Fastnet Oil & Gas Plc Corporate Presentation
December 2014
Corporate Presentation December 2014 Disclaimer This document is - - PowerPoint PPT Presentation
Fastnet Oil & Gas Plc Corporate Presentation December 2014 Disclaimer This document is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to
December 2014
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This document is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose. In particular, neither this document nor any copy of it (or any part of it) may be sent to or taken into the United States, Canada, Australia, Republic of South Africa or Japan (or any of their respective territories or possessions, or to any resident thereof or any other corporation, partnership or
under the US Securities Act of 1933, as amended). The distribution of this presentation in other jurisdictions may also be restricted by law and persons into whose possession this presentation comes (or a copy hereof) should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction. This document does not constitute or form any part of any offer or invitation or other solicitation or recommendation to purchase any securities and contains information designed only to provide a broad overview for discussion purposes. As such, all information and research material provided herein is subject to change and this document does not purport to provide a complete description of the investment opportunity. All expressions of opinion are subject to change without notice and do not constitute advice and should not be relied upon. Fastnet Oil & Gas plc (the “Company”) does not undertake any obligation to update or revise the information in or contents of this document. Recipients of this document who may consider acquiring shares in the Company are reminded that any such acquisition should not be made on the basis of the information contained in this document. This document is being distributed in the UK only to, and is directed only at persons who are: (i) investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) FPO 2005 (“the Promotion Order”); (ii) are persons of a kind described in Article 49(2) of the Promotion Order; (iii) are persons to whom this document may otherwise lawfully be issued or passed on and/or (iv) persons outside the United Kingdom (in accordance with any applicable legal requirements) (all such persons together being referred to as “Relevant Persons”). Any person who is not a Relevant Person should not act or rely on this presentation or any of its contents and any investment or investment activity to which it relates will only be available to Relevant Persons. Any person who is unsure of their position should seek independent
directed at and being sent to the categories of investor described above. This communication has not been approved by a person authorised by the Financial Services Authority under FSMA. This document is being distributed in Ireland only to and is directed only at persons who are “qualified investors” within the meaning of the Prospectus (Directive 2003/71/EC) Regulations 2005 of Ireland. Neither the Company, nor its employees, advisers or representatives nor any other person makes any guarantee, representation, undertaking or warranty, express or implied as to the accuracy, completeness, correctness or fairness of the information and opinions contained in this document (or as to the reasonableness of any assumptions on which any of the same is based or the use of any of the same), nor does the Company nor its employees, advisers or representatives nor any other person accept any responsibility or liability whatsoever for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. If you rely on this communication to make an investment you may be exposed to a significant risk of losing all of your investment. This communication does not constitute either advice or a recommendation regarding any securities. Any person who is in any doubt about the subject matter of this communication should consult a duly authorised person specialising in advising on such investments. This communication includes forward-looking statements. These forward-looking statements include all matters that are not historical facts, statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties. You are cautioned that forward-looking statements are not guarantees of future performance and that the Company's actual results of operations, financial condition and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Past performance is not a guide to future performance.
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prospects matured for drilling
significant positive effect on project economics. Potential running room in both additional conventional traps and an unconventional shale gas play on the Licenses. The Company retains an option to farmin to the licence. It is the intention of the board of Fastnet to have this option extended by 12 months to the end of 2015
continues to enhance value with completion of 3D interpretation. Still working with 3rd parties towards farmouts in 2015
section not penetrated due to salt occurring shallower than predicted. FA-1 results have significantly de-risked the Foum Assaka license area OVERVIEW
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Licence Name Region Area Fastnet Interest Gross Net Partner Operator
Tendrara Lakbir Option Onshore Morocco 14,548 km2 66.7% 50% ONHYM, OGIF Fastnet Foum Assaka Offshore Morocco 6,478 km2 12.5% 9.375% Kosmos, BP, SK Kosmos Mizzen Basin Offshore Ireland 787 km2 100% 100% n/a Fastnet Mizzen East Offshore Ireland 1,155 km2 100% 100% n/a Fastnet Deep Kinsale Offshore Ireland 285 km2 60% 60% PETRONAS Fastnet Shanagarry Offshore Ireland 881 km2 82.35% 82.35% Adriatic Oil, Carob, Petro Celtex Fastnet Molly Malone Offshore Ireland 648km2 100% 100% n/a Fastnet Block 49/13 Offshore Ireland 272 km2 85% 85% Carob ltd, Petro Celtex Fastnet Total Area 25,054 km2 771 283 95 100 200 300 400 500 600 700 800 Frontier Standard Mature
Strategic focus on high-volume, high- value, frontier petroleum systems
Average Commercial Discovery Size in MMBoe 2010-2012 by Type
Note: Information from September 2012 Bernstein Research Report
OVERVIEW
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ACQUIRE
ANALYSE
FARM DOWN
EXPLORE
thickness/quality remains issue
MONETISE
towards further exploration on the License.
