Post on 15-Oct-2020
www.fastnetoilandgas.com
Fastnet Oil & Gas Plc
Ladenburg Thalmann
Africa Upstream Conference
February 2014
Fastnet Oil & Gas Plc
Corporate Presentation May 2014
www.fastnetoilandgas.com
www.fastnetoilandgas.com 2
Disclaimer
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Company Overview
Moroccan Assets
Irish Assets
Outlook
Company Overview
Moroccan Assets
Irish Assets
Outlook
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Company Funding
• Cash balance at end May 2014 – USD $22m
• In the next 18 months Fastnet will prudently manage cash resources to satisfy all current work
programme commitments whilst allowing for continued monetisation of the portfolio through
ongoing farm down discussions for carries in drilling and past costs.
• Fastnet executed this strategy successfully through Foum Assaka farm-out to SK for a Carried
Interest in the FA-1 well and has potential Carried Interest in a second well in Foum Assaka.
Management aim to replicate farm-out success in Tendrara option and the Celtic Sea.
• Celtic Sea farm-out discussions are progressing well following interpretation of the Mizzen and
Deep Kinsale 3D Seismic data. Deal terms to include contribution to past costs which currently
stand at USD $20m.
• Focus on maintaining current low operating costs of £110k per month by utilising external
consultants and advisors for specific value adding projects only.
• Explore concept of reserves based lending facility for Tendrara as TE-5 Lakbir structure already
has P90 reserves and TE-6 well is expected to de-risk deliverability and increase P90 reserves.
OVERVIEW
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Introduction
Fastnet is an oil & gas Company primarily focused on
exploration in frontier regions.
Strategy
• Seek high equity positions in prospective assets
through identifying early entry or overlooked
exploration opportunities and near term value adding
appraisal in frontier regions
• Add value by leveraging management’s regional and
technical expertise and to bring in high calibre
partners
• Monetise assets at the opportune moment followed by
a return of cash to shareholders on an asset by asset
basis
Listed in London on the AIM (‘FAST’) and the Irish Stock
Exchange (‘FOI’)
OVERVIEW
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Investment Case
• Early entry with excellent fiscal terms
• Significant acreage position (25,192km²) balancing high impact exploration and lower risk near term appraisal opportunities
• Fully financed for current 2014 work programme
• Carried on near term offshore exploration in Foum Assaka with high calibre partners
• Foum Assaka Project initiated, developed and drilled by first well FA-1 for a cost to Fastnet of less than USD $2.75 mm, representing effective management of risk and financial exposure
• Experienced management team with strong regional knowledge, in-house technical expertise, local relationships and proven ability to attract high calibre partners
• Steady pipeline of near-term newsflow onshore, offshore Morocco and in Ireland after the highly successful Celtic Sea Farmout Conference held on 30th April 2014 and attended by 20 international oil and gas companies including BP, Chevron, ConocoPhillips, ENI, ExxonMobil, Hess, Inpex and Shell
• Proven record of monetising assets before significant expenditure required to further develop exploration / appraisal success
OVERVIEW
Experienced Board & Senior Management
Paul Griffiths, Managing Director CEO of Island Oil & Gas Plc until its acquisition by San Leon
Energy Plc in 2009
Built and sold 3 oil and gas companies between 1999-2012
Senior geophysicist for Gulf Oil Corporation for Europe and
Mediterranean Region and Gulf R&D in Pittsburgh
Carol Law, Executive Director Former Exploration Manager, Anadarko East Africa
Responsible for the play finding Prosperidade gas complex in
Rovuma Area 1, offshore Mozambique
Also member of teams responsible for discoveries in Ghana
(Jubilee), Brazil (multiple Campos Basin discoveries)
Cathal Friel, Executive Chairman Managing Director and one of the founders of Raglan Capital in
2007
Former founding partner and Director of Merrion Capital
MBA from University of Ulster
Will Holland, Chief Financial Officer Former Associate Director at Macquarie bank where he originated,
structured and managed equity and debt investments in small-cap
E&P companies.
