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Bridge Energy ASA Corporate Presentation March 2013 21st March 2013 Disclaimer This presentation and its appendices (together the Presentation) have been prepared and delivered by Bridge Energy ASA (Bridge Energy or the Company)


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SLIDE 1

Bridge Energy ASA

Corporate Presentation March 2013

21st March 2013

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SLIDE 2

Disclaimer

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This presentation and its appendices (together the “Presentation”) have been prepared and delivered by Bridge Energy ASA (“Bridge Energy” or the “Company”). The Presentation and its contents are strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person than the intended recipient. The Presentation is prepared for discussion purposes only. The Presentation does not constitute, and should not be construed as, any offer or invitation

  • r recommendation to buy or sell any of the securities issued by the Company and does and will not constitute or form or be part of any offering material.

The Presentation contains information which has been sourced from third parties believed to be reliable, but without independent verification. The Presentation contains certain forward-looking statements relating to the business, financial performance and results of the relevant issuers and/or industries and markets. These statements may contain words as “will”, ”expects”, “anticipates”, ”believes”, ”estimates” and words of similar import. Any forward-looking statements and other information contained in this Presentation, including assumptions, opinions and views cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. As such by the nature of any forward looking statement, relying on such statements involves risk. This Presentation has not been reviewed or registered with any public authority, stock exchange or regulated market place, hereunder the Oslo Stock Exchange and the UK Financial Services Authority. The shares of the Company have not and will not be registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold within the United States, or to the account or benefit of U.S. Persons. No part of this document may be copied or duplicated in any form or by any means or redistributed without the written consent of the Company. The distribution of this Presentation is in certain jurisdictions is restricted by law, including (but not limited to) USA, Canada, Japan, Australia and Hong Kong. Persons into whose possession this Presentation may come are required to inform themselves about and to comply with all applicable laws and regulations in force in any jurisdiction in or from which it invests or receives or possesses this Presentation and must obtain any consent, approval or permission required under the laws and regulations in force in such jurisdiction. By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the information herein, the market and the market position of the Company and the relevant securities and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of any relevant investments. Neither Bridge Energy nor any subsidiary undertakings or any such person‟s affiliates makes any undertaking, representation or warranty (express or implied) as to the accuracy or completeness of the information (whether written or oral and whether or not included in this Presentation) concerning the matters described herein. Neither Bridge Energy nor any subsidiary undertakings or any such person‟s affiliates accepts any liability whatsoever as to any errors, omissions or misstatements contained herein and, accordingly, neither Bridge Energy nor any subsidiary undertakings or any such person‟s affiliates, officers, employees, accepts any liability whatsoever arising directly or indirectly from the use of this Presentation or the information included herein. The Presentation speaks and reflects prevailing conditions and views as of 21st March 2013. It may be subject to corrections and change at any time without notice. Neither Bridge Energy nor any subsidiary undertakings or any such person‟s affiliates intend to, and neither the delivery of this Presentation or any further discussions with any recipient shall, under any circumstances, not create any implication that the Company assumes any obligation to, update or correct the information herein. Nor is this Presentation an implication that there has been no change in the affairs of the Company since such date. This Presentation is subject to Norwegian law and the exclusive jurisdiction of the Norwegian courts.

21st March 2013

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SLIDE 3
  • Corporate overview
  • Current producing assets
  • Development potential
  • Exploration success
  • Extensive ongoing explo. programme
  • Summary

Table of contents

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SLIDE 4

Introduction

  • Bridge Energy ASA (“Bridge”) is a Norwegian and UK listed full cycle oil & gas

company

  • Exploration & Production company holding production assets in the UKCS and

exploration assets in both NCS and UKCS

  • 4 producing assets, which currently contribute c.1,200 boepd
  • Victoria field has been on production since 2008
  • Duart interest (acquired December 2011)
  • Boa interest (acquired October 2012)
  • Cormorant East interest commenced production January 2013
  • Production projected to exceed 10,000 boepd within 5 years from existing portfolio
  • Bridge has 37 licences (8 as operator) and has drilled 17 E&A wells, including 10

discoveries

  • High impact exploration portfolio underpinned by existing production, along with a

strong inventory of undeveloped discoveries

4 21st March 2013

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SLIDE 5

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Bridge– a self-sustaining E&P business

  • Listed Oslo 21 May 2010 (OSE: BRIDGE)
  • Listed London AIM 27 September 2012 (AIM: BRDG.L)
  • Analyst Coverage

