Annual General Meeting

Transcription

1 Annual General Meeting Westbury Hotel, Dublin, 13th September 2013

2 Forward Looking Statements The content of this presentation relating to Moesia Oil and Gas plc ( Moesia ) has not been approved by an authorised person with the meaning of the Financial Services. Reliance on this promotion for the purposes of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets involved. This presentation is an advertisement, not a prospectus and is being provided for information purposes only and does not constitute, or form part of, and should not be construed as an offer to sell or any solicitation of any offer to purchase or subscribe for any securities in Moesia. This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Moesia believes the expectations reflected herein to be reasonable to them at this time, the actual outcome may be materially different due to factors that are beyond the Company s control or within the Company s control where, for example, the Company decides on a change of plan or strategy. Moesia undertakes no obligation to revise any such forward-looking statements to reflect any changes in the Company s expectations or in any such change in circumstances, events or the Company s plans and strategy. Accordingly no reliance may be placed upon the figures contained in such forward looking statements 2

3 Agenda Introduction Formal AGM Votes Cast Business Overview Strategy Summary 2012/2013 Highlights Bulgarian Awards Romanian Activity Summary Corporate & Financial Outlook 3

4 Resolution 1 To receive, consider and adopt the Reports of the Directors, Auditors and Financial Statements to 31 st December 2012 Votes Received % Votes Cast For 8,973, % Against 0 0% Vote Withheld 0 4

5 Resolution 2 To re-elect Colm Daly as a Director of the Company Votes Received % Votes Cast For 8,973, % Against 0 0% Vote Withheld 0 5

6 Resolution 3 To re-appoint LHM Casey McGrath as Auditors of the Company Votes Received % Votes Cast For 8,973, % Against 0 0% Vote Withheld 0 6

7 Resolution 4 To authorise the Directors to fix the remuneration of the Auditors Votes Received % Votes Cast For 8,973, % Against 0 0% Vote Withheld 0 7

8 Resolution 5 Special Business As a Special Resolution To disapply statutory pre-emption rights in certain circumstances Votes Received % Votes Cast For 8,858, % Against 0 0% Vote Withheld 115,090 8

9 Strategy Overview Strategy Build significant reserve and production base Implementation Near term production focussed company with balanced E&P portfolio Target redevelopment and low risk exploration Proven plays; by-passed and overlooked pay Apply modern technologies and practices Low cost pilot projects to prove concept Rapid payback and high IRR Why is there potential? Romania Exploration Acreage- sparse seismic coverage; State Oil Co believed gas prone 9 th Round Marginal Fields - immaterial to State Co; poorly appraised and produced Bulgaria Marginal fields poor production practices Proven Play Exploration modern techniques yet to be applied systematically Unconventional potential recent interest in the region Introduce suitable partners 9

10 2012 Highlights Clear progress made within challenging economic climate Building balanced E&P portfolio Focus on near term production opportunities Bulgaria Awarded 4 Exploration Licences 1476 sq kms Exploration, Re-Appraisal and Development opportunities Romania EX-12 exploration block Farm Out Technical work conducted on all Blocks including 5 marginal fields (P IX s) 10

11 2013 Work & Objectives Conduct high quality work in all 10 licences Continue new venture and business development activity Focus on near term production opportunities Bulgaria 2013 Environmental and database work Farm-out: Introduce a suitable partner company or companies Romania 2013/4 Marginal Fields: conduct seismic and well ops establishing production Exploration: fast-track EX-12 Crai Nou New Ventures: participate in 11 th bid round and divestment evaluations 11

12 Bulgaria - Moesia Licence Location Kriva Barra Field Appraisal & Development ( sq km) ( sq km) Devetaki Field Re- Appraisal and Re-development ( sq km) ( sq km) Reserve potential Leads/Prospects up to 20mmboe 12

13 Bulgaria Petroleum Sector & Key Commercial Terms EU and NATO Member State Minor domestic production with strong demand attracting competitive market prices Attractive licence terms Tax and Royalty PCA s Royalty % CT 10% Favourable gas market Current prices c.$8.50/mscf Oil pricing international market Moesia licences situated close to main gas line providing access to all internal (and external) markets allowing rapid project monetisation Oil proved reserves Oil production Oil imports Gas reserves Gas production (2010) Gas consumption 15 mmbo c bopd > 120,000 bopd 5,663 mmscm 54 mmscm 2,170,000 mmscm (Source CIA) 13

14 Bulgaria Technical Current work Independent Environmental work on all four Blocks Database Overall Work Project (5 years) Farm-Out New partner must be technically capable and financially robust Moesia seeking 100% carry Preferential treatment of Devetaki Conventional Field Block 1-5 Devetaki Includes the Devetaki Field Produced c.12 bcf gas Field was not appraised and developed satisfactorily There may be significant remaining potential Faulted Model GIIP P90 P50 P10 MMscm 1,923 3,289 5,624 bcf

