OER Corporate Presentation September 2015 Q2 ?· CORPORATE PRESENTATION September 2015 Energy Resources…

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<ul><li><p>CORPORATEPRESENTATION </p><p>September 2015</p><p>Energy Resources Inc.</p></li><li><p>Disclaimer</p><p>This presentation includes certain forward looking statements with respect to certain development projects, potential collaborative partnerships, results of operations and certain plans and objectives of the Company including, in particular and without limitation, the statements regarding potential sales revenues from projects, both current and under development, possible launch dates for new projects, ability to successfully integrate acquisitions or achieve production targets, and any revenue and profit guidance. By their very nature forward looking statements involve risk and uncertainty that could cause actual results and developments to differ materially from those expressed or implied. The significant risks related to the Companys business which could cause the Companys actual results and developments to differ materially from those forward looking statements are discussed in the Companys annual report and other filings. All forward looking statements in this presentation are based on information known to the Company on the date hereof. The Company will not publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise, other than is required by law.</p><p>Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. All estimates of reserves and resources are classified in line with NI 51-101 regulations and Canadian Oil &amp; Gas Evaluation Handbook standards. All estimates are from </p><p>stIndependent Reserves Evaluator Report having an effective date of 31 December 2014. BOEs [or McfGEs, or other applicable units of equivalency] may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl [or an McfGE conversion ratio of 1 bbl: 6 Mcf] is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.</p><p>The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.</p><p>Reserves: Reserves are volumes of hydrocarbons and associated substances estimated to be commercially recoverable from known accumulations from a given date forward by established technology under specified economic conditions and government regulations. Specified economic conditions may be current economic conditions in the case of constant price and un-inflated cost forecasts (as required by many financial regulatory authorities) or they may be reasonably anticipated economic </p><p>conditions in the case of escalated price and inflated cost forecasts.</p><p>Possible Reserves: Possible reserves are quantities of recoverable hydrocarbons estimated on the basis of engineering and geological data that are less complete and less conclusive than the data used in estimates of probable reserves. Possible reserves are less certain to be recovered than proved or probable reserves which means for purposes of reserves classification there is a 10% probability that more than these reserves will be recovered, i.e. there is a 90% probability that less than these reserves will be recovered. This category includes those reserves that may be recovered by an enhanced recovery scheme that is not in operation and where there is reasonable doubt as to its chance of success. </p><p>Proved Reserves: Proved reserves are those reserves that can be estimated with a high degree of certainty on the basis of an analysis of drilling, geological, geophysical and engineering data. A high degree of certainty generally means, for the purposes of reserve classification, that it is likely that the actual remaining quantities recovered will exceed the estimated proved