Kyiv Corporate Headquarters. Ukraine E&P Head Office. Gas trading. Business Services. E&P Cadogan licenses Shale gas licenses in JV with Eni ASSETS

Transcription

1 December 2015

2 These presentation materials do not constitute or form part of any offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied upon in connection with any contract or commitment whatsoever. No responsibility or liability whatsoever is accepted by any person for any loss howsoever arising from any use of, or in connection with, these presentation materials or their contents or otherwise arising in connection therewith. These presentation materials may contain forward-looking statements relating to the future prospects, developments and strategies of Cadogan Petroleum plc (the "Company"), which are based on directors' current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Each forward-looking statement speaks only as of the date of the particular statement and, except as required by law or regulations to which the Company is subject, the Company disclaims any obligation to update any such forward-looking statement to reflect future events or developments. IMPORTANT NOTICE 2

3 UK incorporated and listed on the London Stock Exchange (market cap million (1) ) Established E&P Company in Ukraine; 9 on-shore licences (2), with a combined area of approximately 1052 km 2 in the Dnieper Donets and Carpathian basins. Current average production of 122 boepd 3P Reserves of 19.2 Mboe (3) and 2C contingent resources of 10.1 Mboe (3) Partnered with ENI in the first shale gas initiative awarded in Ukraine HIGHLIGHTS (1) As of 21 December (2) For two licences, Pirkovska and Zagoryanska, the process to secure re-award past expiry is in progress (3) Reserves and resources include volumes in Pirkovska and Zagoryanska licenses 3

4 Among largest private investors in Ukrainian E&P sector with > US$500+ million invested over the last 10 years Growing gas trading activity which generated net profits in excess of US$ 1.5 million both in H and in H Strong balance sheet with net cash of US$ 48 million at 30 June 2015 HIGHLIGHTS 4

5 Kyiv Corporate Headquarters Ukraine E&P Head Office Gas trading Business Services E&P Cadogan licenses Shale gas licenses in JV with Eni ASSETS 5

6 Western Ukraine Bityanska license; License renewed until December 2019 Shallow and deep (Oligocene) exploration targets Monastyretska license; License renewed until November bopd of oil production Low risk exploration and appraisal potential Slobodo-Rungurska license Oil exploration potential Debeslavetska and Cheremkhivska licenses Marginal gas production (510kscfd) E&P Cadogan licenses Shale gas licenses in JV with Eni ASSETS 6

7 Eastern Ukraine Pirkovska license Testing of old wells at Tournesian level on-going Prospects and leads identified in the Permian Zagoryanska license; Expired. Re-application for 20-year period Pokrovska license Prospects and leads identified in the Permian Carboniferous E&P Cadogan licenses Shale gas licenses in JV with Eni ASSETS 7

8 Western Ukraine Eastern Ukraine Reserves & Resources (MMboe) (gross) Licence Type Working interest Area (km 2 ) Current gross production (boepd) 3P reserves (1) 2C contingent resources Best estimate prospective resources (2) Expiry date Pokrovska Conventional oil Aug Pirkovska Conventional oil Expired, renewal Zagoryanska Conventional oil submitted Monastyretska Conventional oil Nov Debeslavetska (prod.) Shale gas Nov Debeslavetska (exp.) Shale gas Sep Cheremkhivska Conventional oil May 2018 Bitlyanska Conventional oil Dec Slobodo Rungurska Conventional oil Apr Total 1, E&P BUSINESS 8

9 Western Ukraine Eastern Ukraine Licence Pokrovska Pirkovska Zagoryanska Monastyretska Debeslavetska Cheremkhivska Activity Re-entry of two existing wells Farm-out for full carry on exploration drilling Secure renewal of licence Re-entry of one existing well Farm-out of for full carry on the exploration drilling Secure renewal of licence Re-entry of three existing wells Re-interpretation of the 3D seismic volume Re entry of two shut-in wells upon finalising rental agreement with the owner Farm-out in exchange for full carry on 100km of 2D seismic and one exploration well to drill the identified prospect at Jamna Work-over campaign on six wells to increase production to 530Mcf/day. Farm-out in exchange for full carry on 100 Km of 2D seismic, one exploration well and a further contingent well Finalise studies and assess the volume of thermogenic gas resources. Bitlyanska Re-entry and fracking of existing well at no cost to Cadogan under a profit sharing agreement Slobodo Rungurska E&P BUSINESS Farm-out in exchange for full carry on 100 Km of 2D seismic prospects. and one well to drill the Jamna 9

10 Cadogan s services business Astro-Service provides specialised services to oil & gas operators in Ukraine including: Well permitting and land allotment; Well site and road design and construction; Drilling, work-over and servicing; Waste management and cuttings/fluid disposal; and Warehouse and logistics support. OIL SERVICES BUSINESS 10

