INVESTOR PRESENTATION September 2016 Exploration and Beyond - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION September 2016 Exploration and Beyond - - PowerPoint PPT Presentation

INVESTOR PRESENTATION September 2016 Exploration and Beyond working to increase the value and output of active reservoirs Disclaimer The content of this presentation has not been approved by an authorised person within the meaning of


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SLIDE 1

INVESTOR PRESENTATION

September 2016

Exploration and Beyond…

working to increase the value and

  • utput of active reservoirs
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SLIDE 2

Disclaimer

2

  • The content of this presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance on this

presentation for the purposes of engaging in investment activity may expose an individual to a significant risk of losing all of the property or other assets invested

  • The information in this presentation is subject to updating, completion, revision, further verification and amendment without notice
  • This presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor

shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, or act as an inducement to, enter into any contract or commitment thereto

  • This presentation is only being distributed and made available to persons of the kind described in Article 19(5) (investment professionals) and Article 49(2) (high net worth companies,

unincorporated associations, etc) of Part IV of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (“FPO”). Persons who do not have professional experience in matters relating to investment or who are not persons to whom Article 49 of the FPO applies should not rely upon this presentation

  • No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or any other document or oral statement, or on the completeness,

accuracy or fairness of such information and/or opinions therein

  • No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its directors, or any other person as to the accuracy or completeness or

fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for such information or opinions or for any errors,

  • missions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation
  • Accordingly, neither the Company nor any of its directors, officers, employees, advisers, associated persons or subsidiary undertakings shall be liable for any direct, indirect or

consequential loss or damage suffered by any person as a result of relying upon the statement or as a result of any admission in, or any document supplied with, this presentation or by any future communications in connection with such documents and any such liabilities are expressly disclaimed

  • This presentation and its contents are confidential and should not be distributed, published or reproduced in whole or in part or disclosed by recipients to any other person. This

presentation is not for distribution outside the United Kingdom and, in particular, should not be distributed to persons with addresses in Canada, Australia, Japan, Republic of Ireland, Republic of South Africa, or to persons with addresses in the United States of America, its territories or possessions or to any citizen thereof or to any corporation, partnership or other entity created or organised under the laws thereof. Any such distribution could result in the violation of Canadian, Australia, Japanese, Irish, South African or United States of America

  • law. Prospective investors interested in investing in the Company are recommended to seek their own independent financial advice from a person authorised for the purposes of the

FSMA

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SLIDE 3

1H16 Overview

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  • Strong operating performance from WGP on the Statoil project

– Completion of 2 surveys (Snorre and Grane) as part of the ongoing contract to provide seismic source services to Statoils PRM activities in the North Sea

  • Progress on the ARL flying node development programme

– Redesign of Autonomous Node completed – Prototype under construction – Prototype initial testing targeted for Q4 2016

  • Final stages of design and procurement of fifth generation PMSSTM for

deployment on new contract with ConocoPhillips (“COP”) in Q3

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SLIDE 4

1H16 Financial Highlights

Group Results

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Group Revenue

$4.0 $11.6 $9.3 $9.9 $5.2 $10.0 $19.0 $6.2 $9.0

$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2012 2013 2014 2015 2016 1H 2H $1.9 $2.6 $4.0 $4.2 $2.9 $3.0 $6.7 $2.6 $5.2

35.30% 30.40% 42.60% 49.90% 56.70%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 2012 2013 2014 2015 2016 1H 2H Gross Margin

Gross Profit Operating Profit (EBITDA) Net Profit

$0.4 $1.3 $1.5 $0.5 $1.1 $2.9 $0.2 $2.2 13.70% 16.10% 1.20% 19.50% 11.20% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2012 2013 2014 2015 2016 1H 2H Operating Margin $0.3 $1.0 $0.4 $0.8 $0.9 $3.4

  • $0.5

$0.2 8.6% 14.4%

  • 3.2%

3.7% 15.3%

  • 5.0%

0.0% 5.0% 10.0% 15.0% 20.0%

  • $1.0

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 2012 2013 2014 2015 2016 1H 2H Net Margin

