Fastnet Oil & Gas Plc Corporate Presentation
January 2015
Corporate Presentation January 2015 Disclaimer This document is - - PowerPoint PPT Presentation
Fastnet Oil & Gas Plc Corporate Presentation January 2015 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 any
January 2015
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
– General and Administration - ongoing review of spending and staff changes forecasting < USD 2.3mm p.a. in 2015 – All current licence phase commitments have all been met – fully funded for discretionary spending going forward
prognosed section not penetrated due to salt occurring shallower than predicted. Well proved evidence of active petroleum system on the block
– Foum Assaka - integration of FA-1 well data, trade for other operators well data, rework interpretation – Celtic Sea – working regional linkage to Flemish Pass, detailed petroleum systems work to reduce risk and high-grade portfolio
– Farm downs to recover past costs and fund future activity – Evaluation of new opportunities for strategic fit – Focused review of potential acquisition candidates OVERVIEW
www.fastnetoilandgas.com 5
Licence Name Region Area Fastnet Interest Gross Net Partner Operator
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 10,506 km2 771 283 95 100 200 300 400 500 600 700 800 Frontier Standard Mature
Strategic focus on frontier acreage with excellent fiscal terms in proven petroleum systems
Average Commercial Discovery Size in MMBoe 2010-2012 by Type
Note: Information from September 2012 Bernstein Research Report
OVERVIEW
www.fastnetoilandgas.com 6
ACQUIRE
ANALYSE
FARM DOWN
costs
EXPLORE
thickness/quality remains issue
MONETISE
towards further exploration on the License.
OVERVIEW
ACQUIRE ANALYSE FARM DOWN EXPLORE MONETISE
Carol Law, Chief Executive Officer
in Rovuma Area 1, offshore Mozambique
Ghana (Jubilee), Brazil (multiple Campos Basin discoveries)
Cathal Friel, Non-Executive Chairman
Capital in 2007
Michael Edelson, Non-Executive Director
he founded the Company.
Football Club since 1982
Michael Nolan, Non-Executive Director
Energy PLC
director of Rathdowney Resources plc and Orogen Gold plc
100 TCF +
Carol led the Anadarko team that discovered over 100 TCF
Block, Offshore Mozambique
$2.64 billion
Sale price of a 10% stake in Anadarko’s Area 1 Block, Offshore Mozambique
30 years
Experience in oil and gas industry
40+ years
Experience as a Director of several AIM listed PLCs
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
€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
$2.5 billion
Value of successful corporate transactions
advised
25+ years
Managerial Corporate Finance experience
Company plans to add new director in 2015
www.fastnetoilandgas.com 8
Opportunity
Fastnet Strategy
OVERVIEW
www.fastnetoilandgas.com 10
potential
at largest Irish producing gas field at Kinsale Head
systems
prospects with well- understood analogues
Terms
monetise than deepwater
in current commodity environment
Statoil 2013 discovery - potentially 600 MBO recoverable and growing
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
www.fastnetoilandgas.com 11
The Jeanne D’Arc (JDB) and Flemish Pass (FPB) basins and their Lower Cretaceous to Jurassic Petroleum Systems link with the Celtic Sea and Mizzen Basins Offshore Ireland. The East Orphan Basin (EOB) is the conjugate pair of the Porcupine Basin. Eastern Canada Fields and Discoveries
Bay Du Nord (2013) Mizzen 300 – 600 mmbbls 100 – 200 mmbls
884 mmbbls + 1.375 TCF + 145 mmbbls NGL
406 mmbbls +14 mmbbls NGL + 269 BCF
325 mmbbls
Eastern Canada Fields and Discoveries (Statoil Website Nov 2013) Pre-Atlantic Opening Map (Lowe et al 2011)) Shows Canadian and Irish Conjugate Basins Note: Jeanne D’Arc and Flemish Pass basins are paired with the Celtic Sea.
IRELAND
www.fastnetoilandgas.com 12
charge
interest
prior to commodity price collapse. IRELAND IRELAND
www.fastnetoilandgas.com 13 Basement/Trias/Lower Jurassic Tertiary Chalk
Fault
UC UC UC UC UC UC UC
Crestal Carbonate Play Intra-Formational Seal Intra-Formational Seal
BCU? Purbeck Sst Base Chalk Top Chalk SB SB
East
Aptian Hauterivian
Local Source?
West
E W SB
Fan Delta Progrades
UC
Null Point
Bright amplitudes
Lower Cretaceous
Source?