11 Wide range of subcontractor agreements in place and partnership networks with local contractors. Partnering or agent agreement with international service providers such as Medes Srl, AVA/Newpark, Hydrodrilling, Tecom and Mitch. Portfolio of contracts worth > US$5 million for EBITDA in excess of US$350,000 in both 2013 and OIL SERVICES BUSINESS 11

12 E&P and Service PARTNERS 12

13 Established a viable, growing last 12 months. gas trading business over the Over 250 million m3 of gas sold in the first year of trading. Trading segment a major contributor towards Company s cash neutrality having generated net profits in excess of $1.5 million both in 2014 and in H First private trader-importer into Ukraine from Slovakia; currently importer on all three Europe-Ukraine borders (Slovakia, Poland, and Hungary). Recognized trader and reliable supplier in the Ukrainian market. Business relationships with European and Ukrainian traders as well as major Ukrainian gas producers. GAS TRADING BUSINESS Operational and financial performance Gas sales (MMm 3 ) Revenues (USD mio) Net profit (USD mio) Number of clients H H

14 Solid financial position (net cash ca. $ 48 million) Well positioned in Ukraine; able to balance international standards with local practices and context Qualified operator with technical excellence; drilled > 5000m deep wells at competitive time and cost HSE performances: over 2 million man-hours without an accident; over 9,500,000km driven since last accident STRENGTHS 14 *Performance history as of 26 October 2015

15 Key Gas Trading Clients PARTNERS 15

16 Our goal Return value to shareholders by realizing the upside assets, primarily at mature exploration stage. of undervalued Our strategy Leverage management experience geographically and operationally. to source additional E&P assets to diversify Cadogan s portfolio both Add production: Source additional producing assets to cover G&A and provide free cash flow for exploration activities. Complement with exploration: acquire high impact exploration and near term developments with upside. Targeted acquisition criteria: 1. Focus onshore and on operated position; and 2. Geographical focus: Middle East, Africa, Eastern Europe and Ukraine, Central Asia. Minimise Ukraine expenditure: Farm-out for carry on legacy Ukrainian licenses. Maintain sufficient capital base complemented by cash flows from gas trading and oil services businesses. STRATEGY 16

17 Rebased to 100 as at 8 October 2013 Corporate Snapshot Ticker CAD -LN Listing type LSE Standard Main Market Domicile UK Shares in issue 231,091,734 Share Price (52w high/low) 8.12GBp* Market Capitalisation (1) m Net Cash (2) $48m Top Shareholders Shareholder No. (M) % Outstanding SPQR Capital Holdings SA 67,298, % P Salik Esq. 40,550, % M Meeus Esq. 25,640, % Jean Benaim 21,660, % Damille Investments 12,592, % Monte Leone Special Situations 11,370, % Total 77.51% Cadogan share price vs. listed Ukrainian peers CAD-GB RPT-GB JKX-GB MISE-SE SHEL-B-SE KUB-CA Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 (1) As at December 2015 (2) As at June 2015 CORPORATE OVERVIEW 17

18 Listed on the London Stock Exchange, Main market Trading symbol CAD 231,091,734 ordinary shares issued at 0.03 each Share price of 8.12 GBp Market cap of 18.78M The listed Ukrainian E&P company that has shown stability and outperformed peers during a period of political unrest and global oil and gas downturn CORPORATE OVERVIEW 18

19 Zev Furst - Chairman Guido Michelotti - Chief Executive Officer Gilbert Lehmann - Senior Independent NED Adelmo Schenato - Chief Operating Officer Bertrand des Pallieres - Chief Trading Officer. Chicco Testa - Independent NED. Michel Meeus - Non-Executive Director BOARD OF DIRECTORS 19 (click photos to read more) 19

20 Igor Delov General Director Mr. Delov joined Cadogan in August 2009, with extensive experience including having served as Managing Director of McDonald s Ukraine and COO of Americana Company. Andrey Belyi Deputy Technical Director Mr. Belyi joined Cadogan in August In 2013, he was appointed Deputy Technical Director and General Manager of LLC AstroService, the Group s local service company. Volodymyr Pogrebniak Group Financial Director Mr. Pogrebniak joined Cadogan in December 2008, after serving in a senior position at Deloitte & Touche. He is a member of the Association of Chartered Certified Accountants (UK). Marta Halabala General Counsel Mrs Halabala joined Cadogan in February In 2015, she was appointed as General Counsel and Corporate Secretary. MEMBERS OF LEADERSHIP TEAM 20

21 Cadogan Petroleum plc 48/50A Zhylyanska Street Kyiv, Ukraine +38 (044) CONTACT 21