April 2009 | LSE (AIM) “LGO” · 2018. 12. 8. · Ayoluengo Oilfield (100% LGO) Profitable Oil &...
Transcript of April 2009 | LSE (AIM) “LGO” · 2018. 12. 8. · Ayoluengo Oilfield (100% LGO) Profitable Oil &...
Delivering Growth through Acquisition of Proven Reserves & Enhancement of Producing AssetsProducing Assets
April 2009 | LSE (AIM) “LGO”April 2009 | LSE (AIM): “LGO”
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Key Point Summary currentKey Point Summary, current
Leni Gas & Oil plc LSE Ticker: LGO.L
Shares in Issue 608,05 million
Market Capitalisation US$ 37,9 million / GBP 25,8 million
Debt Nil
Country Operations US Gulf of Mexico, Spain, Trinidad, Hungary, Malta
f bl l d lf f d dProfitable Oil & Gas Production US Gulf of Mexico, Spain, Trinidad, Hungary
Gross Oil Production
Gross Gas Production
Gross Oil Equiv Production
Net LGO Equivalent
Estimated Operating Cost
Country Interest Production Production Production Equivalent Operating Cost(bopd) (mscfpd) (boepd) (boepd) (US$/bbl)
US Gulf of Mexico 28.94% of 25% 2,500 21,000 6,000 435 "++" <$5
Spain 100% 280 40 300 300 "++" <$10
Hungary 7.27% ‐ 3,000 650 50 "+" <$10
Trinidad 50% 40 ‐ 40 20 "+" <$20
Total 2,820 24,040 6,990 805 "++" $10
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Key Point Summary 2010 targetsKey Point Summary, 2010 targets
Production & Portfolio Growth
• Portfolio production target by end 2010 of 5.000 boepd minimum
• Spain increasing to over 1.500 bopd by end 2009 and over 2.500 bopd by end 2010
• US Gulf of Mexico gross increasing to 10.000 boepd by 2010
• Hungary & Trinidad gross increasing to over 3.000 boepd by early 2010
l d l d ll f l d f d ll l• Malta pre‐development drilling target finalised for drilling early 2010
• Expand current interests in US Gulf of Mexico, Trinidad and Hungary
• Identify and complete incremental production to current portfolio production by end 2010
Net Oil Production
Net Gas Production
Net Oil Equiv Production
Net Target Recoverable Reserves
Estimated Operating Cost
(bopd) (mscfpd) (boepd) (boe) (US$/bbl)
US Gulf of Mexico ‐ ‐ 2,500 6 million ("+") <$5
S i 2 00 00 2 00 illi (" ") $
Country
Spain 2,500 100 2,500 15 million ("+") <$5
Hungary ‐ ‐ 500 0.5 million ("+") <$5
Trinidad ‐ ‐ 150 1 million ("++") <$10
Total 2,500 100 5,500 22 million ("+") $5
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Stock PerformanceRelative to Oil & Gas Sector and AIM All Share since AIM admission
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Corporate Strategyp gyDelivering growth through acquisition of proven reserves and enhancement of producing assets
Identify and acquire projects and businesses within the oil and gas sector that contain a development premium which can be unlocked through a combination of financial commercial and technical expertisecombination of financial, commercial, and technical expertise
Establish a portfolio of proven reserves and producing assets in low risk t i ith i ifi t d l t d h t t ti l icountries with significant development and enhancement potential using
both proven and leading edge oilfield technologies to maximise exploitation
Capitalise upon the management’s extensive expertise in the oil and gas sector to convert acquisition opportunities generating individual asset profitability across the entire portfolio
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Capital StructureCapital Structure
Current Share Price 4,25p / share
Shares in Issue 608,05 million
Market Capitalisation US$ 37,9 million / GBP 25,8 million
SPGP 10%
l b lLR Global Partners 7%
Blackrock 6%
Carmignac Gestion 4%
Capital Global 4%Capital Global 4%
CIM Investment 4%
Calwell Associates 4%
(Directors & Management 34%)
David Lenigas 22%
Jeremy Edelman 7%
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Corporate StructureCorporate Structure
David Lenigas, Chairman25 years experience in the natural resources industry covering oil and gas, coal, y p y g g , ,precious and base metals
Fraser Pritchard, Operations Director20 years oil & gas experience from most offshore and onshore oil & gas provinces and major international and state energy companies
