www.fastnetoilandgas.com
Fastnet Oil & Gas Plc Ladenburg Thalmann Africa Upstream Conference February 2014
Fastnet Oil & Gas Plc Corporate Presentation
March 2014
www.fastnetoilandgas.com
Corporate Presentation Africa Upstream Conference February 2014 - - PowerPoint PPT Presentation
Fastnet Oil & Gas Plc Fastnet Oil & Gas Plc Ladenburg Thalmann Corporate Presentation Africa Upstream Conference February 2014 March 2014 www.fastnetoilandgas.com www.fastnetoilandgas.com Disclaimer This document is confidential
www.fastnetoilandgas.com
March 2014
www.fastnetoilandgas.com
www.fastnetoilandgas.com 2
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.
www.fastnetoilandgas.com 4
Fastnet is an oil & gas Company primarily focused on exploration in frontier regions. Strategy
through identifying early entry or overlooked
technical expertise and to bring in high calibre partners
a return of cash to shareholders on an asset by asset basis Listed in London on the AIM (‘FAST’) and the Irish Stock Exchange (‘FOI’)
OVERVIEW
www.fastnetoilandgas.com 5
impact exploration and lower risk near term exploration opportunities
calibre partners
house technical expertise, local relationships and proven ability to attract high calibre partners
OVERVIEW
www.fastnetoilandgas.com 6
Cathal Friel Executive Chairman Paul Griffiths Managing Director Carol Law Executive Director Michael Nolan Non-Exec Director
Raglan Capital and with
entrepreneurial and corporate finance experience
directors of Merrion Capital, where he was part of the small team that built the business and then successfully sold it for close to €100m in 2006.
Gas Plc
experience, early stage oil & gas prospector, Graduate
Ireland with Island Oil & Gas: 4 wells drilled, two commercial gas fields
Anadarko East Africa
Prosperidade gas complex in Rovuma Area 1, offshore Mozambique
responsible for discoveries in Ghana (Jubilee), Brazil (multiple Campos Basin discoveries)
gas exploration
Energy Ltd
Finance Director of Cove Energy PLC
experience in the resource exploration sector
THE TEAM
www.fastnetoilandgas.com 8
1bbl of oil in Morocco is equivalent to the value
with attractive pricing
pipeline to Europe
BP, Cairn and Genel
and a democratically elected Government
12 months: 7 offshore and 6 onshore wells already scheduled for drilling in Morocco in 2013/2014
Morocco beginning 2006
Near Term Drilling Activity
Other Parties Active: Chevron Chariot Total
Fastnet “first mover” strategy prelude to industry recognising Morocco as a key frontier exploration area (yellow)
MORROCO
seismic acquired
drilling base at Agadir
commences in Ghana on Jubilee Discovery
Draa and Rimella Licences
Griffiths enters Moroccan
Licence award
Licence awarded to Island Oil & Gas
Discovery in Ghana
Moroccan offshore with Sidi Moussa & Foum Draa Licence awards
with Pathfinder on Foum Assaka
and expands exploration acreage in West Africa
equity in Q3 2011
9
announced that it has entered into a farm-out agreement with BP plc., to earn a 26.325% stake in the Foum Assaka permit
agreement with SK Innovation Ltd for half of Fastnet’s interest in Foum Assaka, Offshore Morocco
www.fastnetoilandgas.com MOROCCO
www.fastnetoilandgas.com 10
Overview
play
Near term Prospectivity
Triassic reservoirs
caused by fault close to well bore (based on 2D seismic interpretation)
km grid,
Equity & Partners
MORROCO
www.fastnetoilandgas.com 11
MORROCO
AREA OF CLOSURE 16,600 ACRES
TE-6 PROVISIONAL LOCATION
LAKBIR: TE-6 PROVISIONAL WELL LOCATION
Te-5 Structure Meskala Gas Field ONHYM
www.fastnetoilandgas.com 12
Triassic TAGI Sand consistent with good potential gas flow rates from a gross gas-bearing interval in TE-5 of 82.2 meters
development cases, subject to a successful validation of flow rates in an appraisal well to the TE-5 discovery and a step-out appraisal well to the northeast of the TE-5 discovery
historical published estimates, that were not previously validated by an independent Competent Persons Report, give resource estimates as follows:
TE5-Lakbir Structure: Gross and Net Contingent Resources
LOW BEST HIGH ESTIMATE Recoverable BCF (100%) 30.1 310.5 891.9 Recoverable BCF (37.5% Net) 11.3 116.4 334.5 NPV per BCF (US$mm) 2.29 Chance of Success 22% Risked Value (ENPV US$mm) 58.3
Source: SLR CPR November 2013
MORROCO
www.fastnetoilandgas.com 13
spot” defined by strong seismic amplitudes
TE-5 TAGI reservoir parameters are comparable to those for the producing Meskala Field in Morocco
identified
substantial amounts of gas already encountered in the TE-5 Structure and the exploration upside, allowing Fastnet to commission an updated independent CPR report
MORROCO
www.fastnetoilandgas.com 14
remains insignificant (60 million m3 (1.76 BCF) in 2009)
Africa’s largest consumers)
by 54% in last ten years
