FTSE 250 E&P Company Focused On The Highly Attractive Eastern - - PowerPoint PPT Presentation

FTSE 250 E&P Company Focused On The Highly Attractive Eastern Mediterranean Region

June 2018

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Vision: Premier Eastern Mediterranean Independent E&P Player

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Energean At A Glance

MONTENEGRO Ioannina Aitoloakarnania Katakolo EGYPT

GREECE

Prinos Blocks 12, 21, 22, 23 & 31 Karish & Tanin ISRAEL Production Development Exploration Blocks 26 & 30 2 5 7 11 17 24 30 58 237 300 390 50 100 150 200 250 300 350 400 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Post IPO

(mmboe)

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

Production Reserves Growth History

Note: (1) 2C resource in Israel will be converted into 2P reserves on audit due to FID being established 20 40 60 80 2017 2018 2019 2020 2021 2022 2023 Production (kboepd) Karish & Tanin Prinos

Focus on the East Med Focus on Gas Delivering a 2.4 Tcf Project in Israel

Mathios Rigas

Chairman & CEO

David Donaldson

Prinos Asset Manager

Michelle Churchward

Group General Counsel

• Dr. Steve

Moore

Chief Growth Officer

Panos Benos

Chief Financial Officer

Kate Sloan

Head of Investor Relations

Management Dennis Anestoudis

Exploration Manager

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European Gas Market

Eastern Mediterranean- A Hive of Activity

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Note: (1) Transaction value / boe. Source: Company Filings, Herold. Energean Focus Regions Trans-Anatolian Pipeline East-Med Pipeline Newcomers Trans-Adriatic Pipeline Other Proposed Pipelines Egypt LNG plant

3 1 1

1 2 3

Future exploration wells in 2018

“Calypso 1 is a promising gas discovery and confirms the extension of the Zohr like play in the Cyprus EEZ […] that could contain more than 230 BCM of gas, and contains not less than 170 BCM”

Claudio Descalzi, ENI CEO

• Gas pipeline connecting East Med via

Greece and Italy with the European gas network

• MoU signed between Israel, Greece, Italy

and Cyprus supporting the pipeline construction

• Classified as European Project of

Common Interest with EU sponsoring 50%

• f pre-FEED costs
• Targeted project completion by 2025
• Two largely unused, fully

functional LNG facilities at Idku and Damietta in Egypt

• Connection to Turkey as

potential gateway to Europe

• Israeli firms signed a $15 bn

deal to export gas to Egypt from Leviathan and Tamar

• Agreement to supply 64 bcm
• f gas over 10 years
• Implied price of c.$6.6/mmbtu

Asset 7.5% Tamar 30% Zohr 10% Zohr 35% Aphrodite Buyer US$ /boe(1) 1.4 1.4 0.8 Jan 18 Dec 16 Nov 16 Jan 16 5.4

Cyprus Increasing M&A Activity East Mediterranean Pipeline Israel / Egypt Gas Deal Export Routes to Europe

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De-Risked Portfolio Poised for FCF Generation

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(600) (400) (200)

• 200

400 600 800 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Annual FCF (US$m)

Funded from Project finance/ IPO Equity, RBL facility and Prinos cashflows Sheshinksy Tax

Note: (1) 70% WI, based on NSAI CPR, (2) Oil Price: 65 $/bbl, Gas Price: 4.25 $/mmbtu Source: NSAI CPR for Karish and Tanin, Prinos Basin and Katakolo.

Tanin Development

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Low Cost Stable Greek Production Base

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(200)

• 200

400 600 800 1.000 1.200 1.400 (80) (60) (40) (20)

• 20

40 60 80 100 120 140 160 180 200 220 Cum CF (US$m) Net CF (US$m) Net Prinos Cum CF

Unlevered FCF

Source: Company

Prinos Production Profile Stable Production Base Around Prinos Basin

• 40.5 mmboe of 2P reserves and 23.8 mmboe of 2C resources
• 100% WI for all fields
• Significant operation leverage with 2018 Opex of $17/bbl, heading towards

