oando plc investor presentation · oer is currently reviewing data including existing seismic that...

Oando PLC 1

This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Oando Plc (the “Company”) shares or other securities.

This presentation includes certain forward looking statements with respect to certain development projects, potential collaborative partnerships, results of operations and certain plans and objectives of the Company including, in particular and without limitation, the statements regarding potential sales revenues from projects, both current and under development, possible launch dates for new projects, and any revenue and profit guidance. By their very nature forward looking statements involve risk and uncertainty that could cause actual results and developments to differ materially from those expressed or implied. The significant risks related to the Company’s business which could cause the Company’s actual results and developments to differ materially from those forward looking statements are discussed in the Company’s annual report and other filings. All forward looking statements in this presentation are based on information known to the Company on the date hereof. The Company will not publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

Disclaimer

Oando PLC Investor Presentation

Oando PLC 2

This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Oando PLC (the “Company”) shares or other securities.



Disclaimer

Oando PLC 6

Asset Overview

Exploration & Production

Energy Services

Gas & Power

Supply & Trading

Marketing

Desc

rip

tio

n

Ke

y

Asse

ts

Ma

rke

t P

osit

ion

• Largest swamp drilling fleet in Nigeria

• Rapidly expanding business line

• Primary assets are located in Nigeria

• 4 swamp rigs: 3 Working Assets and 1 under refurbishment.

• Drill bits and engineering services

• Total fluids management.

• 94.6% ownership of OER

• Producing assets: OML 125 & OML 56.

• Development & appraisal: OML 134, OML 90, OML 13 & OPL 236.

• Exploration: OPL 278, OPL 282, OPL 321, OPL 323, OML122, JDZ, Block 26 & Rubai Licences

#1 A leading indigenous player

• First private sector company to enter gas distribution in Nigeria

• Consists of:

• GNL

• APL

• EHGC

• CHGC

• 100 km gas distribution pipeline in Lagos.

• 128 km gas pipeline in the East of Nigeria spanning Akwa Ibom and Cross River states.

• Akute captive Power Plant

• Riv Gas.

• Central Processing Facility

#1

• Nigeria’s leading retailer of refined petroleum products with 13% market share.

• Large distribution footprint with access to over 1,500 trucks and 150m litres storage capacity.

• 500+ retail outlets in Nigeria, Ghana and Togo

• 8 terminals (159.5ML)

• 3 Aviation fuel depots

• 2 lube blending plants (55m litres / annum)

• 7 LPG filling plants

• Trading desks and operations in Nigeria and Bermuda.

• Trading consultants in the UK and Singapore.

• Largest indigenous supply and trading player in the sub-Saharan region.

• 12% market share in PMS importation.

#1 #1

Oando is the leading indigenous oil and gas player in Nigeria

Upstream Division Midstream Division Downstream Division

Oando PLC 9

Oando Energy Resources

9

www.oandoenergyresources.com

Oando PLC 10

This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Oando Energy Resources Inc (the “Company”) shares or other securities.



Disclaimer

Oando PLC 11

Agenda

I

The Nigerian Operating Environment

II Company/Asset Overview

III Future Strategy

Oando PLC 12

The Nigerian Operating Environment

Oando PLC 13

Overview of the Geology of the Niger Delta

• Niger delta basin lies in the Gulf of Guinea, (western margin of Africa) The basin was formed at the site of a rift triple junction related to the opening of the South Atlantic during the Jurassic – Cretaceous

• The Niger Delta basin is bounded to the:

North by Benin Flank

West by Dahomey Basin

North East by Abakaliki High,

South by Atlantic Ocean

East and South East by Calabar Flank

• Areal extent of 300,000 Sq. km

• Approximately up to 10km thickness of sediments and a volume of 500,000 Km

3

Source: IHS

Dahomey

Basin

Oando PLC 14

Niger Delta Petroleum System

• The Niger Delta basin is defined by the Tertiary

Akata - Agbada Petroleum system. The

components of the petroleum system are:

Source Rock: is made up of Akata Shale and

Interbedded shale of the Agbada Formation. The

Akata Shale is of marine origin, typically over

pressured and rarely penetrated by wells. The

Agabda shale is of deltaic origin

Reservoir Rock: Agbada sands and sandstones.

Agbada Formation has an estimated thickness of

up to 3700m and it overlays the Akata formation.

Seal Rocks: Interbedded shale of the Agbada

Formation

Traps: Mainly Structural (Faults and Rollover

Anticlines) and a few Stratigraphic

Migration pathways: Faults

Oando PLC 15

0

500

1000

1500

2000

2500

3000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

mbpd

Onshore Offshore Deepwater

Nigeria: Evolution of Production by Sector

WoodMackenzie

Forecasts

Militancy had major impact

on production, especially

onshore

Deepwater production,

increasingly important

Stalled investment from

PIB uncertainty

Oando PLC 16

Capacity Utilization

Current Average Production (January-April): ~2.31mmbopd

Unused capacity: ~900kbopd

mm

bo

pd

Capacity Utilization 347 Fields with 2P Reserves < 20mmboe & 230 Fields with 2P Reserves < 10mmboe

New finds/assets: ~790kbopd

The Nigerian Upstream Opportunity

• Increased bilateral deals between IOCs and indigenous firms in recent years.