Previously worked at Halliburton Energy Services in various
technical & business development roles based in Africa & Europe
MBA from Heriot-Watt University
Michael Nolan, Non-Executive Director Former Founder and Group Finance Director of Cove Energy PLC
Currently CFO of Discover Exploration and Non-executive director
of Rathdowney Resources plc and Orogen Gold plc
Fellow of the Chartered Accountants Ireland
Value Creation
Sold IPDL to DNO ASA, after
reverse takeover of
Providence Resources Plc
collapsed in 2002, for an exit
price of $34 mm after
investing approx. $1.5 mm
100 TCF +
Carol led the Anadarko team
that discovered over 100 TCF
of natural gas in the Area 1
Block, Offshore Mozambique
100%
100% exploration
success rate offshore
Ireland with Island Oil &
Gas: 4 wells drilled, two
commercial gas fields
$2.64 billion
Sale price of a 10%
stake in Anadarko’s
Area 1 Block, Offshore
Mozambique
38+ years
Experience in oil
and gas exploration
and near term field
appraisal
30 years
Experience in oil
and gas industry
25+ years
Managerial
Corporate Finance
experience
20+ years
Experience in oil
and gas industry
€100 million
One of the founding directors
of Merrion Capital, where he
was part of the small team
that built the business and
sold it for c. €100m in 2006
$1 billion +
Value of successful
corporate transactions
on which Cathal has
advised
+$110 million
Managed Macquarie interest
in over $110 million of debt
and equity investments
Internal Control
Lead teams of internal
auditors at Halliburton
assessing accounting &
operation risks
THE TEAM
18+ years
Experience in
resource
exploration sector
+1900%
Share price increase between
the Cove Energy IPO in June
2009 and its sale in Aug 2012
$1.9 billion
Cove Energy was sold
to PTTEP in Aug 2012
after a competitive
auction process
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Fastnet Oil and Gas PLC
Cathal Friel Executive Chairman
Paul Griffiths Managing Director
Carol Law Executive Director
Michael Nolan
Michael Edelson
Executive Directors Non - Executive Directors
Robert Murphy* Senior Project Geologist
John Tingas* Reservoir Engineer
Ross Crockett Finance and Back Office Support
Paul Griggs* Commercial Contracts Advisor
Brendan Tuohy* Licensing Consultant
Armira Zylyftari Licence Administration
Dr. Mahmoud Zizi Morocco Country Manager
Carl Kindinger* UK based Commercial / Financial Consultant
Moroccan Focused Team
Christian Klinkenberg Commercial & Operations Manager
Dennis Krahn* Morocco Drilling Manager
Bob Graham* Consulting Geophysicist
Michael Lynch Investor Relations Manager
Dr. Vivian Caston* Technical Advisor
*Consultants and Advisors for specific projects only
Will Holland Chief Financial
Officer
Company Overview
Moroccan Assets
Irish Assets
Outlook
Company Overview
Moroccan Assets
Irish Assets
Outlook
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Industry Recognises that Multiple “Range-Finding” Wells will be Required to
De-Risk Reservoir Fairways and Unlock an Emerging Exploration Frontier Area
• Attractive fiscal terms – the value of producing 1bbl of oil
in Morocco is equivalent to the value of producing 13bbl
in Algeria or 7bbl in Nigeria
• Significant domestic demand for hydrocarbons with
attractive pricing
• Established export options through existing pipeline to
Europe
• New players in past 18 months include Chevron, BP,
Cairn, Genel and Glencore
• Politically stable with a constitutional monarchy and a
democratically elected Government
• Multiple wells planned by industry over the next 12
months: 5 offshore and 4 onshore wells already
scheduled for drilling in Morocco in 2014
• Longreach gas discovery begins to de-risk
exploration for onshore gas
• Fastnet management team an early mover in Morocco
beginning 2006
Near Term Drilling Activity
Fastnet “first mover” strategy prelude to industry recognising
Morocco as a key frontier exploration area (yellow)
MOROCCO
• Other Parties Active:
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Offshore Morocco Play Fairway Analysis
MOROCCO
• Fastnet and its partners are
targeting a new play concept that
is untested in the Agadir Basin
• Deep Secondary Target favoured
by Fastnet and a target for
Chevron and BP offshore Nova
Scotia remains a key target in
Foum Assaka following the FA-1
well
• Exploration drilling offshore
Morocco has historically focused
on the Carbonate Shelf with no
commercial discoveries as yet
Analysis of 32 Wells drilled in Morocco
FA-1 Well
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Foum Assaka – FA-1 Pre-Drill Well Design to Test Secondary Target Downdip