reserves and there is a 90% confidence that at least these reserves will be produced, i.e. there is only a 10% probability that less than these reserves will be recovered. In general reserves are considered proved only if supported by actual production or formation testing. In certain instances proved reserves may be assigned on the basis of log and/or core analysis if analogous reservoirs are known to be economically productive. Proved reserves are also assigned for enhanced recovery processes which have been demonstrated to be economically and technically successful in the reservoir either by pilot testing or by analogy to installed projects in analogous reservoirs.</p><p>Probable Reserves: Probable reserves are quantities of recoverable hydrocarbons estimated on the basis of engineering and geological data that are similar to those used for proved reserves but that lack, for various reasons, the certainty required to classify the reserves are proved. Probable reserves are less certain to be recovered than proved reserves; which means, for purposes of reserves classification, that there is 50% probability that more than the Proved plus Probable Additional reserves will actually be recovered. These include reserves that would be recoverable if a more efficient recovery mechanism develops than was assumed in estimating proved reserves; reserves that depend on successful work-over or mechanical changes for recovery; reserves that require infill drilling and reserves from an enhanced recovery process which has yet to be established and pilot tested but appears to have favorable conditions</p><p>OER</p><p>This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Oando Energy Resources Inc (the Company) shares or other securities.</p><p>2</p></li><li><p>3</p><p>Share Structure</p><p>9830.66 2.03/0.63 344,673,4418,410,000Enterprise ValueMarket Capitalization Net Debt</p><p>457$ 526$ MM $ M</p><p>Capital Market Overview</p><p>Information as at 7 September 2015</p><p>OER</p><p>Share Trading History</p><p>796,049,213</p><p>Calculation of Net Debt excludes deduction of Restricted Cash</p><p>Date Event/ActivityS/N</p><p>Reverse take-over of Exile Resources Inc</p><p>OER signs Agreements to Acquire Conoco Phillips Nigerian Assets for US$1.79bn</p><p>OER announces additional production capacity from Ebendo Field</p><p>Oando announces the execution of a Share Purchase Agreement for the sale of EHGC</p><p>OER Completes US$50 Million Private Placement and converts Loan to Equity</p><p>OER announces Nigerian Government approval of $1.65 billion Acquisition of Conoco </p><p>Phillips </p><p>July 31,2012</p><p>Dec 21, 2012</p><p>May 17, 2013</p><p>Dec 24, 2013</p><p>Feb 27, 2014</p><p>Jun 27, 2014</p><p>a</p><p>b</p><p>c</p><p>d</p><p>e</p><p>f</p><p>Date Event/ActivityS/N</p><p>OER Completes Acquisition of Nigeria Upstream Business of Conoco Philips</p><p>Completes Umugini Pipeline</p><p>Production Commencement in Qua Iboe</p><p>Increase in Reserves; Announces YE 2014 Results</p><p>Releases Q1, 2015 Results</p><p>Releases H1, 2015 Results</p><p>July 30,2014</p><p>Dec 5, 2014</p><p>Mar 9, 2015</p><p>Apr 9, 2015</p><p>May 1, 2015</p><p>Aug 4, 2015</p><p>g</p><p>h</p><p>I</p><p>j</p><p>k</p><p>L</p><p>L</p><p>31 J</p><p>ul-2012</p><p>30 A</p><p>ug</p><p>-2012</p><p>30 S</p><p>ep</p><p>-2012</p><p>31 O</p><p>ct-</p><p>2012</p><p>30 N</p><p>ov-</p><p>2012</p><p>31 D</p><p>ec-2</p><p>012</p><p>31 J</p><p>an-2</p><p>013</p><p>28 F</p><p>eb</p><p>-2013</p><p>31 M</p><p>ar-</p><p>2013</p><p>30 A</p><p>pr-</p><p>2013</p><p>30 M</p><p>ay-</p><p>2013</p><p> 30 J</p><p>un-2</p><p>013</p><p>31 J</p><p>ul-2013</p><p>31 A</p><p>ug</p><p>-2013</p><p> 30 S</p><p>ep</p><p>-2013</p><p> 31 