Macquarie Oil and Gas Explorers Conference. 13 th January 2014 Joel Price, COO

Transcription

1 Macquarie Oil and Gas Explorers Conference 13 th January 2014 Joel Price, COO Lewino-1G2 shale frac (Baltic Basin, Poland) during clean up, 2014

2 Disclaimer This presentation is incomplete without reference to, and should be viewed solely in conjunction with the oral briefing which accompanies it. The information in this presentation is subject to updating, revision and amendment. The information in this presentation, which includes certain information drawn from public sources does not purport to be comprehensive and has not been independently verified. This presentation has not been examined, reviewed or compiled by San Leon Energy PLC s (the Company s ) independent certified accountants. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or any assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company, any of its subsidiaries or any of its and their advisers, directors, officers, employees or agents, as to the accuracy, reliability or completeness of the information or opinions contained in this presentation or in any revision of the presentation or of any other written or oral information made or to be made available to any interested party or its advisers and no responsibility or liability is accepted (and all such liability is hereby excluded for any such information or opinions). No liability is accepted by any of them for any such information or opinions (which should not be relied upon) and no responsibility is accepted for any errors, misstatements in or omissions from this presentation or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. In particular, this presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company s control or within the Company s control where, for example, the Company decides on a change of strategy. The Company undertakes no obligation to revise any such forward-looking statements to reflect any changes in the Group s expectations or any change in circumstances, events or the Company s plans and strategy. Accordingly no reliance may be placed on the figures contained in such forward-looking statements. No representation or warranty of any kind is made with respect to the accuracy or completeness of the financial projections or other forward-looking statements, any assumptions underling them, the future operations or the amount of any future income or loss. The content of this presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ( FSMA ). This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for or otherwise acquire, any securities in the Company in any jurisdiction or any other body corporation or an invitation or an inducement to engage in investment activity under section 21 of FSMA, nor shall it or any part of it form the basis of or be relied on in connection with any contract therefore. This presentation does not constitute an invitation to effect any transaction with the Company or to make use of any services provided by the Company. Reliance on the information contained in this presentation for the purposes of engaging in any investment activity may expose the investor to a significant risk of losing all of the property or assets invested. Any person who is in any doubt about the investment to which this presentation relates should consult a person duly authorised for the purposes of FSMA who specialises in the acquisition of shares and other securities. By attending the presentation, or reading or accepting this document you agree to be bound by the foregoing limitations.

3 Contents Company overview Activities over last 18 months Turkey Poland overview Polish shale detail Lewino 1G2 shale frac activity Summary 3

4 Company Overview AIM listed independent Exploration and production company Europe & North Africa / Med focussed High impact exploration in Poland and Morocco Production with upside in Turkey Extensive and balanced portfolio Conventional and unconventional; oil and gas Alpay Enerji (2013) Gold Point Energy (2009) San Leon Energy Island Oil & Gas (2010) Highly experienced management Applying proven technology Aurelian Oil & Gas (2013) Realm Energy (2011) 4

5 San Leon Energy Plc Asset Overview Extensive Acreage Base San Leon Energy Alpay Enerji Includes acreage indirectly held through shareholding post Ireland deal 5

6 Key milestones achieved over the last 18 months Five successful farm outs / sales to reputable companies: Foum Draa to Cairn, Sidi Moussa to Genel, Amstel NPI to GdF Suez, Braniewo to Wisent, Cybinka Torzym to Aspect Energy Drilled or performed stimulation activity on 5 wells Acquisition of Timahdit Oil Shale licence in Morocco Strategic partnerships, including equity for service deals with service companies: Halliburton, Schlumberger, United Oilfield Services Equity placement for 31 million Merger with Aurelian Oil & Gas Acquired cash, assets and staff Acquisition of Alpay Enerji (Turkey): producing assets with exploration upside: Aims to make Company cash flow positive by Q on a group basis Allows suitable time to exploit high impact Polish assets properly 6

