Corporate Presentation October 2015

Transcription

1 Corporate Presentation October a Latin American Producer and Explorer Executing the Strategy, Delivering the Plan Giles Clarke Chairman, John Wardle Chief Executive Officer, Nick Harrison Finance Director

2 Disclaimer Important Notice 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 Amerisur Resources 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. 2

3 Summary Executive Summary Strong positive operating cashflow at lower prices Operating cashflow $8.1m H Q1 reorganisation strengthens cash generation and conserves balance sheet and future value Positive operational catalyst Ecuador pipeline interconnector OBA end 2015 Substantially reduces OPEX Diversifies export options creating production growth and stability Valuation upsides Attractive prospects in Putumayo blocks more of the same Near term production and reserves adds in CPO-5 PUT-30 adds multi billion barrel resource play Tacacho an attractive long term play Transformational potential in Paraguayan exploration Balance sheet strength Zero debt. $55.6m cash as at 30 June 2015 No finance requirement but RBL facility in place Capex program fully funded with good optionality 3

4 Amerisur in Summary Asset Overview Strong Land Position Colombia Producing field Platanillo located in the Putumayo basin only lightly explored Caribbean Sea Venezuela Exploration block Put-12 directly to east of Platanillo (60% working interest) Put-30 50% WI Heavy oil play northern Putumayo basin FENIX COLOMBIA CPO-5 Tacacho strategically located on heavy oil trend CPO-5 light-medium oil in Llanos low risk, near term, many prospects Pacific Ocean PLATANILLO PUT-30 Tacacho H Production of 4,524 BOPD Pipeline to Ecuador under development Ecuador PUT-12 1P field reserves 16.2MMBO, 2P reserves of 24.55MMBO* Fenix block (100% working interest), in the Middle Magdalena Basin to the North of Colombia Peru Brazil Net mean additional resources of 235 MMBO** in Platanillo and Put-12 *As at 31 December 2014** Net Unrisked Management Estimates 4

5 Amerisur Infrastructure OBA Strong Progress towards Delivery Q4 Construction works are almost complete at VHR Upgraded pipe with special coating delivered from Tenaris Mexico Only outstanding permit is on the Ecuadorian side, the area between the national boundary and VHR-20, the first production pad in the Victor Hugo Ruales field 1,200m. MAE (Ecuadorian Environmental Ministry) has accepted terms of reference and study is underway Not expected to impact critical path 5

6 Amerisur Infrastructure OBA Strong Progress towards Delivery Q4 6

7 Amerisur Infrastructure OBA Strong Progress towards Delivery Q4 7

8 Colombia Platanillo Drilling Platanillo Summary of Future Upside Lots of running room still to go Area Next Steps Upside Potential U sand Development T sand Development B sand Development N sand Appraisal & Development Appraisal of North Independent Closure Appraisal of subsidiary structures West Northern section 3D seismic Infill and continued extension to the north Dual completion once U sand depletes or recompletion Aligned with T sand activities Seismic analysis and model refinement Platanillo North 3D seismic and possible drilling 2015 Libélula-1 suspended at 7,850ft - technical issues Acquisition completed May 2015 Light oil, good production rates, excellent reservoir Important prize, excellent reservoir tested and proven Smaller than T but can be developed with T Estimated greater than 100MMBBL OOIP potential Potential to add significant reserves Potential for another Platanillo in the next fault trend Drill H TBC 8

9 Amerisur in Summary Asset Overview CPO-5 in the right neighbourhood 9

10 Amerisur in Summary Asset Overview CPO-5 Loto Structure Loto Structure OOIP Analysis AREA (acre) NET PAY(ft) n Sw Boi OOIP (MMBBL)

11 Amerisur in Summary Asset Overview Paraguay Transformational potential in Paraguay - Extensive acreage position comprising two E&P and three Prospecting permits Active low cost exploration programme continues Seismic, Gravity, Aeromagnetics Force majeure until May 2016 Jaguareté-1 Well resources estimated at 685 MMBO** Bolivia Curupayty E&P PARAGUAY Las Palmas Permit Brazil Coronillo Permit Espartillar Permit San Pedro E&P Argentina ** Net Unrisked Management Estimates 11

12 Projection Operating and Financial Plan OPEX Optimisation Temporarily trim production in the short term to remove higher lifting and transport costs Capex revision Quickly reversible in the event of sales price increase or further cost reduction bopd until pipeline commissioned building to 5,000 bopd by end 2015 Field enhancements - Lifting Cost Reductions One-off Pipeline costs $18MM H Exploration & Development CAPEX 2015 $25MM Up to 3 wells in CPO-5, 1 well in Platanillo, seismic Put-12 Price Deck - $48/bbl average 2015 Forecast Gross Production 2.22 MMBO Exit Production rate 5,000 BOPD pre-oba Year End cash position 2015 approximately $40-45MM Cash operating and transportation costs for Platanillo field to fall from $27 per barrel to approximately $16 once OBA interconnector pipeline is operational 12

13 Projection CAPEX Breakdown MM US$ OBA Interconnector and Facilities $ 18 3 CPO-5 Wells or 1 CPO-5 well and 1 Platanillo well $7.5 Put-12 2D Seismic (net) $ 3 H1 $14.5 Total CAPEX 2015 $ 43 13

14 2016 Sensitivities 2016 CAPEX and EBITDA Sensitivities EBITDA ($m) Oil price assumption $45 $55 $65 Production (BOPD) 6,000 $17 $31 $44 8,000 $26 $45 $61 10,000 $35 $57 $78 CAPEX (Assuming a mid point production of 8,000 bopd and average prices of $55 Put 12 3 wells $17m Put 30 Seismic $5m Paraguay I well $9m Plat N 2 wells $8m CPO5 3 wells $6m Total $45m 14

