PRESIDENT ENERGY...March 2018 Horacio Rossignoli Country Manager Argentina Ex Sinopec and Occidental...
Transcript of PRESIDENT ENERGY...March 2018 Horacio Rossignoli Country Manager Argentina Ex Sinopec and Occidental...
March 2018
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PRESIDENT ENERGYGrowing cash and profits
March 2018
Disclaimer
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The information contained in this confidential document ("Presentation") has been prepared by President Energy plc (the "Company"). This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 ("FSMA") and therefore it is being delivered for information purposes only to a very limited number of persons and companies being: (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO"); (ii) high net-worth companies, unincorporated associations and other bodies within the meaning of Article 49 of the FPO; and (iii) persons to whom it is otherwise lawful to make the Presentation. Any other person who receives this Presentation should not rely or act upon it. 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March 2018
Peter Levine (PLLG
Investments)30%
IFC (World Bank Group)
12%
Schroders Investment Management
14%
Michinoko Ltd9%
JP Morgan Asset
Management9%
Other26%
SIGNIFICANT SHAREHOLDERSas at 1 March 2018
Corporate Summary
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President Energy PlcLondon AIM: PPC
CURRENT ESTIMATED
ANNUALISED TURNOVER*
+/- US$55-60 MILLIONCURRENT GROUP PRODUCTION
+/- 2,500 BOEPD
RESERVES
INDEPENDENTLY CERTIFIED RESERVES
1P > 15 MMBOE
2P > 27 MMBOE
RESOURCES
*Estimated annualised for whole 2018 on basis of first two months 2018
ARGENTINA
PROSPECTIVE RESOURCES
7.68TCF
194 MMBBLS
PARAGUAY
OVER 500 MMBOE
CRETACEOUS FORMATION AND
SIGNIFICANT PALEOZOIC
RESOURCES
March 2018
Horacio Rossignoli Country Manager ArgentinaEx Sinopec and Occidental
Warren Levy Chief Operating Officer - ArgentinaEx Schlumberger
Pablo Garcia Drilling, Completions & WorkoverEx Wintershall and Chevron
Jordan Coleman Operations ManagerEx Schlumberger
Martin de Innocentis Operations Manager / HSES ManagerEx Chevron and Occidental
Victor Linari Chief GeologistEx YPF
Ignacio Zanelli Senior Production EngineerEx Chevron and Apache
Osvaldo Hinojosa Stimulations AdvisorEx Halliburton
Martin de Paola Senior Production EngineerEx Chevron and YPF
Eduardo Moreno Senior Company ManEx Chevron
President’s Management Team
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CHAIRMAN
Peter Levine Chairman & Chief ExecutiveEx Imperial Energy Plc
PRESIDENT ARGENTINE OPERATIONAL MANAGEMENT
Strong Management Team
PRESIDENT BOARD DIRECTORS
Rob Shepherd Finance Director Ex Shell
Miles Biggins Technical DirectorEx Shell
Jorge Bongiovanni Non-Executive DirectorEx Chief Petroleum Engineer, IFC
Alex Moody-Stuart Non-Executive Director Ex Schlumberger
March 2018
President Energy Share Liquidity
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MARKET CAPITALISATIONUS$175 MILLION*
*As at close of business 12 March 2018
March 2018
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-
20,000
40,000
60,000
80,000
100,000
2017 2018 2019 2020
Argentina Consolidated Revenues (MUS$)
-
1,000
2,000
3,000
4,000
2017 2018 2019 2020
Argentina Consolidated Oil Production (bbl/day)
-
10,000
20,000
30,000
40,000
50,000
2017 2018 2019 2020
Argentina Consolidated EBITDA (MUS$)
Argentina 2P CaseManagement Estimates*Argentina – An investment “hot spot in South America”:
right place, right time as a proved operator in the country
Emphasis on developing and growing profitable barrels,margins and positive free cash in the prolific NeuquenBasin whilst benefitting from its Salta and Louisiana assets’cash flows
Current estimated Group annualized turnover ofapproximately US$55-60 million with February 2018production approximately 2,500 boepd with potential todouble within 3 years from existing assets
Significant free positive cash being generated with all capexprograms fully funded and focus on margins with January2018 earnings of US$1.3 million after all opex, G&A andfinance costs with February estimated similar
Each Production Concession is profitable at field level withincreasing free cash flow and EBITDA
Louisiana throws off US$200k per month of free cash
Current Debt level equivalent to less than estimated 1x2018 2P case EBITDA calculated after all opex, taxes andGroup G&A
Fully funded for all 2018 capex
INTRODUCTIONA rapidly expanding, profitable Group centred in Argentina with major exploration upside
March 2018
President Energy Assets
Argentina
Puesto Guardian(Five Oil Fields)
Producing (Operator)
100%
Matorras Exploration(Operator)
100%
Puesto Flores/ Estancia Vieja(Two Fields)
Producing (Operator)
90%
Ocultar Exploration(Operator)
100%
USA
East Lake Verret Producing (Operator)
50%
East White Lake Producing(Non-Operator)
22%
Paraguay
Pirity Exploration (Operator)
100%
Hernandarias(Earn In)
Exploration(Operator)
40%80%
March 2018
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Puesto Flores and Estancia Vieja Overview
Overview
• Acquired September 2017
• Puesto Flores Oeste / Estancia Vieja Fields (175 km2, formerly
100% Chevron Argentina S.R.L.)