Donald Strang Finance DirectorDonald Strang, Finance Director15 years experience in financial management predominantly within the natural resources sector
Jeremy Edelman, Executive Director20 years corporate finance experience coordinating acquisitions in natural resources sector
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Portfolio OverviewPortfolio Overview
Current or near term oil and gas production with significant exploitation potential
Prolific petroleum basins with established infrastructureProlific petroleum basins with established infrastructure
Profitable production from four out of five areas of operation
US GoM
Trinidad
Hungary
Spain
Malta
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Summary Progress since first acquisitionSummary Progress since first acquisition
Production increase from under 4.000 to near 25.000 boe per month since listing in March 2007
Net target recoverable reserves over 22 mmboe
Spain
Full acreage re‐interpretation completed and multiple phase exploitation underway
bl f bRecoverable reserves target of over 15 mmbo
Production increase from initial enhancement programs of over 200%
US GoM
Increased stake in Byron Energy to ~30% and undertaking indirect to direct interest conversionIncreased stake in Byron Energy to 30% and undertaking indirect to direct interest conversion
Completed Eugene Island initial development with production over 6.000 boepd gross
Hungary
First phase production and 3D seismic completed with multiple tie back plan commenced
Trinidad
Production enhancement program and full acreage interpretation commenced
Malta
PSC i d i h M l G d i l d illi fi l d
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PSC signed with Maltese Government and pre‐appraisal drilling final assessment underway
Monthly Gas and Oil Production since first acquisitionMonthly Gas and Oil Production since first acquisition
Note 1: US GoM based on joint venture operator announcement on January 2009
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j p yNote 2 : Production deferments due to scheduled production enhancement or development programmes
Outlook & TimelineOutlook & Timeline
US GoM(28 94%)
Development drilling, new production completions and assess exploitation potential
Develop exploitation potential
(28.94%) completions and assess exploitation potential
Spain(100% & 85%)
Expand second recovery programs, identify infill drilling targets and and appraise halo oil and gas prospects
Develop infill drilling targets and step change production.Develop halo oil and gas prospects
Trinidad(50%)
Re‐interpret acreage and accelerate development drilling to enhance production.Assess prospectivity of deep play
Appraise deep play
Hungary Identify further prospects for expanded Development of identified prospectsHungary(7.27%)
Identify further prospects for expanded development and repeatable re‐development
Development of identified prospects
Malta(10%)
Identify high potential drill locations anddefine drilling program
Execute drilling plan
(10%)
Other Identify acquisition opportunities, and convert prospects with near term production and significant enhancement potential
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2009 2010
2009 Targets2009 Targets
Completing the transfer agreement with Byron Energy to assume a direct working interest in all Gulf of Mexico and Gulf Coast properties
Initiating other developments covered under the Byron Energy / Leed Petroleum Plc agreement on Sorrento, Ship Shoal and South Marsh Island properties
Completing four out of five production enhancement programs on the Ayoluengo oilfield in Spain through maximizing recovery in the undepleted zones to increase production to near 1,500 bopdg y p p , p
Finalising infill drilling development plans for 2010 for maximizing Ayoluengo oilfield production to target the 15 million bbls of oil incremental reserves
Appraising four of the ten exploration prospects surrounding the Ayoluengo oilfield and developing an exploitation program to tie back these prospects in 2010exploitation program to tie‐back these prospects in 2010
