Leni Gas and Oil plc. Corporate Summary, July London (AIM): LGO 1

Transcription

1 Leni Gas and Oil plc Corporate Summary, July 2013 London (AIM): LGO 1

2 Delivering Growth through the Acquisition of Proven Reserves & Enhancement of Producing Assets 2

3 London Management and Board of Directors Chairman* Chief Executive Officer* Chief Operating Officer Director of Finance Non-Executive Director* David Lenigas Holds a Bachelor of Applied Science in Mining Engineering and has 30 years of resources industry experience. Until recently he was the Executive Chairman of Lonrho plc. David is also the Executive Chairman of FastJet plc, Stellar Resources plc and Solo Oil plc, Rare Earth Minerals plc and Polemos plc. Neil Ritson Has a BSc in Geophysics. He has worked in the energy sector for over 35 years, initially with BP plc for 23 years before managing the international operations of Burlington Resources Inc. and more recently as CEO at Regal Petroleum plc, before founding the Vanguard Energy Group where he was Chairman and CEO. He is a Director of Solo Oil plc and a Non-Executive at Enovation Resources Ltd. Fergus Jenkins Is a Chartered Engineer with a BEng (Hons) in Mining Engineering and a MEng in Petroleum Engineering. He has 20 years of experience working in industry, initially in mining before moving to petroleum, where he has worked for most of his career in mid-sized independent oil companies, including Enterprise Oil, LASMO, OMV (UK) Ltd and Afren plc. James Thadchanamoorthy Has a degree in Chemistry and is a qualified accountant. He has 18 years experience, including over 10 years spent at BP where he held a number of commercial and finance leadership positions. Steve Horton Holds a BSc in Mining Engineering and an MBA. He has 35 years experience working in the energy industry including 27 years with BP plc where he held executive roles including worldwide Director of Drilling. He co-founded Silverstone Energy Limited in Steve is a Non-executive Director of Seamwell Limited and, until the recent merger, of Valiant Petroleum plc. 3 * - Main Board

4 Spain Ayoluengo Field, Cantabrian National Park 4

5 Spanish Assets Outright ownership of the Ayoluengo Field onshore in Northern Spain Late life asset with original oil in place of over 100 mmbbls and current production of bopd. Recovery to date of < 20% of STOIIP. Possible future EOR project Nearby Hontomin Field awaiting a production licence and 140,000 acres of exploration concessions in the Cantabrian Basin (100% owned) Current annualised net revenue after tax of approximately 1 million LGO s corporate holdings in Spain are currently available for partnership/farm-in Company owned rig on well Ayo-46 5

6 Plans for Spain in 2H2013 Complete a full processing plant turnaround and maintenance (completed July) Installing new well tanks Further reduce impurities in the oil and access the refinery market (e.g. BP Castellan, contract already in place) Initiate a field-wide well clean-out and stimulation program with custom designed fluids Plan for up to five future well side-tracks to access unswept oil reservoir in key zones Continue to maintain very high standards of operation appropriate to the National Park status 6

7 Trinidad Goudron Field 7

8 Trinidad Assets Goudron IPSC (100%) with 2P reserves of 7.2 mmbbls and 60 mmbbls of contingent resources associated with a future water flood Icacos Field in the Cedros Peninsula (50% nonoperator), producing ~35 bopd from three wells. Own 100% of 1,752 acres of previously unexplored private oil leases in the Cedros and agreement with Beach Oilfield to extend that holding by over 100% with LGO as operator Option to acquire 50% and operatorship of the Jasmin Field through Maxim Resources Farm-in to the Moruga North Field (49%, operator) with two producible wells and up to 9 new well locations Newly installed pump jack at Goudron 8

9 Corporate Strategy applied to Trinidad Focus on onshore oil production and exploration Acquire proven reserves with material upside Hold operatorship and a high equity position Improve existing production and sustainability Apply new well and reservoir technologies Implement secondary recovery where possible Extend proven reserves through step out Employ and train only local staff Geographic portfolios of 5,000 bopd potential Yes, ideally suited Goudron, Jasmin Yes, interests % Already 7x at Goudron Numerous options Goudron water-flood Potential in all fields Yes, LGO is 100% local T&T has this potential Trinidad provides a near perfect strategic environment for LGO 9

10 Goudron - Well Work Of the original 150 field wells approximately 90 are expected to be available for production: Light work-overs to producing wells (e.g. clean out, bailing, rod replacements, pump maintenance) Reactivation of wells currently nonproductive Recompletion and re-perforation of wells with untapped reservoir potential Drilling of up to 30 new wells to infill and extend field development, at least two in 2013 Production is now 300 bopd and is anticipated to reach at least 400 bopd within 12 months of Altech #1 work-over rig, Goudron acquisition Goudron Altech well Rig-1 GY-257 at Goudron, Reactivated Nov Nov

11 Goudron - Other Work Increase sales capacity and the reactivation of obsolete facilities Repairs to infield roads and all associated infrastructure Install 45 new beam pumps through to October 2013 Install plunger lift and PCP pumps as appropriate Improved water handling facilities Construct a permanent field camp and install state of the art communications equipment Goudron well GY-257 Reactivated Nov

12 Plans for Trinidad in 2H2013 Continuous work-over and infrastructure programme at Goudron Log/recomplete/re-perforate selected Goudron wells Drill at least two new development wells on the Goudron block Acquire interest in Maxim Resources as a first step to operating the S. Erin Block Complete the agreements with Beach Oilfield in the Cedros Peninsula Commence geotechnical fieldwork in the Cedros Peninsula Continue Trinidad business development Goudron well GY-257 Reactivated Nov 2012 (Onshore Bid Round, etc.) 12

13 Forward Looking Statements Certain statements in this presentation are forward looking statements which are not based on historical facts but rather on the management s expectations regarding the Company's future growth. These expectations LGO has include commissioned the results of operations, performance, future capital, other expenditures (amount, an nature area-wide and sources airborne of funding thereof), competitive advantages, planned exploration and development drilling activity including the results of such drilling activity, business prospects and opportunities. survey Such to statements be flown reflect in 2013 management's current beliefs and assumptions and are based on information currently available. Forward looking statements involve significant known risks, unknown risks and uncertainties. A number of factors 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, development drilling 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 are beyond 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 forward looking statements. 13