• There is renewed hope that the PIB will be passed soon

• The FGN’s 2020 production target will be achieved through:

• Divestment programs by IOCs

• Governmental bid rounds

Recent Positive Steps Opportunities Available

• Indigenous independents can develop smaller fields that are low on the IOCs priority lists

• Indigenous independents can also operate in areas IOCs cannot due to community legacy issues

• Favorable terms granted to indigenous companies will make prior non-profitable projects profitable.

Source: Central Bank of Nigeria (CBN)

Oando PLC 17

Recent Divestments by IOCs in Nigeria

Over 1BnBOE acquired by Indigenous Companies in past 24 months

Buyer Seller Asset

Shell/Total/ENI

2P Reserves

MMBOE

Value

(US$MM)

1.5 OML 34 400 NIGER DELTAEXPLORATION & PRODUCTION PLC

RC191616

600

2P Implied Value

(US$/BOE)

Shell/Total/ENI

Shell/Total/ENI

Shell/Total/ENI

Shell/Total/ENI

8.1 OML26 18 148

5.1 OML’s 3, 38, 41 76 386

1.7 OML 30 501 850

4.6 OML 42 126 585

http://www.fhnigeria.com/

Oando PLC 19

Company/Asset Overview

Oando PLC 20

OER Corporate Overview – Portfolio Built to deliver

Oando Energy Resources (OER) has an ownership interest as follows:

Oando: 94.6% Public: 5.4%

OER’s current portfolio consists of interests in 11 upstream acreages :

7 (Nigeria)

2 (EEZ)

1 (Zambia)

1(Turkey)

The portfolio of assets are at varying stages of upstream operations – exploration, development and production.

Net production average Ytd is currently at 4.2Kbopd made up from production from 2 of its assets: OML 125 (3,500 bopd) and the Ebendo field (OML 56) (700bopd).

Nigeria

JDZ

Zambia

Turkey

Oando PLC 21

Cameroon

Sao Tome and

Principe

EEZ Block 12

EEZ Block 5

Equatorial

Guinea

Nigeria

OML 122

OML 134

OML 125

OML 321 OML

323 Akepo – OML

90

OB/OB – OML 56

Gabon

Malabo Equ.itorial Guinea

OML125 -Abo Acquired 2008. 15% W.I. Producing - Net avg. 3,800bopd

OML134 - Oberan Acquired 2008. 15% W.I. Currently under appraisal

OML56 –OB/OB Acquired 2003. 45% W.I. Producing - Net 700bopd Well campaign on going

OML90 -Akepo Acquired 2008 40% W.I. Farm –in/ FTMSA Well head & Pipeline under Construction

OPL 321/323 Acquired 2009 30% W.I. Asset in Exploration Phase

OML 122 - Bilabiri /Owanare Acquired 2009 5% Oil /12% Gas W.I. Asset in Exploration Phase

EEZ 5 Acquired 2009 WI: PSC Signed Asset in Exploration Phase

EEZ 12 Acquired 2009 WI: PSC Negotiation Ongoing Asset in Exploration Phase

The OER Portfolio – Gulf of Guinea

Oando PLC 22

The OER Portfolio – Zambia and Turkey

OER was granted an investment license for Block 26 in northeastern Zambia. The country has remained largely under-explored with only two exploration wells drilled to date with neither reaching their intended targets. OER is currently reviewing data including existing seismic that was acquired during the previous exploration campaign in the 1980′s, and undertaking geochemical surveys to establish the potential for oil and gas in the country. In the meantime, OER has set up a local Zambian office and registered as a local company.

A 50% Equity interest block 2600 (Valeura 50%, Exile 50%), which contains the Bostanci prospect. The Licence was awarded to Valeura in May 2012, and Exile is entitled to 50% equity under the terms of a joint bidding agreement signed in 2011. A 12.5% equity interest is held in a separate Licence 4244 operated by GYP, with partner Aladdin. This was acquired in return for $750,000 of unused expenditure incurred by Exile on the Bostanci prospect in 2011. The Serince-1 well is due to be tested later this year after encountering oil in tight Cretaceous Mardin Group limestone reservoirs.

