west of Sicily fold and thrust belt

Drilling of La Tosca prospect in the Longastrino permit with farmin partner Orca Exploration

Ongoing discussions for the farmout of other permits in Italy

Project with EBN to study West Netherlands Basin shale oil potential

New production well at Geesbrug gas field in Netherlands

Drilling first Papekop oil field production well in Netherlands

Long term test of Ottoland oil well in Netherlands

Workover and field development planning for Woudsend and Oppenhuizen discoveries in Netherlands

Exploration wells on Drenthe III, Utrecht and Oosterwolde licences in Netherlands

Testing Markwells Wood oil discovery

Drilling Havant exploration well

Appraisal/development well at Baxters Copse

Appraisal of Hedge End oil discovery

Slide 56


End of Post AGM Presentation

northern petroleum plc - cabot energy plc€¦ · 14 fully awarded permits 3 applications contested...

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