April 2019 0
Disclaimer These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company nor shall they or any part of them form the basis of or be relied upon in any manner or for any purpose whatsoever. These Presentation Materials must not be used or relied upon for the purpose of making any investment decision or engaging in an investment activity and any decision in connection with a purchase of shares in the Company must be made solely on the basis of the publicly available information. Accordingly, neither the Company nor its directors makes any representation or warranty in respect of the contents of the Presentation Materials. The information contained in the Presentation Materials is subject to amendment, revision and updating in any way without notice or liability to any party. The presentation materials may contain forward-looking statements which involve risk and uncertainties and actual results and developments may differ materially from those expressed or implied by these statements depending on a variety of factors. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or opinions contained herein, which have not been independently verified. The delivery of these Presentation Materials shall not at any time or in any circumstance create any implication that there has been no adverse change, or any event reasonably likely to involve any adverse change, in the condition (financial or otherwise) of the Company since the date of these Presentation Materials. The Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced, further distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (except the recipient’s professional advisers) or published, in whole or in part, for any purpose whatsoever. The Presentation Materials may not be used for the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction. 1
Introduction Management Stephen Williams Sachin Oza • 16 years’ experience in the energy sector • 17 years’ investment experience • • Investment analyst focussing on the energy Investment analyst at M&G Investments from sector at M&G Investments where he worked 2003-2016, covering the Oil & Gas sectors on a from 2010 to 2016 global basis • • Energy investment analyst for Simmons & Also held roles as an investment analyst at Tokyo Company International from 2005 to 2010 Mitsubishi Asset Management and JP Morgan • 2003 to 2005 was an analyst at ExxonMobil Asset Management Company: History & Overview • New management appointed in October 2017 • Implemented unique investment strategy focused on near-term upstream drilling • Raised a total of £18.3M in three separate placings between October 2017 and September 2018 • Participation in six wells drilled since August 2018, with five discoveries • Exposure to multiple potentially transformational wells to be drilled in 2019 • Significant NPV embedded in current portfolio from both discoveries and future wells 2
Overview • AIM-listed, upstream oil & gas company • Specific strategy to fund other operators’ appraisal wells • High quality, high return projects • Technically de-risked by previous drilling • Quick cycle times to monetisation • Reabold’s capital unlocks the project allowing near term drilling activity • Non-operator model keeps costs low and facilitates a fully diversified portfolio • Reabold has demonstrated execution of strategy in short time frame • Material success in capital raising, deal execution, and with the drill bit 3
Delivering Activity & Success with Drill Bit** Project Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 California - On Production NPV*: $10M Workovers California - West Discovery: On Production Brentwood VG-3 NPV*: $25M California - West Discovery On Production Brentwood VG-4 Dry Hole UK Offshore - Wick Discovery UK Offshore - NPV*: TBC Colter (Colter South) California - Discovery Monroe Swell Burnett 2A NPV*: $100M California - Discovery Monroe Swell Burnett 2B UK Onshore - NPV*: $61M West Newton Romania - Parta NPV*: $42M Appraisal California - Grizzly NPV*: $100M Island 4 **Future wells are indicative timings *NPVs as provided by operators
Diversified Portfolio of Material Assets RATHLIN UK (37% interest) REABOLD CALIFORNIA Four from four successful wells to date Drilling West Newton appraisal well in Q2 Extremely high per bbl economics Potentially one of the largest UK onshore oil and gas projects Fast pace of activity Low risk appraisal of significant gas discovery Discoveries quickly put into production Same well tests very large oil prospect Highly cash generative Asset ideally located for development Substantial running room within the portfolio DANUBE PETROLEUM (33% interest) CORALLIAN ENERGY (33% interest) Drilling IM-1, first well in two well appraisal Made oil discovery at Colter South in Q1’19 campaign, in Q2 2019 Post well analysis underway; pre-drill volume Very low technical risk; re-drilling a previous estimate of 15M bbls gross* gas discovery that was never developed Best development plan now under Strategic asset, in attractive gas market and consideration with significant running room Farm out on Curlew appraisal project now Access to infrastructure; simple development underway – planned drilling late 2019 5 * Corallian mngt mean estimate
Rathlin UK Newton Appraisal Well - Humberside • Reabold invested £3M for a 37.08% equity interest in Rathlin UK • Rathlin will drill appraisal well of West Newton A-1; significant gas discovery made in 2014, with potential for deeper oil • Union Jack PLC and Humber Oil & Gas have farmed in for 33.3% paying 50% • Dual objectives: Low risk appraisal of significant gas discovery whilst testing extremely significant oil upside: • Appraisal of Kirkham Abbey gas: 72% COS* for NPV* $247M • Exploration of reef flank Cadeby oil: 24% COS* for NPV* $850M • Expect to drill April 19; RBD with ‘look through’ 25% equity interest on the licence * Connaught Management Estimate 6
Reabold California • Reabold acquired the right to earn 50% in 3 licences in California by drilling 5 wells • Four wells drilled to date with all four resulting in discoveries • VG-3 well drilled on West Brentwood and put on production in Oct 2018 • VG-4 well successfully drilled on West Brentwood in December 2018 and tested at >500boepd. Currently producing at restricted rate prior to ramp up to full production • Burnett 2A and 2B wells drilled at Monroe Swell field in Q1 ’ 19; both successful with imminent testing and then production • Grizzly Island to be drilled in H2 ’ 19 • Estimated NPV* up to $235M across the * Estimated by Dero Parker of 7 portfolio net to Reabold Integrity Management Solutions, contract operator of the licenses
Reabold California Monroe Swell Structure Map • The California portfolio allows us to drill wells into previously produced prolific oil fields at West Brentwood and Monroe Swell Successful • 3D seismic, unavailable to previous operators, Burnett 2A highlights new targets untapped by previous Successful wells Burnett 2B • Drilling is low risk and low cost. Development capex is negligible, and opex is also expected to West Brentwood be low Structure Map • Economics and especially cash generation Successful VG4 therefore extremely impressive RBD Wells VG3 • Substantial running room on existing licenses, 4.8 and 3.9 and multiple opportunities to add to the were Reabold California portfolio producers * Estimated by Dero Parker of Integrity Management Solutions, 8 contract operator of the licenses
Danube Petroleum Parta, Onshore Romania • Reabold has invested £1.8M into Danube Petroleum for its 33% equity interest • Reabold has options to acquire a greater equity interest on successful drilling • Danube 100% interest in Parta appraisal programme and 50% in rest of the licence • Reabold investment funds first well of two well appraisal programme – drilling June 2019 Appraisal Programme • Proven and stable hydrocarbon region • Highly attractive economics • Very low geological risk with significant resource potential • Danube is carried for $1.5M of additional 3D seismic later this year 9 * Based on ERC Equipoise Independent Experts Report
Corallian Energy Colter Discovery and Curlew-A Appraisal • Reabold holds a ca 33% equity interest in Corallian Energy Wytch Farm • Corallian drilled the Colter appraisal well Colter at a 49% equity interest in Q1’19 • Oil discovery made in the Colter South fault terrace; pre drill volumetric Purbeck assessment was 15 mm bbls gross, post well analysis ongoing Field map of the Colter appraisal well • Adjacent Wytch Farm infrastructure significantly enhances economics • Curlew-A appraisal well planned for drilling in H2’19 subject to farm -out (well is partially farmed out to date) • Contingent 2C resource of 45M bbls 10
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