Oando PLC 23

The OER Portfolio – Gulf of Guinea

Net WI Reserves (mboe)(a) Net WI Resources (mboe) (a)

Block Type

Working

Interest

Area (km2)

Water Depth (m) Operator 1P 2P 3P 1C 2C 3C Status

OML 125 (Abo) Oil 15% 1,220 550 – 700 ENI (Agip) 2.35 3.20 5.58 2.23 4.31 6.49 Producing

OML 134 Oil 15% 1,187 550 – 700 ENI (Agip) - - - 5.60 9.58 14.01 Appraisal

Obodeti / Obodugwa (OML 56)

Oil 45% 69 Onshore Energia 3.78 5.68 7.57 0.24 0.53 0.85 Producing

Akepo (OML 90)(c)

Oil 30% 26 <20 Sogenal(d) 0.50 0.75 0.90 - - - Development

Qua Ibo (OML 13)

Oil 40% 26 <20 Network

E&P - 4.53 9.19 88.80 191.60 312.00 Development

OML 122 Oil / Gas

5% Oil(a) 12% Gas

1,599 110-150 Peak - - - 0.14 0.22 0.30 Appraisal

OPL 323 Oil 30% 1,034 890-2,080 KNOC - - - - - - Exploration

OPL 321 Oil 30% 1,113 1,900-2,600

KNOC - - - - - Exploration

JDZ Block 2 Oil 9% 692 1,500-1,900

Sinopec - - - - - - Appraisal / Exploration

EEZ Blocks 5 TBD 100% 2800 2,060-2,609

Equator - - - - - - PSC

Negotiations

Total 6.63 14.16 23.24 97.01 206.24 333.65

Source: OEPL, RPS Energy (a) Gross of royalties (b) Operator estimates as of Aug-2009 adjusted for subsequent production

(c) Assuming 77% of Akepo field for OML 90 (d) Oando is the technical partner on this field (e) Gas resources have been converted to oil equivalent resources at a ratio of 6 back : 1 mob

Oando PLC 24

5 Year Business Plan

24

Oando PLC 25

5 Year Capex Plan

Drilling

Facilities

Other

Activity 2012 2013 2014 2015 2016 2017

H1 Q3 Q4 Q1 Q2 Q3 Q4 Yr Yr Yr Yr

Akepo

Wellhead Jacket 3.1 3.6 0.6

Pipeline 3.3 4.9

CPF 1.2 0.1

Project Management 0.2 0.4 0.1

Logistics Support 0.4 0.6 0.2

Total 3.7 9.1 5.9 - - - - - - - -

Qua Ibo

Acquire 2.2 1.5

Petroleum Engineering 0.1

Project Delivery Office 0.7 1.7

Supply Chain Mangement 0.1 0.2

Facilities 8.2 0.4 5.5 4.0 5.5 1.8 1.4

Wells 6.0 19.0 20.4 5.4

License To Operate 0.6 1.0

Total 8.3 28.8 23.6 10.9 5.5 5.5 1.8 1.4 - - -

Ebendo

Ebendo 4: Drilling & Completion 7.1 1.7

Ebendo 5: Drilling & Completion 8.8



Umugini Pipeline 3.2 3.2 1.8 3.2 3.2 2.0

Total 7.1 4.8 15.1 1.8 15.0 7.5 - 2.0 - - -

OML 125

Abo-9 Work-Over 9.2

Abo-4 Sidetrack 10.5

Abo-8 completion 9.3

Abo-3 Sidetrack 13.5

Abo-12 Drilling 7.2

Abo-12 Completion 8.6

Facilities & Other Capex 7.4 0.4 17.1 3.3 13.5

Exploration and Appraisal Drilling 27.4 12.2

Total 7.4 9.6 27.6 12.6 13.5 - - 29.3 27.4 12.2 -

OML 134

Seismic, G&G, Other Capex 1.0

Appraisal Wells& long lead items 14.1 10.5 12.0

Well test 3.6

Development Wells & long lead items 45.0 82.5

Total - - - - - - - 18.7 10.5 57.0 82.5

Other Assets

EEL 3.2 2.0

OML 122 80.0

Current Portfolio CapEx Budget 29.7 126.4 74.0 51.4 37.9 149.2 82.5

Oando PLC 26

5 Year Capex Plan - Growth Opportunities

Drilling

Facilities

Other

Activity 2012 2013 2014 2015 2016 2017

H1 Q3 Q4 Q1 Q2 Q3 Q4 Yr Yr Yr Yr

Current Portfolio CapEx Budget 29.7 - 126.4 - - - 74.0 51.4 37.9 149.2 82.5

GROWTH PLAN

MF1 (10mmbbls Field)

Well 1: Drilling & Completion 25.0


Facilities 5.8

Total - - - - - 55.8 - - - - -


Phase 1 Drilling & Completion (4 Wells) 100.0

Phase 2 Drilling & Completion (6 Wells) 150.0

Facilities 11.7 9.8 7.5

Total - - - - - - - 111.7 159.8 7.5 -




Facilities 5.8

Total - - - - - - - - 55.8 - -

ADMS 1



Facilities 8.8 2.5

Total - - - - - - - - - 33.8 27.5

Growth Opportunities CapEx Budget - - - - - 55.8 - 111.7 215.6 41.3 27.5

Annual Total 29.7 - 126.4 - - - 129.8 163.2 253.4 190.5 110.0

Total CapEx Spend for 5 year Period $1,003.3

CapEx on Existing Portfolio $551.1

CapEx on Growth Opportunities $451.9

Oando PLC 31

www.oandoenergyresources.com

oando plc investor presentation · oer is currently reviewing data including existing seismic that...

Documents