NU-OIL AND GAS PLC. AGM January 2019

Transcription

1 NU-OIL AND GAS AGM January 2019

2 DISCLAIMER The information contained in this document ( Presentation ) has been prepared by NU-Oil & Gas plc (the Company ). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as Information ) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed or implied by these statements. These forward-looking statements are statements regarding the Company s intentions, beliefs or current expectations concerning, among other things, the Company s results of operations, financial condition, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as of the date of this Presentation and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Presentation. Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. In particular, this Presentation does not constitute an offer or invitation to subscribe for or purchase any securities and neither this Presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters. The distribution of this document in or to persons subject to other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. 2

3 JANUARY 2019 AGM PRESENTATION WELCOME

4 EXECUTIVE TEAM BALANCE OF TECHNICAL, OPERATIONAL, COMMERCIAL AND FINANCIAL EXPERIENCE... Leadership refresh delivers strong balance of skills and experience, with managed transition to new Chairman and Joint Managing Directors Increasing integration and collaboration between MFDevCo and Nu-Oil Strengthening Senior Management through recent appointments reflecting corporate growth agenda and marginal field focus GRAHAM SCOTTON Chairman & Deputy Chairman of MFDevCo Graham Scotton B. Sc, C.Eng. F.I.M.M.M is a veteran of the upstream oil industry with over 40 years of experience in drilling and production, reservoir and development engineering, and operations. He held senior line and functional positions with BP and BG Group, and was COO, and acting CEO for a time, of Dana Petroleum which is owned by the South Korean government. He has worked for a small U.S independent E&P company, and has consulted for numerous smaller enterprises. He has international experience including Norway, the U.S.A, Venezuela, Azerbaijan, Kazakhstan, Egypt and West Africa, being involved in the development and operation of oil and gas fields in these countries. DAMIAN MINTY Joint MD & Chief Financial Officer A Chartered Accountant with over 15 years experience in the oil and gas sector. His initial experience was as an auditor in a large accountancy firm before moving into investment banking with JP Morgan and Deutsche Bank. Damian was the Commercial Manager of Enegi Oil after the IPO before taking over as Chief Financial Officer in He holds a BSc in Computer Science and Management Studies. ALISON PEGRAM Joint MD & MD of MFDevCo Alison has 20 years experience in the oil and gas sector, primarily in risk assessment and risk management, managing projects for major operators worldwide. Alison, who is Managing Director of MFDevCo, has particular expertise in engineering analysis and management and regulatory engagement. Alison has been integral to creating the marginal field initiative including the development of engineering solutions, risk and project management, configuring its commercial structures and leading business development. She has a BSc in Mathematics and a PhD in Electrical Engineering and Electronics, and is a Chartered Engineer and Fellow of IMarEST. 4

5 CURRENT POSITION NEWFOUNDLAND ASSETS Garden Hill Reassessing the approach to re-establish production from PL (A) EL1070 Working to identify next steps CELTIC SEA ASSETS Helvick & Dunmore PAD considering licence extension MFDevCo evaluating ways in which fields can be developed SUBSIDIARIES MFDEVCO HOLDINGS (BRAZIL) LTD. MFDEVCO FACILITIES (CHINA) LTD. 5

6 S T R AT E G I C F R A M E W O R K CONVENTIONAL OIL & GAS ENERGY HUBS MARGINAL FIELDS TECHNICAL RESOURCES 6

7 CONVENTIONAL OIL AND GAS APPLICATION OF MARGINAL FIELD SOLUTION PRINCIPLES TO CONVENTIONAL OIL AND GAS RESOURCES Target projects Identifying opportunities in selected producing basins worldwide Local presence in Brazil allows for increased opportunity in LATAM Leveraging experience, supplementing capability Incoming Chairman brings experience and visible track record of delivering large-scale projects with major E&P companies Local representatives in Brazil led by Ivo Dworschak, CEO of MFDevCo Holdings (Brazil) Ltd. Experience to manage interface with MFDevCo Consortium and partners Profile Significant onshore and offshore assets Criteria Undervalued or underperforming Commercial pressure on operators Value Creation Appropriate development approach to unlock greater value Financing and commercial structuring Access to facilities 7