O</p><p>ct-</p><p>2013</p><p> 30 N</p><p>ov-</p><p>2013</p><p> 31 D</p><p>ec-2</p><p>013</p><p> 30 J</p><p>an-2</p><p>014</p><p>28 F</p><p>eb</p><p>-2014</p><p> 31 M</p><p>ar-</p><p>2014</p><p> 30 A</p><p>pr-</p><p>2014</p><p> 31 M</p><p>ay-</p><p>2014</p><p> 30 J</p><p>un-2</p><p>014</p><p> 31 J</p><p>ul-2014</p><p> 31 A</p><p>ug</p><p>-2014</p><p>30 S</p><p>ep</p><p>-2014</p><p> 31 O</p><p>ct-</p><p>2014</p><p> 30 N</p><p>ov-</p><p>2014</p><p> 31 D</p><p>ec-2</p><p>014</p><p> 31 J</p><p>an-2</p><p>015</p><p>28 F</p><p>eb</p><p>-2015</p><p>31 M</p><p>ar-</p><p>2015</p><p>30 A</p><p>pr-</p><p>2015</p><p>31 M</p><p>ay-</p><p>2015</p><p>30 J</p><p>un-2</p><p>015</p><p>31 J</p><p>ul-2015</p><p>31 A</p><p>ug</p><p>-2015</p><p>db</p><p>a</p><p>0.5</p><p>0</p><p>1.0</p><p>1.5</p><p>2.0</p><p>2.5</p><p>c e</p><p>g</p><p>h</p><p>i</p><p>j</p><p>k</p></li><li><p>4</p><p>Historical Context</p><p>Ebendo productionramp up</p><p>OER</p><p>Formation of the largest indigenous oil and gas producer in Nigeria</p></li><li><p>Asset Portfolio OER</p><p>5</p><p>OML 60</p><p>OML 61</p><p>OML 62</p><p>OML 63</p><p>OML 125</p><p>OML 56</p><p>OML 13*</p><p>20%</p><p>20%</p><p>20%</p><p>20%</p><p>15%</p><p>42.75%</p><p>40%</p><p>AGIP</p><p>AGIP</p><p>AGIP</p><p>AGIP</p><p>ENI</p><p>Energia</p><p>Network E&amp;P</p><p>Asset W.I. Operator</p><p>OML 134OML 90*OML 131OML 122*OML 145</p><p>15%40%100%</p><p>5% Oil, 12% Gas20% </p><p>ENISogenal</p><p>OERPeak</p><p>ExxonMobil</p><p>Asset W.I. Operator</p><p>EEZ 5</p><p>EEZ 12</p><p>OPL 321&amp; 323</p><p>100%</p><p>N/A</p><p>30%</p><p>OER</p><p>TBD</p><p>KNOC</p><p>Asset W.I. Operator</p><p>OML 125</p><p>NIGERIA</p><p>OPL 321 &amp; 323</p><p>OML 134</p><p>OML 122 - Bilabri Field</p><p>OML 90 - Akepo Field</p><p>OML 56 - Ebendo Field</p><p>CAMEROON</p><p>EQUATORIALGUINEA</p><p>EEZ Block 5</p><p>SAO TOME&amp; PRINCIPE</p><p>Production Phase</p><p>Development Phase</p><p>Exploration Phase</p><p>SAO TOME &amp; PRINCIPE - NIGERIAJOINT DEVELOPMENT ZONE</p><p>GABON</p><p>EEZ Block 12</p><p>OML 145</p><p>OML 131</p><p>OM</p><p>L 62</p><p>OML 60</p><p>OML 61</p><p>OML 63</p><p>OML 13 - Qua Ibo Field</p><p>*OER is Technical Partner</p></li><li><p>6</p><p>Production, Reserves &amp; Resources</p><p>All reserves &amp; resources estimates are classified in line with NI 51-101 regulations and Canadian Oil &amp; Gas Evaluation Handbook standards stAll estimates are from Independent Reserves Evaluator Report dated 31 December 2014</p><p>Average Net Production as at H1 2015 </p><p>OER2</p><p>P R</p><p>ese</p><p>rve</p><p>s</p><p>2C</p><p> Re</p><p>so</p><p>urc</p><p>es</p><p>Pro</p><p>du</p><p>ctio</p><p>n</p><p>OMLs 60-6332%</p><p>OML 145 28%</p><p>121.9MMboe</p><p>OML 131 34%</p><p>OML 13 0%</p><p>OML 134 1%</p><p>OML 122 0%</p><p>OML 56 1%</p><p>OML 125 0%</p><p>56,163</p><p>OML 56 3%</p><p>boepd</p><p>OML 125 5%</p><p>OMLs 60-6391%</p><p>420.3MMboe</p><p>OML 562%</p><p>OMLs 60-6395%</p><p>OML1252%</p><p>OML 131%</p><p>OML 13 1%</p><p>Pro</p><p>du</p><p>ctio</p><p>n</p><p>Oil &amp; Condensate37% </p><p>NGL6%</p><p>Gas Sales57%</p><p>56,163boepd</p><p>OML 903%</p></li><li><p>7</p><p>Capital Structure</p><p>Assumes closing share price of US$0.57 as at 7 September 2015All information in US Dollars</p><p>OERM</p><p>ark</p><p>et C</p><p>ap</p><p>italis</p><p>ation</p><p>Oando PLC 93.8% </p><p>Public 6.2% </p><p>US$ M</p><p>Net D</p><p>eb</p><p>t</p><p>526</p><p>Subordinated DebtFacility LIBOR + 5%1 Year Tenor</p><p>RBL Facility LIBOR + 8.5% 5.5 Year Tenor</p><p>US$ M</p><p>Ente</p><p>rprise</p><p> Valu</p><p>e</p><p>Debt54%</p><p>Market Capitalization46%</p><p>US$</p><p>Senior CorporateFacility LIBOR + 9.5% 6 Year Tenor </p><p>M</p><p>Calculation for Net Debt