monetisation subject to extending option deadline
OVERVIEW
ACQUIRE ANALYSE FARM DOWN EXPLORE MONETISE
Cathal Friel, Non-Executive Chairman
2007
Carol Law, Chief Executive Officer
Rovuma Area 1, offshore Mozambique
(Jubilee), Brazil (multiple Campos Basin discoveries)
Will Holland, Chief Financial Officer
structured and managed equity and debt investments in small-cap E&P companies.
technical & business development roles based in Africa & Europe
Michael Edelson, Non-Executive Director
founded the Company.
Football Club since 1982
Michael Nolan, Non-Executive Director
€100 million
One of the founding directors
was part of the small team that built the business and sold it for c. €100m in 2006
100 TCF +
Carol led the Anadarko team that discovered over 100 TCF
Block, Offshore Mozambique
$2.5 billion
Value of successful corporate transactions
advised
$2.64 billion
Sale price of a 10% stake in Anadarko’s Area 1 Block, Offshore Mozambique
25+ years
Managerial Corporate Finance experience
30 years
Experience in oil and gas industry
20+ years
Experience in oil and gas industry
40+ years
Experience as a Director of several AIM listed PLCs
+$110 million
Managed Macquarie interest in over $110 million of debt and equity investments
Internal Control
Lead teams of internal auditors at Halliburton assessing accounting &
5p to £22
Founder of Asos, the global
retailer
Value Creation
Originated 20-plus AIM and PLUS listed vehicles, delivering significant returns to shareholders
THE TEAM
18+ years
Experience in resource exploration sector
+1900%
Share price increase between the Cove Energy IPO in June 2009 and its sale in Aug 2012
$1.9 billion
Cove Energy was sold to PTTEP in Aug 2012 after a competitive auction process
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MOROCCO
Fiscal Incentives
Profit Value of 1bbl of Oil in Morocco
Morocco Canada Argentina UK Libya Egypt Norway Indonesia
0% 20% 40% 60% 80% 100%
Gov’t Take (%) Morocco Algeria Nigeria Egypt
Source: EY Global oil and gas tax guide, 2013
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MOROCCO
Capacity in Morocco (Population 33 million)
Gas Power Capacity (requiring 600 mm cfgpd)
Electricity Generation Forecast by 2023
400 MW Al Wahda Power Station
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MOROCCO
BCF/year)
Morocco
million m3/year
LNG Terminal Initial Capacity 5 Billions M3 ( 176.55 BCF) > 5 years before operational (at very early planning stage)
Source: CPR, November 2013
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Scale
tax
explored Palaeozoic prospectivity (extension of proven Algeria/Libya petroleum systems; unconventional Carboniferous & Silurian/Tannezuft shale gas: economics enhanced by TE-5 gas development)
Equity & Partners
Option
MOROCCO
Deal Terms & Legacy Database
3D seismic and Reservoir Engineering (Pathfinder Option Period work programme)
reflect the materiality and “running room” and comprehensive legacy database
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MOROCCO
488 sq. km. 3D & 4,110 kms. 2D seismic
3 month EWT – no pressure depletion in TAGI I Formation damage – stabilised rate 1.5 mm cfgpd
TAGI tight gas reservoir
Gas shows in Lias limestone and Carboniferous
TAGI tight gas reservoir
TAGI II tested at 5 mm cfgpd
Declined to 2.5 mm cfgpd (fault barrier/no 3D) Condensate shows in Lias dolomites & Trias basalts 300 bcf GIIP Best Estimate
Structural & Stratigraphic Pinchout
Possible downdip extension TE-5 Structure