(Subsequently Replaced by Straight Hole)
• FA-1 Exploration Well spudded on the 16th March
2014 with designated “Tight Hole” status
• It reached TD of 3,830 meters on 30th April 2014
after encountering salt
• This was the first well in partnership with a super-
major (BP) in the Agadir Basin for 10 years and their
significant commitment to our area of operations
reflects the medium-term potential of this specific
area of offshore Morocco
MOROCCO
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“Range-Finding” Wells FA-1 & FD-1 has Established Two End Points and the
Next Well Could Potentially Target the Prospective Central Sand Fairway
MOROCCO
End Point FA-1 Distal
Feather Edge Sands
End Point FD-1 Proximal
Slope By-Pass
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Conclusions
1. Pre-stack Depth Migration of 3D seismic must be constrained by real well velocities for precise well
locations to test the Early Cretaceous Play, which is the principal target for BP and Chevron in the
conjugate margin equivalent of Nova Scotia
2. Emphasis on AVO and amplitude “technology”-driven definition of prospects is flawed pre-drill in the
absence of well data for calibration – back to basic geological principles: tie rock outcrops to seismic
sequence stratigraphy and historical changes in global sea level and focus on detailed seismic
geometries in prospective intervals
3. Prospectivity and remains intact after FA-1 which has de-risked all aspects of the petroleum system
apart from reservoir thickness and quality
MOROCCO
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Tendrara Lakbir Option
Background
• Fastnet is seeking to appraise the TE-5 gas discovery in the TAGI
Triassic reservoir which is productive in Algeria and is also an analogous
producing reservoir in the Meskala field in the Essaouira Basin to the
West
• The Meskala Field has been producing and selling gas for several years
from reservoirs similar in quality to those tested in TE-5
Overview
• 14,548 sq. km. over prospective Missour Basin
• Largest licence in Morocco over the proven Triassic Tagi gas play
Near term Prospectivity
• TE-5 Structure flowed 1.4 mm cfgpd on extended well test
• No pressure depletion observed on testing
• SBK-1 drilled in 2000 flowed initially at 5 mm cfgpd from TAGI Triassic
reservoirs
• Declined to 2.5 mm cfgpd – potential permeability barrier caused by fault
close to well bore (based on 2D seismic interpretation)
• TE-5 Structure defined by a 488 sq. km. 3D seismic survey (2004)
Equity & Partners
• Partners: Oil and Gas Investments Funds (“OGIF”); ONHYM
• Commercial terms of option being finalised with OGIF prior to executing
rig contract
MOROCCO
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Tendrara Independent Resource Estimates: November 2013
TE5-Lakbir Prospect: Gross and Net Contingent Resources
LOW BEST HIGH
Recoverable BCF (100%) 30.1 310.5 891.9
Recoverable BCF (37.5%
Net) 11.3 116.4 334.5
NPV per BCF (US$mm) 2.29
Chance of Success 22%
Risked Value (ENPV
US$mm) 58.3
Source: SLR CPR November 2013
Running Room has also been identified in five additional gas prospects
MOROCCO
• New study by NuTech quantifies reservoir properties for the Triassic TAGI Sand consistent with good potential gas flow rates from a gross gas-bearing interval in TE-5 of 82.2 meters
• New reservoir engineering study supports robust development cases, subject to a successful validation of flow rates in an appraisal well to the TE-5 discovery and a step-out appraisal well to the northeast of the TE-5 discovery
• New Independent Resources Estimates based on these desk top studies and a review of historical published estimates, that were not previously validated by an independent Competent Persons Report, give resource estimates as follows:
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Tendrara Lakbir – Proposed TE-6 Appraisal Well
MOROCCO
TE-6 PROVISIONAL LOCATION
Lakbir: TE-6 Provisional Well Location (Area of Closure 16,600 Acres)
• The proposed TE-6 appraisal well will not
only evaluate maximum deliverability but will
also prove up a resources case that will
allow approximately 130 BCF of the 310.5
BCF Best Estimate Prospective Contingent
Resources to be moved to Proven Case that
will allow an initial development case to be
economically viable
Derisked Value to Fastnet: c.19 pence per
share*
• Subject to bringing in an additional partner at
an opportune time, a second appraisal well
would establish up to 891.9 BCF of the high
estimate Contingent Resource to provide the
economic case for a much larger
development scenario.
