Fastnet Oil & Gas Plc Corporate Presentation August 2014
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Fastnet Oil & Gas plc (the “Company”) does not undertake any obligation to update or revise th e information in or contents of this document. Recipients of this document who may consider acquiring shares in the Company are reminded that any such acquisition should not be made on the basis of the information contained in this document. This document is being distributed in the UK only to, and is directed only at persons who are: (i) investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) FPO 2005 (“the Promotion Order”); (ii) are persons of a kind described in Article 49(2) of the Promotion Order; (iii) are persons to whom this document may otherwise lawfully be issued or passed on and/or (iv) persons outside the United Kingdom (in accordance with any applicable legal requirements) (all such persons together being referred to as “Relevant Persons”). 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You are cautioned that forward-looking statements are not guarantees of future performance and that the Company's actual results of operations, financial condition and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Past performance is not a guide to future performance. www.fastnetoilandgas.com 2
Company Overview Moroccan Assets Company Overview Irish Assets Outlook Moroccan Assets Irish Assets Outlook
OVERVIEW Overview and Company Funding • 25,053 sq. km. under licence onshore and offshore Morocco and offshore Ireland with 16 primary exploration and appraisal prospects matured for drilling • Cash balance USD 20 mm at 31 July 14 • Running costs – general and administration – USD 2.6 mm p.a • Fully funded to meet all current licence phase commitments - monetisation through farm down and recovery of past costs • Partners – Kosmos Energy, BP, SK, Asia’s fourth largest oil refiner and with proven reserves of 619 mm BOE, and PETRONAS • Tendrara Lakbir well planning on schedule. Recently announced improved net equity position of 50% significantly enhances project economics. Significant interest from industry majors recognizing additional upside in unconventional shale gas play. • Celtic Sea farm out process well underway. Internal technical work continues to enhance value with completion of 3D interpretation. Offers expected Q4. • FA-1 well reached TD May 14, under budget. Numerous oil and gas shows encountered in well. Full prognosed section not penetrated due to salt occurring shallower than predicted. FA-1 results have significantly de-risked the Foum Assaka license area. www.fastnetoilandgas.com 4
OVERVIEW Business Model Health Check • 25,053 sq. km. under licence and exclusive options ACQUIRE ACQUIRE • New niche opportunities being reviewed in onshore East Africa • 1,910 sq. km. of 3D seismic acquired in Ireland ANALYSE • ANALYSE 488 sq. km. of 3D seismic reprocessed onshore Morocco • Up to 5,000 sq. km. of 3D seismic acquired/reprocessed offshore Morocco • Foum Assaka farmed out to SK Innovations – carry in up to 2 wells plus back costs FARM DOWN • FARM DOWN Total cost to Fastnet from licence acquisition to completion of the FA-1 well was USD 2.75m • Celtic Sea and Tendrara Farmouts well underway – 9 front-runners • FA-1 first well tested the high risk, deepwater, acreage in the portfolio • De-risked petroleum system – oil shows encountered, sand presence confirmed but EXPLORE EXPLORE thickness/quality remains issue • Tendrara Lakbir well planning under way and on track • Celtic Sea 3D Interpretation has defined and de-risked very large potential oil and gas prospects • FA-1 encountered non-commercial hydrocarbons, derisked elements of petroleum system for future prospect evaluation. MONETISE • Tendrara – Lakbir drilling programme offers next near-term opportunity for monetisation MONETISE • Deep Kinsale and Mizzen prospects offer medium term potential for monetisation following farm- www.fastnetoilandgas.com 5 down/drilling
OVERVIEW Potential Near Term Catalysts to Unlock Shareholder Value Fastnet Risked Net Asset Value 41.5p 40 Celtic Sea 35 15p Celtic Sea Farmout • Significant industry interest in Celtic Sea licences following results of 3D seismic 30 Net Asset Value (GBp) interpretation • Farmout will validate the quality of Fastnet’s portfolio and crystallise value 25 with back costs of up to USD 22 mm repayable Tendrara Farmout & 2015 Drilling • Fastnet objective is to retain material carried interest in multi-well drilling 20 Programme programme in 2016 • Farmout process well underway • Terms to include reimbursement of back costs 21p Tendrara* 15 and disproportionate share of the cost of two wells to be drilled in 2015 • Multi well drilling programme will target High Estimate Case of 892 BCF which provides 10 substantial upside to current NAV estimates Implied value of Exploration and 5 Foum Assaka** 2p 1.5p Appraisal Portfolio Cash 3.5p 3.5p Cash Balance 0 Source – Shore Capital March 2014 Price: 5.05p as at 06/08/14 www.fastnetoilandgas.com 6 *Management estimates based on re-risking of CPR, volumes Nov 2013. *Unrisked P50 value: 30p **Value of the carry in 2 nd exploration well
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