$9/bbl by 2021 in 2P profile, supported by favourable fiscal terms

• Owned infrastructure offers operational flexibility
• No abandonment liability for pre-existing infrastructure
• Long term offtake agreement signed with BP until November 2025 or delivery
• f 25 mmbbls of oil to BP
• 2018 target production: 4 - 4.5 kbopd
• Fully funded via $180mn RBL facility
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6 9 12 15 2018 2020 2022 2024 2026 2028 (kboepd)

2P 1P

Prinos Existing Infrastructure

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Epsilon & Katakolo Development Projects, Greece, 100% WI

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Source: Company, Katakolo NSAI CPR

Development Period 25 years staring in 2004 Royalty 2 - 10% Corporate Tax 25%

• 2P reserves of 10.5 mmbbls
• West Katakolo reservoir is believed to be a dual porosity system (matrix,

fractures and vugs), with an overlaying gas cap and an underlying aquifer

• 2 wells tested; plan is to drill the first pilot hole to be converted to an injection

well in 2019

• Commencing environmental and social impact assessment to be submitted

in 2018. Company intends to take FID upon approval

• US$60m estimated development capex
• First oil expected in 2020

Katakolo Overview

• 2P reserves of 18.4 mmbbls
• Discovered in 2001
• Appraised 2010 via ERD well drilled from Prinos
• Similar reservoir setting to Prinos
• Project development through EPCIC contract with GSP, 3 production

wells and a production platform Lamda

• US$155m development capex
• First oil expected 2019

Epsilon Overview Summary Fiscal Terms

Development Period 25 years starting in 2016 Royalty 2 - 20% Corporate Tax 25%

Summary Fiscal Terms

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• Approximately 2.4 Tcf (67 bcm) gas
• 32.8 mmbbls hydrocarbon liquids(1)
• 8 bcm/y new build FPSO
• Part of the prolific Early Miocene Tamar Sands play with water depths

exceeding 1,700 metres

Karish & Tanin – A Transformational Project in Israel (70% WI)

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Key Highlights World Class Assets

Source: NSAI CPR, Company.

Substantially De-risked Project

• c. 4 bcm/y capacity available
• Only floater in the East Med

Future growth

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Karish & Tanin – Development Plan

9  TechnipFMC $1.36 bn EPCIC Contract

• Two train new-build FPSO with an 8 bcm/yr capacity
• Lump-sum turnkey EPCIC contract – timing and

performance risks borne by Technip FMC

• Project to be completed in Q1 2021
• Spread moored FPSO built by SCM in Singapore
• 800,000 bbls oil condensate storage capacity

 Stena Drilling Contract

• Contract in place for the development drilling of the

Karish Field

• Stena Forth drillship: Karish North & three

development wells in Q1 2019

• Energean holds option to drill 6 additional wells

 Wood contract for O&M services  Halliburton contract for Integrated Drilling Services

• New build, spread moored FPSO
• 3 initial development wells planned
• Dry gas pipeline to shore

Key Contract Terms Initial Development Phase

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Karish & Tanin – 4.2 BCM/Y GSPAs Executed

1.2 bcm/yr 2.6 bcm/yr 0.3 bcm/yr $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 0.1 bcm/yr

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Key Milestones to Karish and Tanin First Gas

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2019 2018 2020 2021

March 2018

• FID

Q1 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 2021

• First gas

production

Q4 2018

• FPSO First

steel cut

Q3 2019

• Evaluate

Miocene upside potential in Karish Main

Q4 2019

• FPSO hull towed

from China to Singapore

Q1 2020

• Karish main

development wells cleaned up and suspended

Q4 2020

• Completed

FPSO towed to Israel

Q1 2019

• Mobilise Stena

Forth rig

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

Source: Company

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Karish and Tanin Operational Overview – CPR Case

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Net Free Cash Flow Profile(2) Karish Tanin Contracted Gas Volumes(1)

(1.500) (1.000) (500)

• 500

1.000 1.500 2.000 2.500 3.000

(600) (400) (200)

• 200

400 600 (US$mn) (US$mn) K&T net CF Cum CF Source: NSAI CPR. Note: (1) NSAI figures used are gross (100%), (2) NSAI figures shown are net to 70% stake.