15 Summary Summary Maintaining profitability, preserving Upside, focussed on delivery Significant OPEX Reductions delivered Attractive netbacks even at reduced sales prices Preserving valuable reserves for lower cost production environment and / or higher oil prices CAPEX Control Staged programme focussed on infrastructure and low risk drilling while building future inventory through selective seismic Continuing Significant Upside Potential fully funded Highly attractive near term prospects in Colombian blocks Ecuadorian pipeline, due to be operational in H1 2015, will allow substantial improvement in production volumes and netback Financial strength Strong existing balance sheet, zero debt and $55.6m cash at H First half EBITDA of $8.1m 15

16 Annexes 16

17 Projection 2015 Analyst Forecast Summary NAME HOUSE Date Rec Target price Core NAV Total NAV Daniel Slater Arden BUY Sam Wahab Cantor Fitzgerald BUY Ashley Kelty Cenkos BUY Darren Engels First Energy OUTPERFORM TBC Goldman Sachs BUY/ NEUTRAL Brian Gallagher Investec BUY Kate Sloan Macquarie NEUTRAL James Carmichael Peel Hunt HOLD Nathan Piper RBC OUTPERFORM Craig Howie Shore Capital CORP Robin Haworth Stifel BUY

18 Platanillo Evacuation Strategy Moving Oil to Point of Sale How OBA connects to the Ecuadorian System Colombia OBA ORITO PLATANILLO Ecuadorian Oil Gathering System RODA Ecuador Principal Oil Export Pipelines 18

19 Platanillo crossing the River Putumayo Pipeline to Ecuador Baseline surveyed by Amerisur 19

20 Platanillo Field Static Modeling from surfaces to 3D grid Grid 2015

21 Colombia Platanillo Drilling Upside Proven in T Sand Platanillo-20 1,041 BOPD 38.3 API T Sand U sand Horizon T sand Horizon 21

22 Putumayo Basin: Put-12 Putumayo Basin: Put-12 COLOMBIA Summary Amerisur 60% working interest and Operator PLATANILLO Ecuador Peru Brazil Geology PLATANILLO PUT-12 55,000Ha 5x bigger than Platanillo Similar geology to Platanillio PUT 12 9 leads on the existing seismic with the potential for 185 to 465 MMBO of gross resources 22

23 Putumayo Basin: Put-12 Putumayo Basin: Put-12 COLOMBIA Initial Drilling Focus: Lead 1 PLATANILLO Ecuador Peru Brazil Proximity and similarity to Platanillo Field P50 106MBO Lead 6 PLATANILLO PUT-12 Appears to be continuation of Blanca Field in Ecuador P50 47MBO 1 PUT 12 2 Lead 3 Trap door structure, large area, potential Stratigraphic component P50 82MBO InforPetrol process Stratigraphic leads not shown 23

24 Initial Platanillo Block Platanillo Block Platanillo Field PUT 12 Block Leads Platanillo 3D North (50.2 Km²) Exploitation Area New 2D Seismic PUT 12 (271.5 Km)

25 Putumayo Basin: Put-12 Put-12 Resources Latest Mapping (InforPetrol Process) OOIP MMbls Prospective Resources MMbls Lead Reservoir P95 Mode P05 Mean P95 Mode P05 Mean Lead 1 U, M2, T Lead 2 U Lead 3 U Lead 4 U, M2, T, N Lead 5 U, M2, N Lead 6 U, M2, T Lead 7 U, M Lead 8 T Lead 9 T Total MMBO ,

26 Putumayo Basin: Put-30 Putumayo Basin: Put-30 Exploration block in the prolific Putumayo basin 50% WI over38,500 hectares (partner Talisman) Cretaceous potential and recognized Tertiary play concept Significant Heavy Oil Resource expected in Neme Sands Low to medium exploration risk, high upside Put-30 Platanillo Put-12 26

27 Putumayo Basin: Put-30 Regional Setting Exploration block in the prolific Putumayo basin 50% WI over38,500 hectares (partner Talisman) Cretaceous potential and recognized Tertiary play concept Significant Heavy Oil Resource expected in Neme Sands Low to medium exploration risk, high upside Source: Talisman 27

28 Putumayo Basin: Put-30 Wells in the Area Source: Talisman 28

29 Paraguay Overview Paraguay Overview Our work suggests that all necessary conditions are present for a commercial hydrocarbon discovery San Pedro Coronel Oviedo, Lima, Santa Helena and Cary potential reservoirs 460km 2D acquired Jaguareté-1 exploration well in 2016 Unrisked Resources 620MMBO Bolivia Curupayty Permit Brazil Western Blocks (Las Palmas, Coronillo and Espartillar) Yacoraite Fault Traps and Onlap (tilted blocks and stratigraphic) Interpreting 1590 km reprocessed 2D seismic Curupayty Non Conventional potential in Los Monos thick Devonian Shales Under technical / economic review Las Palmas Permit Coronillo Permit Espartillar Permit Paraguay San Pedro Permit Argentina 29

30 Putumayo Basin Putumayo Geology PUTUMAYO BASIN Seals - Villeta and Rumiyaco shales N Sand Reservoirs in Villeta Sands & Carbonates Cretaceous Marine Sediments Source Rocks of Villeta Group Cretaceous Marine Shales 30

31 Llanos Basin CPO-5 Prospectivity Structures are very similar to Parex fields in Ll-34 and discoveries in the Guatiquia block Loto, Kamal and Metica have been drilled and showed oil columns and production Exploration Commitments: 405km 2 3D is in excess of the exploration commitment of 250km 2 One further exploration well by Jan 2017 (9 month extension Approved by ANH) 405km 2 New 3D Seismic 31