Corporate Presentation January 2019 Disclaimer This presentation - - PowerPoint PPT Presentation

Corporate Presentation January 2019

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This presentation may contain forward-looking statements and information that both represents management’s current expectations and beliefs and are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business and with any statement about the future. Whilst Energean believes that such expectations and beliefs are reasonable in the light of the information available at this time, the actual outcomes may be materially different from the said statements, owing to factors beyond Energean' knowledge or control (or within Energean' control where, for example, the Company decides on a change in strategy). Energean undertakes no obligation whatsoever to revise any such forward looking statements to reflect any changes (in expectations, beliefs, circumstances, events, the Group’s plans or strategy or otherwise). Accordingly, no reliance may be placed on such forward looking statements or any figures therein.

Disclaimer

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Energean at a Glance: a strong, effective operator in the Med

3 Operational Strength Effective execution

$1.8bn

• ngoing investment in

Israel & Greece

$1.4bn

EPCIC contract with TechnipFMC

$13bn

revenue secured through 13 GSPAs

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Countries, an approved operator c.350 mmboe 2P

385

Highly skilled employees

Proven access to capital

$460m

equity raised in 2018

$1.275bn

Project finance secured in 2018

$180m

RBL refinancing in 2018

FTSE 250 (LN:ENOG) and TASE (TA:גאנא) listed

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (mmboe)

Prinos Basin 2P Prinos Basin 2C Katakolo 2P Karish and Tanin 2P Karish and Tanin 2C

Growth and Performance at the Heart of Energean

4 Karish – Tanin acquisition

Brent Price - $/bbl

Historical delivery: 75% 2P + 2C CAGR ‘08 – ‘18

Prinos acquisition

$/bbl mmboe

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Production & cash flow from Greece

Quarterly production growth Recent progress and work programme

• 40 mmboe of 2P resource across Prinos and Epsilon. EL-1 has

identified reserve upside in the Epsilon Main and Deep reservoirs

• Six sequential quarters of production growth
• 2019 full year guidance 5,000 – 6,000 bopd
• 2019 production costs expected to be $14 – 17 /bbl
• First production from Epsilon Extended Reach Well expected in 1Q

2019 with initial rates of > 1,000 bopd

• At least 2 wells in the Prinos basin to be drilled in 2019
• $100m investment in Epsilon ongoing and targeting first oil in end of
• 2019. Investment includes installation of satellite platform tieback and

three vertical wells

Prinos Existing Infrastructure Prinos Location

27,500 bopd capacity

Platforms Delta processing Owned rig

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1000 2000 3000 4000 5000 6000

boepd

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Optimising production: Prinos financial highlights

Cash Flows Up Production Costs Down

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• Targeting production of more than 10,000 bopd by 2021

17.0 2019 expected production costs range

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Developing reserves – optionality at Katakolo

• 2P reserves of 10.5 mmbbls
• c.$100 million NPV
• $60 million development capex
• 2 wells tested
• Development plan would likely is to drill the first

pilot hole to be converted to an injection well shortly after FID

• Environmental and social impact assessment

submitted in 4Q18

• Final Investment Decision or farm down to be

decided in 2019

Katakolo overview

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Adding more hydrocarbons - Western Greece and Montenegro

• Repsol 60% partner and operator; pays 90% of costs to

$49.9 million cap

• Seismic exploration activities have commenced
• Ioannina holds best estimate gross prospective resources of

103 Bcf and 187 million bbls Western Greece JV with Repsol Montenegro Key Highlights

• Blocks 4218-30 and 4219-26 awarded March 2017 (Energean

100%)

• 1.8 Tcf & 144 mmbbls unrisked prospective resources
• Low commitment (c.$5 million) first exploration phase
• 2 block 3D seismic acquisition programme, G&G + training

 Four year optional second exploration period: – 1 exploration well of not less than 2,800 m  ENI operates 4 blocks to the south, work programme commences 2019, which Energean believes includes one well  3D seismic activities to be completed in February 2019

Source: Company

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Developing reserves - a $1.6bn de-risked project in Israel

Energean WI: 70% - Karish-Tanin

9 EPCIC Contract

Lump sum turnkey EPCIC 

Drilling

4 firm, 6 optional wells 

GSPAs

4.2 bcm/yr (16yr av) $12bn revenue

Project Financing

$1.275 billion  

FID

Taken March 2018

Regulatory

FDP approved August 2017   $460 mn raise through Premium LSE IPO 

Equity First Gas

1Q 2021

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Downside protected through gas sales contracts

4.6 bcm/yr (+0.7 bcm/yr Or Contingent Contract) $4.1 / mmbtu > $4 / mmbtu 75%

Volume Tenor Weighted Avg Current Price Weighted Avg Floor Price Weighted Avg Take-or-Pay

Min: 7 years -- Weighted Average: 16 years -- Max: 20 years 10

Largest private industrial companies and IPPs in Israel

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Karish Development Plan

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Development risk mitigated through Technip EPCIC turnkey contract

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 

ENERGEAN POWER

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On track to deliver First Gas in 1Q 2021

FPSO Key Milestones Well Key Milestones Subsea / SURF and Onshore Key Milestones

Source: Company.