NSAI CPR(1)

1 2 3 4 5 6 7 8 9 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

BCM/Y

Contracted Gas Sales Or Contract Option Excess FPSO Capacity NSAI CPR Economics

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Israeli Gas Demand Expected to Grow

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Gas Demand Increase 2006-2016 CAGR – Top 10 Countries Globally

• Over the last decade Israel natural gas demand

has been amongst the fastest growing globally

• Y-o-y growth of 7.4% in 2017
• Future demand is forecasted to increase

substantially primarily driven by electricity sector

Key Highlights

• Israeli Electric Corporation 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

Israeli Regulatory Support

Israeli Natural Gas Demand by Sector

16.1% 15.5% 13.5% 8.1% 6.6% 6.3% 6.1% 6.0% 5.9% 5.9% Peru Israel China Qatar Taiwan Banglad. Kazakh. Iran Brazil UAE

2006-2016 CAGR Source: Israeli Electric Corporation; Israeli Ministry of Energy; BP Statistical Review of World Energy June 2017.

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20 2017 2019 2021 2023 2025 2027 2029 2031 bcm / year Electricity Industry & Distribution Transport Sector Methanol

“We intend to reach a situation in which Israel’s industry will be [using] natural gas, and most important, transportation in Israel will be based on natural gas or electricity” Yuval Steinitz, Energy Minister of Israel

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Near Term Exploration Upside

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• Low commitments expected to be ~$6.5mn over the

next three years

Israel Bid Round: December 2017 Karish & Tanin Unrisked Prospective Resources(1) & Exploration Blocks Recoverable Prospective Resources(2) Overview of Exploration Block Locations

Source Company Note (1) 70% WI, based on NSAI CPR, (2) Based on NSAI CPR & Company estimates, (3) Geological probability of success

Liquids Gas Pg(3) (mmbbl) (Tcf) (%) Karish(1) 53 1.4 72 Tanin(1) 28 0.31 56 Block 12 5 1.15 76 Block 22 1.9 0.62 45 Blocks 21/22/31 2.1 0.71 45 Block 21/31 4.9 1.64 45 Block 23 2.5 0.82 45 Total 97.4 6.65

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Karish North: Overview

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• 3-way dip structure on the northern down-thrown side of the Karish Main

bounding-fault

• High Probability of Success of finding gas in B, C and D sands (e.g. 81% POS: C

sands –NSAI CPR)

• Calculated GIIP = 1.84 Tcf, based on predicted GWC and Karish Main properties.

Unrisked recoverable resources = 1.20 Tcf from a single well. Karish North fluids may contain more liquids than Karish Main

• Well to be drilled immediately prior to Karish Main 3-well development drilling
• campaign. Spud before end March 2019. Expected cost ~ US$15 to $25mn
• Discovery well would be tied back to the FPSO via an insulated 5km flowline with

volumes being rapidly monetised through the pre-installed excess FPSO capacity 4 bcm/y

Karish Main Karish North

Strong DHI conforming to structure

Karish Main Karish North

X Y

Karish Main Karish North Karish East

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Karish & Tanin FPSO – A Hub to Commercialise Other Fields

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Overview of Karish & Tanin FPSO Potential Tie-Ins

Source: Company

A nearby discovery will allow incremental gas sales or delay the Tanin Development

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Exploration Upside in Western Greece and Montenegro

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• Repsol 60% partner and operator
• First exploration phase run through 2019 for Ioannina and

2021 for Aitoloakarnania – 205 mmboe gross unrisked prospective resources – Repsol has started seismic exploration activities – €15.1m commitment

• Two year optional second exploration period:

– Total commitment of approximately €23m – Decision to enter next exploration phase expected in Oct 2019 (only Ioannina) Western Greece JV with Repsol Montenegro Key Highlights

• Blocks 4218-30 and 4219-26 officially awarded in March

2017 (Energean 100%)

• NSAI audited 1.8 Tcf of unrisked prospective resources
• f gas plus 144 mmbls of hydrocarbon liquids
• First exploration phase: low commitment

