Annual General Meeting

Annual General Meeting
Westbury Hotel, Dublin, 13th September 2013
Forward Looking Statements
The content of this presentation relating to Moesia Oil and Gas plc (“Moesia”) has not been
approved by an authorised person with the meaning of the Financial Services. Reliance on this
promotion for the purposes of engaging in any investment activity may expose an individual to a
significant risk of losing all of the property or other assets involved.
This presentation is an advertisement, not a prospectus and is being provided for information
purposes only and does not constitute, or form part of, and should not be construed as an offer to
sell or any solicitation of any offer to purchase or subscribe for any securities in Moesia.
This presentation contains certain forward-looking statements that are subject to the usual risk
factors and uncertainties associated with the oil and gas exploration and production business.
Whilst Moesia believes the expectations reflected herein to be reasonable to them at this time, the
actual outcome may be materially different due to factors that are beyond the Company’s control
or within the Company’s control where, for example, the Company decides on a change of plan or
strategy.
Moesia undertakes no obligation to revise any such forward-looking statements to reflect any
changes in the Company’s expectations or in any such change in circumstances, events or the
Company’s plans and strategy. Accordingly no reliance may be placed upon the figures contained
in such forward looking statements
13th September 2013
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Agenda
Introduction
Formal AGM
Votes Cast
Business Overview
•
Strategy Summary
•
2012/2013 Highlights
•
Bulgarian Awards
•
Romanian Activity Summary
•
Corporate & Financial
•
Outlook
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Resolution 1
•
To receive, consider and adopt the Reports of the Directors’,
Auditors’ and Financial Statements to 31st December 2012
Votes Received
For
% Votes Cast
8,973,223
100 %
Against
0
0%
Vote Withheld
0
13th September 2013
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Resolution 2
•
To re-elect Colm Daly as a Director of the Company
Votes Received
For
% Votes Cast
8,973,223
100 %
Against
0
0%
Vote Withheld
0
13th September 2013
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5
Resolution 3
•
To re-appoint LHM Casey McGrath as Auditors of the Company
Votes Received
For
% Votes Cast
8,973,223
100 %
Against
0
0%
Vote Withheld
0
13th September 2013
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Resolution 4
•
To authorise the Directors to fix the remuneration of the Auditors
Votes Received
For
% Votes Cast
8,973,223
100 %
Against
0
0%
Vote Withheld
0
13th September 2013
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Resolution 5
Special Business
As a Special Resolution
•
To disapply statutory pre-emption rights in certain circumstances
Votes Received
For
8,858,133
100 %
0
0%
Against
Vote Withheld
13th September 2013
% Votes Cast
115,090
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Strategy Overview
Strategy – Build significant reserve and
production base
Implementation
•
Near term production focussed
company with balanced E&P portfolio
•
Target redevelopment and low risk
exploration
•
Proven plays; by-passed and
overlooked pay
•
Apply modern technologies and
practices
•
Low cost pilot projects to prove
concept
Rapid payback and high IRR
•
Introduce suitable partners
•
13th September 2013
Why is there potential?
Romania
•
Exploration Acreage- sparse seismic
coverage; State Oil Co believed gas prone
•
9th Round Marginal Fields - immaterial to
State Co; poorly appraised and produced
Bulgaria
•
Marginal fields – poor production practices
•
Proven Play Exploration – modern
techniques yet to be applied systematically
•
Unconventional potential – recent interest in
the region
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2012 Highlights
•
•
•
Clear progress made within
challenging economic climate
Building balanced E&P portfolio
Focus on near term production
opportunities
Bulgaria
•
Awarded 4 Exploration Licences
•
1476 sq kms
•
Exploration, Re-Appraisal and
Development opportunities
Romania
•
EX-12 exploration block Farm Out
•
Technical work conducted on all
Blocks including 5 marginal fields
(P IX’s)
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2013 Work & Objectives
•
•
•
Conduct high quality work in all 10 licences
Continue new venture and business development activity
Focus on near term production opportunities
Bulgaria 2013
•
Environmental and database work
•
Farm-out: Introduce a suitable partner company or companies
Romania 2013/4
•
Marginal Fields: conduct seismic and well ops establishing production
•
Exploration: fast-track EX-12 Crai Nou
•
New Ventures: participate in 11th bid round and divestment evaluations
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Bulgaria - Moesia Licence Location
Kriva Barra Field
Appraisal &
Development
(280.58 sq km)
(155.95 sq km)
Devetaki Field ReAppraisal and
Re-development
(253.39 sq km)
(786.74 sq km)
Reserve potential
Leads/Prospects up to 20mmboe
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Bulgaria – Petroleum Sector & Key Commercial Terms
•
•
•
•
•
•
EU and NATO Member State
Minor domestic production with strong
demand attracting competitive market
prices
Attractive licence terms
•
Tax and Royalty PCA’s
•
Royalty 2.5 – 30%
•
CT 10%
Favourable gas market
•
Current prices c.$8.50/mscf
Oil pricing – international market
Moesia licences situated close to
main gas line providing access to all
internal (and external) markets
allowing rapid project monetisation
Oil proved reserves
15 mmbo
Oil production
c. 1000 bopd
Oil imports
> 120,000 bopd
Gas reserves
5,663 mmscm
Gas production (2010)
54 mmscm
Gas consumption 2,170,000 mmscm
(Source CIA)
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Bulgaria Technical
Current work
•
Independent Environmental work on all
four Blocks
•
Database
•
Overall Work Project (5 years)
•
Farm-Out
•
New partner must be technically
capable and financially robust
•
Moesia seeking 100% carry
•
Preferential treatment of Devetaki
Conventional Field
Block 1-5 Devetaki
•
Includes the Devetaki Field
•
Produced c.12 bcf gas
•
Field was not appraised and
developed satisfactorily
•
There may be significant remaining
potential
Faulted Model
GIIP
MMscm
bcf
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P90
P50
P10
1,923
3,289
5,624
54
93
159
14
Romania – Activity Summary
EX-12 Crai Nou 2012/3
•
•
•
•
EX-12 Crai Nou Group
•
Moesia 50% WI & operatorship
•
NIS GPN financially robust & regional experience
Numerous lead areas identified
Accelerated /expanded programme under consideration
Room for additional farm down
Expected volumes
10 – 75 bcf gas; 1 – 20 mmbo oil
Scoping Economics
35 bcf
NPV10% €33mm
15 mmbo
NPV10% €97mm
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EX-12: identified lead areas
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EX-12 example lead features
Shallow Gas Re-Appraisal
Stacked Play Exploration Lead
Several wells drilled tested significant volumes of
gas in the 1990’s but were not developed by the
State Oil Co.