Analyst

– Pareto Thomas Aarrestad – First Securities Teodor Sveen Nilsen – ABG Sundal Collier Anders Holte – Carnegie ASA Martin Vold – Sparebank Markets Kristoffer Dahlberg – Fondsfinans ASA Morten Lindbaek – Cenkos Securities Ashley Kelty – Edison Research Ian McClelland 33.9% 28.2% 25.1% 7,6% 4,8% 1,0%

Float AIMCo Lime Rock Storebrand KLP Mgt

Share structure

Share Price *12,15NOK (135p) Shares in issue 63,429,169 Consensus TP 21 NOK Market cap 771 MNOK (£88m)

*18th March 2013 21st March 2013

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SLIDE 6

Five clear routes to delivering growth

  • Growth through acquisition

– Significant UK tax loss position shelters cash flow from production – Supports higher level of debt funding to fund acquisition – Resulting leverage supports strong return on invested equity

  • Broaden exploration portfolio

– Targeting 3-4 exploration wells drilled per year – Significant inventory of targets in both the NCS and UKCS

  • Progress development options within existing portfolio of assets

– Significant upside potential within Duart & Boa assets, with ability to deliver production increase at reasonable cost in the short term – Material value within Vulcan satellites, can be unlocked through introduction of partner

  • Grow liquidity and access to capital

– Enhanced through listing on AIM and transfer to Oslo Børs – Debt facilities with accordion capability to support growth

  • Resource the business

– Strong management team with track record of delivery

6 21st March 2013

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SLIDE 7

2012- a transformational year

Production

  • 2P reserves increase by 22% &

value increase to NPV10 £68mm

  • Acquisition of Boa Interest Oct

2012

  • RRR 221%

Exploration

  • 4 wells drilled with 3 discoveries
  • 23mmboe of 2C resource added

through drill-bit

  • 37mmboe 2C in total
  • Additional targets de-risked & further

licence awards in 2012

Development upside

  • Asha pre-unitisation agreement
  • Good progress made on Duart

and Boa

  • Maturing development concepts

within Vulcan area

Liquidity & access to capital

  • AIM listing Sep 2012
  • Transfer to Oslo Bors Oct 2012
  • Strong underlying institutional support

21st March 2013 7

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SLIDE 8
  • Corporate Overview
  • Current producing assets
  • Development potential
  • Exploration success
  • Extensive ongoing explo. programme
  • Summary

Table of contents

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SLIDE 9

Overview of UK producing assets

  • Victoria gas field – operated 75% interest
  • First gas in October 2008
  • 2P reserves of 2.1 mmboe
  • Duart – 50% interest (Talisman operator)
  • First oil in 2007
  • Net 2p reserves of 0.75 mmbbl
  • Boa – 1.55% interest (Marathon operator)
  • First oil in 2008
  • Net 2p reserves of 0.42 mmbbl
  • Cormorant East- 4% interest (TAQA operator)
  • First oil January 2013
  • Currently in depletion phase
  • Good upside potential

9 Note: Reserve and contingent resources are based on reserve report 31st December 2012

Cormorant East Duart Victoria Boa

21st March 2013

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SLIDE 10

Victoria – steady production

Forecast monthly production boepd*

  • 2P Reserves - 2.1 mmboe
  • Field Interest - 75% (Operator)
  • NPV10# - £26mm

Asset summary**

100 200 300 400 500 600 700 800 900 jan-13 apr-13 jul-13 okt-13 jan-14 apr-14 jul-14 okt-14

# Assumes reference Brent price of USD$110/bbl and NBP gas 60p/therm

** From Reserve Report dated 31st December 2012 10 21st March 2013

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SLIDE 11

Duart field – low maintenance, high margin barrels

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Forecast monthly production boepd*

  • 2P Reserves - 0.75mmbbl
  • Field Interest – 50% (Talisman Operator)
  • NPV10# - £25.9mm

Asset summary**

** From Reserves Report dated 31 December 2012

100 200 300 400 500 600 700 800 jan-13 apr-13 jul-13

  • kt-13 jan-14 apr-14

jul-14

  • kt-14

# Assumes reference Brent price of USD$110/bbl and NBP gas 60p/therm

21st March 2013

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SLIDE 12

Boa – low maintenance, high margin barrels

** From Reserve Report dated 31st December 2012

Forecast monthly production boepd* Asset summary**

  • 2P Reserves - 0.42mmbbl
  • Field Interest – 1.55% (Marathon Operator)
  • NPV10# - £15.5mm