– Mandatory work program: 3D seismic acquisition covering two blocks + G&G studies + training – 100% cost c. $5m  Four year optional second exploration period: – 1 firm exploration well of not less than 2,800 m  ENI operates 4 blocks to the south

Source: Company

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Future Catalysts: Active Work Programme

Strengthen and Grow the Eastern Mediterranean E&P champion Production Development Exploration

• Complete 25 well development programme at Prinos
• Epsilon field onstream
• Drill 3 wells in Karish
• 4.2 bcm/y forward sold under firm contracts
• Potential to sign additional GSPAs
• 2021 first gas
• Katakolo FID – a $100 million NPV project
• Karish North well committed to end of March 2019
• 3D and G&G work programme over 5 Israeli Blocks
• 6 options to drill exploration wells contracted with Stena
• 2D seismic survey – W. Greece, targeting 205 mmboe un-risked

prospective resources, (40% WI)

• 3D seismic survey - offshore Montenegro, targeting 438 mmboe un-

risked prospective resources, (100%WI)

Target 2021 production > 10 kbopd Deliver stable, long-term cash flow Active three country exploration programme

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Appendix

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12 Month Outlook

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(1) Five development wells, Prinos Basin (2) Karish & Tanin project delivery (3) Karish North Exploration Drilling (4) Business Development Opportunities

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Simon Heale – Independent Non-Executive Chairman

• Currently serves as Chairman of Gulf Marine Services, Marex

Spectron and Kaz Minerals

• Prior to this served as NED and Chairman of Panmure Gordon, and as NED
• f PZ Cussons, Morgan Advanced Materials, Coats and Carlton

Commodities Andrew Bartlett – Senior Independent Director

• Started his career in Royal Dutch Shell where he worked for 21 years
• 11 years of investment banking experience and former Global Head of Oil

& Gas M&A and Project Finance at Standard Chartered

• Advisor to Helios Investments and NED of Africa Oil and Impact Oil & Gas
• Served as Chairman of Azonto Energy and a NED of Eland Oil & Gas

Stathis Topouzoglou – Non-Executive Director

• Shipowner with more than 35 years’ experience in the energy

transportation sector

• Founding partner of Energean Oil & Gas
• Principal shareholder and founder of Prime which has more than 35

vessels under management David Bonanno – Non-Executive Director

• Third Point representative to the Board
• Primary investment professional responsible for all Third Point’s

activities in Greece

• Previously worked at Cerberus and Rothschild

Ohad Marani – Independent Non-Executive Director

• Board Member of Bank Leumi of Israel and member of the Investment

Committee of Israel’s Infrastructure Fund

• Previously Chairman of the board of Emmanuelle Energy, Israel

Natural gas Lines and Alumot Investment House

• Served as Director-General of Israel Finance Ministry and also in the

Israeli Embassy in Washington Robert William Peck – Independent Non-Executive Director

• Ambassador Peck has almost 35 years in the Government of Canada as a career

Foreign Service Officer

• Resident mentor in the Human Resources Bureau at Global Affairs

Canada

• Has held diplomatic roles in Nigeria, Switzerland, Algeria and Greece

Mathios Rigas Chief Executive Officer

• Founding Shareholder
• Petroleum engineer with 20 years of investment banking and

private equity experience mainly in the oil & gas sector Panos Benos Chief Financial Officer

• Chartered accountant with more than 15 years oil &

gas experience both in banking & industry

• Joined Energean from Standard Chartered Bank.

Energean Board of Directors

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Karen Simon – Independent Non-Executive Director

• Vice Chairman in Investment Banking with over 30 years of banking experience

with JP Morgan

• Currently heads up Director Advisory Services. Also sits on the Board of Aker ASA

in Norway and Youth Inc., a New York City charity serving under privileged youths.

• Awarded “Most Influential Woman in Private Equity Advisory” by Private Equity

News in 2010 and in 2011 and was cited several times as one of the 100 Most Influential Women in Europe, Middle East and Africa by Financial News.