• 10 year Concession President 90% and Operator, Provincial Oil
Company 10%
• 1P Certified Reserves of 4.5 MMboe and 2P Reserves 8 MMboe
• Concession producing approximately 1,700 BOPD gross from
20 producing wells
• $33/bbl netback with $65/bbl current realised price at February
2018
• Estancia Vieja Gas Field successful tests – Field to be re-
activated
Strategy - significant potential to grow at the fields
• Target to double production within 3 years
• Fully funded Multi-well in-field drilling, re-completions and
workover programme to be spread through to 2021
• Additional exploration potential
Significant free cash flow with potential to double production within 3 years
March 2018
Multiple Gas Drill Targets
Estancia Vieja Reactivation
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February 20183 wells tested successfully – targeting first gas production late 2018
March 2018
o Long term Production Licence to 2050 with President having
already satisfied the required financial commitment level of work
programme giving ample time to develop the fields at President’s
discretion
o Operationally profitable generating positive free cash flow at field
level and paying for Argentina BA head office G&A
o Five separate mature fields of 10.2 MMboe of Proven and 18.6
MMboe of Proven plus Probable oil reserves
o Significant undrilled proven undeveloped reserves and significant
exploration upside with drilling planned for 2019
Existing Puesto Guardian Concession, Salta Province, Argentina
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Production, Significant Reserves and Long Term Benefits
March 2018
USA
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Louisiana
• Producing assets, currently some 300 boepd, generating approx US$200k per month in free cash flow after all opex,
G&A and taxes
• Benefit from accrued tax losses which are being utilised giving potential for further accretive acquisitions of operated
assets
Cash Generative Operated Producing Assets
March 2018
President Energy Plc
1200 Century Way
Thorpe Park Business Park
Leeds, LS15 8ZA
United Kingdom
Tel: +44 (0) 20 7016 7950
President Petroleum S. A.
Complejo Zencity
Edificio Esmeralda
Juana Manso 1.750
3° Piso – Norte
(C1107CHJ) Puerto Madero
Ciudad Autónoma de Bs. As
República Argentina
Tel: 5411 4317 0411
Contact Details
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March 2018
Glossary
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Boe Barrels of oil equivalent
Bopd Barrels of oil per day
Boepd Barrels of oil equivalent per day
Bofpd Barrels of fluid per day
MMbbls Million barrels of oil
MMboe Million barrels of oil equivalent
MMbtu One Million British Thermal Units
Tcf Trillion Cubic Feet
NPV10 Net present value discounted by 10%
The full text of the SPE PRMS Definitions and Guidelines as to Proven, Probable Reserves, Prospective Resources and Prospect can be viewed at www.spe.org
NOTE – (i) In the unlikely event that ratification of extension to licence not granted then after a period of grace, Concession licence reverts to Province with President retaining all benefit and liabilities to that point but released from obligation to pay the US$15 million for the extension and all deferred payments. All movable assets purchased from Chevron are President’s in any event. (ii) In such event President, whilst continuing to operate the Concession, would enter negotiations with the Province for a new long term licence.