Success in Cameroon: - Project Delivery - Cashflow - Expansion. September 2017

Transcription

1 Success in Cameroon: - Project Delivery - Cashflow - Expansion September

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3 Unlocking DomesTc Onshore Gas Supplies In Africa. Cash generatng, integrated energy company with operatons in Cameroon including key asset of 50km gas pipeline network 2016 net revenue $32.8m and EBITDA $13.1m Majority interests in 3 gas rich licenses in Douala Basin with 121 bcf gross 2P reserves and high TCF upside over 3,500 sq. km 57%* partcipatng interest and operator of Logbaba project: Producing wells, gas plant and 50 km pipeline and sole supplier to a fast growing market Q gross gas producton (14.6 mmscf/d) is all natural gas sold in Douala at price range US$9-16/mmbtu Target 100 mmscf/d producton by 2021 We are focused on increasing sales of high margin gas whilst increasing proven and probable reserves *Residual 38% partcipatng interest held by RSM ProducTon CorporaTon of Denver and SNH (Government Oil and Gas Co) 5% Development drilling at Logbaba, Cameroon 3

4 Cameroon Vision: To dominate the domestc gas market Douala regional gas demand exceeds 150mmscf/d Cameroon needs to increase power supply from 1,200MW to >3,000MW from current 1,200MW by 2020 Target is to build out Cameroon producton to >100mmscf/d by 2021 by organic growth, acquisiton and product diversificaton Matanda and Bomono licenses areas (3,500 sq. km) will provide massive exploraton and development potental ObjecTve 2017 Secure more gas.. MeeTng needs of new high volume demand customers Complete the two well drilling programme at Logbaba Conclude Bomono Farm-in Agreement with Bowleven Plc Development plan for Matanda aimed at drilling 2018, subject to Government approval 4

5 Corporate Snapshot Capital Structure Share Price Performance Exchange LisTng Details Exchange LON AIM: VOG Ordinary Shares on Issue No. 110,571,762 Share Price (as at 1 Sept 2017) Stg pence/sh 58 Market CapitalisaTon m 64 Cash (30 June 2017) US$m 7.6 Net debt (30 June 2017) US$m 20.7 Top Shareholders Holder Shares Held % of IC Majedie 5,203,959 5% Forest Nominees Ltd 5,541,000 5% Total 11,350, % Both major shareholders increased positons during April

6 Assets: producton, reserves & resources upside PotenTal control of Douala Basin in Cameroon 57% WI in Logbaba with 121 bcf gross 2P Only onshore gas producer (14.6 mmscf/d in 2Q17) in Cameroon Drilling two wells in 2017 to increase reserves and producton DOUALA 75% assigned from Glencore in Tmes size of Logbaba license area P50 in place resources of over 2.8/ Tcf and 136/ MMbbls Pending Government approvals 80% interest in Bomono 110 Tmes Logbaba Near term producton at Moambe 430/ bcf of prospects already mapped Pending Government approvals 6

7 Cameroon Reserves and Resources Logbaba Reserves 1 VOG is the operator of the 20km 2 Logbaba Block and holds a 57 % partcipatng interest. Reserve Category Type Units Gross VOG % Net Proven (1P) Gas Bcf Proven + Probable (2P) Gas Bcf Proven + Probable (2P) + Possible (3P) Gas Bcf Matanda Resources 2,* 1,235km 2 Matanda Block, Farm-in agreement for 75% partcipatng interest (AFEX 25%) Resources Category Type Units Gross VOG % Net P50 ProspecTve Resources Gas Bcf 3, ,810 Bomono Resources * In March 2017, VOG signed farm in agreement for 80% of the 2,327km 2 Bomono Block with Bowleven (subject to completon). Detailed prospect inventory indicates there is 146bcf and 263bcf of mean un-risked GIIP in the TerTary and deeper Cretaceous reservoir intervals respectvely. Notes:. * Both Matanda and Bomono Projects are subject to certain Government approvals before projects can proceed 7

