October 22nd 2015 Capital structure Market Cap 1.63million* Capital - - PowerPoint PPT Presentation
October 22nd 2015 Capital structure Market Cap 1.63million* Capital Structure Current Shares 203mm Warrants 52.7mm** Options 5.5mm*** Major Shareholders Management 16.9% Legal and General 4.6% AXA Investment 4.1% Managers Key Data
October 22nd 2015
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Capital structure
Market Cap £1.63million*
Notes: * Market Cap as at 20/10/2015 ** Warrants have an average volume weighted exercise price of 1.47p/share *** Options have an average volume weighted exercise price of 2.93p/share
Major Shareholders
Management 16.9% Legal and General 4.6% AXA Investment Managers 4.1%
Key Data
Market AIM Ticker IRG
Capital Structure
Current Shares 203mm Warrants 52.7mm** Options 5.5mm***
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Management team: Biographies
Feilim McCole
Financial Director
Owain Franks
Commercial Director
Brian Hepp
COO
Kevin Dean
Technical Director
Greg Coleman has over 35 years of experience in the oil and gas industry, 20 of which were gained at BP where he was Group Vice President. He worked as Managing Director for BP Norway following the merger of BP and Amoco. He then led BP's Investor Relations team and was Group Vice President for Health, Safety, Security and Environment. He then founded Canamens Ltd (a private equity backed company). In 2007 which successfully appraised the Kraken field in the North Sea as well as building a portfolio of interests in North Africa and Central Asia. Feilim McCole is a Chartered Accountant with significant quoted company and corporate finance
AIM IPOs and acting as Nomad and financial adviser to AIM and Main Market companies, before spending three years focused on private equity advisory. Before joining IRG he was the interim Finance Director of a £35m turnover support services company and prior to this, Finance Director of a quoted property company with a £125m portfolio. He qualified with EY. Kevin Dean has over 35 years of upstream experience around the globe including East and Northern Africa, Russia and the North Sea. He led the effort to evaluate and drill the Rabeh East Field in the Egyptian Eastern Desert which proved c.40mmb of reserves, led assessment of a corporate acquisition in Colombia and the redevelopment of several multi million barrel fields in Azerbaijan. Owain Franks is a former PricewaterhouseCoopers partner and was on the PwC UK Management Board for 7 years. He is by background a legal and tax advisor with 25 years of M&A and performance improvement experience and has over 15 years of specialisation in the Oil and Gas Industry and over 30 years experience in the commercial financial sector. Brian Hepp has over 31 years of upstream oil and gas operations in North America, Russian Federation, Europe, North Africa and South America. His record and experience encompasses all aspects of field operations and asset management and optimisation, and he was instrumental in increasing production on a development in the West Esh El Mallaha ("WEEM") field in the Gulf of Suez in Egypt from 450 to 6,000 bopd, in less than 18 months from initial involvement.
Greg Coleman
CEO
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Strategy
Acquire initial cornerstone production assets with scope for application of modern technology, operational excellence and development upside
Investments
appraisal / development of identified structures
being negotiated) to give additional production / cash flow
enhancement
Growth of Production Portfolio
25Mboepd Organic & Inorganic Growth
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Egypt: Current Situation
investment- New investors/operators will be welcomed with
direction are on the table to reduce the fiscal deficit
Hence the need to move to competitive international pricing. Due to local shortages, premium prices for imports are being realised.
$2.1bn at year end 2014 and continuing…
EGPC expected to announce a further western desert acreage round.
