S HAPING THE FUTURE OF OIL EXPLORATION AND PRODUCTION IN A FRICA J UNE 2018
Introduction We are… ▪ an indigenous Nigerian upstream company, ▪ have a highly experienced technical team focused on Africa ▪ focus on cost discipline and efficiency ▪ have a producing asset, with material ▪ are positioned to create midstream value near-term upside at low cash breakeven via our Gas & Power franchise ▪ opened a world-class basin with ▪ aim to create value through the cycle transformational oil and gas potential … a True ‘E&P’ Company EXPLORATION UPSIDE CURRENT PRODUCTION APPRAISAL ASSET 2019 PRODUCTION TARGET 5 BN BOE , STOIIP (OPL325) 774 MMBLS (O GO ) 6,000 BOPD 20,000 BOPD 163 MMBLS (O TAKIKPO ) OPL310 Gross production numbers* by year-end 2019 SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 1
As We Progress: A Tale of Two Markets 2015 2018 LEKOIL as an ‘E&P’ LEKOIL as an ‘E’ 81p Share Price 18p $100 Brent Crude $75 OPL310 70% † 30% Economic Interest Production ~6,000 bpod NA At Otakikpo $505mm Market Cap* $129mm Source: Bloomberg, Company data *July 2, 2014 GBP-USD FX at 1.72; June 19, 2018 GBP- USD FX at 1.32 † subject to 22.86% ministerial consent representing 40% economic interest SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 2
Accomplishments, Five Years Later 2017 Executed offtake agreement with Shell 2018 Western & Trading 3D seismic acquisition at Otakikpo begins Exported the first cargo of 2015 First oil at Otakikpo crude from the Otakikpo 2016 ahead of schedule Oil flowing at the Marginal Field and exceeding Otakikpo Marginal expectations Field to onshore storage tanks Acquisition of 62% economic interest 2013 IPO on AIM raising in OPL 325 $50million; farmed in for a Focus shifts to Phase Two at 2014 17.14% working interest Otakikpo targeting 20,000 Equity placing of and 30% economic bopd $38million interest in OPL310 Raised a $15million CPR on OPL325 released advance payment Follow-on equity of $120 showing Oil-In-Place volumes Equity placing of facility from Shell million of 5bn barrels; intention to $12.4million farm-down Received Ministerial Equity placing of $28 million of debt Consent for 17.14% $46million capital raise participating interest in OPL 310 Acquisition of additional Acquisition of 40% 22.86% working interest participating Otakikpo Production (40% economic interest) in interest in Otakikpo Reaches 7,600 bopd OPL310* Marginal Field Significant discovery at Ogo (OPL 310) from Ogo-1 well * - subject to Ministerial Consent SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 3
O TAKIKPO M ARGINAL F IELD SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA
From the Beginning: Swampland to Production in <2 years SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 5
Otakikpo Overview Producing Marginal Field 40% Working Interest, 88% Economic Interest* Ramp up towards Reserves & resources ▪ ▪ 20,000 bopd 1P+ 1C at 47mmbbls ▪ 20,000 bopd ▪ production level can 2P+ 2C at 56.60mmbbls ▪ be sustained for at least four years once 3P+ 3C at 66.20mmbbls ▪ reached** Adjacent to shoreline with multiple crude ▪ evacuation options Company controlled infrastructure ▪ (no Trans Forcados pipeline exposure) Reserves and resources from CPR currently ▪ exclude Otakikpo South prospect 3D seismic in progress , scheduled to be ▪ completed in June 2018 *During Cost Recovery; **LEKOIL internal estimate SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 6
Otakikpo: Flow Per Zone Otakikpo 02 Otakikpo 03 Final Dual Completion Final Dual Completion Schematic Schematic • 3 previously drilled wells with hydrocarbons encountered at multiple intervals Otakikpo CPR Estimate AGR TRACS Indicates currently 1,500 per producing zones bopd zone Otakikpo Actual FLOW TESTS Otak - 02 Otak - 03 C5 – 6,404 bopd C5 FAULT C6 – 5,684 bopd E1 E1 – 5,703 bopd SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 7