8 ENERGY HUB MODEL MAXIMISES ECONOMIC RECOVERY Consolidating resources Harvesting marginal fields into a material business Hub allows marginal assets to become economically viable Efficient way to develop multiple fields Recent discovery Technical resources Scaleable Development tailored and planned in advance Network grows as neighbouring platforms approach decommissioning Infrastructure connection Energy export Energy Hub Proven undeveloped unsanctioned Proven undeveloped sanctioned Driving down minimum economic field size Gas or oil export to market 3rd party production Hub and spoke targets Key drivers for Nu-Oil Demand drivers Multiple targets in North Sea Organic growth from first field Deferral of decommissioning costs Multiple opportunities to acquire gas fields where operators are considering decommissioning Support from OGA for implementation of gas-to-wire to maximise economic recovery Incremental acquisition of projects Phased investment Captive (asset/operator) market as hub becomes export route of choice or only commercial export Single route to shore Decommissioning of local infrastructure Maximising economic recovery of resources Relatively clean non-renewable energy Reliability of energy supply 8 Development tailored to hub

9 GAS TO WIRE CONVERTING MARGINAL OR STRANDED GAS FIELDS INTO ELECTRICITY GENERATING ASSETS Incremental gas recovery through application of marginal field principles Gas powered turbines generate electricity for local markets Early / First Mover Advantage Rejuvenation of late-life assets and deferral of impending decommissioning Power Generation Plant Transmission Network Partnerships Agreement with Marnavi announced, further news to come Flowline Subsea Cable Profile Key drivers for Nu-Oil Demand drivers Stranded gas fields uneconomic to recover, process and offtake gas to shore Value-adding Proven hydrocarbon presence Deferral of decommissioning costs Decommissioning of local infrastructure Gas resources priority Undeveloped discoveries to late-life assets Clear route to market via existing infrastructure Regulatory support Comparatively low upfront capex Maximising economic recovery of resources Relatively clean non-renewable energy Reliability of energy supply Accelerated time to production 9

10 TECHNICAL RESOURCES OPPORTUNITIES PROVED RESOURCES POTENTIAL FOR MARGINAL FIELD DEVELOPMENT 10

11 P E R S O N A L LY S P E A K I N G 11 WHAT DO I SEE? WHAT DO I BRING?

12 TWO PARTS TO NU S GRAHAM SCOTTON Executive Chairman TWO PARTS TO NU S DAMIAN MINTY Joint Managing Director & Chief Financial Officer TWO PARTS TO NU S ALISON PEGRAM Joint Managing Director & Managing Director of MFDevCo

13 APPENDICES

14 MARGINAL FIELDS DYNAMIC POPULATION SET WHICH EVOLVES AS EXTERNAL FACTORS (TECHNICAL AND ECONOMIC) CHANGE Marginal opportunities can become viable projects through innovation, technology, people & partnerships Innovation Innovation through people, technology and partnerships is a key factor in creating commercial opportunities out of marginal field opportunities MARGINAL FIELD VALUE PROPOSITION IS PLATFORMED ON NU-OIL S JV INVESTMENT IN MFDEVCO... Arrangements in place with multiple Tier One strategic partners Clear Specialism Experts in marginal and stranded field development from cradle to grave Risk Reward Measured approach to discovered opportunities Improving economic conditions marginal field opportunities commercial opportunities marginal field opportunities Value creation through innovation Profile Core characteristics / factors Value Creators Stranded fields considered to be uneconomic using considered development options Oil, gas or combination of resources Undeveloped discoveries to late-life assets Proven hydrocarbon systems Stranded / limited infrastructure Size of reserves & production rate Development cost Commodity pricing Tax and regulation Innovation concepts & alliances Innovative financing Technology Cost management Commodity pricing Competition for capital 14

15 RESOURCES & RESERVES CLASSIFICATION PRODUCTION HCIIP DISCOVERED IIP SUB COMMERCIAL COMMERCIAL RESERVES PROVED (1P) PROBABLE (2P) POSSIBLE (3P) CONTINGENT RESOURCES 1C 2C 3C UNRECOVERABLE UNDISCOVERED IIP PROSPECTIVE RESOURCES LOW ESTIMATE P90 BEST ESTIMATE P50 HIGH ESTIMATE P10 UNRECOVERABLE >>> UNCERTAINTY INCREASING >>> 15

16 WHAT DOES MARGINAL MEAN? 16

17 PROJECT FRAMEWORK 17

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