Derisked Value to Fastnet: c.133 pence per
share*
TE-5 LOCATION
* Source: Management Estimates and SLR CPR November 2013
www.fastnetoilandgas.com 18
African Gas-to-Power Opportunity
MOROCCO
• Generation and Transmission Infrastructure Shortfall in Africa
• Nigeria Population 170 Million and Generating Capacity of 4,000 MW
• By Comparison New York has a Generating Capacity of 13,000 MW
• 470 MW of Existing Gas Power Capacity in Morocco (pop. 33 million)
• 4,000 MW Planned Increase in Gas Power Capacity (requiring 600 mm cfgpd)
• 367% Increase in Gas-Fired Electricity Generation Forecast by 2023
Source: Marrakesh Conference May 2014
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Fastnet Gas Monetisation Options
Monetisation of a commercial gas
development can be achieved through
two main routes:
• Gas-to-power for the indigenous
market. Morocco seeks to become
increasingly dependent upon
electricity generated by gas. OGIF,
Fastnet’s partner, is owned by some
of the biggest financial institutions in
Morocco who would help finance
gas-to-power projects
• The Maghreb-Europe Gas Pipeline
(GME) is a key piece of North
African infrastructure and currently
transports gas from Algeria to
Spain. Morocco is entitled to 14%
transport capacity rights which is
significantly under-utilized. Fastnet
could build an interconnector to the
GME which is located only 120km’s
from the TE-5 Lakbir structure
MOROCCO
Company Overview
Moroccan Assets
Irish Assets
Outlook
Company Overview
Moroccan Assets
Irish Assets
Outlook
www.fastnetoilandgas.com 21
Celtic Sea – Fastnet Licensing Options & Analogues
Pre-Atlantic opening tectonic elements
showing important discoveries/fields
and locations of Licensing Options
Areas chosen for:
• Attractive petroleum geology
• Major reserves potential
• Existing seismic expected to improve
with modern processing
• Fastnet management experience in the
specific areas
• Exploration interest increasing due to
recent Flemish Pass Basin discovery
Statoil’s 2013 Flemish
Basin Discovery
IRELAND
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Celtic Sea Offshore
Highly prospective basin
capable of delivering significant
near-term production
• Attractive petroleum geology with
major reserves potential: largest
producing gas field at Kinsale
Head, large prospects with well-
understood large-field analogues
and existing infrastructure
• Underexplored, applying new
technologies to de-risk by analogy
with surrounding oil and gas
discoveries
• Shallow water prospects: easier to
monetise than deepwater Irish
Atlantic Margin
• Largest ever 3D seismic survey
undertaken in Summer 2013
(1,910km2)
- Mizzen 1,400km2
- Kinsale 510km2
DEEP
KINSALE
MOLLY
MALONE
MIZZEN &
Mizzen East
SHANAGARRY BLOCK 49/13
AREA 285 km2 648 km2 1942 km2 881 km2 272 km2
WATER DEPTH c. 100 m c. 100 m c. 100 m c. 100 m c. 100 m
FASTNET INTEREST 60% 100% 100% 82.35% 85%
DEEP
KINSALE
IRELAND
23
• World Class Producing Field Validates Trap and Potential For Material Resources
• Presence of Gas Gathering Infrastructure
• Old Regional High that has been Focal Point for Reservoir Development
• Proven Mature Oil and Gas Source Rock with De-risked Hydrocarbon Charge
• Multiple Material Objectives
1. Middle Wealden Oil (48/20-1a) up to 1+ BBO in-place*
2. Upper Purbeck Oil (48/25-1tilted fault block structures) up to 1+ BBO in-place*
3. Upper Purbeck Oil (Untested Closure with “mounding”) up to 4+ BBO in-place*
4. Upper Jurassic intra-Purbeck (22 feet oil sands 48/25-1) Oil Resources TBC
(Within Over-Pressured Interval)
5. Middle/Basal Upper Jurassic (fractured platform edge) Dry Gas – Resources TBC
(Proven Play at Helvick, 49/13-2, 50/6-1, 50/6-3, Shanagarry
and Dragon Field)
• Completely Covered for the First Time by 3D Seismic
• New 3D Seismic has for the First Time Imaged Deeper Oil and Gas Structures
*Company Estimates
Why Deep Kinsale?
