SacOil Holdings Limited BUILDING AN AFRICAN INDEPENDENT UPSTREAM OIL - - PowerPoint PPT Presentation
SacOil Holdings Limited BUILDING AN AFRICAN INDEPENDENT UPSTREAM OIL - - PowerPoint PPT Presentation
SacOil Holdings Limited BUILDING AN AFRICAN INDEPENDENT UPSTREAM OIL & GAS COMPANY November 2012 Disclaimer THIS DOCUMENT (DOCUMENT) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE DISTRIBUTION
THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE LEGAL REQUIREMENTS APPLICABLE TO SUCH JURISDICTION. IN PARTICULAR, YOU MAY NOT DISTRIBUTE, FORWARD, REPRODUCE, TRANSMIT OR OTHERWISE MAKE AVAILABLE THIS DOCUMENT OR DISCLOSE ANY INFORMATION CONTAINED IN IT OR CONVEYED DURING ANY ACCOMPANYING ORAL PRESENTATION (THE “INFORMATION”) , IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR IN ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS. PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES ARE REQUIRED BY THE COMPANY TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS. NEITHER SACOIL HOLDINGS LIMITED (“THE COMPANY”) NOR ITS DIRECTORS, OFFICERS, EMPLOYEES, RESPECTIVE AFFILIATES, AGENTS OR ADVISERS ACCEPT ANY LIABILITY TO ANY PERSON IN RELATION TO THE DISTRIBUTION OR POSSESSION OF THIS DOCUMENT IN OR FROM ANY JURISDICTION. The Document and the Information have been prepared by or on behalf of, and is the sole responsibility of, the Company. The Information is being provided to you during an oral presentation and is not a complete record of that discussion. The Information does not purport to be full or complete and does not constitute investment advice. No representation or warranty, express or implied, is given by or on behalf of the Company, its affiliates, agents or advisers or any other person as to, and no reliance may be placed for any purposes whatsoever on, the adequacy, accuracy, completeness, fairness or reasonableness of the
- Information. None of the Information has been independently verified by the Company, its affiliates, agents or advisers or any other person, and no liability or responsibility whatsoever is accepted by any of them
for any loss howsoever arising, directly or indirectly, from any use of the Information or otherwise arising in connection therewith. The Company, its affiliates, agents and advisers do not undertake and are not under any duty to update this Document or to correct any inaccuracies in the Information which may become apparent, or to provide you with any additional information. The sole purpose of this Document is to provide background information to assist you in obtaining a general understanding of the business of the Company. This Document does not constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, securities of the Company in any jurisdiction. It is not intended to provide the basis of any investment decision, financing or any other evaluation and is not to be considered as a recommendation by the Company, its affiliates, agents or advisers that any recipient of this Document purchase or subscribe for any securities in the Company. Each recipient of this Document contemplating any investment in the Company is required to make and will be deemed to have made its own independent investigation and appraisal of the business, results of operations, financial condition, liquidity, performance and prospects of the Company and the merits and risks of an investment in the securities of the Company. The delivery of this Document at any time does not imply that the information in it is correct as of any time after its date, or that there has been no change in the business, results of operations, financial condition, liquidity, performance and prospects of the Company since that date and no
- bligations is accepted to update any such information after the date of the Document. No person affiliated with the Company, their directors, officers, employees, respective affiliates, agents or advisers has been
authorised to give any information or to make any representation not contained in this Document and, if given or made, such information or representation must not be relied upon. The securities of the Company have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act") and may not be offered, sold, transferred or delivered, directly or indirectly, within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. In the United Kingdom, this document is directed solely at persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotions Order"), to persons who are high net worth companies, unincorporated associations or high value trusts as specified in Article 49(2) of the Financial Promotion Order (all such persons together being referred to as "relevant persons"). In addition to the foregoing restrictions, this document is made and directed only at persons falling within the meaning of "qualified investors" as defined in section 86 of the Financial Services and Markets Act 2000 (as amended).
Disclaimer
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Forward-looking statements in this Document reflect the Company’s view with respect to future events as at the date hereof and are subject to known and unknown risks, uncertainties and assumptions relating to the Company’s operations, results of operations, financial condition, growth, strategy, liquidity and the markets in which the Company operates. No assurances can be given that the forward-looking statements in this Document will be realised. Forward-looking statements are not guarantees of future performance. The Company, its affiliates, agents and advisers undertake no obligation and do not intend to update any forward-looking statements in this presentation to reflect events or circumstances after the date of this presentation. This Document may contain forward-looking statements, including, but not limited to, statements as to the Company’s business, results of operations, financial condition, liquidity, performance and prospects and trends and developments in the markets in which the Company operates. Forward-looking statements include all statements other than statements of historical fact and in some cases may be identified by terms such as “targets”, “believes”, “expects”, “anticipates”, “estimates”, “aims”, “intends”, “will”, “may”, “would”, “could” or, in each case, their negative or comparable terms. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. A number of factors, which may be beyond the control of the Company, its affiliates, agents and advisers, could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements.