NE area of the Block
Basinwide
Carboniferous – basin centre play
62 TCF (Source ONHYM) Silurian/Tannezuft – NE area
NW-SE LINE OF SECTION
Legacy 2D Seismic
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MOROCCO
P90 CLOSURE GDT TE-5 2451 m SRD Area within Cyan Dots = 25 sq km P10 CLOSURE GDT TE-1 2835 m SRD Area within White Dots = 386 sq km MODEL 4 Uses pseudo-interval velocities based upon revised TWTs at well locations
Current Well Mis-ties (well-map) TE-1
TE-5 +28 m TE-4 +24 m TE-3
P50 CLOSURE 2575 m SRD Area within Blue Dots = 62 sq km
Outline of 3D data
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(Case “A” 9.1 mm cfgpd with all zones in 22.5m perforated; S = 0)
( Original Well Test k – Only top 11.5m contributing; S = 30)
(EWT Well Test k – Only top 11.5m contributing; S = 0)
MOROCCO
TE-5 Well – inflow Performance Rates TE-6 Well to test well deliverability case “A” – 9mm cfgpd
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MOROCCO Exploration History
MKL-101 Reservoir Characteristics and Test Results
well bore. Liquid content 85 barrels per mm cfgpd (3 barrels at Tendrara)
Reservoir Geometry
GIIP Per Well
for a variable net pay thickness of 135 to 200 feet and a drainage area of between 200 and 300 acres per well Source: World Bank Report No. 4283-MOR 4 Apr 1983
TE-5 Gas Structure
Meskala Gas Feld
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MOROCCO
62 TCF Missour Basin TENDRARA LICENCE
Area : 11000 Km² Age : Carboniferous Maximum depth : 4363 m TOC : 1 – 11.44 %
OSD-1 TAJ-1
Distribution of Silurian Hot Shales: NW Africa
OSD-1 (Carboniferous)
TAJ-1 (Silurian)
Field
Based on Legacy 2D Seismic Data
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MOROCCO
give valuable insight into an ongoing analysis of the potential of the under- explored offshore
Fastnet and a target for Chevron and BP offshore Nova Scotia remains a key target in Foum Assaka following the FA- 1 well
has historically focused on the Carbonate Shelf with no commercial discoveries as yet FA-1 Well
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Flat Spot?? Pre-Drill Fastnet Primary “Wedge” Target
Post-Drill Fastnet Primary “Wedge”
Target Tagged but not Penetrated FA-1 Live Oil Shows High Amplitude Package Recalibrate with Well Results SALT
MOROCCO
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Source: CoreLab
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Highly prospective basin capable of delivering significant near-term production
major reserves potential: largest producing gas field at Kinsale Head, large prospects with well- understood large-field analogues and existing infrastructure
applying new technologies to de-risk by analogy with surrounding oil and gas discoveries
monetise than deepwater Irish Atlantic Margin
undertaken in Summer 2013 (1,910km2)
MBO Recoverable made in analogous basin summer 2013 (Flemish Pass Basin)
DEEP KINSALE MOLLY MALONE MIZZEN & Mizzen East SHANAGARRY BLOCK 49/13
AREA 285 km2 648 km2 1942 km2 881 km2 272 km2 WATER DEPTH
FASTNET INTEREST 60% 100% 100% 82.35% 85%
IRELAND
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IRELAND
Prospect E Deep Kinsale Primary Prospect “A” 49/9-2 “Helvick” Oil & Gas Play
Base Chalk Upper Purbeck Sands Middle Wealden Upper Jurassic Upper-Middle Jurassic
Mounding in Upper Purbeck
Northern Bounding Fault
Kinsale Field 1.7 TCF Gas
MFS
48/25-1 Discovery
Southern Bounding Fault
Source Reservoir Prone Deep Liassic Source?