IRELAND: DEEP KINSALE
24
Geo-Cartoon from Arbitrary 3D Seismic Line
Potential reservoir bearing packages thicken into active Late Jurassic to Early Cretaceous Faults
Prospect E
Deep Kinsale Prospect A
49/9-2 “Helvick” Oil & Gas Play
Base Chalk
Lwr. Wealden Sands
Middle Wealden
Upper Jurassic
Upper-Middle Jurassic
Mounding in Purbeck
Northern Bounding Fault
Kinsale Field 1.7 TCF Gas
Prospect K
Southern Bounding Fault
Source
Reservoir Prone
Deep Liassic Source?
Approx. Licence Limit (4000ft)
• Up to 1030ft
(391m) of
mapped closure
at crest
• Crest approx.
7130ft (2173m)
North
SE
North South East
Deep Kinsale – Multiple Objective
Middle Wealden
25
3D Seismic for the first time de-risks reservoir and compartmentalisation
issues – of key significance to the oil majors
IRELAND: DEEP KINSALE
Thin
Thick
Mounding
26
Geo-Cartoon Based on 3D Seismic Arbitrary Line Showing Stratigraphic
Trapping Potential
IRELAND: MIZZEN BASIN
• New Celtic Sea Frontier Basin
• Conjugate Margin Equivalent is
Flemish Pass/Hibernia
• Discovered oil exists
immediately to south in Fastnet
basin
• New 3D Seismic highlights
potential gas anomalies with
multi-TCF in-place potential
• New 3D Seismic confirms
potential for material
structural/stratigraphic traps
• Multiple material objectives
• Completely covered for the
first time by 3D Seismic
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First-ever 3D Seismic Example of an Amplitude Driven Structural Lead
IRELAND: MIZZEN
Bright “soft” amplitudes
Bright amplitudes
Depth ~3500ft
Multiple
Purbeck?
Base Chalk?
Top Chalk
Bright amplitudes 6km²
Amplitudes on Structure
Fault
Fault
A
B
A
B
A
B
Bright
B
Supports presence of gas
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Celtic Sea Portfolio – A Maturing “Blue Sky” Opportunity
• Fastnet’s acreage portfolio in the Celtic Sea remains a strong candidate for a farmout during 2014
• Fastnet’s acquisition & processing of 1,910 sq. km. of 3D seismic in 2013 is generating more diversified interest in
the Celtic Sea – 2013 industry attention was focussed only on resolution of the Barryroe farmout
• Industry focus is now on conjugate margin comparisons with offshore Eastern Canada – Statoil Flemish Pass
oil discovery in 2013 was a timely and opportune catalyst (up to 600 mm BO recoverable)
• The Ukraine-Russia stand-off has increased fears for security of gas supply (Gazprom provides 30% of Europe’s
gas) – exploration for gas in the Celtic Sea is attractive given the presence of infrastructure
• Fastnet’s 3D seismic is confirming the materiality of the structures mapped on legacy 2D seismic – 100+ sq. km.
