Corporate Presentation

Transcription

1 Corporate Presentation

2 Elevator Pitch: Why invest in Activa Resources? Activa in short Operating in one of the most dynamic oil and gas markets in the world Main asset OSR-Halliday is in sweet-spot of one of America s best oil plays 25% p.a. revenue growth since 2010 set to be maintained in Production consistently raised to 340 BOED USD 89 million value of proven reserves (PV10) 117% growth since 2009 Management is executing a well-defined growth strategy with its existing project portfolio Project portfolio combines high-potential assets which can be developed in a low-risk strategy OSR-Halliday: Activa s main producing asset First 5 horizontal wells successfully drilled and on production, thus significantly de-risking the asset Potential for 20 million barrels primary production from 56 wells from main Woodbine formation Additional potential from other horizons 6th horizontal well drilled to a total depth of 15,000 feet (February 2014); 7th horizontal well in Q expected, further wells in 2014 M&A activity suggests implied potential value of up to EUR 12 per Activa Resources share Strategy Focus on developing oil assets Investment in natural gas projects is being re-examined after recent price recovery Develop and exit individual projects at multiples of invested dollars Risk-minimisation by focusing on low-risk projects Increased focus on high-potential opportunities and continued sales of non-core assets 2

3 Contents Elevator Pitch: why invest in Activa Resources? General Information Projects Facts and Figures.. 21 Financial data Shares Bonds Strategy and Outlook Contact.31 Glossary 1P - Proven oil and natural gas reserves 2P - Proven and probable oil and natural gas reserves 3P - Proven, probable and possible oil and natural gas reserves BOE - Barrels of oil equivalent BCF - Billion cubic feet Disclaimer This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning estimates of expected drilling and development wells and associated costs, statements relating to estimates of, and increases in, production, cash flows and values and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although Activa believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, that geological conditions in the reservoir may not result in commercial levels of oil and gas production, that changes in product prices can have a material impact and that Activa fails to raise sufficient capital to adequately fund its activities. 3

4 1. General Information Drilling activity

5 1. Group Structure and Management Corporate structure Activa Resources AG (Holding company) Head Office: Bad Homburg, Germany 100% Activa Resources, LLC (Exploration and production company) San Antonio,Texas, USA Oil and Natural Gas Interests Information about Activa Resources group Established producer of oil and natural gas in North America Operations in San Antonio, Texas Listed on Frankfurt Stock Exchange (Entry Standard) Management are significant shareholders Employees: 9 (excl. field staff) Management Leigh A. Hooper, Activa Resources AG 12 years oil industry and 16 years investment banking experience John w. Hayes, President, Activa Resources, LLC Key employees 26 years oil industry experience at well known and reputable industry players Douglas Coyle - Vice President and Exploration Manager John Bockelmen - Geologist Supervisory Board (Non-executive directors) Walter Blumenthal (Chairman) Axel Vedder (Deputy Chairman) Dr. Gerd Escher 5

6 1. The US oil market North America is experiencing a major renaissance of its oil and gas industry Oil production rising dramatically for the first time in 40 years Some of the biggest newly discovered oil fields are in North America Why? State of the Art -technology (Horizontal Drilling + Fracturing) The world s largest market for oil and natural gas products Long standing property ownership rights and protection High drilling success rates Highly developed infrastructure Highest prices for oil and gas No political risk Favourable tax treatment US Rig Count, February 2014 Worldwide Rotary Rig Count, February USA 1,769 Latin America 401 Canada 504 Middle East 403 Asia Pacific 256 Europe 126 Africa 139 World 3,598 49% of all rigs are in operation in the US Oil Natural Gas Source: Baker Hughes 6

7 2. Projects Drilling activity at OSR-Halliday

8 2. Project overview Projects 5 main projects with currrent field and drilling operations (OSR-Halliday, Adams Ranch, Gray Waterflood, Project X, Halls Bayou) 2 high potential natural gas projects on hold (Loma Field and Montgomery County) Drilling rights covering 30,054 acres Location: Gulf Coast, USA (mainly Texas) All projects in recognised oil basins with long production histories Key information Production since 2005: EUR 24.6 million Production 2012 Volume: 106,501 BOE Split: 47.5% oil, 52,5% natural gas and NGL s Revenues: EUR 4.9 million 4 projects account for 90% of current daily production of 340 BOE Medium term potential: daily production rates of 3,000 BOE 1P PV10 reserve value: USD 89 million* 2P PV10 reserve value: USD 193 million* Primary objectives Grow production and revenues by further development of existing project portfolio Implement broad drilling programme (new wells and recompletions) to grow reserves Clear focus on oil assets Natural gas projects on hold until US natural gas prices stabilize at current levels Build on expertise and experience from OSR-Halliday to develop new horizontal drilling plays Minimise front-end investment risk * PV10 value as at 1st January