50 100 150 200 250 jan-13 apr-13 jul-13 okt-13 jan-14 apr-14 jul-14 okt-14

# Assumes reference Brent price of USD$110/bbl and NBP gas 60p/therm

12 21st March 2013

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SLIDE 13

Mature life asset acquisition

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  • Consistent same investment criteria
  • low opex
  • high margin
  • low decommissioning costs
  • Leverage balance sheet- tax loss pool provides

value driver

  • Tax loss pool also optimises cash flow (lowers

net opex) to fund portfolio growth

  • Funded through current cash and an expansion
  • f existing RBL facility
  • Combination of tax shelter and strong debt

capacity provides very attractive return

  • Further upside potential not just base cash flow

5 10 15 20 25 30 35 40 45 Price Stock Net Price LOF Cash Net Cash

21st March 2013

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SLIDE 14
  • Corporate Overview
  • Current producing assets
  • Development potential
  • Exploration success
  • Extensive ongoing explo. programme
  • Summary

Table of contents

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SLIDE 15

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  • Duart South viable development
  • 2C 2.23mmbbl (gross)
  • Investment $50M (gross)
  • Value $100M (gross)
  • Duart East very significant prospect
  • Scapa sand target
  • STOIIP 14.4-48.6mmbbls (gross)
  • Value c. $200M (gross)
  • Development options being reviewed, with

study work scheduled to be completed Q1 2013

  • Drilling anticipated 2014
  • Both prospects offer near-term potential

Duart area - further development and prospectivity

Note: Reserve and contingent resources are based on Reserve Report 31st December 2012 21st March 2013

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SLIDE 16

Boa: Infill targets are well defined..........

16 21st March 2013

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SLIDE 17

Vulcan hub

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49/21-10a Vulcan East Bridge Energy 100%, Operator

  • 124 BCF GIIP
  • 2P 73 BCF (12.1 mmboe)

Discovered by 49/21-10a, 2007 Horizontal multi-frac development 48/19c Clipper South RWE 180 BCF recoverable Horizontal multi-frac development Phase 1 currently on-line 49/21-8a Vulcan South Bridge Energy 66.6%, Operator

  • 186 BCF GIIP
  • 2C 112 BCF (19 mmboe gross)
  • 2C 75 BCF (12.3 mmboe net)

Discovered by 49/21-8, 2000 48/25a Vulcan NW Bridge Energy 100%, Operator

  • 215 BCF GIIP
  • 2C 131 BCF (22 mmboe)

Appraised (3rd well) 2008 Horizontal multi-frac development 48/20b-6 Vulcan NNW RWE Discovered 1990 90 BCF GIIP Recent 26th Rd Award

21st March 2013

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SLIDE 18

Key valuation metrics*

Gross probable resource: – 525 BSCF GIIP – 319 BSCF Recoverable

  • Gas price: 50p/th
  • Gross revenues: £1,800mm
  • Net Cash before tax: £1,000mm
  • NPV10 (before tax): £500mm
  • NPV10 (after tax) £250mm

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Vulcan hub economics

*The above forecasts are based on certain management estimates and assumptions believed to be reasonable at the date of this presentation.

GBP£ million

21st March 2013

  • 1500
  • 1000
  • 500

500 1000 1500 2000 2500

Revenue

  • Dev. Ex

LOF Opex Abex Net Cash Before Tax Tax Net Cash After Tax

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SLIDE 19
  • Corporate Overview
  • Current producing assets
  • Development potential
  • Exploration success
  • Extensive ongoing explo. programme
  • Summary

Table of contents

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SLIDE 20

2012 exploration success

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N - North Sea

P1915 Vulcan South, 2012- licence award Cormorant East- Oil discovery

  • 4% share
  • Net 2C resource added: 1.3mmboe*
  • Nominal exploration cost

PL554 Garantiana, 2012- Oil discovery discovery PL457 Asha, 2012- Oil discovery

  • 20% share
  • Net resources added: 8.6mmboe*
  • Net cost: USD 4.5 million
  • 20% share
  • Net resources added: 13.4mmboe*
  • Net cost: USD 3.5 million (prelim.)
  • 66% share
  • Net resources added: 12.3 mmboe*

*Reserve and contingent resources are based on reserve report dated 31st December 2012 21st March 2013

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SLIDE 21

Cormorant East Field

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  • Well spud 24th August
  • Oil discovery announced 22nd October
  • Well put on production early January 2013

and was developed under the field name „Cormorant East‟, 85 days after discovery.

