INVESTOR PRESENTATION Q1 2017 BUILDING A MID-CAP AFRICAN & - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Q1 2017 BUILDING A MID-CAP AFRICAN & - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Q1 2017 BUILDING A MID-CAP AFRICAN & EUROPEAN GAS COMPANY REGIONAL GAS STRATEGY TWO REMAINING STRATEGIC I T A UNDERPINNED BY PLAYS L Y Strong European gas demand and local pricing Badile (Italy) and
I T A L Y M O R O C C O
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Slide Investor Presentation 2017
Acquisition of Italian onshore gas portfolio Securing cost covering production Introduction of Cornerstone Investor
Tendrara, Sidi Moktar, Meridja Schlumberger (Tendrara, Badile) TE6 & TE7 Continental Investment Partners Rapagnano
Acquisition
- f Moroccan
- nshore gas
portfolio Introduction
- f Strategic
Partner Successful drilling in Eastern Morocco
JOURNEY SO FAR...
BUILDING A MID-CAP AFRICAN & EUROPEAN GAS COMPANY
REGIONAL GAS STRATEGY UNDERPINNED BY
Strong European gas demand and local pricing Pan European / African Strategic Partnership with Schlumberger Supportive Cornerstone Investor
STRONG THEMATIC POSITIONING
Sheltered from recent oil price decline Carbon consciousness and global warming driving transition to gas
BALANCED AND EVOLVING PORTFOLIO, INCLUDING LOW COST POTENTIAL MULTI TCF DEVELOPMENT (TENDRARA: EASTERN MOROCCO) TWO REMAINING STRATEGIC PLAYS
Badile (Italy) and Sidi Moktar (Morocco)
BOLD GROWTH AGENDA
-
James Parsons
Chief Executive Officer
Over 20 years in Oil & Gas strategy, general management,
- Europe, South America and
Central America 12 years with Royal Dutch Shell Specialist in restructuring, funding and growing small listed upstream companies;
- Joined Sound Energy in 2011
Leonardo Spicci
EVP , Production & Development
Over 25 years experience in Oil & Gas management and operations across Kazakhstan, north Africa and Italy. Reservoir geologist background with 23 years with ENI E&P
Brian Mitchener
EVP , Exploration
Over 36 years experience in Oil & Gas exploration including as Regional General Manager Exploration at BG, Vice President International Exploration for Africa at Statoil and 22 years with BP Exploration. Chartered Geologist, and a past President of the Geological Society’s Petroleum Group
Mary Hood
EVP , Finance/CFO
Mary has over 10 years upstream experience
- Europe, Africa and the Middle East for Gulf
Keystone Petroleum (most recently as Deputy CFO) and for Deloitte, in its Energy and Resource practice. A Chartered Accountant and Company Secretary.
Will Holland
EVP , Business Development
Over 20 years upstream experience across a
- roles. 10 years as an engineer with Halliburton.
Subsequently Director in Macquarie’s Oil & Gas team
Leonardo Salvadori
Managing Director, Italy
Over 30 years upstream experience with ENI and Dana Gas in exploration, business development and general management
Luca Madeddu
Managing Director, Morocco
Over 25 years managerial experience across Europe, Asia and South America. Reservoir geologist background with 22 years with ENI E&P
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Slide Investor Presentation 2017
THE TEAM
I T A L Y M O R O C C O
Dora / Dalla Rapagnano SMG Zibido Badile Tendrara I Tendrara Meridja Tendrara II Exploration Sidi Moktar Laura
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Slide Investor Presentation 2017
COMPELLING REGIONAL CASE FOR GAS
Growing gas penetration
- Low risk emerging market
(7% annual growth)
- Gas increasingly
replacing other fuels Stable demand with high gas dependency Strong domestic gas network
- Circa 90% hydrocarbons
imported from Algeria
- GME pipeline ownership
transitions to Morocco in 2021
- New Gas Agency under
discussion Circa 90% hydrocarbons imported from Algeria and Russia Recently introduced energy policy to encourage commercialisation of domestic hydrocarbons
- 10 year tax holiday
- Thereafter 35% net government
take (30% Corporation tax and 5% royalty after 10.6) 37.9% government net take (24% corporation tax ((FY2017
- nwards)), 3.9% regional income
tax plus 10% royalty above 0.9 annually) Disadvantaged supply position Top quartile fiscal terms
Morocco Italy
Gas Maghreb-Europe Pipeline Gas Pipeline Project
Oued El Makhazine 2 x 400 MW Al Wahda 4 x 400 MW Dhar Doum 4 x 400 MW Oujda Casablanca Marrakech
M O R O C C O
M E D I T E R R A N E A N
A L G E R I A
A T L A N T I C
Rabat Tahaddart Power 2 x 400 MW Tendrara Meridja 120km