March 2018

• FID

2018 2019 2020 First gas: Q1 2021

26 Nov 2018

• FPSO First

steel cut Q4 2019

• FPSO hull

towed from China to Singapore Q4 2020

• Completed

FPSO towed to Israel Q2 2019

• Pipeline beach

crossing at Dor Q3/Q4 2019

• Sales-gas

pipeline installation Dor to Karish Q2 2020

• Installation of

production manifold and

• ther sub-surf

structures Q1 2019

• Drilling Karish

North Q3 – Q4 2019

• Drill 3

development wells with Stena DrillMAX

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2020

• Integration of

topsides in Sembcorp’s Shipyard in Singapore

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• 1st Step: Karish North - March 2019
• 1.3 Tcf gas & 16.4 mmbls liquids
• 69% chance of success
• Single well development in success case
• Next Steps: Karish Main – 2019
• 3 development drilling wells
• Upside potential for Karish Main*:
• 46 bcm (1.6 Tcf) GIIP potential

2019 – Drilling Four Wells In Israel

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D4 D1 B A

*Note: Management estimates, not independently audited numbers

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Adding more hydrocarbons - committed well at Karish North

Karish North

• Spud: March 2019. Estimated drill time 45 days
• 1.3 Tcf + 16.4 million bbls gross recoverable

prospective resources (Energean 70%)

• High Geological Chance of Success – 69%

volume weighted average1

• Exploration well budget $25 million
• Exploration well to be suspended as potential

producer.

• Single well development in the success case
• 5 km tie back to the FPSO, estimated cost

(including completion) $100 million

• Commercialisation: Sell more gas or delay Tanin

development

Karish Main Karish North

Strong DHI conforming to structure

X Y

Karish Main Karish North Karish East

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• 1. Previously quoted figure of >80% relates to the C sands only. C sands still have an individual chance of success > 80%

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Significant near-field prospective resources

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Targeting multiples of upside through infrastructure-led exploration

• 1. NSAI August 2018

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Adding more hydrocarbons – additional tie-backs

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Zeus

18 1 2 3 4 5 6 7 8 9 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

BCM/y

Gas Sales in Place IPM Spare Capacity in FPSO

Adding more hydrocarbons: our infrastructure opportunity

Additional FPSO capacity

18 4.2 BCM/yr Gas Sales Contracted Net Cash Flow Margin c.25% 3.4 BCM/yr Spare Capacity Net Cash Flow Margin > 50%

0.4 BCM/y Contingent upon future gas from Karish North

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Adding more hydrocarbons – commercialisation options

• A market that has grown by an average 15% CAGR for the last 10 years
• IEC required to reduce coal generation post 2017
• August 2016 decision to close the 1,440 MW Orot Rabin coal-fired plant by

June 2022 and replace it with gas-fired generation

• Incentivise light industrial customers to switch from oil to gas
• Incentivise CNG stations and electric vehicles
• Government funded deployment of a new natural gas distribution system
• 5 IEC power plants to be privatised in coming years without associated gas

supply contracts

Source: Adiri Committee Interim Report (Director General of the Ministry)

Meeting Growing Israeli Gas Demand Export Options

• Commercialization of potential discoveries in the five new exploration blocks
• Potential for exposure to higher pricing
• Existing and potential export routes:

– Cyprus: proposal for a c200km pipeline from Karish – Jordan: INGL close to complete export pipeline – Egypt: EMG and Arab Gas pipeline (via Jordan connection) – Longer term – East Med pipeline connecting to the European gas network via Greece and Italy

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5 10 15 20 25 30 35

bcma

Energean Contracted Energean Available Capacity Rest of Market per Adiri Additional demand per BDO

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The next 18 months: what to watch out for

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• 2 development wells in Greece
• 3 development+ 1 exploration in Israel

Drilling 6 wells

• 5,000 – 6,000 boepd  2019
• 10,000 boepd  2021
• 80,000 boepd

 post 2021 Production Increase

• Epsilon project on stream
• Katakolo farm out

Developing Prinos

• FPSO hull completed & topsides integration,

Subsea & Pipeline completion under EPCIC Developing Karish

• Western Greece – Repsol Carried
• Montenegro – 3D Q1 2019
• Israel – targeting 7.5TCF

Exploration

• Continue to assess value accretive
• pportunities

M&A

• Target to fully utilize the 8 BCM FPSO capacity

(4.6 bcma already contracted) Commercial

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Energean’ s success in 2018 to be continued…

Energy Company of the Year Company of the Year – Small Cap Deal of the Year Executive of the Year Oil & Gas Deal of the Year

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Thank you