Concluding the production enhancement program in Trinidad to step change well productivity and identify infill wells for targeting the shallow "sweet spot" reserves and potential deeper reserves
Increasing gas production in Hungary through developing the additional prospects in the Penészlek gas development area and implementing the ZalaGas re‐development work program
Completing the second stage work program in Malta to increase the understanding and chance of success on the identified drilling prospects for campaigning in 2010
Continue to assess and convert value adding acquisitions to complement the Company's strategy
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Continue to assess and convert value adding acquisitions to complement the Company s strategy
SummarySummary
Demonstrated ability to enhancing producing assets from under 4.000 bopm to near 25.000 bopm in only 15 monthsp y
On track to significant increase production in all countries and deliver a minimum of 5.000 boepd in 2010 with potential stretch target of near 10.000 boped
Strong cashflow position with no debt
Low risk areas of operations
Highly experienced and proven management teamg y p p g
Well positioned for acquisition expansion
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Portfolio DetailsPortfolio Details
• US Gulf of Mexico
• Spain
• Trinidad
• HungaryHungary
• Malta
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Overview: US Gulf of Mexico
Byron Energy (28.94% LGO)
Multiple Oil & Gas Assets with Major Development Potential
y gy ( % )
Private E&P focused on shallow water Gulf of Mexico and Gulf Coast with rights to 25% of Leed Petroleum (AIM: LDP) interests at varying stages of production and development drillingdevelopment drilling
Current Byron assets of 3.7 mmboe 1P, 7.5 mmboe 2P and 22.1 mmboe 3P
Eugene Island development completed early 2009 with significant production increase to over gross 6.000 boepd on restricted choke. Next development phase p p pfocused on Sorrento, Ship Shoal and South Marsh Island
Heads of Agreement completed for conversion of shareholding into direct working interest in all assets
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shareholding into direct working interest in all assets
US Gulf of MexicoAsset Locations, Interests & Status
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US Gulf of MexicoCurrent Production: Eugene Island
Byron Energy gross interests include 25% WI in block 183, y gy g % ,25% WI in block 184 south (including 184A production facilities), 12.5% WI in block 184 north and 10.37% WI in block 172
Location 50 miles offshore Louisiana in approximately 25mLocation 50 miles offshore Louisiana in approximately 25m of water with facilities designed to handle 30mmscfd, 10mbopd and 10mbwpd
Average joint venture (operator Leed Petroleum) gross production is over 6 000 boepd (2 500 bbls of oil and 21production is over 6.000 boepd (2,500 bbls of oil and 21 mmscfd of gas)
Successful Eugene Island development program with three wells tested at gross production rates of 1,750 boepd,
b d d b d4,012 boepd and 2,557 boepd
Potential production expansion planned for end 2009
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US Gulf of MexicoByron Energy Reserves & Production Forecast
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Overview: Spain
Ayoluengo Oilfield (100% LGO)
pProfitable Oil & Gas Producer with Major Enhancement Potential
y g ( )
Largest Spanish onshore oilfield with STOIIP of 110 mmbbls and low historical recovery (15%). Full acreage re‐interpretation completed with remaining oil in place of 95 mmbo and “halo” resources of 13 mmboemmbo and halo resources of 13 mmboe
Multiple phase development program initiated to realise recoverable reserves target of 15 mmbo and return production
h l l f k d b d lto historical plateau of risked 2.500 bopd. Initial program results have increased production by almost threefold with production rising month on month