Corporate Overview
Ability to operate through the exploration phase, but will focus on the establishment
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strategic partnerships to manage portfolio risk and ensure that the
- ptimum technical and operating skills are
applied to each opportunity . A dual listed JSE & AIM company. Remit is to build an African independent upstream oil and gas business with a balanced portfolio of assets in Africa. Experienced Board and Management team with expertise in African oil & gas exploration. Interests and prospective interests include development
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low risk discoveries.
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Assets and
- pportunities
in proven hydrocarbon basins, across the E&P spectrum. SacOil Holdings Ltd (AIM: SAC, JSE: SCL) Ordinary Shares in Issue 918,268,379 Market Capitalisation - ZAR 330.58 million Market Capitalisation – GBP 21.27 million 52 Week High-Low, 0.70 - 0.26 30 Day Average Volume 3,883,928 Top 4 Shareholders (as at 26 Oct 2012) 55% of ordinary shares
Strategy To adding value
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Build an African Footprint with a balanced portfolio of assets. SacOil will seek to grow through acquisitions, farm-ins and license rounds in a focused Consolidation play manner. Explore early stage opportunities in Africa with low entry costs. Seek partnerships with major oil and gas companies with extensive experience in Africa. Leveraging our ability to execute asset transactions to develop assets on favourable terms. Target discovered but undeveloped near-term producing assets.
- Africa is highly prospective for hydrocarbon systems and is
underexplored
- This provides significant “high impact” exploration growth
- pportunities and the ability to add incremental value to
shareholders
Build
an African footprint with a balanced portfolio of assets
SacOil Strategy
Target
discovered but undeveloped/near-term producing assets
Explore
early stage opportunities in Africa with low entry costs
Seek
partnerships with major oil & gas companies with extensive experience in Africa
- SacOil is the only JSE listed, independent upstream oil and gas
company
- SA DNA: Well positioned to become an African based African
independent upstream oil & gas company
- Current portfolio includes assets in the DRC and Nigeria
- SacOil will seek to grow through acquisitions, farm-ins and
license rounds
- The retreat of the Majors from discovered but undeveloped
marginal oil fields in Africa provides significant opportunities
- Near term producing assets financially and operationally de-
risks the company
- Provides an opportunity to monetize assets
- Enables us to leverage the value curve by bringing
undervalued assets into account
- Our unique position as an African oil and gas company allows
us a competitive advantage at the point of entry
- We are able to utilize expertise, through our highly
experienced board and unique relationships, to acquire underexplored African assets
- Leveraging our ability to execute asset transactions to develop
assets on favourable terms
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Offers Strong Growth in Shareholder Value
Build
Explore
Seek Target
Strategy and Focus
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Cumulative ‘Value’ Time - Upstream Investment
Early Stage Growth Stage Mature Stage OPL 233 OPL 281 Block III
SacOil Focus
- Appraisal and development acreage.
- Discovered and undeveloped assets.
- Onshore North and West Africa.
- Mitigation of risks.
- Acquire early stage exploration acreage.
- East Africa and African rift basins
- Partner indigenous companies.
- Mitigation of risks.
- Execution of work program.
- Farm down to JV partners.
- Production acreage.
- On and offshore North and West Africa.
- Small producing assets.
AFRICA:
Rift basin potential and prospectivity
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Africa as a continent has experienced various episodes of rifting. East African Rift system is the largest continental rift system on Earth. These episodes gave rise to prolific
- il
discoveries in Sudan, Chad, Kenya and Uganda. Potential that these rifts exist elsewhere on the African continent. SacOil focussed on identifying and evaluating rift plays and basins on the African continent.
Location
Licence area: 3,177 square km. Located on the DRC side of the Albertine Graben Basin, part of the East African Rift System. Block within proven petroleum system, on trend with major Ugandan oil fields. Existing oil/gas discoveries within 10 km of block boundary. PSC Term and Work Program Total RDC - Operator (66.66%) and operator of Block 3 Uganda. SacOil (12.5%) Firm Exploration Program Acquisition 500km of 2D seismic. Drilling of the 2 exploration wells. Minimum Phase 1 Expenditure commitment US$ 70 Million.