Otakikpo Infrastructure Schematic Currently Gas Fuel Gas Scrubber flare 22,000 HP & LP 20,000 10,000 Prod. 6,000 bpd Sep-01 Tanks 6,000 120,000 PLEM 70,000 Transfer Pumps 10,000 Heat Exchanger 6,000 Test Sep-02 Shuttle Tanker <4,000 Surge Vessel 25,000 Well 01 s 12,000 6,000 <4,000 Export Pumps LACT Unit 20,000 20,000 Offtake Partner Legend Lifting proceeds made to LEKOIL within 30 days of lifting from IMA Price realized at a ~$1 premium to Brent 10,000 – System Capacity Terminal 6,000 – Current utilization SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 8
O FFSHORE OPL310 AND OPL325 SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA
The Next Big Thing(s)? Follow the West African Transform Margin 2.3 billion boe recoverable 1.7 billion boe recoverable 1.6 billion boe recoverable 777 million boe recoverable 900 million boe Source: IHS Markit recoverable SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 10
OPL 310 Overview Contains the ‘’Ogo’’ World Class Discovery 40% Working Interest*, 70% Economic Interest Located in the Dahomey Basin that runs along ▪ the West African Transform Margin covering area of 1,900 km2 with gross risked prospective resources of >774mmboe Shallow water asset close to Lagos and existing ▪ gas infrastructure LEKOIL commissioned a basin study in April ▪ 2013 and identified promising plays and fairways and additional upside potential is expected from other identified syn-rift leads within the block LEKOIL farmed- in to Afren’s interest in February ▪ 2013 and acquired the balance of its interest in December 2015 Received Ministerial Consent in June 2017 to ▪ complete the transfer of 17.14% participating interest acquired in OPL 310 *Subject to 22.86% remaining Ministerial consent SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 11
OPL 310 – Ogo Field Overview OPL310: 1,895 km2 in water depths of 200 – 7,400 ft ▪ Ogo Field: 360 km2 in water depths of 200 – 3,000 ft ▪ Located 30 km offshore Lagos within Dahomey • geological basin Proximity to Lagos and a city with robust gas demand • Post Rift Sequence Four-way dip/fault dependent closures ▪ Turonian and Cenomanian: OIL bearing • Albian: GAS CONDENSATE bearing • Syn Rift Sequence Half grabens in Syn rift ▪ Syn Rif: GAS CONDENSATE bearing • SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 12
Depth Structure map of Top Syn-Rift Unconformity OGO – 1 OGO – 4 OGO – 2 OGO – 3 SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 13
OGO – 1 & 2 (282ft) Seismic Cross Section, OGO – 3 & 4 (320ft) potential Ogo well locations Sea floor depth NW SE SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 14
Ogo Development Partner: GE Proposed $1 billion in capital* for the first phase of the field’s development Envisioned Capital Program $400m Full field oil development $600m Subsequent upstream gas development GE to commit funds for full field development capital ▪ Will receive a % of LEK’s future cash flows ▪ Ability to leverage GE’s equipment and technical ▪ expertise to throughout life of project LEK’s 40% equity interest in OPL310 remains intact ▪ * Subject to successful appraisal well and certain conditions Exact total cost of field development from multiple phases, TBD SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 15
Unlocking Value in Ogo Funding Consent Solution Full Field Development Appraisal CPR Drilling Update FDP * Subject to successful appraisal well and certain conditions SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 16
OPL 325 Overview Promising Asset With Deep Water Turbidite Fan Play 62% Equity Interest We identified this block as a key target ▪ with exploration upside Highlighted in our proprietary Dahomey ▪ Basin study that runs along the Western Side of the Niger Delta Covering area of 1,200 km2 with ▪ estimated gross unrisked prospective resources of 5,067 MMbbls* Lekoil acquired 88.57% of Ashbert Oil ▪ and Gas Limited, the operator of OPL 325, therefore receiving an entitlement to 62 % of the equity of OPL 325 *Third party technical report from Lumina Geophysical SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 17
OPL 325 Prospect Detail Technical report snapshot SHAPING THE FUTURE OF OIL EXPLORATION & PRODUCTION IN AFRICA I NVESTOR P RESENTATION | J UNE 2018 18
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