April 2019 0 Disclaimer These Presentation Materials do not - - PowerPoint PPT Presentation

April 2019

Disclaimer

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These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company nor shall they or any part of them form the basis of or be relied upon in any manner or for any purpose whatsoever. These Presentation Materials must not be used or relied upon for the purpose of making any investment decision or engaging in an investment activity and any decision in connection with a purchase of shares in the Company must be made solely on the basis of the publicly available information. Accordingly, neither the Company nor its directors makes any representation or warranty in respect of the contents of the Presentation Materials. The information contained in the Presentation Materials is subject to amendment, revision and updating in any way without notice or liability to any party. The presentation materials may contain forward-looking statements which involve risk and uncertainties and actual results and developments may differ materially from those expressed or implied by these statements depending on a variety of factors. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or opinions contained herein, which have not been independently verified. The delivery of these Presentation Materials shall not at any time or in any circumstance create any implication that there has been no adverse change, or any event reasonably likely to involve any adverse change, in the condition (financial or otherwise) of the Company since the date of these Presentation Materials. The Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced, further distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (except the recipient’s professional advisers) or published, in whole or in part, for any purpose whatsoever. The Presentation Materials may not be used for the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction.

• New management appointed in October 2017
• Implemented unique investment strategy focused on near-term upstream drilling
• Raised a total of £18.3M in three separate placings between October 2017 and September 2018
• Participation in six wells drilled since August 2018, with five discoveries
• Exposure to multiple potentially transformational wells to be drilled in 2019
• Significant NPV embedded in current portfolio from both discoveries and future wells

Introduction

Stephen Williams

• 16 years’ experience in the energy sector
• Investment analyst focussing on the energy

sector at M&G Investments where he worked from 2010 to 2016

• Energy investment analyst for Simmons &

Company International from 2005 to 2010

• 2003 to 2005 was an analyst at ExxonMobil

Sachin Oza

• 17 years’ investment experience
• Investment analyst at M&G Investments from

2003-2016, covering the Oil & Gas sectors on a global basis

• Also held roles as an investment analyst at Tokyo

Mitsubishi Asset Management and JP Morgan Asset Management

Management Company: History & Overview

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Overview

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• AIM-listed, upstream oil & gas company
• Specific strategy to fund other operators’ appraisal wells
• High quality, high return projects
• Technically de-risked by previous drilling
• Quick cycle times to monetisation
• Reabold’s capital unlocks the project allowing near term drilling activity
• Non-operator model keeps costs low and facilitates a fully diversified portfolio
• Reabold has demonstrated execution of strategy in short time frame
• Material success in capital raising, deal execution, and with the drill bit

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Delivering Activity & Success with Drill Bit**

*NPVs as provided by operators **Future wells are indicative timings

Project Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 California - Workovers

On Production NPV*: $10M

California - West Brentwood VG-3

Discovery: On Production

California - West Brentwood VG-4

Discovery On Production

UK Offshore - Wick

Dry Hole

UK Offshore - Colter

Discovery (Colter South) NPV*: TBC

California - Monroe Swell Burnett 2A

Discovery

California - Monroe Swell Burnett 2B

Discovery

UK Onshore - West Newton

NPV*: $61M

Romania - Parta Appraisal

NPV*: $42M

California - Grizzly Island

NPV*: $100M NPV*: $25M NPV*: $100M

Made oil discovery at Colter South in Q1’19 Post well analysis underway; pre-drill volume estimate of 15M bbls gross* Best development plan now under consideration Farm out on Curlew appraisal project now underway – planned drilling late 2019

Diversified Portfolio of Material Assets

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RATHLIN UK (37% interest)

* Corallian mngt mean estimate

CORALLIAN ENERGY (33% interest) REABOLD CALIFORNIA DANUBE PETROLEUM (33% interest) Four from four successful wells to date Extremely high per bbl economics Fast pace of activity Discoveries quickly put into production Highly cash generative Substantial running room within the portfolio Drilling West Newton appraisal well in Q2 Potentially one of the largest UK onshore oil and gas projects Low risk appraisal of significant gas discovery Same well tests very large oil prospect Asset ideally located for development Drilling IM-1, first well in two well appraisal campaign, in Q2 2019 Very low technical risk; re-drilling a previous gas discovery that was never developed Strategic asset, in attractive gas market and with significant running room Access to infrastructure; simple development