8 Adding Reserves: Two new wells Upper Cretaceous Logbaba FormaTon, which is a thick sequence of inter-bedded sands and shales found at depths between 1,700m and 3,200m below the surface La-107 is a twin of the Serepca La-104 well drilled in 1957 into an area that has proven gas in the Logbaba field and is intended to develop some of the 1P reserves Well La-107 successfully drilled to planned TD, preliminary analysis of logs shows 35m of net gas sands in the upper Logbaba & 23m in the lower Logbaba Flow testng scheduled early September 2017 Plant expansion work to be concluded to bring capacity up to 40 mmscf/d following results IniTal producton end of September 2017 High usage off-takers awaitng delivery of enlarged reserves/producton Well La-108 has encountered c.100 m net pay of high perm, high porosity gas bearing sand- side tracking has recommenced Re-entry scheduled for Q with first producton expected shortly ayerwards Further plant expansion works 8

9 Logbaba gas: A business model unique in our sector Total gas supply chain operaton from extracton to customer connecton VOG subsidiary Gaz du Cameroon (GDC) has 144 employees, 95% local Record ProducTon in Q2 2017: 11.9% YoY increase in producton to 14.59mmscf/d Increased energy provision has brought more cross-border investment into region VerTcally integrated & diverse customer base Unregulated gas pricing 9

10 50km Pipeline network delivering to 32 locatons 10

11 Logbaba GDC s Customer Types Our customers cover a range of diverse industries. Douala is a major producton hub for goods supplying both Cameroon and the surrounding region Gensets on site at Bassa Power StaTon Customer Type DescripTon FY 2016 Grid Power Supply of gas to state power operator ENEO s two statons for generaton of 50MW of electricity to the natonal grid. 2,409 mmscf Thermal Industrial Power Gas Condensate GDC supplies gas to a number of industrial customers for thermal use in boilers, process plants and furnaces. Gas supplied to dedicated 1.5MW gas-fired electricity generators for customers factories and plants. This was a key part in demonstratng the ability of GDC to turn gas into power. Gas condensate, a by-product of natural gas, is used as a cleaner and solvent, lantern and stove fuel and as a premium product in heavy oil producton. Condensate can be taken by road tanker to various parts of the country. 1,046 mmscf 111 mmscf 39,845 bbls 11

12 Logbaba Gas and Condensate Performance Delivering 10.2 mmscf/d in 2016 and plans to double this by Recent performance from Logbaba: Gross Gas Sales Units Q Q YE 2016 total Q Q Q Thermal mmscf , Retail Power mmscf Grid Power mmscf , Total mmscf 3, ,152 Average Gas ProducTon mmscf/d Condensate Sold bbls 9,147 8,816 39,845 6,68 9 6,689 12,45 7 Revenue US$m Demand for gas in Douala is in excess of 150 mmscf/d and GDC is providing gas to major customers such as Castel Group, Guinness, Dangote and the major power providers, ENEO, Globaleq and others recently acquiring IPP licenses. 12

13 Building the Business Adding Customers Adding Reserves CompleTng AcquisiTons 13

14 The Vision: Cameroon 2021 Market 150mmscf/d GDC aims to deliver 100 mmscf/d gross Gas sales growth (mmscf/d) Grid Thermal Power CNG Gas Sources mmscf/d Gas Uses Logbaba Cretaceous 40 Matanda TerTary 20 Matanda Cretaceous 30 Bomono TerTary 10 Thermal Power Grid CNG/Liquids mmscf/ d Price $/ mmbtu Revenue $m Total

15 Adding Customers: Pipelines laid under all conditons Total pipeline laid to date 50km including 850m run under Wouri River to Bonaberi district Cost savings by working with road constructon company Satom 10 new customers will be connected in Bonaberi Pipeline crew is 100% domestc + 40mmscf/d capacity 15

16 CONCLUSIONS Profitable company and increasing cash-flow Delivered a major infrastructure network ImplemenTng low risk drilling programme Well positoned to expand reserves and producton Highly differentated from African E&P companies on AIM Scope for this strategy with complementary projects 16