closures prospective for gas and oil
• Fastnet’s medium term strategy is to target a multi-well Celtic Sea drilling programme in 2016 - achieved by:
1. Initial farmout to recover Past Costs to partner company with the necessary financial & technical resources to address the
challenging geology & seismic data quality issues of the Celtic Sea – establishes Market credibility in the ability to attract partners
2. Second farmout for a carry in well(s) following maturing and de-risking of prospects for drilling in 2015/2016
IRELAND
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Company Overview
Moroccan Assets
Irish Assets
Outlook
www.fastnetoilandgas.com 30
OUTLOOK
Prospect Activity 2014 2015
Q2 Q3 Q4 Q1 Q2 Q3 Q4
OFFSHORE
MOROCCO
(Foum Assaka)
Drill First Well
Evaluate FA-1 Well Results
Drill Second Non Obligation Well
Possible Appraisal or Exploration Well
Subject to Evaluation of FA-1 Results
Evaluate Well Results
ONSHORE
MOROCCO
(Tendrara Lakbir)
Rig Contract
Drilling Preparation EIS Study
Complete seismic pre-stack depth migration
Mature Prospect Portfolio
Drill First Appraisal Well
Drill Second Non Obligatory Appraisal
Well/POD Submission
OFFSHORE
IRELAND
(Celtic Sea)
Celtic Sea Farmout/workshop
(Joint Initiative by Celtic Sea operators)
3D Seismic Interpretation/AVO Processing
Stage 1 & Stage 2 Farm Outs
Multi-Well Programme Planning for 2016
Forward Work Programme
* Red Text denotes near-term Share Price Drivers
www.fastnetoilandgas.com 31
Summary – Steady pipeline of near term news flow in Morocco and Ireland
• Steady pipeline of near term news flow onshore and offshore Morocco (Longreach’s Kamar-1 well found
substantial natural gas resource potential at Sidi Moktar in Morocco – significant positive impact to share
price)
• Multi-well drilling programme in 2014 by other operators around Fastnet’s Moroccan assets
• Potential drilling success may crystallise Fastnet’s exit strategy
• Farm down of Fastnet’s exposure to the Foum Assaka deep-water drilling programme was prudent to
maintain a balanced risk-reward exposure to protect and enhance current cash resources
• Equity levels in Tendrara Lakbir onshore drilling option expected to be maintained at current levels based
on much lower onshore drilling costs; lower risk of exploiting discovered gas; and potential for earlier
monetisation
• However Fastnet has flexibility, given the interest in gas-to-power projects onshore Morocco, to seek an
additional partner for Tendrara Lakbir to advance the scope for early monetisation of the TE-5 gas
discovery
OUTLOOK
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Appendices
Fastnet Oil & Gas
Appendices
www.fastnetoilandgas.com 33
Frontier Exploration Asset Overview
Licence Name Region Area Fastnet Interest
Gross Net Partner Operator
Tendrara Lakbir Onshore Morocco 14,687 km2 50% 37.5% ONHYM, OGIF Fastnet
Foum Assaka Offshore Morocco 6,478 km2 12.5% 9.375% Kosmos, BP, SK Kosmos
Mizzen Basin Offshore Ireland 787 km2 100% 100% n/a Fastnet
Mizzen East Offshore Ireland 1,155 km2 100% 100% n/a Fastnet
Deep Kinsale Offshore Ireland 285 km2 60% 60% PETRONAS Fastnet
Shanagarry Offshore Ireland 881 km2 82.35% 82.35% Adriatic Oil, Carob, Petro Celtex Fastnet
Molly Malone Offshore Ireland 647 km2 100% 100% n/a Fastnet