Rathlin UK Newton Appraisal Well - Humberside

• Reabold invested £3M for a 37.08% equity

interest in Rathlin UK

• Rathlin will drill appraisal well of West

Newton A-1; significant gas discovery made in 2014, with potential for deeper oil

• Union Jack PLC and Humber Oil & Gas have

farmed in for 33.3% paying 50%

• Dual
• bjectives:

Low risk appraisal

• f

significant gas discovery whilst testing extremely significant oil upside:

• Appraisal
• f

Kirkham Abbey gas: 72% COS* for NPV* $247M

• Exploration of reef flank Cadeby oil:

24% COS* for NPV* $850M

• Expect to drill April 19; RBD with ‘look

through’ 25% equity interest on the licence

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* Connaught Management Estimate

Reabold California

• Reabold acquired the right to earn 50% in 3

licences in California by drilling 5 wells

• Four wells drilled to date with all four resulting in

discoveries

• VG-3 well drilled on West Brentwood and put on

production in Oct 2018

• VG-4 well successfully drilled on West Brentwood

in December 2018 and tested at >500boepd. Currently producing at restricted rate prior to ramp up to full production

• Burnett 2A and 2B wells drilled at Monroe Swell

field in Q1’19; both successful with imminent testing and then production

• Grizzly Island to be drilled in H2’19
• Estimated

NPV* up to $235M across the portfolio net to Reabold

* Estimated by Dero Parker of Integrity Management Solutions, contract operator of the licenses

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• The California portfolio allows us to drill wells

into previously produced prolific oil fields at West Brentwood and Monroe Swell

• 3D seismic, unavailable to previous operators,

highlights new targets untapped by previous wells

• Drilling is low risk and low cost. Development

capex is negligible, and opex is also expected to be low

• Economics and especially cash generation

therefore extremely impressive

• Substantial running room on existing licenses,

and multiple opportunities to add to the Reabold California portfolio

Reabold California

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Monroe Swell Structure Map Successful RBD Wells 4.8 and 3.9 were producers West Brentwood Structure Map

* Estimated by Dero Parker of Integrity Management Solutions, contract operator of the licenses

VG3

VG4 Successful Burnett 2A Successful Burnett 2B

• Reabold

has invested £1.8M into Danube Petroleum for its 33% equity interest

• Reabold has options to acquire a greater equity

interest on successful drilling

• Danube

100% interest in Parta appraisal programme and 50% in rest of the licence

• Reabold investment funds first well of two well

appraisal programme – drilling June 2019

• Proven and stable hydrocarbon region
• Highly attractive economics
• Very

low geological risk with significant resource potential

• Danube is carried for $1.5M of additional 3D

seismic later this year

Danube Petroleum Parta, Onshore Romania

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Appraisal Programme * Based on ERC Equipoise Independent Experts Report

Corallian Energy Colter Discovery and Curlew-A Appraisal

• Reabold holds a ca 33% equity interest in

Corallian Energy

• Corallian drilled the Colter appraisal well

at a 49% equity interest in Q1’19

• Oil discovery made in the Colter South

fault terrace; pre drill volumetric assessment was 15 mm bbls gross, post well analysis ongoing

• Adjacent Wytch Farm infrastructure

significantly enhances economics

• Curlew-A appraisal well planned for

drilling in H2’19 subject to farm-out (well is partially farmed out to date)

• Contingent 2C resource of 45M bbls

Wytch Farm Purbeck Colter

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Field map of the Colter appraisal well

Further investments

• Limited window of opportunity to roll out strategy whilst both project

entry prices and drilling costs remain low

• Several potential projects have been substantially matured – all with near

term drilling and highly favourable economics

• Projects are technically de-risked, have limited drilling costs, and ready

access to infrastructure for near term monetisation

• Attractive commodity prices and low costs following the downturn lead to

compelling economics for the right projects

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• Exploiting market dislocation which offers high quality assets at low

valuations

• Management

has proven execution ability and stimulated industry transactions in invested projects at accretive values