strategic target as is security of supply
Oil Refineries
LNG Terminal Initial Capacity 5 Billions M3 ( 176.55 BCF) > 5 years before operational (at very early planning stage) Capacity 12.5 Billions M3/year (441.37 BCF/year) 14% of transport capacity entitled to Morocco (currently unutilised)
Moroccan Energy and Electricity Demand Growth 2006 – 2030 (MEMW&E)
MORROCO
www.fastnetoilandgas.com 15
turbidite fan
spud in March 2014, drilling expected to take 3 months
Kosmos, to contain 360 mmboe of Pmean resources
Programme (based on gross budget cap of $16.2 million)
successfully testing salt structures (e.g. Gulf of Mexico)
Cretaceous deep water channels and fan types
geological objectives
Eagle Complex
MORROCO
www.fastnetoilandgas.com 16
during March with designated “Tight Hole” status
meters and could take up between 47 to 66 days to complete depending on drilling efficiencies
MORROCO
Images Sourced from Kosmos Technical Update
www.fastnetoilandgas.com 17
Jubilee Field reservoir in Ghana – Pmean Resources quoted by Kosmos for the upper sand only are 360mm BO recoverable
Tertiary Prospect, for which Shell’s estimate of potential recoverable resources was 220 MMBO, which is located immediately to the eat of the FA-1 well location
in order to determine the potential for a downdip stratigraphic pinch-out play at the base of the Cretaceous to the eat of FA-1
Primary Albian Sand Objective, for which Fastnet is carried by SK up to a gross cap of USD 100mm, or drill a second exploration well on one of the 3 different geological plays being evaluated by the FA-1 well, for which Fastnet is also carried by SK up to a cap of USD 100 mm, at their discretion as currently there is no licence commitment to drill a further well after FA-1
MORROCO
www.fastnetoilandgas.com 18
MORROCO
www.fastnetoilandgas.com 19
MORROCO
www.fastnetoilandgas.com 20
1 Eagle Prospect with multiple potential objectives in this part of the licence together with multiple Tertiary and Base Cretaceous Prospects and Leads that will be re-ranked following the results of the FA-1 well
major (BP) in the Agadir Basin for 10 years and their significant commitment to our area of operations reflects the medium-term potential of this specific area of offshore Morocco
MORROCO
Images Sourced from Kosmos Technical Update
www.fastnetoilandgas.com 21
Mexico experience in exploring for prospective traps in areas of salt tectonics
regulatory authorities are working to deliver the approvals during March
MORROCO
www.fastnetoilandgas.com 22
conglomerate in South Korea with offices in 113 countries
Assaka licence in December 2013
well on the Eagle-1 Prospect and first appraisal well (capped at US$100 million per well) or at SK Innovations’ discretion a carry in a second exploration well (capped at gross US$100 million)
payment of 25% of Fastnet’s back costs relating to the period from 1 October to 1 January 2014
MORROCO
www.fastnetoilandgas.com 24
Pre-Atlantic opening tectonic elements showing important discoveries/fields and locations of Licensing Options Areas chosen for:
with modern processing
specific areas
recent Flemish Pass Basin discovery
Statoil’s 2013 Flemish Basin Discovery
IRELAND
www.fastnetoilandgas.com 25
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
technologies to de-risk by analogy with surrounding oil and gas discoveries
monetise than deepwater Irish Atlantic Margin
undertaken in Summer 2013 (1,910km2)
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% DEEP KINSALE
IRELAND
www.fastnetoilandgas.com 26
sand in Barryroe
analysis confirms oil in 48/25
majors interested in the single asset of Barryroe
drilling partners
prospects
Kinsale Gas Field Structure
IRELAND
www.fastnetoilandgas.com 27
BC Base Chalk MWS Middle Wealden Sands DT Deep Target (Upper Purbeck?) MP Middle Purbeck Unconformity LP Middle or Lower Purbeck?
ALPHA PLATFORM
BC MWS DT MP LP
Prograding Delta “Sweet Spot” Post-unconformity Fill
IRELAND
www.fastnetoilandgas.com 28 BLUE P90 CLOSURE 8,757 acres Four-way Dip Closure PINK P50 CLOSURE 19,934 acres Four-way Dip Closure GREEN P10 CLOSURE 3,5930 acres Minor fault seal element against upthrown Purbeck Shale
48/24-4 oil shows in Base Wealden Sands HANGING WALL 49/17-1 oil shows in Base Wealden and Upper SYN RIFT FOOTWALL 48/25-1 NU TECH Petrophysics 270 ft. net pay in Base Wealden 262 feet net pay in Upper Purbeck HANGING WALL
NO OTHER WELLS PENETRATED BASE WEALDEN/UPPER JURASSIC
IRELAND
www.fastnetoilandgas.com 29 Interpretation of Fastnet’s newly acquired high resolution 3D seismic Data in the Kinsale and Mizzen areas is expected to resolve many issues. It should also indicate the timing of inversion events in these parts of the North Celtic Sea and shed some light on inversion timings.