  • Net 2C resource of 1.3mmboe added in

2012

  • Ongoing work to further define the size of the

field and further development options

  • Bridge has 4% interest

21st March 2013 N Cormorant Cormorant East

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SLIDE 22

Garantiana North mmboe

POS (%)

– Brent 0.5 25 % – Cook 5.8 45 % – Statfjord 2.6 20 % – Lunde 3.2 7 %

Garantiana*

– Brent 2.8 48 % – Cook 8.6 discovery – Statfjord 11.3 20% – Lunde 18.3 18.3%

Updip

– Brent 0.3 17 % – Cook 9.7 22 % – Statfjord 8.8 19 % – Lunde 10.8 8 %

Angulata

– Brent 5.7 24 % – Cook 4.0 45 % – Statfjord 8.2 14 % – Lunde 10.5 8 %

PL554 discovery de-risks area potential

(Bridge 20% Interest)

Angulata Garantiana North Garantiana Updip

22 *Garantiana discovery now classified as a 2C Contingent Resource within the most recent reserve report Note: Reserve and contingent and prospective resources are based on reserve report 31st December 2012 21st March 2013

Unrisked net resources (post-drill)

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SLIDE 23

PL457 area – Asha discovery and prospects

(Bridge 20% Interest)

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Southern Utsira High area

Tellus (E. Grieg) Ivar Aasen Aglaja Amol Mukta Asha (Preliminary)

Asha discovery: 30-100 mmboe (gross within PL457)

2 Aglaja* 6 Amol*

Note: Reserve and contingent and prospective resources are based on reserve report 31st December 2012 21st March 2013 23

pre-drill values, unrisked million boe net to Bridge

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SLIDE 24

Ivar Aasen milestones

24 21st March 2013

2012

  • PDO

submitted 2013

  • Contract

awards 2014

  • Construction

2015

  • Well drilling
  • Install

jacket 2016

  • Install

topside

  • First oil
  • First oil

Southern Utsira High area

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SLIDE 25

Bridge Asha interest – valuable property

  • Option remains to invest and participate in the development

– Material development with production expected within 36 months

  • Opportunities exist to monetise the asset

– Options to swap for production assets - increasing cash flow – Ability to sell for cash and efficiently re-invest capital in other projects – Once unitisation agreed and PDO approved Asha will support incremental debt capacity

  • Indicative valuation of Asha

– Bridge reserve report confirms 13 mmboe contingent resource (net) – Market benchmarks indicate value range of USD$5-$8 per boe – RWE sold Edvard Grieg interest in 2012 for estimated $8.5/bbl – Indicative value for Bridge Asha interest $65 – 105 million

25 21st March 2013

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SLIDE 26
  • Corporate Overview
  • Current producing assets
  • Development potential
  • Exploration success
  • Extensive ongoing explo. programme
  • Summary

Table of contents

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SLIDE 27

Extensive explo. drilling programme 2013 - 2015

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Note – well timings are subject to change due to changes in operator programmes

21st March 2013

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SLIDE 28

2013: PL511 Mjøsa

  • Drilling expected to commence Q2 2013
  • Bridge has a 7.5% interest
  • Bridge benefits from significant cost carry
  • Net unrisked potential 14 mmboe
  • POS 14%

Linnorm Mjøsa Noatun Njord

From Reserves Report dated 31 December 2012 28 21st March 2013

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SLIDE 29

2014: PL494 Hercules

  • Spud likely 2014
  • Bridge has a 30% interest
  • Net unrisked potential 94 mmboe
  • POS 20%

From Reserves Report dated 31 December 2012 29 21st March 2013

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SLIDE 30

2013/4: P1763 Aragon

  • Bridge has a 13.5% interest
  • Target prospect at Heather level
  • Net unrisked potential 9 mmboe
  • POS 21%

30

N S

From Reserves Report December 2012 21st March 2013

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SLIDE 31

2013: P2082 Skerryvore

  • Bridge has a 25% interest
  • Dual target prospect at Mey and Tor level
  • Net unrisked potential 16.5 mmboe
  • POS 32%

Seismic amplitude Tor level

From Reserves Report 31 December 2012 21st March 2013 31

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SLIDE 32
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SLIDE 33
  • Corporate Overview
  • Current producing assets
  • Development potential
  • Exploration success
  • Extensive ongoing explo. programme
  • Summary

Table of contents

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SLIDE 34

Summary

  • High impact 2012 exploration programme, yielding 3 commercial

discoveries from 4 wells drilled

  • 37 mmboe of Contingent Resources added in 2012
  • 2/3 exploration wells planned H2 2013, with c. 53 mmboe of prospective

risked resources being tested over the next 24-months

  • Significant development potential within existing asset base and ability to

bring further production on-stream in the near-term

  • Continue to pursue potential acquisition opportunities to leverage tax pool
  • Core activity funded from existing cash flow

34 21st March 2013