Appraisal programs underway for finalising 2010 infill drilling campaign. Carbon sequestration EOR program commenced to pilot tertiary recovery from isolated flank and assess long term production and storage options
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p g p
SpainpAsset Locations & Development Opportunities
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SpainpAyoluengo Historical Production
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SpainpAyoluengo Re‐interpretation & Recoverable Reserves Estimation
STOIIP = 109.7 mmbo total, allocated 60.9 mmbo (Sargentes sand), 29.4 mmbo (Ayoluengo sand), 15.8 , ( g ), ( y g ),mmbo (Unit A sand) and 3.6 mmbo (Unit C sand)
Remaining Oil in Place = 92.8 mmbo total (85% of STOIIP) allocated 53.3 mmbo (Sargentes sand), 22.1 mmbo (Ayoluengo sand), 14.4 mmbo (Unit A sand) and 3.0 mmbo (Unit C sand)
Re interpretation has identified water injection as the primary recovery means in the continuousRe‐interpretation has identified water injection as the primary recovery means in the continuous Ayoluengo sands and stimulation and in‐fill drilling in the less continuous Sargentes and Unit A sands
CO2 sequestration enhanced oil recovery being assessed in western Sargentes
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SpainpTarget Total Fields Production (unrisked)
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SpainpTarget Total Fields Production Forecast (risked)
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Spain pInvestment Summary
Ayoluengo Secondary Recoveryy g y y
Completed seismic/well interpretation and data integration with production history review
Identified production enhancement opportunities with pilot secondary recovery programs in progress, with initial results increasing production to almost threefold of historical plateau
Developed full field recovery plan based on re‐interpretation and pilots to step change well productivity and overall production to previous plateau levels of 2.500bpd
Executing long term exploitation plan to maximise both production value and long term residual value through gas storage
Halo Development Opportunities
Completed area wide seismic/well interpretation and identified recoverable prospective and contingent resources across 10 prospects with total unrisked mean volume of 12.8 mmboe
Four of the ten largest exploration prospects are undergoing appraisal for possible tie back toFour of the ten largest exploration prospects are undergoing appraisal for possible tie‐back to production from Ayoluengo in 2010
Other Opportunities
Identifying opportunities for the potential acquisition of analogue assets in Iberian peninsula
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(production enhancement with halo development potential)
Overview: TrinidadMature Oil Producer with Significant Deep Oil & Gas Play
Icacos Oilfield (50% LGO) & Icacos Deep Prospect (50% LGO)( % ) p p ( % )
8 sq.kms onshore oilfield in SW Peninsula, 15km from Venezuela coastline and in middle of prolific East Venezuelan oil basin
Well stimulation and production enhancement program underway to lift production by 300% to over 150 bopd
Initial results from the production enhancement programs have p p gstabilized production at 40 bopd gross, an increase of 30% since acquisition.
Full re interpretation and surveys underway to identify step changeFull re‐interpretation and surveys underway to identify step change production potential and identify “sweet spot” production zones
Imaging surveys planned to validate prospectivity of high potential
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deep reservoirs
TrinidadAsset Location
Icacos
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TrinidadBasin Structures & Development Potential
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Overview: Hungaryg yProfitable Gas Producer with High Potential Gas Play
Penészlek Gas Field (7.27% LGO) & Zala Basin Gas Play (7.27% LGO)( % ) y ( % )
Penészlek mature gas field previously operated by MOL on border with Romania being re‐developed in multiple phases
Initial production of 0.5bcf since Q3 2008 covering processing facilities and 3D seismic capex.
