INVESTOR PRESENTATION Q3 2017
A MID-CAP AFRICAN & EUROPEAN GAS COMPANY REGIONAL GAS STRATEGY SIGNIFICANT EXPLORATION KEY SHAREHOLDERS I T UNDERPINNED BY POTENTIAL A L Y Strong European gas demand and local pricing Eastern Morocco up to 31 Tcf Pan European / African Strategic Partnership Southern Morocco up to 9 Tcf 28.8% with Schlumberger FURTHER CONSOLIDATION Supportive Cornerstone Investors 54.6% OPPORTUNITIES IN MOROCCO STRONG THEMATIC 7.1% POSITIONING 9.5% Carbon consciousness and global warming driving transition to gas METRICS LOW COST MULTI Italian Cornerstone Investor Key Shareholders: CIP , OGIF TCF DEVELOPMENT IN (Continental Investment Partners) Stock Ticker: O SOU.LN EASTERN MOROCCO Moroccan Cornerstone Investor (OGIF) C C Market Cap: £402 million O Retail R Volumes: O 6m shares/day Other M JOURNEY SO FAR... Slide Acquisition of Securing cost Introduction of Acquisition of Introduction Successful drilling 1 Italian onshore gas covering Cornerstone Moroccan onshore of Strategic of 3 wells and portfolio production Investors gas portfolio Partner extended well test in Eastern Morocco Investor Presentation Rapagnano Continental Investment Tendrara, Sidi Schlumberger TE6, TE7 & TE8 Q3 2017 Partners, Oil and Gas Moktar, Meridja Investment Fund (OGIF) All volumetric estimates are 100% - Gross unrisked GOIP
THE TEAM Brian Mitchener Leonardo Spicci Exploration Director EVP , Production & Development Over 36 years experience in Oil & Gas exploration Over 25 years experience in Oil & Gas including as Regional General Manager Exploration management and operations across James Parsons at BG, Vice President International Exploration for Kazakhstan, north Africa and Italy. Reservoir Chief Executive Offjcer Africa at Statoil and 22 years with BP Exploration. geologist background with 23 years with Chartered Geologist, and a past President of the ENI E&P Over 20 years in Oil & Gas Geological Society’s Petroleum Group strategy, general management, M&A and fjnance across Europe, South America and Luca Madeddu Leonardo Salvadori Central America Country Chairman, Morocco Managing Director, Italy 12 years with Royal Dutch Shell Over 30 years upstream experience with Over 25 years managerial experience across ENI and Dana Gas in exploration, business Europe, Asia and South America. Reservoir Specialist in restructuring, development and general management geologist background with 22 years with funding and growing small ENI E&P listed upstream companies; qualifjed accountant Mohammed Seghiri Joined Sound Energy in 2011 Managing Director, Morocco Slide Over 18 years’ experience in leading complex 2 European and African projects across difgerent sectors, including Gas Storage, Oil&Gas Exploration and Power Production. Joined Sound Energy from OGIF where he was a Investor Managing Partner. Presentation Q3 2017
COMPELLING REGIONAL CASE FOR GAS Morocco Italy Casa Tiberi • Low risk emerging market • Stable demand with high gas Growing gas Rapagnano dependency penetration • Gas increasingly SMG replacing other fuels • Strong domestic gas network Dalla I T • Circa 90% hydrocarbons • Circa 90% hydrocarbons Disadvantaged A imported from Algeria imported from Algeria L supply position Y and Russia • GME pipeline ownership transitions to Morocco in 2021 • Recently introduced energy policy to encourage Laura • New Gas Agency under commercialisation of domestic Posta Del Giudice discussion hydrocarbons • 10 year tax holiday • 37.9% government net take Top quartile Solfara Mare (24% corporation tax ((FY2017 fiscal terms • Thereafter 35% net government onwards)), 3.9% regional take (30% Corporation tax and income tax plus 10% royalty Costa Del Sole 5% royalty after 10.6 Bcf) above 0.9 Bcf annually) Tendrara I Meridja Tendrara II Slide Tendrara 3 Sidi Moktar Investor O C Presentation Exploration C Q3 2017 O R O M
FLAGSHIP EASTERN MOROCCO DEVELOPMENT: EXTENSION OF PROVEN NORTH AFRICAN BASINS TENDRARA* (47.5% interest; Operated) MERIDJA* (47.5% interest; Operated) Atlas Mountains Strategic Partnership where T U N I S I A Schlumberger own 27.5% and High Plateau co-fund and technically de-risk Atlas the asset (Geophysical Survey Mountains (including seismic) with gross Benoud cost $27.2m fully carried by Ghadames Schlumberger) Oued Continuity of the Algerian Triassic M O R O C C O Mya Province and Saharan Hercynian A L G E R I A Timimoun platform Play type: gas discovery with condensate- light oil shows in the Illizi Lower Triassic sequence; Ahnet TAGI and Paleozoic sand objectives Slide Tendrara, eight exploration permits 4 14,500 km2 acreage, seven wells drilled; Meridja: reconnaissance 0 km 300 N licence 9,000km2 Investor Presentation Q3 2017 *Subject to completion of OGIF and Schlumberger transactions
