Leni Gas and Oil plc. The T&T Energy Conference. London (AIM): LGO. 4 February 2014 Neil Ritson, CEO

Transcription

1 Leni Gas and Oil plc The T&T Energy Conference 4 February 2014 Neil Ritson, CEO London (AIM): LGO 1

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

3 Company Profile London Stock Exchange - listed March 2007 Producing Oilfields - Trinidad and Spain London HQ Spain Trinidad Staff Net Production P2 Reserves Market Cap - 50 (98% local) bopd mmbbls - US$40 million 3

4 Trinidad Local Management Country Manager Senior Petroleum Engineer HSE Manager Drilling Engineer Field Supervisor Office Manager Financial Controller Alex Almandoz Over 28 years experience in oil field services. Managing Director of Altech Services provider of oilfield management and work-over rig services to the local industry for the past 19 years. Rabindra Haricharan Holds a BSc in Petroleum Engineering and has over 23 years experience in oil & gas. Zameer Rahaman Has 14 years HSE experience within the construction, manufacturing, hospitality & petroleum industries. Zameer is a certified emergency first responder instructor. Vishan Beharry Has a BSc in Physics, and an MSc in Petroleum Engineering with six years experience in the oil & gas industry. Rajpaul Sookoo Over 17 years experience in work-over services and oilfield maintenance. Judy Lee Over 20 years local and international experience managing administration functions. Shanelle Jarvis-Sealy Qualified Accountant with ACCA and 11 years experience in Audit/Assurance including over 6 years in oil & gas audits. 4

5 Trinidad Assets Goudron IPSC (100%) with 2P reserves of 7.2 mmbbls and over 60 mmbbls of contingent resources associated with a future water flood. Active production growth from over 65 reactivated wells and imminent 30 well infill development drilling program Icacos Field in the Cedros Peninsula (50%, non-operator), producing ~35 bopd from three wells. Future opportunities for infill and redevelopment 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 12 months of news Date Major Events 29 January Trinidad producing over 200 bopd [Energy Conference 2013] 14 March Heads of Agreement with Maxim over the South Erin Block 20 June Letter of Intent signed with Beach Oilfield Limited 12 August Goudron sales capacity increased to 530 bopd 14 August Reduction of Overriding Royalty rates negotiated at Goudron 18 September Enhanced tax allowances with a positive financial impact 3 October Maxim JV extended by 6 months 10 October LGO Group production reached 500 bopd for the first time 19 October Minister Ramnarine and President Hassanali visit Goudron 9 December Agreements concluded with Beach Oilfield Limited 23 December Funding of the Goudron development plan in place 22 January Plan to drill 30 new developments wells at Goudron Goudron well GY-257 Reactivated Nov

7 Goudron Field 7

8 PHASE 1: Well Work Goudron located in Guayaguayare and produces light oil (average 38 o API) Typical well (GY-233) Discovered in 1927 the field has a long history, but only limited production 154 wells were drilled before 1981 LGO acquired the IPSC in October 2012 and has since then: Conducted over 65 well reactivations Carried out several recompletions Prepared the field for a 30 well redevelopment Production has already increased 10-fold A further five-fold increase is expected Goudron well GY-257 Reactivated

9 PHASE 1: Infrastructure Located in the remote primary forests of the Trinity Hills Sales Tank Battery #34 Limited work undertaking for 30 years LGO has: Doubled sales tank capacity Refurbished previous tank facilities Repaired bridges and roads Installed a new camp (offices, workshops, crew rest area, communications, etc.) Extended and restored electrical power Constructed water treatment facilities Created a platform for the future growth 9

10 Anniversary of Operations and HSE To mark 12 months of operations Goudron was visited by Senator the Honourable Kevin Ramnarine, His Excellency Arthur Snell and Petrotrin President Khalid Hassanali During the first year of operation LGO had produced 60,000 bbls and operated safely for 70,000 man hours Goudron has now run for 100,000 accident free manhours and is due to receive STOW certification shortly Jamaludin Khan, Arthur Snell, Khalid Hassanali, Kevin Ramnarine, Neil Ritson 10

11 Camp David A newly commissioned camp with: offices workshops stores hot-work area crew rest area accommodation All key infrastructure is now in place for the upcoming 30 well drilling campaign and for oil production of 1,500 2,000 bopd 11

12 PHASE 2: Development Drilling Production to date, using primary pumped wells, has achieved recovery of less than 4 mmbbls Significant parts of the field have not be swept, especially at Cruse level Previous drilling techniques can be greatly improved A program of 30 new development wells, infilling and extending the field, is now planned Mobilisation is expected shortly Drilling over the next months is aimed at an additional 1,500 bopd of production capacity 12

13 Cedros Peninsula 13

14 Cedros Lease Position Installing new well tanks Beach Oilfield Cedros Leases TED 3D Seismic LGO Cedros Leases Icacos Field Bonasse Field Icacos Leases 14

15 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 15

16 Unexplored deep prospectivity Installing new well tanks Oil impregnated Herrera Sandstone, Galpha Point Mud Volcano 16

17 Airborne Full Tensor Gravity Survey Installing new well tanks Planned airborne survey area Existing 3D data LGO s principal area of interest Goudron 2013 onshore bid round blocks 17

18 FTG provides increased resolution Airborne Marine 18

19 Why use airborne gravity? Long regional 2D lines of moderate quality Marked lack of success with the 3D method Extensive global success in combining FTG and 2D seismic 2D Line D Inline

20 Participation in the Survey Survey expected to be flown in late 2Q 2014 Nine companies have agreed to participate Further opportunities to participate remain Planned Survey Area 20

21 Summary Ayoluengo Field, Cantabrian National Park, Spain 21

22 Summary Installing new well tanks LGO is a Trinidad-focused junior oil company Principal assets are the Goudron IPSC and the Cedros Peninsula private petroleum leases Production progress at Goudron has been encouraging Next phase of operations is development drilling Exciting longer term exploration potential exists in the Cedros Peninsula, and in a water-flood at Goudron 22

23 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. 23

24 Thank you for your attention 24