9 2. Activa s Oil and Natural Gas Project Portfolio OSR-Halliday (Interest: 22%) Mainly oil Current daily production: 270 BOE* Potential daily production: 1,760 BOE* Halls Bayou (Anteil: ca. 20%) Oil and natural gas Current daily production : 0 BOE* Drilling to commence 2014 LOUISIANA Main projects (in production) TEXAS Other projects (in production) Awaiting development Adams Ranch (Interest: %) Mainly oil Current daily production: 30 BOE* Potential daily production: 800 BOE* * Based on Activa Resources NRI Gray Waterflood (Interest: 60%) Mainly oil Current daily production: 12 BOE* Potential daily production: 480 BOE* Project X (Interest : 100%) Mainly oil Current daily production : 0 BOE* Note: More information will follow 9

10 2. Oil and natural gas production and revenue split in 2012 Production volume OSR-Halliday Loma Field Adams Ranch Gray Waterflood Rest** Total 2012 in BOE 53,289 23,127 5,854 2,171 22, ,501 Mix Production revenues OSR-Halliday 2012 in USD 4,223,042 Mix 53.8% 46.2% Loma Field Adams Ranch Gray Waterflood Rest** Total 801, , , ,216 6,175, % 81.6% Oil Natural gas Production volume OSR-Halliday Loma Field Adams Ranch Gray Waterflood Rest** Total 2013 H1 in BOE 25,896 4,591 5, ,441 43,020 Mix 48.7% 51.3% Production revenues OSR-Halliday Loma Field Adams Ranch Gray Waterflood Rest** Total 2013 H1 in USD 2,133, , , , ,564 2,777,638 Mix 18.1% 81.9% * based on Activa s respective Net Revenue Interest ** includes CERF, Hogg Heaven, Hidalgo Frio 10

11 2. OSR-Halliday - Location in the Woodbine/Eaglebine Woodbine / Eaglebine belong to the top Exploration Plays in North America Goldman Sachs Research May 2012: Woodbine one of top US oil plays Horizontal well results in Woodbine/ Eaglebine play very encouraging Current drillng activities mainly in Grimes, Madison, Leon, Robertson and Brazos Counties (2.4 million acres) OSR-Halliday is in sweet spot of Woodbine play Main attraction is multi-zone potential Austin Chalk/ Woodbine zones and Eagleford/Georgetown/Buda and deep gas zones Source: National Atlas of the United States, Goldman Sachs Research estimates 11

12 2. OSR-Halliday - Overview Production since 1960: approx 13.5 million BOE (8.5% of Original Oil In Place in Woodbine Formation) 48 vertical wells on production 5 new horizontal wells drilled and on production since 2010 Drilling programme ongoing in 2014 Build up of field infrastructure / participation in new regional 3D seismic survey Activa s WI: 22 % Potential: 56 horizontal wells (Woodbine alone) Economically producible reserves Approx. 20 million BO ( Primary Recovery Methods ) million BO (waterflooding, CO 2 - Injection) Additional potential in Eagleford and other horizons Annual production* (BOE) at OSR-Halliday and impact of first 3 horizontal wells million BOE 0, ,2 0.2 Total to date: Approx.13.5 million BOE 273,514 BOE Vertical wells 0,1 0.1 Horizontal wells 0, Ø per year * Excluding natural gas liquids 12