UC
Stratigraphic Wedge Play Deep Sand Play Basement & Triassic Play
Jurassic & Triassic
IRELAND
www.fastnetoilandgas.com 14
Depth Feet
Contours 100ft
56/12-1
Low
IRELAND
www.fastnetoilandgas.com 15
RMS Amplitude Extraction, TDW 40 mins 100ms
IRELAND
Basis for Maximum closure at Primary Prospect A
High amplitudes over crest
Inline 728
Inline 728
16
Top Basal Wealden Sands 6650 ft Top Purbeck 7110 ft
Oil Shows Throughout Gross 460 ft Net 127 ft N/G 28% Average PHIE 16% PHIE up to 20%. Average Oil Saturations 20% Shows Net Reservoir Flag Calculated Hydrocarbons
56/12-1 Composite Log and Conventional Petrophysical Results Basal Wealden Section – 460 ft thick Circa 2x gross (and net) thickness as equivalent main reservoir (interval at Barryroe)
Gross 1,352 ft Net 278 ft N/G 21% Average PHIE 15% Average Oil Saturations 26%
IRELAND
www.fastnetoilandgas.com 17
884 MMBO 325 MMBO 406 MMBO 274 MMBO
Jeanne D’Arc Basin Oil and Gas Fields showing Rotated Overlay of Fastnet’s Celtic Sea Mizzen and Mizzen East Licence Option Areas (1,950 km2) for Scale
RESOURCES Hibernia 884 MMBbls Oil + 1.375 TCF + 145 MMBBLS NGL Terra Nova 406 MMBbls Oil + 269 BCF + 14 MMBBLS NGL Hebron 325 MMBbls Oil IRELAND
www.fastnetoilandgas.com 18
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
restricted to below 4,000 feet subsea
December 2013
March 2015
December 2016
Purbecko-Wealden reservoirs present in “Barryroe”
Depth of 8,000 feet subsea
www.fastnetoilandgas.com 19
Additional potential closures
High
Primary Prospect “A” Basal Wealden 46 sq. km. Logged Live Oil 48/25-1 270 feet net oil pay Prospect “B” Lower Wealden 46.7 sq. km.
IRELAND
www.fastnetoilandgas.com 20 High
Primary Prospect “A” Upper Purbeck 46.2 sq. km. Logged Live Oil 48/25-1 270 feet net oil pay
IRELAND
www.fastnetoilandgas.com 21
Shanagarry
49 /13
Field (Middle/Basal Upper Jurassic)
Molly Malone
data
potential of 125 million barrels
IRELAND IRELAND
Existing Seismic Coverage
www.fastnetoilandgas.com 23
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 (%)
Source: EY Global oil and gas tax guide, 2013
www.fastnetoilandgas.com 24
MOROCCO
wells drilled by other Operators provides valuable insight into an
play based on the oil shows in reservoir quality sands which were not a primary target pre well
in offshore blocks will continue to expand the understanding of the active petroleum systems
well as high grading existing prospect portfolio
FA-1 Well
www.fastnetoilandgas.com 25
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
dip
Barreminan Sands with oil shows
encountered in well
providing excellent calibration for basin
www.fastnetoilandgas.com 26 MOROCCO
Source: CoreLab
www.fastnetoilandgas.com 27
www.fastnetoilandgas.com 28
Continue with farm out process
OUTLOOK
www.fastnetoilandgas.com 29
www.fastnetoilandgas.com 30
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
www.fastnetoilandgas.com 31
Proprietary Fastnet Oil and Gas study versus IGI Paper from Conjugate Margins Conference, St. Johns, Aug 2014.
IRELAND
www.fastnetoilandgas.com 32
Sealing Fault? Sealing Fault Required
IRELAND
www.fastnetoilandgas.com 33
TRIST-91 MP-84CE Marathon 69,71,72 MPCR-84
Surveys
MP-84-CD UK Lines on Order (March 2013)
49/29-1 Oil Shows in Rhaetic-Hettangian 102/29-1 Wet Gas Shows in Lower Jurassic 93/2 Oil Shows in Rhaetic-Hettangian
IRELAND
www.fastnetoilandgas.com 34
NW SE
Tilted fault blocks – pre-inversion trap with Triassic Sherwood Sandstone sealed by salt Fault throw large enough to effect juxtaposition with mature source rocks
CYAN PROSPECT
IRELAND
www.fastnetoilandgas.com 35
Gross 1184 ft Net 796 ft N:G 0.67 Average Porosity 18% Sonic Porosity up to 25%
Top Sherwood Sstn. 7801 ft MD (-7729 ft) Top Palaeozoic 8985 ft MD (-8913 ft) TRIASSIC
Sherwood Sandstone Group
GR Resistivity Sonic
www.fastnetoilandgas.com 36
49/13 Shanagarry Molly Malone
Legacy Gulf 3D seismic coverage
49/9-2 Helvick Oil Field (Middle/Basal Upper Jurassic) Tested at 10,000 bopd 49/13-2 Heavy Oil Discovery (Upper Jurassic) DST extrapolated flow rate 250 bopd
IRELAND
www.fastnetoilandgas.com 37
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
www.fastnetoilandgas.com 38
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