Investor Presentation - Sound Energy Plc · Investor Presentation – Q2 2015 SLIDE 10 For more...
Transcript of Investor Presentation - Sound Energy Plc · Investor Presentation – Q2 2015 SLIDE 10 For more...
Investor Presentation – Q2 2015SLIDE 2
• Active drill programme:• Second appraisal well on
Nervesa discovery underway• Badile exploration well end 2015• Wells addressing Laura and
SMG discoveries
• Strong funding position; First gas at Nervesa (2015) secures significant annual free cash flows
• Gas portfolio largely sheltered from recent oil price decline
• US$18.6M deferred and contingent consideration remaining from Indonesia
• Strong liquidity with blended institutional/retail register:• Chairman has £2.5M personally invested
Balanced Portfolio – key assets
A mid cap European oil & gas exploration/development company in the making
Reward
Dora/DallaNervesa I
Nervesa IISMG
Zibido Badile
Laura
Rapagnano
highupside
exploration
low riskexsisting
discoveries
costcovering
production
Ris
k
Investor Presentation – Q2 2015SLIDE 3
The team
London: Growth, funding, investor relations and compliance 5 people: 1 exec / 4 staff
James Parsons, Chief Executive Officer
• 23 years in Oil/Gas across Europe, South America and Central America• 12 years with Royal Dutch Shell• Specialising in restructuring, funding and growing small listed upstream companies• Strong background in upstream strategy, M&A and finance; Qualified accountant
Milan: Subsurface, operations and permitting 17 people: 2 exec / 9 staff / 6 contractors
Luca Madeddu, Italy Managing Director
• 25 years upstream experience across Europe, Asia and South America• Reservoir geologist with extensive experience in production operations,
field development, petroleum/reservoir engineering and supply chain management• Able to navigate Italian approval processes
Leonardo Spicci, Italy Technical Manager & Badile Director
• 25 years upstream experience in Europe, Kazakhstan and North Africa• Reservoir geologist with extensive experience in production operations
and petroleum/reservoir engineering• Former ENI Managing Director for Northern Italy portfolio
Investor Presentation – Q2 2015SLIDE
Investor Presentation – Q2 2015SLIDE 4
Dora/Dalla
Laura
Rapagnano
Nervesa
Badile/Zibido
Attractive Italian fundamentals
• Good scale: 3rd/5th largest producer of oil /gas in Western Europe
• Attractive gas market: High (US$9/Mscf+) prices
• Extensive gas pipeline network
• Competitive fiscal terms
• Multiple hydrocarbon plays: Deep Mesozoic oil and gas – condensate
to shallow Tertiary oil and biogenic gas
• Flexible licenses: Low initial outlay and exit costs
SMG
Investor Presentation – Q2 2015SLIDE 5
Strategy and funding
• Drill core wells: Nervesa/Badile/Laura/ S.Maria Goretti/Zibido/Dora
• Strong funding position with farm–out discussions underway
• Strong progress in Italy; replicate across the Mediterranean
• Increasingly focused on game changing drills
Badile (100%) – €486M NPV Zibido (100%) – €225M NPV
Total€950M
Zibido€225.0
Badile€486.0
Costa del Sole €24.6Villa Gigli €16.8
Ner
vesa
€35
.9La
ura
€39.
8SMG €
55.5
Dora/
Dalla €66.5
Total€544M
Zibido€168.0
Badile€230.0
Villa Gigli €7.7
SMG
€10.2
Ner
vesa
€13
.8La
ura
€24
.8
Dora/
Dalla €55.0
Costa del Sole
€34.9
Cumulative Best Estimate NPV €m(€0.31/cbm)
Cumulative AnnualCash Flows €m
Investor Presentation – Q2 2015SLIDE 6
Key development assets: “building material cash flows”
NErVESA GAS DISCoVEry, owNED 100%
rAPAGNANo GAS DISCoVEry, owNED 100%
• Veneto region• Play type: anticline structure, multiple gas
bearing Miocene sand intervals (TD 1,500-1,800m)
• 1st well drilled July 2013; flowed 2.7 million scf/day on test; first gas 2015
• 3 well development plan addressing the two fields; 2nd well currently drilling
• Potential exploration prospect• Daily webcam available for live operations
• Marche Region
• First gas achieved 15 May 2013 from the Sabbie reservoir
• 12 years production remaining
Up to €70M NPV 10(Best Estimate €36M)
Recoverableresource26.5 Bscf
3C+€18M
3C+7.7
2P3.0
3P+5.5
1C5.9
2C+4.4
2P€8M
3P+€16M
1C€13M
2C+€15M
Recoverableresource1.3 Bscf
1P€2.9M
2P+€0.5M
3P+€0.4M
2P+0.3
3P+0.2
1P0.8
Up to €4M NPV 10(Best Estimate €3M)
NPV10 (Eurocent 31/cbm) Recoverable resource (bscf)
Investor Presentation – Q2 2015SLIDE 7
Drilling existing discoveriesLAUrA• Gulf of Taranto (4km offshore, 200m water depth)• Play type: inverted fault block, gas in Pleistocene
(TD 1,300m)• Long reach deviated well from onshore• €16.2M well cost
Recoverableresource25.6 Bscf