13 2. OSR-Halliday and regional horizontal wells PMO-CRESHAM 1H Production: 10/01/2011 Cum. Oil: 36,245 Eaglebine/Dexter ALLIED WALLPATH 1H Production: 04/01/2011 Oil Cum.: 53,983 PMO-SHERMAN 1H Production: 08/01/2011 Oil Cum.: 6,333 FURIE -BARNES 1H Production: 08/01/2011 Cum. Oil.:3,970 RIPLEY OIL Eaglebine Order ENCANA-CRESHAM TRUST 3H Production: 11/01/2011 Cum. Oil: 19,294 ENCANA-CRESHAM UNIT 1H Permit: 12/12/2012 ENCANA-CRESHAM UNIT 2H Permit: 12/12/2012 PMO-CRESHAM A 1H Permit: 12/05/2012 Reported IP 800 PMO-CARR-COLEMAN 1H Production 06/01/2011 Oil: 11,693 PMO-EASTERLING 1H Permit: 01/01/2012 PMO-BUNYARD 1H Production: 11/01/2011 PMO-PATRICK 1H Permit: 12/01/2012 PMO-CARR-COLEMAN 2H Permit: 03/16/2012 Activa 3 On production: 04/2011 EUR 300,000 BOE ALLIED OP-5H Permit: 10/11/2011 Activa 1 On production: 10/2010 EUR 250,000 BOE FMD-CLAYTON 1H Production: 12/01/2011 Cum. Oil: 2,213 PMO-MANNING 1H Production: 07/01/2011 Cum. Oil: 29,756 PMO-HOMER-COLEMAN 1H Production: 01/31/2011 Cum. Oil: PMO-CARR-WARD Production: 12/01/2010 Cum. Oil: 119,177 Activa Resources wells at OSR Activa s planned horizontal wells at OSR Wells drilled by other operators EUR Estimated Ultimate Recovery CHESAPEAKE- MCVEY UNIT A 2H Production 10/01/2011 Oil Cum.: 20,508 Activa 4 On production: 04/2013 SAMSON-BLAKENEY 1H SPUD 12/09/2011 CHESAPEAKE-BULLARD 1H Production 10/01/2011 Oil Cum.: 48,999 Activa 2 On production: 10/2011 EUR 400,000 BOE Activa 5 On production: 06/

14 2. OSR-Halliday - recent drilling activity south side 2nd horizontal well (September 2011) Halcon Samantha Rizzio Oil & Gas SL SL Horizontal well IP rates at OSR- Chesapeake Bullard 1H OSR-HALLIDAY UNIT Halliday 1st well: 463 BOED (north) 2nd well: 700 BOED (south) 3rd well: 340 BOED (north) SL 1H 2H 3H 4th well: 700+ BOED (south) 5th well: 600 BOED (south) 5th horizontal Well (2013) 6th well: drilled, Feb (south) SL 4th horizontal well (2013) Next spud date: 7th well: Q (expected) Decker Sheldon Unit 1H (January 2013) Southern tip of the OSR-Halliday field 14

15 2. Regional 3-D seismic survey covering OSR-Halliday A new regional 3D seismic survey is currently being shot to better define the geological structures in the Woodbine and the additional zones above and below the Woodbine ONE MILE OFFSET 29,661 ac. (46.35 sq. mi.) OSR-HALLIDAY UNIT 12,791 ac. in shoot (19.99 sq. mi.) Summary 300 square miles covering OSR- Halliday and surrounding region Coordinated by Halcon and ENXP Activa will have full access to data and will conduct its own interpretation work Cost to Activa for the data: approx. USD 100,000 Evaluation of the data is in progress 15

16 2. OSR-Halliday formations - production and potential Wilcox Austin Woodbine Dexter Conventional Dexter Unconventional Buda Georgetown Edwards Glen Rose Bossier Historical production potential undefined potential undefined potential undefined potential undefined potential undefined potential undefined potential undefined potential undefined potential undefined Primary reserves Secondary and tertiary reserves* * From waterflooding and CO 2 Injektion OOIP*: 148 million BOE OOIP*: 350 million BOE Wilcox Sands Oil show in the 67-12, productive at Day Dome Austin Chalk Oil - Proven OSR (100-1) Woodbine Sands Oil - Proven OSR Main OSR-Halliday Oil Proven OSR Woodbine Stray Sands Oil Proven OSR Dexter Sands Conventional Play Oil - Proven OSR (Valence #1 Marshall 637,824 BO) Unconventional Play Oil - Proven on trend, shows at OSR, Dst Oil (114-2) Buda Lime Oil - Proven OSR (Endeavor #1 McVey 3,455 BO) Georgetown Lime Oil - ML Shows Decker/Gas Show Unproven at OSR/Proven on Trend Edwards Lime Oil/Gas with liquids - Unproven at OSR/Proven on Trend Glen Rose Lime Gas with liquids- Proven on Trend Good tests but Unproven at OSR ( mmcfpd) Bossier Sands Dry Gas Unproven at OSR/Proven on Trend (Encana #1 Gresham 2.4 Bcf Act.) 16

17 2. OSR-Halliday - horizontal well typical production profile Year 1 Year 2 Year 3 Year 4 Year 5 20 Year Total Oil production (BOE) Nat. gas production (BOE) Production Total (BOE) Total production revenues (USD) Production Tax (USD) Landowner (USD) Operating expense (USD) EBITDA (USD) DD&A EBIT (USD) ACTIVA RESOURCES SHARE Year 1 Year 2 Year 3 Year 4 Year 5 20 Year Total EBITDA (USD) EBITDA (EUR) EBIT (USD) EBIT (EUR) Assumptions: Gross share of Activa: 22% Oil price (WTI): USD 90 Gas price (Henry Hub): USD 8 (upward adjustment to reflect value of natural gas liquids) Production Tax: 5.1% CAPEX: USD 6 million EUR/USD: USD