IRELAND
www.fastnetoilandgas.com 30
Mizzen Prospect 1: Structural Nose with Lower Wealden & Purbeck Reservoir pinch-outs and subcrop at Base Barremian Shale & Chalk unconformities Mizzen Lead 2: Structural Lead/Alluvial Fan with Lower Wealden & Purbeck Sand Overlain by Barremian Shale Mizzen Lead 3: Structural Nose with Lower Wealden & Purbeck Sand Overlain by Barremian Shale
Mizzen Prospect 1 = 114 sq. km. Mizzen Lead 2 = 32 sq. km. Mizzen Lead 3 = 127 sq. km.
C.I. = 20 msecs
Top Lower Wealden Sands Subcrops Barremian Shale Top Lower Wealden Sands Subcrops Aptian Unconformity/Base Chalk?
IRELAND
www.fastnetoilandgas.com 31
Celtic Sea – 2013 industry attention was focussed only on resolution of the Barryroe farmout
exploration for gas in the Celtic Sea is attractive given the presence of infrastructure
prospective for gas and oil
challenging geology & seismic data quality issues of the Celtic Sea – establishes Market credibility in the ability to attract partners
leading international oil and gas companies to be held in Dublin on 30th April 2014
IRELAND
www.fastnetoilandgas.com 32
www.fastnetoilandgas.com 33
OUTLOOK
Prospect Activity 2013 2014 Q2 Q3 Q4 Q1 Q2 Q3 Q4
OFFSHORE MOROCCO (Foum Assaka)
CPR for New Prospect Inventory Purchase of Long Lead Drilling Inventory Approved
✓
Drilling Preparation EIS Study
✓
Farmout Activity Farmout Completion Drill First Well
ONSHORE MOROCCO (Tendrara Lakbir)
Portfolio Opportunities Completed
✓
CPR for Prospect Inventory Drilling Preparation EIS Study Rig Sourced
✓
Drill First Well
OFFSHORE IRELAND (Celtic Sea)
CPR Shanagarry, Deep Kinsale & 49/13
✓
3D Seismic Acquired 3D Processing and Interpretation Farmout Process
www.fastnetoilandgas.com 34
Fastnet’s Moroccan assets
programme is prudent to maintain a balanced risk-reward exposure to protect and enhance current cash resources
maintained at current levels based on much lower onshore drilling costs; lower risk of exploiting discovered gas; and potential for earlier monetisation
OUTLOOK
www.fastnetoilandgas.com 35
www.fastnetoilandgas.com 36
drove initial shareholder value in emerging industry “hot spot”
into proven gas discovery onshore Morocco yet to be fully factored in to the share price
active drilling programme offshore and onshore Morocco
current work programme commitments whilst allowing for partial monetisation of the portfolio through ongoing farm down discussions for carries in drilling and past costs
KEY INFORMATION AIM FAST ESM FOI TOTAL ORDINARY SHARES IN ISSUE 345,369,071
APPENDIX
www.fastnetoilandgas.com 37
Licence Name Region Area Fastnet Interest Gross Net Partner Operator
Tendrara Lakbir Onshore Morocco 14,687 km2 50% 37.5% ONHYM, OGIF Fastnet Foum Assaka Offshore Morocco 6,478 km2 25% 18.75% Kosmos, BP (pending), SK (pending) 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 647 km2 100% 100% n/a Fastnet Block 49/13 Offshore Ireland 272 km2 85% 85% Carob ltd, Petro Celtex Fastnet Total Area 25,192 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
APPENDIX
www.fastnetoilandgas.com 38
Mizzen 3D Seismic – 1,400 km2 Deep Kinsale 3D Seismic – 510 km2 CGG Vantage
Mizzen 3D Area - Full Fold (3 km sail in) Mizzen 3D Area Total Option Area
Deep Kinsale Seismic & Undershoot APPENDIX
www.fastnetoilandgas.com 39
Best Estimate High Case CoS Oil or Gas Case Foum Assaka Shell Legacy Prospects Only 4.930 BBO – 11% OIL Shanagarry Upper Wealden 135.9 BCF – 10% GAS Lower Wealden 796.6 MMBO – 14% OIL Purbeck 501.6 MMBO – 12% OIL Kimmeridgian-Portlandian 885.7 BCF – 5% GAS Upper/Middle Jurassic 321.1 BCF – 5% GAS Mizzen Basin Shallow Lower Cretaceous 2.075 TCF 4.724 TCF 12% GAS Cretaceous Prospect 1.799 BBO 3.899 BBO 4% OIL Deep Triassic Prospect 3.108 TCF 9.356 TCF 5% GAS Molly Malone Basin Triassic Prospect - North 6.677 BBO – 9% OIL Triassic Prospect - South 5.833 BBO – 5% OIL Deep Kinsale Middle Wealden 856.3 MMBO 1.685 BBO 13% OIL Lower Wealden 530.1 MMBO 1.089 BBO 15% OIL Basal Wealden Oil 265.0 MMBO 0.532 BBO 17% OIL Purbeck 713.6 MMBO 1.556 BBO 15% OIL Total Oil 22.911 BBO OIL Total Gas 6.526 TCF GAS
CPR for 49/13 is pending
APPENDIX