TENDRARA: EARLY DRILLING RESULTS EXISTING WELLS JK-1 M E R I D J A TE-6 TE-6 N TE-2 TE-2 Triassic TAGI TE-7 discovery and TE TE TE-8 leads 21.2 Tcf RR-1 TE-5 potential TE-6 TE-8 2500-3500 mMD TE-3 Paleozoic Play SBK-1 K 1 28m net pay, Opener and 17 mmscf/d TE-1 TE-1 Extension of achieved TE-4 T E N D R A D R A D R A R A D R R TAGI Reservoir. post- stimulation Paleozoic concepts TE-7 additional ca. 10 Tcf potential 32 mmscf/d 3000-4000 mMD Slide after clean up: Option under Successful consideration 5 Extended Well Test 5 0 K M Investor Presentation Based on current seismic data Q3 2017 All volumetric estimates are 100% - Gross unrisked GOIP
EASTERN MOROCCO: PROSPECTS, LEADS AND RESOURCES Paleozoic 31 HIGH Meridja Identified TAGI leads 5.5 GAS VOLUME (TCF) 21.2 TCF Tendrara 17 Identified TAGI leads 14.7 MID 9 Slide LOW Eastern Morocco 6 Development Volumes 1.0 Investor 0 Presentation Q3 2017 All volumetric estimates are 100% - Gross unrisked GOIP
EASTERN MOROCCO: N A Tahaddart Power E N COMMERCIALISATION A R R 2 x 400 MW E T I D E M Oued The Tendrara fjeld will connect to the GME Dhar Doum El Makhazine pipeline near Ain Beni Mathar village, a few 4 x 400 MW 2 x 400 MW km from the Morocco-Algeria border via a Oujda new Pipeline C I Ofgtake expected to be either domestic power T N Al Wahda A plants for gas-to-power generation (transit via L Rabat 120km Meridja 4 x 400 MW T GME line) or export to Southern Europe A The GME can accommodate c.200 mmscfd of Casablanca Moroccan-source gas immediately, additional capacity opening in the short-term with contracted exports Tendrara Marrakech O C C O Slide R O A I M 7 R E G L A Investor Presentation Q3 2017 Gas Maghreb-Europe Pipeline Gas Pipeline Project
SOUTHERN MOROCCO: SIDI MOKTAR The Sidi Moktar permit is located in Jorf Lasfar the Essaouira Basin in central Morocco Power Plant (Western sea border) and is sub-divided into three blocks (North, South and West) with a combined area of 4,500 Tahaddart Power 2 x 400 MW square km. State owned Safi Chemicals Plant Phosphate Adjacent to and surrounding the Permit Oued Plant (OCP) is the Meskala Field, a gas/condensate Dhar Doum El Makhazine 4 x 400 MW discovery, which has been producing 2 x 400 MW since the late 1980s and represents one of the most signifjcant discoveries in Morocco to date. Al Wahda Rabat Chichaoua 4 x 400 MW The Sidi Moktar permit itself hosts some Meskala 40 wells, a pipeline and production Plant Casablanca facilities for gas and condensate Planned New Net efgective interest: 75% operated Phosphate Asset located 10km from the Meskala Plant gas processing plant and close to state O owned phosphate plant C C Marrakech Slide O R O 8 M Investor Presentation Triassic (TAGI) leads Q3 2017 Gas Maghreb-Europe Pipeline Gas Pipeline Project
SOUTHERN MOROCCO: SIDI MOKTAR Sidi Shallow (1000m to 3000m) 0 1 0 2 0 3 0 4 0 k m N T Gas discovery (Kechoula) in the Argovian and Lower Liassic with 2 wells on structure ( Koba-1 and Kamar-1) Jurassic gas Koba-1 and oil Recent success perforating discoveries Kamar-1 and clean up test of Argovian in Meskala 1000-3000mMD JRP-1 Kechoula discovery (Koba -1 well); Extended well test planned Q4 2017; Near term cash fmow Sidi Deep (3000m to 4500m) Deeper pre-salt potential up to 9 Tcf unrisked Triassic TAGI 2D seismic programme planned leads for 2018, focused on pre-salt 9Tcf potential 3000-4500mMD Drilling pre-salt thereafter Slide KEY Exploration wells 9 MESKALA targeting the Jurassic GAS FIELD GAS DISCOVERY TAGI LEADS Investor Line of Section Presentation Q3 2017
UPCOMING NEWSFLOW Q3 CFO APPOINTMENT 2017 Ongoing - 2D Seismic TENDRARA 2D seismic and aerial gradiometry September EASTERN MOROCCO Forward work programme update 2017 - Koba-1 (Argovian) Extended well test Q4 2017 SIDI MOKTAR Q4 2017/ - Drilling Further multi Tcf exploration drilling TENDRARA Q1 2018 End 2017/ - Concession & FDP Concession application TENDRARA Early 2018 - 2D Seismic Slide 2018 SIDI MOKTAR 10 Investor Presentation Q3 2017
Recommend
More recommend