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Slide Investor Presentation 2017
Strategic Partnership where Schlumberger co-fund and technically de-risk the asset (Schlumberger 27.5% interest in Tendrara and paying 80% on 1st well; 75% on 2nd and 3rd wells.) Continuity of the Algerian Triassic Province and Saharan Hercynian platform Play type: gas discovery with condensate- light
- il shows in the Lower Triassic sequence; TAGI
and Paleozoic sand objectives Tendrara, eight exploration permits 14,500 km2 acreage, seven wells drilled; Meridja one reconnaissance licence 9,000km2 pre stimulation, 17 mmscf/d on test Potential for super-giant (multi Tcf) connected
- TE-7: 32 mmscf/d after clean up
TE-8 (step out appraisal well) early 2017
EASTERN MOROCCO
FLAGSHIP DEVELOPMENT WITH MULTI TCF POTENTIAL TENDRARA (27.5% interest; 25% paying; Operated) MERIDJA (Meridja (55% interest; Operated*)
* Subject to the completion of option exercise
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Slide Investor Presentation 2017 MERIDJA TENDRARA
LONG TERM UPSIDE POTENTIAL
TE-2 (AGIP:1967) TE-9 (2018)
Provisional location
TE-7 (Sound Energy: 2016) TE-6 (Sound Energy: 2016) TE-8 (Sound Energy: 2017) TE-5 (MPE: 2006) TE-1 (AGIP: 1966) TE-4 (MPE: 2006) TE-3 (ONHYM: 1984)
3-4 Tcf, 250km2 1-1.5 Tcf 75km2
300–500 Bcf 17km2
NEAR TERM POTENTIAL PRESSURE DEPTH PLOT
1,800 KM2
SHOWCASE TENDRARA: ILLUSTRATIVE AERIAL VIEW (TAGI ONLY)
All volumetric estimates are 100% - Gross TE4 data unreliable; requires re-entry.
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Slide Investor Presentation 2017
2017 & 2018
PATHWAY TO COMMERCIALISATION
2019 CURRENT PHASE
FIRST GAS TE-8
Step-Out Appraisal
Finalise Development plan & Concession application
EPC Facilities EPC Pipeline Development wells Further step out wells & re-entry Seismic acquisition
MATERIAL CASH FLOWS
Self funding exploration & development Return to Shareholders
T A L Y M O R O C C O
Dora / Dalla Rapagnano SMG Laura
Pavia Lacchiarella SNAM Gas Pipeline Badile Permit 3D Seismic Coverage Badile Zibido
M I L A N O
Badile 3D Seismic Pipeline
Zibido Badile
Up to EUR 1,404 m NPV10 (Best Estimate EUR 396 m)
Recoverable resource 538 Bscf Low EUR 88m Best +EUR 308m Low 37 Best +105 High +EUR 1,008m High +396
- cent 31/cbm)
Po Valley (Northern Italy); 45 km SW of
-
-
-
-
-
-
- f the licence
NORTHERN ITALY
STRATEGIC PLAY: BADILE Net effective ownership 80%; operated
Recoverable resource (Bscf) NPV10 (Eurocent 31/cbm)
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Slide Investor Presentation 2017
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Slide Investor Presentation 2017
SOUTHERN MOROCCO
STRATEGIC PLAY: SIDI MOKTAR Net Effective 25% interest, carried for first USD 18 m gross; operated*
Gas Maghreb-Europe Pipeline Gas Pipeline Project Oued El Makhazine 2 x 400 MW Al Wahda 4 x 400 MW Dhar Doum 4 x 400 MW Casablanca Marrakech
M O R O C C O
Rabat Tahaddart Power 2 x 400 MW Jorf Lasfar Power Plant Safi Chemicals Plant Chichaoua State owned Phosphate Plant (OCP) Planned New Phosphate Plant Meskala Plant Sidi Moktar I Sidi Moktar II
Play type: gas discovery (Kechoula) in the Lower Liassic sequence, (73 Bscf net to Sound, initial estimate, single accumulation most likely) Two wells drilled with positive gas indications from log and gas shows in the Liassic; extended well test planned in 2017 Triassic across multiple blocks considered analogous to the adjacent
- 211 Bscf exploration potential targeting
the Triassic (TAGI) objective; net to Sound Asset is located 10km from the Meskala gas processing plant
* Heads of Terms for Partnership arrangements announced 10 March 2016
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Slide Investor Presentation 2017
Jan 2017 Q1 2017 H1 2017 Q3–4 2017 Feb 2017 H1 2017 H1 2017
H2 2017– H1 2018 H2 2017– H1 2018
UPCOMING NEWSFLOW
Extended well test results Target: prove 1.5 Tcf field in the TAGI and explore the Paleozoic Introduction of partners to Sidi Moktar Re-entry and test; feasibility currently being determined Exploration well in Italy Workover of Koba-1 and Kamar-1(Sidi Moktar wells) followed by extended well test Concession application 2D seismic over the remainder of the block - to deter- mine prospects and give better indication on volumes Commencement of development works (facilities)
TENDRARA TENDRARA SIDI MOKTAR TENDRARA BADILE SIDI MOKTAR TENDRARA TENDRARA TENDRARA
- TE-7
- TE-8
- Sidi-Moktar