Multiple tie‐back developments planned for 2009 to maximise p p precovery of GIIP of 15 bcf from five identified resources and fully utilise production infrastructure
Zala Basin tight gas reservoirs on border with Slovenia operatedZala Basin tight gas reservoirs on border with Slovenia operated by MOL with pilot re‐development planned
Multiple well stimulation and re‐completion to increase recovery
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from 28% to near 50%
Hungaryg yAsset Locations and Structures
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Hungaryg yPenészlek (East Hungary), Gas Re‐Development and Future Plan
Miocene discovery produced 3.5 bcf in 1980’s, with y p ,remaining 19.4 bcf potential in Miocene and additional 2.3 bcf in Pannonian sands
Re‐development centred on Pen‐104 discovery with first gas production in August 2008 at 4mmscfdgas production in August 2008 at 4mmscfd
New gas gathering and processing facilities at Pen‐104 well‐site installed with connection to nearby gas transportation grid operated by MOL
d f d dPen‐104 production revenue funded new processing facilities and 3D seismic program to identify additional developments for maximising production through facilities
Seismic interpretation identified five new targets with total gas in place of 15bcf
All targets planned to be tied to facilities by early 2010, with production forecast to quadruple to around 20mmscfd
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Hungaryg yPenészlek (East Hungary), Proved Reserves
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Hungaryg yZala Basin (West Hungary), Enhanced Recovery Gas Development
Zala Basin agreement (50/50) between MOL g ( / )(Operator) and Joint Venture Partners to enhance gas production of multiple tight gas fields
MOL to provide gas gathering, treatment and export facilities with Joint Venture Partners responsible forfacilities with Joint Venture Partners responsible for enhanced recovery development
Phased development approach to validate incremental recovery methods and to increase chance of success in deeper reservoir stacksdeeper reservoir stacks
Recovery method re‐develops each operating well with advanced well stimulation and re‐completion approaches in each reservoir stack
Once the development approach is proven, other reservoirs have been identified in the Zala Basin for repeated development through a MOL option agreement
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Hungaryg yZala Basin (West Hungary), Pilot Development Approach
Enhanced recovery development to be piloted on y p pBajcsa gas field, a seven stacked Lower Pannonian tight gas sandstone reservoirs with total GIIP 59 bcf
Partial depletion of reservoirs (28% GIIP) via 23 producersproducers
Multiple targets in all reservoir stacks have been identified to increase recovery to near 50% GIIP (~20% GIIP incremental recovery)
h ll h l fdPhase 1 wells with initial rates up to 3.5 mmscfd are thought capable of producing up to 3 bcf gas each over a period of 5 years
If adequate productivity is demonstrated, further in‐fill locations within the field will be developed in a series of incremental Phases
Work program due to commence early Q3 2009
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Overview: MaltaHigh Reward High Risk Exploration Play
Malta Southern Offshore (10% LGO)( % )
High potential exploration play in highly prospective oil and gas basin in close proximity to Tunisia and Libya active petroleum basins
Major seismic interpretation executed on the 5.700 sq.km PSC area
Four prospects and five leads identified with gross mean 2P STOIIP of 5.7 billion barrels and recoverable reserves of 1.484 billion barrels
PSC signed with the Maltese Government , final pre‐drilling interpretation underway during 2009 to finalise locations with drilling planned for 2010
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MaltaAsset Prospects and Potential
Prospective Resources (mmbbl)P90 P50 P10
Hagar Qim 11 58 203Skorba 7 18 43Tarxien 57 115 207Luzzu 66 605 1980A 74 197 470B 26 77 200C 93 405 1111D 1 2 9E 2 7 14
total 337 1484 4237
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Forward Looking StatementsForward Looking Statements
Certain statements in this presentation are “forward looking statements” which are not based onhistorical facts but rather on the management’s expectations regarding the Company's future growth.These expectations include the results of operations, performance, future capital, other expenditures(amount, nature and sources of funding thereof), competitive advantages, planned exploration anddevelopment drilling activity including the results of such drilling activity, business prospects andopportunities. Such statements reflect management's current beliefs and assumptions and are based
f l l blon information currently available.
Forward looking statements involve significant known, unknown risks and uncertainties. A number offactors could cause the actual results to differ materially from the results denoted in these statements,including risks associated with vulnerability to general economic market and business conditions,competition, environmental and other regulatory changes, the results of exploration, developmentdrilling and related activities, actions by governmental authorities, the availability of capital markets,reliance on key personnel, uninsured and underinsured losses and other factors, many of which arebeyond the control of the Company.
Although these statements are based upon what management believes to be reasonable assumptions,the Company cannot assure investors that the actual results will be consistent with these forwardlooking statements.
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Delivering Growth through Acquisition of Proven Reserves & Enhancement of Producing AssetsProducing Assets
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