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SLIDE 5

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2015 Financial Highlights Balance Sheet

$10.3 $51.2 $39.4 $25.9 $26.4 $0.77 $2.04 $1.57 $1.12 $1.17 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 2012 2013 2014 2015 2016

Net Assets $m's

NAV NAV per share $2.5 $32.2 $17.7 $20.3 $13.2 $0.19 $1.29 $0.71 $0.86 $0.59 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2012 2013 2014 2015 2016

Net Cash $m's

Net Cash Cash per Share

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SLIDE 6

1H16 WGP Operational Highlights

Statoil

  • Now in third full year of operation
  • Completion of 2 successful surveys to client’s

satisfaction over Grane and Snorre

  • 4,500km of data acquired over the 2 fields
  • Operational performance improvements

reducing technical downtime and increasing

  • perational productivity
  • Zero HSE incidents

ConocoPhillips (“COP”)

  • Planning and preparation for the first survey due

in Sep 16

  • Procurement process well underway for the new

PMSSTM

  • Pre-build of Local Operating Centre (“LOC”)

commenced

6

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WGP Outlook

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WGP

  • Continuation of the Statoil contract with deployment expected late September

2016

  • First LoFS survey for COP requiring biannual marine acquisition and shore side

data QC to commence September 2016 following assembly, shake down and testing of the equipment

  • Follow up on new PRM enquiries/tenders received
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SLIDE 8

1H16 ARL Operational Highlights

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Flying Node Development Programme

  • Following successful presentation at SEG

in 2015, further presentation at EAGE generating considerable interest

  • Design and manufacture of the first

prototype node commenced

  • Computational

Fluid Dynamics (CFD) performed with targeted improvements in node efficiency and stability included in first design

  • Operating costs reduced to a minimum
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SLIDE 9

ARL Outlook

ARL

  • Complete design and manufacture of the first prototype node
  • Progress software solutions for the prototype node
  • Develop first stage testing programme
  • Start testing the node in ROV (tethered) mode
  • Review potential for further patent applications

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Thalassa Investments/Acquisitions

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Thalassa

  • Papua Mining plc (“Papua”)
  • Entered into an agreement to purchase 40,000,000 new shares in Papua

for £400k.

  • Upon closing of the transaction, the Company will appoint a Director to

the Board of Papua to work with the current Board to formulate a profitable, cash generative growth plan.

  • The Local Shopping REIT plc (“LSR”)
  • the Company is beneficially interested in 19,093,376 shares of LSR,

which represents 23.14 per cent of its issued share capital.

  • The Board of Thalassa will be seeking to engage with the Board of LSR

with a view to reviewing and changing LSR’s investment policy approved in July 2013.

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SLIDE 11

Appendix

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SLIDE 12

WGP Group Ltd

Base Data

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2016E 2015A Imputed Equity Value $5.0m $5.0m Intercompany Debt $12.0m $16.7m Cash $1.2m $11.6m Imputed Enterprise Value $15.8m $9.8m

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WGP Group Ltd

WGP Group Abbreviated P&L

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2016E 2015A Sales $10.5m $18.8m Operating Profit / (Loss) before depreciation (EBITDA) $2.4m $6.2m Operating Profit / (Loss) (EBIT) $1.5m $4.1m Profit before Tax (EBT) $1.1m $3.2m Profit after Tax ( E ) $0.8m $2.6m

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SLIDE 14

WGP Group Ltd

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Imputed Market Value Ratios 2016E 2015A P/Sls 0.48x 0.27x P/EBITDA 2.08x 0.80x P/EBIT 3.29x 1.22x P/EBT 4.51x 1.54x P/E 6.23x 1.96x

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SLIDE 15

WGP Group Ltd

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Imputed EV Ratios

2016E 2015A EV/Sls 1.50x 0.52x EV/EBITDA 6.58x 1.57x EV/EBIT 10.39x 2.40x EV/EBT 14.25x 3.02x EV/E 19.68x 3.84x