• Demonstration of success with the drill bit
• Innovative model focused on generating return to shareholders
• Significant institutional support
• Material exposure to multiple high impact wells in 2019

Summary

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Board, Management and Advisors

13 Stephen Williams – co CEO

• 16 years’ experience in the energy sector
• M&G Investments, energy investment analyst -

2010 to 2016

• Simmons & Company International, energy

investment analyst - 2005 to 2010

• ExxonMobil Analyst - 2003 to 2005

Sachin Oza – co CEO

• 17 years’ investment experience
• M&G Investments, global Oil & Gas sector

investment analyst – 2003 to 2016

• Tokyo Mitsubishi Asset Management and JP

Morgan Asset Management, investment analyst

Peter Dolan - Advisor

• Co-founder Fusion Oil & Gas
• Co-founder Ophir Energy
• Declared “Africa Oil Legend” in 2015

Jeremy Samuel Edelman – Chairman

• Experience includes Bankers Trust and UBS

Warburg, debt and acquisition finance

• Extensive corporate finance experience co-

coordinating companies’ acquisitions in the resource sector

Anthony John Samaha - NED

• Over 20 years’ experience as a Chartered

Accountant in resources development, including with Ernst & Young

• Worked with AIM-listed Equatorial Palm Oil,

Altona Energy and Braemore Resources

Mike Felton - NED

• Former Head of UK equities at M&G

Investments

• Managed M&G UK Select Fund
• 30 years’ investment and capital markets

experience

Marcos Mozetic - NED

• Former Head of Global Exploration for Repsol
• Led Repsol’s transition to best-in-class reserve

replacement metrics

• Key to unlocking several globally significant

hydrocarbon plays

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The technical information and resources estimates provided in this presentation in relation to the projects in which Reabold has invested have been extracted from the presentations and technical data provided to Reabold by the operating companies in which Reabold has

• invested. That data has therefore not been independently verified by Reabold.

The Company is not aware of any new information or data that materially affects the assumptions and technical parameters underpinning the information set out in this presentation. The information contained in this release in relation to the Monroe Swell, West Brentwood and Grizzly Island has been reviewed by Mr Dero Parker, President of Integrity Management Solutions. Mr Parker is a consultant and past owner operator of both oil and gas assets as well as hundreds of square miles of 3 dimensional seismic data and has 42 years of technical, operational, commercial and management experience in appraisal, development and production of oil and gas resources. Mr. Parker has reviewed the data contained in this release in relation to Monroe Swell, West Brentwood and Grizzly Island and considers the information to be fairly represented. Mr. Parker has consented to the inclusion of this information in the form and context in which it appears. The information contained in this presentation in relation to the Colter and Wick wells operated by Corallian Energy Limited has been reviewed by Andrew Hindle, Commercial Director of Corallian Energy Limited. Dr. Hindle is a qualified geologist with 33 years of technical, commercial and management experience in exploration for, appraisal and development of oil and gas resources. Dr. Hindle has reviewed the results, procedures and data contained in this presentation and considers the information to be fairly represented. Dr. Hindle has consented to the inclusion of this information in the form and context in which it appears. Dr. Hindle is a Chartered Geologist and a Fellow

• f the Geological Society of London.

The information contained in this presentation in relation to the Parta well operated by Danube Petroleum Limited has been reviewed by Paul Fink, Technical Director of ADX Energy Ltd. Mr. Fink is a qualified geophysicist with 23 years of technical, commercial and management experience in exploration for, appraisal and development of oil and gas resources. Mr. Fink has reviewed the results, procedures and data contained in this presentation and considers the information to be fairly represented. Mr. Fink has consented to the inclusion of this information in the form and context in which it appears. Mr. Fink is a member of the EAGE (European Association of Geoscientists & Engineers) and FIDIC (Federation of Consulting Engineers) The information contained in the presentation in relation to West Newton operated by Rathlin (UK) Limited are based on the data CPR provided by Deloitte LLP.

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Sources