18 2. OSR-Halliday - value creation since 2007 acquisition / e Value OSR-Halliday Field (100%) USD 200 million + USD 15 million USD 45 million Activa Resources Purchase of Sale of working interest in 32% 32% 10% interest 22% 22% OSR-Halliday for USD 5 million for USD 4.5 million Milestones 50 legacy New vertical well First horizontal well 2nd and 3rd 4th - 8th vertical wells horizontal wells horizontal wells on production New field analysis Increase in Increase in and report regional activity field production capacity Since acquiring its interest in 2007 Activa and its partners have increased the value of the field by a factor of 10 to 20 in addition to producing significant volumes of oil, natural gas and natural gas liquids. 18

19 2. Key Projects - Adams Ranch and Gray Waterflood Adams Ranch (Activa WI: 82%) Historically a natural gas producer but with significant heavy oil at 400ft. in the Escondido Formation Oil in place: 13 million BOE Thereof waterflooding potential: 4 million BOE Ahead of waterflooding approval (pending) Activa is drilling numerous 400 ft wells Drilling costs per well: USD 30,000 Current field production: approx. 50 BOE Development is currrently self-financed Waterflooding to raise recovery volumes from 3,000 to 15,000 per well 2013 Operations 10 additional Escondido wells drilled in Q Operations Waterfooding: permit granted Start waterflood activities during the year Gray Waterflood (Activa WI: 60%) Historical production since 1910 approx. 10 million BOE Additional potential from waterflooding: 2 million BOE Re-Entry of a vertical wellbore in 2011 confirmed geological assumptions Production revenues from the Re-Entry well are covering waterflooding pilot project 2012 Operations Continuous production from Re-Entry well and water injektion well drilled August 2012: waterflooding approval received Dezember 2012: water injection operations commence Operations Continued water injection and evaluation Interpretation of pilot project in

20 2. Key Projects - Montgomery County and Halls Bayou Montgomery County, Texas Working interest: currently 50% Current production: 0 BOE Potential: 79.2 million BOE (Natural Gas) million BOE (Oil + Liquids)* THE MONTGOMERY COUNTY PROSPECT IS READY TO DRILL. IT WILL BE DRILLED WHEN US NATURAL GAS PRICES HAVE STABILISED ABOVE USD 4 Higher-risk internally generated drilling prospect Prospective in the same formations as the recently announced wildcat Midway-Navarro Liquids play developed by Halcon Resources 4,300 acres - seismic data reprocessed and interpreted Expansion potential to 20,000+ acres Initial vertical well will test several zones down to 14,500 ft. Halls Bayou, Texas Working interest: currently 50 % Current production: 0 BOE Potential: 7.5 million BOE (Natural Gas) million BOE (Oil) + 2 million BOE (Liquids)* ACTIVA HAS COMPLETED ALL DRILLING PREPARATIONS. FIRST WELL SCHEDULED FOR Q Initial project as part of Joint Development Agreement with Aurora Resources Activa provides technical and marketing support for the projects in return for 50% of each project 1,200 acres leased in an area on trend with Activa s Loma project in Galveston County. Multiple wells and additional prospects Potential of first 3 prospects: approx million BOE * Based on 8/8ths 20

21 3. Facts & Figures Field Operations

22 3. Group financial data Key figures (in Euro) IFRS Revenues from the production of oil and gas 4,852,478 3,926,375 3,039,234 Other operating income 143, ,118,968 EBITDA* 1,503,114 1,166,692 2,114,049 Net profit -797,830-2,047, ,029 Equity ratio 26% 34% 29% Balance sheet total 13,659,476 13,022,242 13,104,967 Number of shares (31.12.) 5,203,833 5,178,833 3,729,446 Number of employees** * Earnings before interest, tax, depreciation and amortization ** Average 22

23 3. Long-term financial summary Oil and natural gas production revenues and oil price Thsd. EUR , , , , ,000 0 EUR 4.9 m % +25% WTI in USD Group EBITDA , , , , , ,000 in TEUR EUR 1.5 m EBIT Capitalised drilling rights, drilling and completion costs Thsd. EUR , , , , , , , , ,000 0 Thsd. EUR

