Leni Gas and Oil plc. Annual General Meeting. London (AIM): LGO 1. 7 July 2014

Transcription

1 Leni Gas and Oil plc Annual General Meeting 7 July 2014 London (AIM): LGO 1

2 Company Profile London Stock Exchange - listed March 2007 Producing Oilfields - Trinidad and Spain London HQ Spain Trinidad Staff Net Production Capacity 2P Reserves Market Cap - 50 (All local) bopd mmbbls - 92 million 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 Stellar Resources plc, Solo Oil plc, Rare Earth Minerals plc and AfriAg 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 in Mining Engineering and a MEng in Petroleum Engineering. He has over 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

4 TRINIDAD 4

5 Current Trinidad Assets Trinidad Head Office, San Fernando Goudron IPSC (100%) with 2P reserves of 7.2 mmbbls and over 60 mmbbls of contingent resources associated with a future water flood Icacos Field in the Cedros Peninsula (50%, non-operator), producing ~35 bopd from three wells Over 7,500 acres of largely unexplored 100% owned private oil leases in the Cedros and adjacent rights held in partnership with Beach Oilfield Limited 5

6 Goudron Phase 1 Goudron well GY-257 Reactivated

7 Drilling Results to date Spudded first well, GY-664, on 28 April Completed well GY-664 on 30 May in 278 feet of Gros Morne Initial flow rate 240 bopd 37 API oil through a 7/32 choke at a flowing pressure of 660 psi TD ed second well, GY-665, on 8 June to be completed as a Gros Morne production well TD ed third well, GY-666, on 2 July to also be completed as a Gros Morne production well Rig 20 on GY-665, 7 June

8 Constrained production rate Production of 240 bopd through a 7/32-inch choke 8

9 Excellent log characteristics Basal Gros Morne in GY-665 9

10 Goudron Phase 3: Secondary Recovery Reserves: Contingent Resources: Challenge Energy CPR, July 2012 (currently being updated for 4Q2014) 10

11 Goudron Phase 3: Water Flood Local analogue at Beach-Marcelle Field recovered over 30 mmbbls Wealth of local experience in Trinidad Over 60 mmbbls of 3C resources Existing study for 4,000 bopd capacity. New scoping studies starting now with Senergy Collection of critical data during current drilling phase Recent discovery of gas in Upper Gros Morne creates further options 11

12 Cedros Peninsula 12

13 LGO Cedros Lease Position Installing new well tanks FRM-1 Deep Well Beach Oilfield Cedros Leases LGO Cedros Leases TED 3D Seismic Icacos Field Bonasse Field Icacos Leases Galpha Point 13

14 Plans for the Cedros In collaboration with Beach Oilfield and Dr Krishna Persad; re-evaluate all existing data and wells Installing new well tanks Acquire a soil geochemistry survey to isolate micro-seepage and areas of fractionated light oil Fly a high resolution gravity and magnetics survey Acquire additional 2D seismic data if necessary to define well locations Drill at least one deep exploration well to test the potential at Herrera Sandstone level Galpha Point Mud Volcano 14

15 Unexplored deep prospectivity Oil impregnated Herrera Sandstone from 10,000 feet sub sea, thrown up by the Galpha Point Mud Volcano Installing new well tanks 15

16 SPAIN Ayoluengo Field, Cantabrian National Park, Spain 16

17 Spanish Assets Onshore Northern Spain Cantabrian mountains between Burgos and Santander Ayoluengo Oilfield Discovered 1964 Produced 18 mmbbls Oil in place 104 mmbbls Hontomin Oilfield Discovered 1968 Test production only Oil in place < 4 mmbbls Tozo Gas Field Discovered 1965 Test production only Gas in place 5 bcf 17

18 Spanish Assets Outright ownership of the Ayoluengo Field onshore in Northern Spain Late life asset with oil in place of ~100 mmbbls and current production of around 100 bopd. Recovery to date of < 18% of STOIIP. Possible 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 ~ 1 million, forecast to decline slowly to 2017 Change the picture 18

19 Future Potential Enhance production through the side-tracking of existing wells Development of Hontomin as a low cost satellite using existing 3D seismic and re-entry of existing wells Development of Tozo as either a micro-compressed Natural Gas or Gas-to-Wire project Deepen Ayoluengo to the proven Liassic reservoirs Sub-lease the unconventional gas exploration potential 19

20 Financials 20

21 Revenue: 2010 to 2014E Trinidad (new production) Trinidad (current wells) Spain US Goudron production coming on line in Q m m 3.4m 3.35m Current Production Portfolio has been repositioned to focus on growth Acceleration of the development of Trinidad Spain will be optimised until the extension is confirmed 21

22 Gross Profit: 2010 to 2014E Trinidad (new production) Trinidad (current wells) Spain US Goudron production coming on line in Q m 1.06m 1.09m 1.12m Current Production In 2013 Gross Profit was broadly flat Higher Trinidad volumes were partially offset by lower sales in Spain Gross Profit will rise in 2014 in line with significant growth in volumes 22

23 Share Price Performance 23

24 Q&A 24

25 25

26 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 include the results of operations, performance, future capital, other expenditures (amount, nature and sources of funding thereof), competitive advantages, planned exploration and development drilling activity including the results of such drilling activity, business prospects and opportunities. Such statements reflect 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. 26