Shallow low cost wells (<1000m depth)
Reserve potential 5 – 40bcf
13th September 2013
Many leads highlighted: gas & oil potential
2013 work: repro and interp; seismic acquisition?
Depths range from 750 to 3000m
Reserve potential 5 – 25mmboe
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PIX Marginal Field Licences
•
Shallow oil and gas potential via
modern re-appraisal and redevelopment practices
•
Field studies completed 2013
Volume estimates increased
Seismic repro and interpretation
review - October 2013
•
•
•
Probability
Level
Hydrocarbon
Volume
2012 estimate
additions/
(reductions)
Hydrocarbon
Volume
2011 estimate
P50
6.72
4.30
2.42
P10
13.44
8.08
5.36
Note: Volume estimates are not audited
Seismic acquisition and well
operations under consideration
PIX-1 Bertesti
•
Shallow reservoirs (400 - 800m)
•
Substantial remaining volume
•
Incremental rec vols: P50 3.32; P10
5.55 mmboe
•
3D seismic & Staged Pilot Project of
shallow appraisal wells to be
considered
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Corporate
•
Board Changes
• 2012 Brian Hodgson & Robert Tapp
• 2013 Bogdan Balan retirement
• Q4 2013 – new appointment
•
Directors’ Fees
• 2012 & H1 2013 fees deferred; paid July ‘13 and net amounts reinvested for New Ord Shares
•
Share Options
• Scheme approved by shareholders 2012
• Awards made 2013
• 2 year vesting period
• 7 year term
• Base option price = €0.75
• Incentive Options awarded with additional pricing conditions
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Financial
•
Continued underinvestment in and underperformance of E&P sector
negatively affects Moesia’s access to funding
•
Moesia has achieved significant success given investment levels to date
Current bank position provide funds into 2014
•
•
Additional funding is required to fulfil licence commitments and to continue
business development activity
•
Focus on portfolio management
• Farm-outs
• Asset divestments?
• M&A?
•
Share placing?
Private or via listing?
•
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Conclusions and Outlook
•
•
•
•
•
Moesia’s strategy is delivering suitable licences
Expansion into Bulgaria is a significant achievement
• Attractive licences with substantial re-development and exploration
potential
• 2013 work – environmental and database
• Aiming to introduce a partner company with suitable financial and
technical capability
Romania: the 2012 EX-12 farm-out underpinned value
Marginal Field licences – decisions concerning future seismic and well
operations Q4 2013
Financial strategy
• Must be flexible and opportunistic
• Focus on value creation and monetisation; timing
• Portfolio Management
• Equity funding – pvt placing; IPO?
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Glossary
•
Appraisal Well
•
bbl
bcf
boepd
bopd
CAPEX
Development Well
E&P
EIA
Exploration Well
GIIP
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
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IRR
mmbo
mmboe
mmscfd
NPV10%
OPEX
Porosity
Permeability
P90
P50
P10
Recovery Factor
Reserve
sq km
STOIIP
13th September 2013
A well drilled after a discovery of oil or gas has been made in order to help determine the size of the discovery
and to gather information on the rock and fluid properties
Barrel which is equivalent to 42 US gallons at 60oF
Billion cubic feet of gas
Barrels of oil equivalent per day
Barrels of oil per day
Capital expenditure
A well drilled in a proven producing area with the aim of the production of oil or gas.
Exploration and Production
Environmental Impact Assessment
A well that is drilled to look for oil or gas in an area where no oil or gas is known to exist
“Gas Initially in Place” or the total gas content of a reservoir in situ before the commencement of production
operations as measured at standard surface pressure and temperature conditions
Internal Rate of Return
Million barrels of oil
Million barrels of oil equivalent
Million standard cubic feet per day
Net present value discounted at 10%
Operating expenditure
a measure of the void space in a rock usually expressed as a percentage of the total rock volume
a measure of the ability of a porous material to transmit fluids
Reserve and/or resource estimates that have a 90 per cent estimated probability of being met or exceeded.
Reserve and/or resource estimates that have a 50 per cent estimated probability of being met or exceeded.
Reserve and/or resource estimates that have a 10 per cent estimated probability of being met or exceeded.
that proportion of the oil or gas volume in a reservoir which can be technically and economically recovered
A volume of oil or gas that is economically recoverable
Square kilometres
“Stock Tank Oil Initially In Place”, or the total oil content of a oil accumulation in situ prior to the
commencement of production operations measured at standard surface pressure and temperature conditions.
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