Non Executive Directors Executive Directors

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• Dr. St

Stephe hen n Moore re– Chief Growth Officer

• 28 years of E&P experience at Shell, Maersk Oil and

Mubadala

• Previously Senior Vice President – Technical at

Mubadala

Energean Management Team

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Senior Management

Kate Sloan-Head of Inve vestor r Relations

• Senior Equity Analyst-Oil & Gas Macquarie

Group for 4 years

• Oil & Gas Equity Analyst in Liberum and Daniel

Stewart, also worked in Braemar Seascope, Deloitte LLP, Booz Allen Michelle Churc urchward-Gro roup General Counsel

• Legal Manager in Sterling Energy, worked in OMV,

Schlumberger, BG Group

• Worked in E&P projects in the Falkland Islands,

Morocco and Egypt Vassilis Tsetog

• glou
• u- Group HSE Manager
• Electrical Engineer with 15 year of experience
• n HSE Management in high H2S environments

Worked for Kavala Oil and Eurotech Services Vi Vinc ncent Reboul ul-Salze– Deve velopment Manager

• 14 years of industry experience
• Previously Lead Process Engineer for Shell / Gap KCO

Fr FredRiddif iford rd– Re Rese serv rvoir ir En EngineeringManager

• Reservoir Engineering with almost 40 years of

experience

• Previously VP Reservoir Engineering at

Mubadala Da David id Do Dona nalds dson

• n– Managing Dire

rector r PrinosAsse set

• Petroleum Engineer with over 30 years of industry

experience

• Held senior drilling engineer positions at Shell, Eni

and Halliburton Yaron

• n Daiss

ssy – Kari rish sh Onsh shore re Delive very ry Manager r & Head Regulatory ry Compliance

• Mechanical Engineer, 20 years in oil & gas
• Worked 15 years at Noble Energy in

the Tamar and Leviathan projects Dennis Anestoudis – Exploration Manager

• Geophysicist with more than 20 years of experience
• Team Leader Africa, Genel Energy
• Previously work for Schlumberger and Hellenic Petroleum

Chr hris s Lang ngley– EPCiCProject Director

• Manager and Engineering Manager with more than 25

years leadership experience in major upstream oil & gas

• Worked for Shell and Mol Group

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Country Managers

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Dimitris Gontikas– Greece Licenced Attorney, with 25 years of senior management experience in the private and public sectors Antonis Nicolopoulos– Montenegro Civil Engineer, Previously worked in British Gas and in Titan’s units across South Eastern Europe Lila Dermitzaki– Egypt Geoscientist with 35 years of industry experience Previously worked in Vegas, ZhenHua, Enterprise and US Department of Energy Shaul Zemach– Israel Energy and Infrastructure expert with 20 years of experience Ex Chairman of inter-ministerial committee to examine Israel’s policy on the natural gas industry

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Historical Financial Results Highlights

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Notes: (1) Only oil production volumes shown as gas produced at the Prinos basin is not sold. (2) Adjusted EBITDAX is calculated as profit or loss for the period adjusted for profit or (loss) for the period from discontinued operations, taxation (expense) / income, total depreciation, amortisation of intangible assets, other income, other expenses, finance income, finance costs, gain on derivative, net foreign exchange (loss) / gain and exploration and evaluation expenses. (3) Capex includes cash purchases of PP& and intangible assets.

$ mn, unless otherwise stated 2015 2016 2017 Realised Sales Price ($/bbl) 44 34 46.7 Production (boepd) (1) 1,459 3,490 2,803 Revenues 28.4 39.7 57.8 Adjusted EBITDAX(2) (1.2) 16.2 20.7 Cost of Production (21.7) (24.3) (25.3) Cash Flow from operating activities (2.8) 15.2 29.1 Capital Expenditure (3) (49.2) (110.7) (70.3)

Financial Highlights

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To transfer our 37 years’ experience

• f working safely in NE Greece’s

environmentally sensitive locations to every area we operate in Safety of Offshore Oil & Gas Operations Directive

Creating a safe and healthy working environment

Energean’s HSE Mission

Excellent HSE Record in sensitive areas

+30% increase in arrivals at “Megas Alexandros” airport and 1,5 million visitors in Thasos in 2017 Over 10 red-flag beaches every year in the Gulf of Kavala 25

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Thank you! www.energean.com