Block 49/13 Offshore Ireland 272 km2 85% 85% Carob ltd, Petro Celtex Fastnet
Total Area 25,192 km2
771
283
95
0 100 200 300 400 500 600 700 800
Frontier
Standard
Mature
Strategic focus on high-volume, high- value, frontier petroleum systems
Average Commercial Discovery Size in MMBoe 2010-2012 by Type
of Hydrocarbon Province
Note: Information from September 2012 Bernstein Research Report
APPENDIX
www.fastnetoilandgas.com 34
Outset Development Plan and Target Production Profiles
P10 Production Profile (1,513 BCF GIIP)
MOROCCO: TENDRARA OPTION
A
• To support a field plateau for Power Generation additional production wells would be required (A)
www.fastnetoilandgas.com 35
Fastnet farm-out agreement with SK Innovation
About SK
• SK Innovation is part of SK Group, the third largest
conglomerate in South Korea behind Samsung and
Hyundai with 56,000 employees
• USD $130 billion in Annual Revenue
(Energy/Chemicals Division comprises 56%)
• SK is Korea’s number one and Asia’s fourth largest
oil refining company with 1.1 million boepd capacity
• As of Q1 14, SK’s E&P portfolio consists of 19 blocks
in 13 countries
– 5 production blocks, 14 exploration blocks, 4 LNG
projects across countries such as Peru, Columbia,
Kazakhstan, Libya, Australia, Oman Yemen,
Vietnam, Cote d’Ivoire, Madagascar
– Daily production of 70,000 boepd
– 619mm BOE Proven Reserves
MOROCCO: FOUM ASSAKA
Deal Terms
• SK acquired a 12.5% Gross interest (9.375% Net) in Foum
Assaka licence in December 2013
• Up to two well carry comprised of a carry in the first
exploration well on the Eagle-1 Prospect and first appraisal
well (capped at USD $100 million per well) or at SK
Innovations’ discretion a carry in a second exploration well
(capped at gross USD $100 million)
• Reimbursement of past costs of USD $3.2 million and a
further payment of 25% of Fastnet’s back costs relating to
the period from 1 October to 1 January 2014
• Fastnet now retains a 12.5% gross interest (9.375% - net)
www.fastnetoilandgas.com 36
Foum Assaka Partners and Funding
• SK – expanding its exploration portfolio with offshore Morocco seen as a core area
• BP – have committed heavily to the North Agadir Basin and the Foum Assaka prospect portfolio. Gulf of Mexico experience in exploring for prospective traps in areas of salt tectonics and BP has a large acreage position on the Nova Scotia conjugate margin which is a mirror-image of Offshore Morocco
• Highly successful exploration track record in last 12 months
• Fastnet is fully funded for its offshore and onshore 2014 drilling programme in Morocco
• The SK farmout was completed on 22nd April 2014 with the transfer of Past Costs to Fastnet as previously announced
• Final FA-1 Well Cost is significantly under the USD $140 mm used by Fastnet for its prudent Working Capital Forecast Estimate
• Taking into account the USD $127 mm Final FA-1 Well Cost, Fastnet’s cash balance end May is USD $22 mm
• Fastnet anticipates bringing in an additional partner to the Tendrara-Lakbir licence to participate in the 2014 drilling programme and to advance the potential for early monetisation. Expected cash balance at year end 2014 is c. USD $10m following completion of both the onshore and offshore wells.