1C12.3
1C€27M
3C+€24M
Prospective €6M
2C+€7M
Prospective 4.2
3C+7.2
2C+1.9
Up to €65M NPV 10(Best Estimate €40M)
DorA/DALLA• Adriatic Sea (21km offshore)• Play type: faulted anticline, Gas-condensate in Scaglia
Formation (TD 1,400m)• Dora gas discovery previously drilled 1972, tested 20MMScf/d• €13M well cost• Exploration potential from Dalla prospect
Potential >€81M NPV 10(Best Estimate €66M)
Recoverableresource74.5 Bscf
2C17.6
2C€19M
3C+6.4
3C+€15M
Low8.9Best
+15.7
High+25.9
Best€47M
Hightbc
Lowtbc
NPV10 (Eurocent 28/cbm)
Recoverable resource (bscf)
NPV10 (Eurocent 31/cbm)
Recoverable resource (bscf)
NPV10 (Eurocent 31/cbm)
Recoverable resource (bscf)
Up to €105M NPV 10(Best Estimate €56M,
at Eurocent 31/cbm)
Recoverableresource67.7 Bscf
Best+€36M
Low€8M
High+€61M
High+34.4
Best+23.7
Low9.7
SANtA MArIA GorEttI• Marche Region (Central Italy)• Play type: inverted fault block, gas in Pleistocene (TD 3,800m)• Southern extension of two producing gas fields• €8.5M well cost (dry hole)
Investor Presentation – Q2 2015SLIDE 8
Significant exploration potential
• Po Valley (Northern Italy) • Play type: Inverted fault block;
Gas-condensate in Mesozoic (TD 4,200m)• 45km South West of analogous
“Malossa” gas field• EIA recently approved• €22.6M (dry hole case)
ZIBIDo, owNED 100%• Po Valley; Zibido is adjacent to Badile prospect• Play type: Downthrown fault terrace
Gas/oil in Mesozoic (TD 5,600m)• Zibido P50 NPV10 €225M (Eurocent 31/cbm)
Up to €1,745M NPV 10(Best Estimate €486M)
Recoverableresource673 Bscf
Low46
High+€1,259M
Best+€385M
Best+132
High+495
Low€101M
NPV10 (Eurocent 31/cbm) Recoverable resource (bscf)
BADILE, owNED 100%
Lacchiarella 2 previously drilled
Badile drill target
Investor Presentation – Q2 2015SLIDE 9
Summary and outlook
END GAME
• European /Mediterranean focused oil and gas company of some scale
TEAM
• Balance of technical, operational financial /M&A
• High energy; Action orientated
• Cornerstone investor secured with strong relationships across Mediterranean
SHORT TERM NEWS FLOW
• Second Nervesa well
• Laura financing or farm in
• Badile permitting and farm in
• First gas Nervesa
• Badile exploration well (NPV €486M)
• Producing the Laura field (NPV €40M)
MEDIUM TERM
• SMG appraisal well (NPV €56M)
• Zibido (Badile License) exploration well (NPV €225M)
• Dora appraisal well (NPV €66M)
ASSETS
• Producing portfolio covering Italian cost base
• Low risk existing discoveries with a P50 NPV of €197M (34 pence per share)
• High upside prospects with a mid case NPV of a further €711M (48 pence per share post farm out)
Investor Presentation – Q2 2015SLIDE 10
For more information please contact:
JAMES PArSoNSChief Executive [email protected]
DETAILED INFORMATION ON OUR INVESTOR WEBSITE www.soundoil.co.uk
Disclaimer: The investment mentioned in this document may not be suitable for all recipients or be appropriate for their personal circumstances. The information in this document is believed to be correct but cannot be guaranteed. Opinions constitute our judgment as of this date and are subject to change without warning. This document is not intended as an offer or solicitation to buy or sell securities. Past performance is not necessarily indicative of future performance and the value of investments may fall as well as rise and the income from them may fluctuate and is not guaranteed. Investors may not recover the amount invested. Some securities carry a higher degree of risk than others. The levels and basis of taxation can change. The contents of this document have been prepared by, are the sole responsibility of, and have been issued by the Company.
Investor Presentation – Q2 2015SLIDE 11
12 month share price
Price analysis
• Gas focus has insulated the Company from the fall in the oil price
• Demonstrated ability to progress developments and navigate Italian permitting process
0
2
4
6
8
10
12
14
16
18
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
220.0
240.0
Mar 15
Feb 15
Jan 15
Dec 14
Nov 14
Oct 14
Sep 14
Aug 14
Jul 14
Jun 14
May 14
Sound OilBrent Crude ($)
Apr14
Mar14
Shar
e pr
ice
(p)
Brent Crude ($/barrel)
14 Apr ‘14Casa Tiberi operations commence
25 Apr ‘14Continental investment announced
09 Jun ‘14Rapagnano
Reserve Upgrade
12 Jun ‘14Laura gas discovery
permit award
15 Jul ‘14SMG CPR
29 Jul ‘14Casa Tiberi
first gas
13 oct ‘14Badile land purchase
13 Nov ‘14Nervesa RBL
signature
12 Dec ‘14Nervesa
EIA Approval
12 Jan ‘152014
Production Update
17 Feb ‘15Nervesa Drilling
Authorisation
17 Mar ‘15Badile
EIA Approval