excludes deduction of Restricted Cash</p><p>457</p><p>983</p><p>209US$ M</p><p>242US$ M</p><p>99US$ M</p></li><li><p>8Information dated as at 7 September 2015Enterprise Value calculated as Market Capitalization plus Net DebtLast reported production and reserves numbers used for Peers</p><p>Peer Valuation OER</p><p>Enterprise Value / Daily Production (US$/boepd)</p><p>OER Afren Seplat Eland Mart Tullow</p><p>180</p><p>160</p><p>140</p><p>120</p><p>100</p><p>80</p><p>60</p><p>40</p><p>20</p><p>0</p><p>Enterprise Value / 2P (US$/boe)</p><p>Market Capitalization / 2P (US$/boe)</p><p>OER Afren Seplat Eland Mart Tullow</p><p>45</p><p>40</p><p>35</p><p>30</p><p>25</p><p>20</p><p>15</p><p>10</p><p>5</p><p>0</p><p>Enterprise Value / 2P+2C (US$/boe)</p><p>OER Afren Seplat Eland Mart Tullow</p><p>45</p><p>40</p><p>35</p><p>30</p><p>25</p><p>20</p><p>15</p><p>10</p><p>5</p><p>0</p><p>OER Afren Seplat Eland Mart Tullow</p><p>45</p><p>40</p><p>35</p><p>30</p><p>25</p><p>20</p><p>15</p><p>10</p><p>5</p><p>0</p><p>1.81 2.40 2.74 2.30</p><p>9.89</p><p>5.11</p><p>1.09 2.334.29</p><p>5.658.12</p><p>17.55</p><p>32.8846.72 38.33 42.85</p><p>85.46</p><p>2.34</p><p>6.49 5.493.71</p><p>23.37</p><p>18.58</p></li><li><p>Key Metrics &amp; Comparables</p><p>Market Capitalization as at 7 September 2015 </p><p>OER</p><p>9</p><p>Avg. Daily Prod. (boepd; net)</p><p>2P Reserves (mmboe)</p><p>2P+2C Resources (mmboe)</p><p>Base Currency Share Price</p><p>US$ Share Price</p><p>No. of Shares Outstanding</p><p>Market Cap. (US$mm)</p><p>Net Debt (US$mm)</p><p>Enterprise Value (US$mm)</p><p>EV/2P (US$/boe)</p><p>EV/2P+2C(US$/boe)</p><p>EV/Avg. Daily Prod.</p><p>(US$00/bopd)</p><p>COMPANY Afren Seplat Eland O&amp;G Mart Tullow Average OER</p><p> 31,819 </p><p>162</p><p>438</p><p>N/A</p><p>N/A</p><p>N/A</p><p> - </p><p> 1,052 </p><p> 1,052 </p><p>6.49</p><p>2.40</p><p>32.88</p><p> 32,580 </p><p>281</p><p>562</p><p>0.76</p><p>1.19</p><p> 553 </p><p> 656 </p><p> 886 </p><p> 1,542 </p><p>5.49</p><p>2.74</p><p>46.72</p><p> 3,500 </p><p>31</p><p>50</p><p>0.55</p><p>0.86</p><p> 155 </p><p> 133 </p><p> (18)</p><p> 115 </p><p>3.71</p><p>2.30</p><p>38.33</p><p> 7,277 </p><p>11</p><p>26</p><p>0.20</p><p>0.17</p><p> 357 </p><p> 62 </p><p> 195 </p><p> 257 </p><p>23.37</p><p>9.89</p><p>42.85</p><p> 74,600 </p><p>345</p><p>1254</p><p>1.97</p><p>3.07</p><p> 911 </p><p> 2,800 </p><p> 3,610 </p><p> 6,410 </p><p>18.58</p><p>5.11</p><p>85.46</p><p> 27,296 </p><p> 207 </p><p> 464 </p><p> 1.11 </p><p> 1.79 </p><p> 451 </p><p> 862 </p><p> 1,009 </p><p> 1,871 </p><p> 10.36 </p><p> 4.42 </p><p> 63.08 </p><p> 56,163</p><p>420</p><p>542</p><p>0.66</p><p>0.57</p><p> 796 </p><p> 457 </p><p> 526 </p><p> 983 </p><p> 2.34 </p><p> 1.81 </p><p> 17.55 </p></li><li><p>Exploration &amp; Production Growth Strategy OER</p><p>GROWTHSTRATEGY</p><p>Competitive Advantage</p><p>Indigenous status and capacityPresence in local communities, local partnerships and relationshipsCapital raising capabilities, through TSX listing</p><p>Value Drivers</p><p>De-risk existing resources portfolio and bring both existing and new assets on-streamCreate sole-risk opportunities within NAOC JVAcquisition of proven reserves and near term producing assetsReduce crude oil theft by improved surveillance and securityIncrease protable production through eld exploitation &amp; improved reservoir management</p><p>Identication, access &amp; acquisition of opportunities in the O&amp;G Industry </p><p>Marginal eld programmesIOCs divestment plansGovernment bid roundsM&amp;A activity</p><p>Disciplined approach to capitalstructure &amp; valuation</p><p>Financial disciplineBalance sheet restructuringDebt reductionLower risk</p><p>Growing Reserves &amp; Resources</p><p>10</p></li><li><p>11</p><p>Comparative Netbacks OER</p><p>Attractive marginal field ensures a significant growth opportunity for OER</p><p>$/bbl</p><p>$/bbl </p><p>Production Sharing Contract (PSC) </p><p>Government Royalty:</p><p>Over-riding Royalty: </p><p>Petroleum Profit Tax (PPT): </p><p>Profit Sharing:</p><p>0-16.67%</p><p>N/A</p><p>50%</p><p>Varies from 80% - 40%based on cumulative Production</p><p>Marginal Field</p><p>Government Royalty:</p><p>Over-riding Royalty: </p><p>Petroleum Profit Tax (PPT): </p><p>Cost Recovery:</p><p>2.5-18.5% based on production</p><p>55%</p><p>100%</p><p>2.5-7.5% based on production</p><p>$/bbl </p><p>Marginal Field</p><p>Government Royalty:</p><p>Over-riding Royalty: </p><p>Petroleum Profit Tax (PPT): </p><p>2.5-18.5% basedon production </p><p>2.5-7.5% based on production</p><p>55%</p><p>Qua Iboe (OML 13)</p><p>62.98 5.04 18.44</p><p>0.79 2.77</p><p>Revenue Royalty OPEX Tax State Shareof Profit</p><p>62.98 6.85 28.91</p><p>0.54</p><p>Revenue Royalty OPEX Tax</p><p>62.98</p><p>Revenue Royalty OPEX Netback</p><p>35.94</p><p>Netback</p><p>26.68</p><p>Tax</p><p>3.15 16.3523.91</p><p>19.57</p><p>Netback</p><p>OER currently has Pioneer Status on Qua Iboe</p></li><li><p>Illustrative Profit &amp; Tax Allocation Based on Fiscal Terms OMLs 60-63 OER</p><p>12</p><p>Gas &amp; NGLs $/boe</p><p>Oil $/bbl</p><p>Concession</p><p>Government Royalty:</p><p>Over-riding Royalty: </p><p>Petroleum Profit Tax (PPT): </p><p>Cost Recovery:</p><p>Investment Tax Allowance (ITA):</p><p>20%</p><p>N/A</p><p>85%</p><p>100%</p><p>5%</p><p>Concession</p><p>Government Royalty:</p><p>Over-riding Royalty: </p><p>Company Income Tax (CIT): </p><p>7%</p><p>N/A</p><p>30%</p><p>62.98</p><p>12.60</p><p>7.09</p><p>32.81</p><p>Revenue Royalty OPEX Tax Netback</p><p>12.52</p><p>0.88</p><p>2.55</p><p>2.72</p><p>6.37</p><p>Revenue Royalty OPEX Tax Netback</p><p>10.48</p></li><li><p>13</p><p>Financial Summary OER</p><p>$000 H1 2015 H1 2014</p><p>Revenue 222,655 60,603</p><p>Funds from Operations 73,178 8,508</p><p>EBITDA 71,327 28,062</p><p>EBITDA Margin 32% 46%</p><p>Comprehensive Income/ </p><p>(Loss)</p><p>(50,351) (177,549)</p><p>$000 H1 2015 FYE 2014</p><p>Fixed Assets 2,668,470 2,668,239</p><p>Cash &amp; Bank 23,764 31,363</p><p>Current Borrowings 157,822 551,480</p><p>Non-Current Borrowings 392,224 250,126</p><p>Total Equity 963,840 1,012,083</p></li><li><p>Omamofe Boyo is a Director of Oando Energy Resources as well as the Deputy Group Chief Executive of Oando plc. Before taking up this position, he doubled as the Executive Director, Marketing of Oando plc and CEO of Oando Supply &amp; Trading. Between 2004 and 2006, he transformed Oando Supply &amp; Trading into Africas largest private sector trading company.</p><p>Board of Directors &amp; Advisers OER</p><p>Independent Auditors</p><p>Transfer Agent &amp; Registrar</p><p>Independent Reserves Evaluator</p><p>Bill Watson | Lead Director</p><p>Wale Tinubu | Chairman, Director Omamofe Boyo | Director</p><p>John Orange | Director</p><p>Wale Tinubu has pioneered the execution of world-class initiatives in the region as an ethical business leader, entrepreneur and philanthropist. As well as being Chairman and Director of Oando Energy Resources, he Co-founded Ocean &amp; Oil Group in 1994 and has been the Group Chief Executive of Oando plc since 2001. In 2002, he led the largest ever acquisition of a quoted Nigerian Company, Agip.</p><p>Bill Watson is a seasoned oil and gas professional with more than 35 years experience, including 20 years in executive and middle management roles worldwide. He most recently served as Husky Energys Chief Operating Officer, SE Asia.</p><p>John Orange possesses a wide brea...</p></li></ul>