MOROCCO: FOUM ASSAKA
www.fastnetoilandgas.com 37
FA-1 Eagle Prospect – Positives Versus FD-1 (Cairn Foum Draa Well)
• Oil shows confirmed in FA-1 sidewall cores (FD-1 confirmed wet gases on mud logs only)
• “Feather-edge” fine distal sands in mud-dominated sequence confirmed in FA-1 (FD-1 encountered no sands)
• Sand and claystone laminated sequence not of reservoir quality
• FA-1 only tagged very top of the potential prospective sand package (FD-1 drilled to Top Jurassic without sand)
• FA-1 in mini-basin setting beyond shelf slope – good for sand entrapment (FD-1 drilled on slope in sediment by-pass zone)
• FA-1 proved hydrocarbon charge and seal (FD-1 proved hydrocarbon charge and seal)
• Flank play against salt diapir (FD-1 flank play against salt diapir)
MOROCCO; FOUM ASSAKA
BP AND CHEVRON PLAY CONCEPTS BASED ON NOVA SCOTIA CONJUGATE MARGIN ANALOGUE
FA-1 ILLUSTRATES THE POTENTIAL TO TEST THIS ANALOGUE IN A DOWNDIP APPRAISAL WELL
www.fastnetoilandgas.com 38
Ireland: Largest Ever 3D Seismic Survey in the Celtic Sea of 1,910 km2
Mizzen 3D Seismic – 1,400 km2
Deep Kinsale 3D Seismic – 510 km2
CGG Vantage
Mizzen 3D Area - Full Fold (3 km sail in)
Mizzen 3D Area
Total Option Area
Deep Kinsale Seismic & Undershoot
39
First Ever Structure Map for Middle Wealden Sands – 1,500+ BOPD in
Legacy Well 48/28-1
IRELAND: DEEP KINSALE
Crest Migrates eastwards
with increasing depth and
reduces in size
140km²
• Oil Cut Mud Recovered in early 1970’s in 48/20-1a before 48/28-1 drilled – Never Appraised since/Huge Structure
40
First Ever Structure Map for Upper Purbeck Sands
IRELAND: DEEP KINSALE
• Oil logged 48/25-1 in early 1970s – Never Appraised Updip/very large structures
~87km²
41
First-ever 3D Seismic Defines Multiple Structural Traps at Top Aptian Horizon Updip
From Oil Shows in 56/12-1
IRELAND: MIZZEN
41
63.3km²
45km²
26.3km²
19.6km²
15km²
15.7km²
6km²
6.3km²
7.8km²
7km²
Migration Routes Up-Dip
C.I. O.01s (Approx. 20m)
TWT
56/12-1 (1975)
www.fastnetoilandgas.com 42
First-ever 3D Seismic Example of an Amplitude Driven Stratigraphic Lead
Resulting in Huge Industry Interest
IRELAND: MIZZEN
15 Hz spectral decomposition in 125ms window below Top Aptian showing wedging of potentially gas charged reservoirs on to high..
Gas??
Sand Pinchout
GAS??
Theory indicates higher frequencies are preferentially removed by gas sands leaving an elevated low frequency response
56/12-1 (1975)
www.fastnetoilandgas.com 43
Gross STOIIP and GIIP and Risking based on CPRs as of 31.12.2013 (before
interpretation of new Celtic Sea 3D seismic)
Best Estimate High Case CoS Oil or Gas Case
Foum Assaka
Shell Legacy Prospects Only 4.930 BBO – 11% OIL
Tendrara Lakbir
TE-5 Lakbir Structure 310.5 BCF 0.892 TCF 22% GAS
Other Prospects and Leads 1, 345.8 BCF 4.284 TCF 11 - 18% GAS
Shanagarry
Upper Wealden 135.9 BCF – 10% GAS
Lower Wealden 796.6 MMBO – 14% OIL
Purbeck 501.6 MMBO – 12% OIL
Kimmeridgian-Portlandian 885.7 BCF – 5% GAS
Upper/Middle Jurassic 321.1 BCF – 5% GAS
Mizzen Basin
Shallow Lower Cretaceous 2.075 TCF 4.724 TCF 12% GAS
Cretaceous Prospect 1.799 BBO 3.899 BBO 4% OIL
Deep Triassic Prospect 3.108 TCF 9.356 TCF 5% GAS
Molly Malone Basin
Triassic Prospect - North 6.677 BBO – 9% OIL
Triassic Prospect - South 5.833 BBO – 5% OIL
Deep Kinsale
Wealden Oil 1651.4 MMBO 3.306 BBO 15% OIL
Purbeck 713.6 MMBO 1.556 BBO 15% OIL
Total Oil 22.911 BBO OIL
Total Gas 8.182 TCF GAS
FASTNET PORTFOLIO
Contingent Resources
www.fastnetoilandgas.com 44
Analyst Coverage
APPENDIX
Name Company
Sam Wahab Cantor Fitzgerald
Michael Alsford Citi
Job Langbroek Davy
Ian McLelland Edison Research
Tao Ly GMP Securities
Gerry Hennigan Goodbody
Matthew Lambourne Jefferies
Richard Savage Mirabaud
Stuart Amor RFC Ambrian
Craig Howie Shore Capital
Oswald Clint Sanford Bernstein