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Recent Egypt Oil & Gas Transactions
Buyer Seller Deal Type Date Country Transaction Value ($MM) $/1P bbl $/2P bbl Sea Dragon Energy Madison Petrogas Corporate Aug-15 Egypt 20.9
Rockhopper Beach Energy Asset Aug-15 Egypt 22.0
Sacoil MENA Hydrocarbons Asset Sep-14 Egypt 14.1
Undisclosed Sea Dragon Asset Sep-13 Egypt 6.0
SINOPEC Apache Asset Aug-13 Egypt 3100.0 34.1 7.3 Sea Dragon Energy National Petroleum Company Corporate Dec-12 Egypt 3.3 1.4 1.2 Petroceltic Melrose Resources Corporate Aug-12 Egypt 492.3 8.6 6.0 Transglobe Cepsa Egypt Asset Jul-12 Egypt 4.7
EP Energy Asset Jun-12 Egypt 21.7
National Petroleum Company S.A. Corporate Jan-12 Egypt 80.9 14.7 8.6 MENA Hydrocarbons Hess Asset May-11 Egypt 7.5
Egyptian Petroleum Development Asset Mar-11 Egypt 60.0 8.1 6.8 Average 307.95 13.23 5.63
Independent Resources Transglobe Inc. Corporate Sep-15 Egypt 1.75 11.40 3.47
Company Market Cap (US$MM) EV/2P bbl (US$/bbl)
* Based on IRG estimated value of net cash of Madison
Transglobe 204.5 3.94**
** Based on EV as of 19 Oct 2015, debt, cash & reserves from 2014 Annual Report
SDX Energy 27.6 5.62***
*** Based on EV as of 19 Oct 2015, debt & cash from 2014 Annual
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Nostra Terra partnership
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East Ghazalat Acquisition
Transaction
Desert
pa coupon Rationale For Transaction
current low oil prices
JV to the Operator Further Upside
development drilling
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East Ghazalat Asset
Degolyer& McNaughton CPR (Prepared as of 30 June 2015)
25% WI 1P 153,000 bbls 1P+ 2P 500,000 bbls 1P+2P+3P 632,000 bbls 2C contingent: 140,000 BOE Mgmt Case 1,900,000 bbls (plus upside in gas development
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East Ghazalat Wells & Facilities
Sabbar NW-1 well Sabbar 1X well Manifold Production Storage Tanks
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East Ghazalat Structure
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East Ghazalat - Revenue per bbl Analysis at US$50/bbl
$45.98
Net per bbl
$4.02 $11.49
Cost Oil
$27.59
EGPC Profit Oil Includes Egyptian Tax & Royalty
$50.00
Gross per bbl
$6.90
Profit Oil
At US$50 per bbl the Contractor receives $18.39 per bbl to meet all costs and G&A
Western Desert Discount Fixed $2.15 per bbl + 3.75% Remainder
25% Net 20% Profit
(15% Net)
80% Profit
(60% Net)
Production Sharing Contract – Approved by Egyptian Parliament
Opex recovered in current year Capex recoverable over 5 years
At 880 bbl per day revenue available to the Contractor is $5,906,868 per year
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East Ghazalat - Single Well Economics
Production: 636,000 bbls Even at $50 per BBL the returns from new well investment are excellent. Payback is less than 2 years
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Ksar Hadada Permit
Overview Onshore exploration licence on Tunisia’s eastern
and an Acacus play. Sidi Toui has three wells showing hydrocarbons but not tested. IRG is
Upcoming work programme involves acquisition of 200km2 of 3D seismic, re-entry of one existing well and the drilling of a new well to the Ordovician. IRG plans to farm down their working interest to reduce capital commitment on the licence
Analogue: Bir Ben Tartar (Medco) Production (2014) 2,800 bopd Gross 2P remaining 10.5MMboe † Cumulative production 3.4 MMboe † IRG interest in permit 86.345% Gross Recoverable Resources (Unrisked) Oil 98.3 MM BBLs Pmean Gas 57.6 BCF Pmean NPV10 of IRG interest ($75 per BBL) Unrisked US$590m Risked US$186m Implied Valuation per IRG Ord Share Unrisked 189p Risked 59p
Work Programme (2 years) Cost (est.) $18MM Access cost / boe $0.17
* - Based on 202.6m shares currently in issue † - Most recently available as at 30 September 2014
Oil price sensitivity Revised economic analysis confirms project remains viable at prices approaching $30 per BBL
Tunisia: Ksar Hadada
Additional prospects identified by Scotforth RSDD-H survey
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Map of the Ksar Hadada block
NE boundary of the prolific Ghadames Basin Located on the Talemzane Arch – focus for Oil & Gas along its length Under Explored
Offset Ordovician fields
SW
Talemzane Arch NW along strike
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Ksar Hadada Work Programme - Updated
Farm-out marketing continues with Envoi
Refined appraisal of subsurface prospectivity has highlighted Acacus opportunity
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East Ghazalat
additional wells
Newsflow
Summary
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