- TE-2 & TE-4
- Badile
- Koba-1 & Kamar-1
- Concession
- 2D Seismic
- FDP
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SUMMARY
ACCESS TO LOW COST ONSHORE GAS PLAY IN TOP TIER EMERGING MARKET (MOROCCO)
Recent potential multi Tcf onshore gas discovery in Morocco Strong domestic demand and infrastructure connecting Morocco to strong European gas markets Priority remains securing 2019 fjrst gas
SCALE, LIQUIDITY AND NEWSFLOW
Multiple near term catalysts (Badile, TE8) High liquidity
TEAM TRACK RECORD
Demonstrated deal making pre-discovery (with potential to apply same skills to gas commercialisation and exit) Demonstrated capability to discover major fjeld and deliver wells Strong retail shareholder base credibility Institutional investors recently introduced
STRONG CORPORATE GOVERNANCE
Industry experienced Board with balance of technical, commercial and fjnancial skills
UNDERPINNED BY INDUSTRY PARTNERSHIPS
Schlumberger as strategic partner: enabling scale, technically de-risking assets and providing funding Cornerstone Investor with Board representation
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Investor Presentation 2017
APPENDIX
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CAPITAL STRUCTURE AS AT 13 DECEMBER 2016
Current shares in issue Shares to be issued
LEADERSHIP EQUITY STAKE
Total fully diluted shares 836.2 million
10.4p warrants (expiry 28-Jul-17) 24.0p warrants (expiry 22-May-2020) 30.0p warrants (expiry 21-Jun-2021) Management options
- No. direct shares (millions)
0.5 CHIEF EXECUTIVE OFFICER CONTINENTAL INVESTMENT PARTNERS 1 1.5 2 10
Cash and cash equivalents €28.8 million corporate bonds
- 5% coupon
- Due 21 June 2021
- Secured on Sound Energy Italy
Holdings share capital
£1 million corporate loan notes
- 10% coupon
- Due 28 July 2017
- Secured on Sound Energy Morocco
South share capital
34.0 million 51.4 million 55.1 million 31.1 million £48.3 million £24.2 million £1.0 million
664.6 million
20 30 40 50 60 70
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BROADER PORTFOLIO
COST COVERING PRODUCTION* (2 LICENCES)
- Multiple producing onshore assets
APPRAISAL (6 LICENCES, EXCLUDING STRATEGIC PLAYS) – LAURA
- Gulf of Taranto (4 km offshore, 200 m water depth)
- Play type: inverted fault block, gas in Pleistocene
(MVD 1,300 m)
- Long reach deviated well from onshore
- EUR 16.2 m well cost; under review
– DORA / DALLA
- Adriatic Sea; majority of licence >12 miles offshore
- Play type: faulted anticline, gas-condensate in
Scaglia Formation (TD 1,400 m)
- Dora gas discovery previously drilled 1972, tested 20
mmscf/d
- Well cost of EUR 13 m
- Exploration potential from Dalla prospect
EXPLORATION (4 LICENCES EXCLUDING STRATEGIC PLAYS) – ZIBIDO
- Po Valley; Zibido is adjacent to Badile prospect
- Play type: Downthrown fault terrace gas/oil in
Mesozoic (TD 5,600 m)
I T A L Y M O R O C C O
Dora / Dalla Rapagnano SMG Zibido Badile Tendrara I Tendrara Meridja Tendrara II Exploration Sidi Moktar Laura
* Excludes two concessions awaiting abandonment
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Slide Investor Presentation 2017
STRONG REGIONAL INFRASTRUCTURE
Zibido Badile Dora / Dalla Rapagnano SMG Laura High pressure gas pipeline network
Gas Maghreb-Europe Pipeline Gas Pipeline Project
Oued El Makhazine 2 x 400 MW Al Wahda 4 x 400 MW Dhar Doum 4 x 400 MW Oujda Casablanca Marrakech
M O R O C C O
M E D I T E R R A N E A N
A L G E R I A
A T L A N T I C
Rabat Tahaddart Power 2 x 400 MW Tendrara Meridja 120km Sidi Moktar
ITALIAN HIGH PRESSURE GAS PIPELINE NETWORK MOROCCAN GAS PIPELINE NETWORK
James Parsons
Chief Executive Officer j.parsons@soundenergyplc.com www.soundenergyplc.com
Mary Hood
EVP , Finance / CFO m.hood@soundenergyplc.com
For more information please contact: Detailed information on
- ur investor website:
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Investor Presentation 2017
Disclaimer: The investment mentioned in this document may not be suitable for all recipients or be appropriate for their personal circumstances. The information in this document is believed to be correct but cannot be guaranteed. Opinions constitute our judgment as of this date and are subject to
- not recover the amount invested. Some securities carry a higher degree of risk than others. The levels and basis of taxation can change. The contents of
this document have been prepared by, are the sole responsibility of, and have been issued by the Company.