Block III, DRC:
Overview & Location
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Source: Bayphase Limited: Competent Person’s Report dated February 2012
Block III, DRC:
Operational Plan
2011
- Environmental studies completed
2012
- Total increased equity in the block to 66.66%.
- Completed acquisition and interpretation of
Aero Gravity Aeromag survey over the northern part of the block.
- Tender for 2D Seismic acquisition issued.
- 508 km of 2D seismic lines to be acquired.
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Nigerian Assets Under Acquisition :
Overview
OPL 281 OPL 233
- OPL 233 and OPL 281 are under acquisition and will result in SacOil holding a 20%
interest in both blocks
- Both OPL’s have potential for rapid monetization and are in the vicinity of abundant
infrastructure
- Production revenue from EWT will accrue to the JV partners, gross of PSC Royalty and
Taxes
- No relinquishment required on conversion from OPL to OML
10 Proximity and location of OPL 233 and OPL 281 in relation to the prolific Niger delta
Source : IHS 2011, SacOil
Distance Warri 20 km Port Harcourt 163 km Communities Obotebe Kingdom Forcados Crude Export Terminal 25km Odidi Platform (Gas / Condensate processing) 22 km Forcados facility 25 km Wells drilled 1967 /1970
OPL 281:
Location
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Source: Energy Equity Resources Source: Energy Equity Resources; 2012 Source: Energy Equity Resources; 2012
New PSC - five year Exploration Period divided into two separate phases. Transcorp 60% (Operator) , SacOil 20%, EER 20%. Minimum Commitments
- Reprocessing of existing 3D data over the block
- Drilling of two wells.
Two discoveries on block, certified Contingent resources.
126 sq. km block. Water depth of less than 30 ft. 103 ft. of net oil pay discovered in Olobia-1, certified Contingent resources. Significant exploration upside potential. Adjacent to Apoi field (600 MMbbl)
OML141
Giant Apoi field (>600MMBO) adjacent to block
OPL 233:
Location
OPL 233 located in very shallow water
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1Source: Energy Equity Resources and SacOil; 2012
OPL 233:
Work Program
Completed interpretation of existing 2D seismic and well data. Log analysis interpreted to be oil bearing. Completed modelling and planning of the 3D OBC seismic survey. In the process of finalising 3D OBC contractor assessments and engagements.
Source: SacOil ; 2012 Source: WesternGeco and EER; 2012
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AFRICA: Current leads being evaluated
- Focus remains on optimisation of current
assets, but SacOil continues to evaluate and seek further upstream assets on the African continent
- We are mindful of political risk but believe
that our identity/background enables us to judge the risk and mitigate it
- SacOil considers both oil and gas
- pportunities
- SacOil prefers to be a non-operator but
would consider operatorship at the early stages of exploration
- SacOil continues to endeavour to balance
the portfolio between Exploration and Production
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- Tunisia
- Egypt
- Ghana
- Ivory Coast
- Cameroon
- South Africa
- Malawi
- DRC
- Nigeria
Asset Summary
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* SacOil carried by Total up to FID - Includes contingent success bonuses from Total of $54 mill Limits of CPR Volumetrics: Asset values based on CPR Volumetrics and Costs
Country Block Unrisked Gross Resources Chance of Commercial Success Risked Gross Resources SacOil Interest Risked Net Resources Estimated After Tax NPV Best Case Rec MMboe MMboe MMboe $/boe DRC Block III Best: 640 High: 1,250 20% Best: 130 High: 250 12.50% Best: 16 High:31 7.5 Nigeria OPL 281 2C Best: 99.2 3C High: 145.2 60% 2C Best: 59.5 3C High: 87.1 20% 2C Best: 11.9 3C High: 17.4 3.8 Nigeria OPL 233 2C Best: 19.0 3C High: 26.1 40% 2C Best: 7.6 3C High: 10.4 20% 2C Best: 1.5 3C High: 2.1 5.8
OPL 233 OPL 281
Schedule of Activities
- Dual listed Africa independent upstream Oil & Gas company – effectively structured to
take advantage of opportunities.
- South African company with an African focus.
- Current asset base in DRC and assets under acquisition in Nigeria.
- Model for growth – partner indigenous companies by providing resources and
transferring skills.
- Small but experienced commercial and technical team.
- Supported by South African institutional investors - African ownership of Sovereign
African Assets.
- Building and developing a balanced African portfolio.
Conclusion
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