Limit (4000ft)
North SE North South East
Potential reservoir bearing packages thicken into active Late Jurassic to Early Cretaceous Faults
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Primary Prospect “A” Basal Wealden 46 sq. km. 48/25-1 Oil Discovery Lower Wealden 46.7 sq. km. Logged Live Oil 48/25-1 270 feet net oil pay
IRELAND
3D Seismic De-risk Legacy Reservoir Compartmentalisation Issues
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IRELAND
155 kms to Bantry Bay Oil Terminal Infrastructure 34 kms to connect to
185 kms to connect to Kinsale Platform and Shore Terminal
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RMS Amplitude Extraction, TDW 40 mins 100ms
IRELAND
Basis for Maximum closure at Primary Prospect A
High amplitudes over crest
Inline 728
Inline 728
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increases attraction of the area
OUTLOOK
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MOROCCO
Gamma
Flags Lith/Fluid Analysis Resistivity Porosity Curves Visual Matrix
Pore Size
Por/Fluid Perm Textural Params Comment Zone Ratings Fracturing Test Interval
“Sweet Spot” Better sorted NuTech Shows good k Not contributing to flow Core k up to 55 mD Thin layers sub NuTech log resolution
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IRELAND
Southern Bounding Fault
Prospect E Deep Kinsale Prospect A
49/9-2 “Helvick” Oil & Gas Play Base Chalk Upper Purbeck Sands Middle Wealden Upper Jurassic Upper-Middle Jurassic
Mounding in Upper Purbeck Prospect K
Northern Bounding Fault North South East North SE Purbeck Shale
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48/25-1 Logged 532 feet of net oil pay The Lower Wealden interval from 6600-7060ft is sst with 270 feet of net pay. The characteristics of this interval are: average porosity of 15.3%, average SW of 43.3%, average permeability of 114 millidarcies, There are several zones with permeability above several hundred
hydrocarbon at a good rate. The Upper Purbeck interval from 7060-7600 feet is sst. with 262ft of net pay. With average porosity of 12.5%, average SW of 36.9%, average permeability of 45.6 millidarcies, There are several zones with permeability
expected to produce hydrocarbon at a fair to good rate.
Seal Interval
Upper Purbeck – Lower Wealden Reservoir Interval Mid Purbeck Lacustrine Source Rock
Oil-Bearing IRELAND
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IRELAND
Good Continuity of Barryroe Tested Sands Over 10’s of Kilometres
Seal Interval
Upper Purbeck Lacustrine Shale Reservoirs in Deep Kinsale Lower Wealden Reservoir Interval
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About SK
conglomerate in South Korea behind Samsung and Hyundai with 56,000 employees
(Energy/Chemicals Division comprises 56%)
in 13 countries – 5 production blocks, 14 exploration blocks, 4 LNG projects across countries such as Peru, Columbia, Kazakhstan, Libya, Australia, Oman Yemen, Vietnam, Cote d’Ivoire, Madagascar – Daily production of 70,000 boepd – 619mm BOE Proven Reserves
MOROCCO: FOUM ASSAKA
Deal Terms
Assaka licence in December 2013
exploration well on the Eagle-1 Prospect and first appraisal well (capped at USD $100 million per well) or at SK Innovations’ discretion a carry in a second exploration well (capped at gross USD $100 million)
further payment of 25% of Fastnet’s back costs relating to the period from 1 October to 1 January 2014
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APPENDIX Name Company
Harry Stevenson Beaufort Securities Sam Wahab Cantor Fitzgerald Job Langbroek Davy Ian McLelland Edison Research Tao Ly GMP Securities Gerry Hennigan Goodbody Richard Savage Mirabaud Stuart Amor RFC Ambrian Craig Howie Shore Capital