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Investor Presentation 2017
Disclaimer: This presentation and any additional documents handed out at any meeting (together the “Presentation Materials”) have not been approved by (i) the London Stock Exchange plc or by any authority which could be a competent authority for the purposes of the Prospectus Directive (Directive 2003/71/EC); or (ii) an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). The securities mentioned herein have not been and will not be, registered under the U.S.
- registered under the Securities Act or pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act. Neither the
- The Presentation Materials are being supplied to you for information purposes only by Sound Energy Plc (the “Company”, “SOU” or “Sound”). References to the
Company, SOU or Sound will also be deemed to include its subsidiaries, both directly and indirectly held (including through nominees) all wholly owned. These Presentation Materials have been prepared by and are the sole responsibility of the Company. The Directors of the Company have taken all reasonable care to ensure
- all of the property or other assets invested.
- basis and solely to and directed (i) at persons in the UK (a) who have professional experience in matters relating to investments, being investment professionals as
- investment and you must have signed within the last 12 months a statement in the terms set out in Article 50(1)(b) of the FPO. The ordinary shares are available only to,
- is not a Relevant Person should not rely on this document nor take any action upon it, but should return it immediately to the Company.
- person to subscribe for, purchase or otherwise acquire any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it form the
basis of or be relied on in connection with any contract or as any inducement to enter into a contract or commitment with the Company. No reliance may be placed for any purpose whatsoever on the information or opinions contained in the Presentation Materials or on their completeness. No representation or warranty, express or implied, is given by the Company as to the accuracy of the information or opinions contained in the Presentation Materials, or any further written or oral information
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Investor Presentation 2017
Disclaimer continued: Any recipient of these Presentation Materials who is in any doubt about the investment to which this presentation relates should consult an authorized person specializing in advising on investments of this kind. These Presentation Materials do not constitute a recommendation regarding the shares of the Company, and should
- pinions contained in the Presentation Materials as part of their own due diligence. By accepting these Presentation Materials, the Recipient agrees to keep permanently
- Materials that they will not be reproduced, copied, distributed or circulated to any third party, in whole or in part, or published in whole or in part for any purpose, without
the express prior consent of the Company. Neither the Company, nor its advisers accept liability whatsoever for any loss howsoever arising, directly or indirectly, from use of these Presentation Materials or their contents or otherwise arising in connection therewith. The Company, in its sole discretion, reserves the right to amend or supplement these Presentation Materials at any time. The Company also reserves the right, in its sole discretion, to terminate discussions with any person at any time. The reproduction, copying or distribution of these Presentation Materials in other jurisdictions may be restricted by law and persons into whose possession these Presentation Materials come should inform themselves about, and observe, any such restrictions. These Presentation Materials are not for distribution outside the United Kingdom (other than to the United States in certain circumstances) and in particular, they or any copy of them should not be distributed, directly or indirectly, by any means (including electronic transmission) either to persons with addresses in Canada, Australia, Japan, the Republic of South Africa or the Republic of Ireland, or to any citizens, nationals or residents thereof, or to any corporation, partnership or other entity created or organized under the laws thereof. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdictions. These Presentation Materials contain certain forward-looking information about the Company which are statements, beliefs, opinions or projections that are not historical
- expressed in such statements, beliefs and opinions depending on a variety of factors. Past performance, trends or activities of the Company or its shares cannot be
relied on as a guide to future performance, trends or activities. Any forward-looking information contained in these Presentation Materials has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary from those projected as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. Recipients of these Presentation Materials should not place reliance on forward-looking statements, which speak only as of the date of the Presentation Materials. The Company does not undertake
- ccurrence or non-occurrence of any events.
Please note that the photographs and images used in these Presentation Materials are illustrative and may not show Company assets / licence areas. By attending the presentation and/or retaining these Presentation Materials you will be taken to have represented, warranted and undertaken that: (i) you are a Relevant Person (ii) you have read and agree to comply with the contents and restrictions of this disclaimer (iii) you will use the information in these Presentation Materials solely
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