15 Romania Activity Summary

16 EX-12 Crai Nou 2012/3 EX-12 Crai Nou Group Moesia 50% WI & operatorship NIS GPN financially robust & regional experience Numerous lead areas identified Accelerated /expanded programme under consideration Room for additional farm down Expected volumes bcf gas; 1 20 mmbo oil Scoping Economics 35 bcf NPV10% 33mm 15 mmbo NPV10% 97mm 16

17 EX-12: identified lead areas 17

18 EX-12 example lead features Shallow Gas Re-Appraisal Stacked Play Exploration Lead Several wells drilled tested significant volumes of gas in the 1990 s but were not developed by the State Oil Co. Shallow low cost wells (<1000m depth) Reserve potential 5 40bcf Many leads highlighted: gas & oil potential 2013 work: repro and interp; seismic acquisition? Depths range from 750 to 3000m Reserve potential 5 25mmboe 18

19 PIX Marginal Field Licences Shallow oil and gas potential via modern re-appraisal and redevelopment practices Probability Level Hydrocarbon Volume 2012 estimate additions/ (reductions) Hydrocarbon Volume 2011 estimate Field studies completed 2013 Volume estimates increased Seismic repro and interpretation review - October 2013 P P Note: Volume estimates are not audited Seismic acquisition and well operations under consideration PIX-1 Bertesti Shallow reservoirs ( m) Substantial remaining volume Incremental rec vols: P ; P mmboe 3D seismic & Staged Pilot Project of shallow appraisal wells to be considered 19

20 Board Changes 2012 Brian Hodgson & Robert Tapp 2013 Bogdan Balan retirement Q new appointment Directors Fees 2012 & H fees deferred; paid July 13 and net amounts reinvested for New Ord Shares Share Options Scheme approved by shareholders 2012 Awards made year vesting period 7 year term Base option price = 0.75 Corporate Incentive Options awarded with additional pricing conditions 20

21 Financial Continued underinvestment in and underperformance of E&P sector negatively affects Moesia s access to funding Moesia has achieved significant success given investment levels to date Current bank position provide funds into 2014 Additional funding is required to fulfil licence commitments and to continue business development activity Focus on portfolio management Farm-outs Asset divestments? M&A? Share placing? Private or via listing? 21

22 Conclusions and Outlook Moesia s strategy is delivering suitable licences Expansion into Bulgaria is a significant achievement Attractive licences with substantial re-development and exploration potential 2013 work environmental and database Aiming to introduce a partner company with suitable financial and technical capability Romania: the 2012 EX-12 farm-out underpinned value Marginal Field licences decisions concerning future seismic and well operations Q Financial strategy Must be flexible and opportunistic Focus on value creation and monetisation; timing Portfolio Management Equity funding pvt placing; IPO? 22

23 Glossary Appraisal Well A well drilled after a discovery of oil or gas has been made in order to help determine the size of the discovery and to gather information on the rock and fluid properties bbl Barrel which is equivalent to 42 US gallons at 60 o F bcf Billion cubic feet of gas boepd Barrels of oil equivalent per day bopd Barrels of oil per day CAPEX Capital expenditure Development Well A well drilled in a proven producing area with the aim of the production of oil or gas. E&P Exploration and Production EIA Environmental Impact Assessment Exploration Well A well that is drilled to look for oil or gas in an area where no oil or gas is known to exist GIIP Gas Initially in Place or the total gas content of a reservoir in situ before the commencement of production operations as measured at standard surface pressure and temperature conditions IRR Internal Rate of Return mmbo Million barrels of oil mmboe Million barrels of oil equivalent mmscfd Million standard cubic feet per day NPV10% Net present value discounted at 10% OPEX Operating expenditure Porosity a measure of the void space in a rock usually expressed as a percentage of the total rock volume Permeability a measure of the ability of a porous material to transmit fluids P90 Reserve and/or resource estimates that have a 90 per cent estimated probability of being met or exceeded. P50 Reserve and/or resource estimates that have a 50 per cent estimated probability of being met or exceeded. P10 Reserve and/or resource estimates that have a 10 per cent estimated probability of being met or exceeded. Recovery Factor that proportion of the oil or gas volume in a reservoir which can be technically and economically recovered Reserve A volume of oil or gas that is economically recoverable sq km Square kilometres STOIIP Stock Tank Oil Initially In Place, or the total oil content of a oil accumulation in situ prior to the commencement of production operations measured at standard surface pressure and temperature conditions. 23