24 3. Oil and natural gas reserves Oil reserves (1P) in million Barrels % Natural gas reserves (1P) in billion cubic feet / / / / / / / / / /2013 Oil reserves (2P-proven and probable) in million Barrels 6 Natural gas reserves (2P-proven and probable) in billion cubic feet % / / / / / / / / / /

25 3. Shares Key information ISIN DE German Sec. No Ticker NXI Shares outstanding 5,203,833* Share capital EUR 5,203,833* Transparency level Entry Standard Market segment Open Market Designated Sponsor Koch Bank, Frankfurt Investor Relations GFEI, Frankfurt Share performance since 2012 (Xetra) Shareholder Structure Management Closely-held DWS Investment GmbH Asset Managers Private Investors Others (unknown) Price details (Xetra) Current EUR 2.53 Market Cap* EUR million 52 week high EUR week low EUR 1.98 * Shares outstanding / share capital according to corporate register 25

26 3. Activa Resources AG corporate bonds 8% Corporate Bond 2010/2014 ISIN DE000A1E8Q94 Issue volume EUR 1.75 million Maturity December 2014 Par value EUR 100 Interest premium at maturity (agio) 5% 8% Corporate Bond 2013/2017 ISIN DE000A1YCS50 Issue volume EUR 1.51 million Maturity November 2017 Par value EUR 100 Interest premium at maturity (agio) 5% 8% Convertible Bond 2011/2014 ISIN DE000A1KQ086 Initial issue volume EUR 3.12 million Converted to date EUR 0.73 million Currrent outstanding EUR 2.39 million Maturity December 2014 Par value EUR 2 Conversion price EUR 2 per share Interest premium at maturity (agio) 10% Corporate Bond price since issue (Frankfurt Stock Exchange) in % Dez. Dec Dec. Dez Dec. Dez. 12 Convertible Bond price since issue (Frankfurt Stock Exchange) in % Nov. 13 Convertible Bond price since issue (Frankfurt Stock Exchange) in % 80 Apr. 11 Apr. 12 Apr

27 4. Strategy and Outlook Field Operations

28 4. Strategy OSR-Halliday Develop 2 waterflood projects Further development of field with 6th horizontal well in 1st Quarter 2014 and at least 2 further horizontal wells in 2014 Adams Ranch and Gray Waterflood Invest selectively in new Continued work on project pipeline Halls Bayou and Montgomery County opportunities to enhance (Texas) growth potential Develop new horizontal play (Project X) Build on Activa's experience and competence in developing horizontal plays Sale of Non-core Assets 2011 Big Mule sold for USD 100,000 Well performance below expectations 2012 Bright Properties sold for Working interests too small USD 300,000 (ROI 2,6 : 1) 2013 CERF/Navaro County sold for Of no strategic value to Activa USD 575,000 (ROI 3 : 1) 28

29 4. Drilling programme 2013 / 2014 Project Q Q Q Q Q Capex (Activa's share) OSR-Halliday 2 horizontal wells 1 horizontal well 1 horizontal well USD 1.2 million per well Loma Field USD 0.2 million Adams Ranch 10 new oil wells drilled Start waterfloodactivities USD 0.5 million (Pilotproject) Gray Waterflood Water injection Conclude water injection and evaluate results USD 400,000 (Pilot) Halls Bayou Prepare to drill first well Projekt X 1st vertical well 2nd vertical well USD 650,000 per well 29

30 4. Outlook Oil and natural gas production revenues (EUR millions) % % % e medium-term 3-5 years Group net income (EUR millions) +25% >+25% EBITDA (EUR millions) 1 >+25% >+25% >+15% +34% * e medium-term 3-5 years * Excluding extraordinary effect from the sale of 10 % of the shares in OSR-Halliday Earnings per share (EUR) e 2014e mediumterm 3-5 years e 2014e mediumterm 3-5 years 30

31 5. Contact Head Office Activa Resources AG Hessenring Bad Homburg Investor Relations GFEI Aktiengesellschaft Am Hauptbahnhof Frankfurt am Main Telefon: +49 (0) Fax: +49 (0) lah@activaresources.com Telefon: +49 (0) Fax: +49 (0) activa-resources@gfei.de 2014 Corporate Diary 27 March CEO Presentation, Hamburger Investor Conference, Hamburg 5-7 May CEO Presentation, SCF Small Cap Forum (Spring Conference), Frankfurt June Annual Report July AGM in Bad Homburg September Interim Report December CEO Presentation, Munich Investor Conference, Munich Regular publications Corporate News Activa Resources Quarterly Newsletter 31 31