7 Producing Oil & Gas Assets In Turkey Acquired 75% of Alpay Enerji (Sept 2013) CPR: 6.5 Bcf (1P) and 47 Bcf (2P) (1) Further resources estimated at 141 Bcf 16 licences over 1.8 million acres (1.4 net) Existing Compressed Natural Gas (CNG) bottling facilities at two locations with a combined capacity of 50,000 m 3 /d and typical sales price of $22/mcf Ramp up production rapidly to become cash flow positive across the whole Company during H Conventional assets with significant upside Growing national energy market highly dependent on import (99% of gas) (1) Senergy CPR dated July 2012 Gulhanim 2 Hatay CNG facility Heavy oil 7

8 Poland - Diverse Portfolio Across Many Plays 42 Licences across 4.9 million Net Acres (6.8 million Gross) 1. Baltic Basin 2. Permian Basin Baltic Basin Targets Paleozoic shale play Gas, condensate and oil Permian Basin Targets Unconventional Carboniferous Shale Tight gas sand Conventional Oil in the Zechstein Main Dolomite Conventional oil Low cost/low risk prospects Tight oil Huge upside potential Conventional Oil in the Rotliegendes Sandstone Conventional Low cost/low risk prospects Tight gas Huge upside potential 3. Carpathians Carpathian Basin Targets Deep Fold Belt Conventional plays Shallow Foredeep Oil & Gas Plays 8

9 Poland Baltic Basin, Adding Value Huge upside potential in shale valuations: Huge upside potential in shale valuations: US development shale gas acreage traded for up to $38,000 per acre; Polish exploration shale gas acreage trading at up to $500/acre $/Acre 30,000 10,000 5,000 1, Sasol/Talisman $38,000/acre Petronas/Montney $6,000/acre Shell/Marcellus $4,700/acre Total/Utica $15,000/acre Exxon/Duvernay $4,500/acre Statoil/Bakken $11,500/acre Expected Value Per Acre After Successful Work Programme Baltic licences following 3 wells drilled in 2011/12 Baltic basin licences value by Farm Out 10 5 San Leon Acquisition of Licences 9

10 Poland Baltic Basin, 146Tcfe (1) Paleozoic Shale Play Ordovician & Silurian Gas/Condensate Silurian Oil Ordovician & Silurian Overpressured Gas POLAND Gross Net Basin Acres KM 2 Acres KM 2 WI Gdansk W 221, , % Braniewo S 257,654 1, ,654 1, % Szczawno 149, , % Gniew 294,369 1, ,369 1, % Czersk 173, , % Illawa 184, , % Prabuty Południowe 118, , % 1,398,577 5,661 1,202,252 4,866 Material Baltic Basin acreage position across 7 licences Basin wide diversity: Portfolio approach to acreage position: Combination of gas & liquids, shallow & deep plays (1) U.S. Energy Information Administration (eia): Technically Recoverable Shale Oil and Shale Gas Resources, June

11 Poland Baltic Basin, San Leon Areas And Activity Activity to date: 3 wells drilled in 2011/12 by Talisman Talisman exited and SLE is back to 100% Gdansk West Lewino 1G2 well frac done x3, cleaning up Braniewo S Rogity 1 fracs by Wisent Partnerships: United Oilfield Services (UOS), Wisent, Hutton Energy, Greenpark and LNG Energy Gdansk W Braniewo S Szcawno 11

12 Lewino-1G2 Overview (Gdansk W) Main shale interval of interest in Lewino 1G2 is the Ordovician Attractive combination of porosity, pressure, TOC, clay content and existing fractures Gdansk West GIIP estimate: Tcf across >220,000 acres 3 fracs now performed in the Ordovician, including a re frac United Oilfield Services (UOS) designing and working under a discounted contract Intention is to show the ability for this shale to produce at commercial rates 12

13 Lewino-1G2 Clean Up & Testing Clean up has progressed with very encouraging signs Unusually, 30% of frac fluid recovered without using nitrogen lift or a completion Gas flowed almost immediately, and has been continuous when the well is open Results expected to be announced in the short term Based on the results we have seen, we are very encouraged and a new well with a long horizontal section ( m) will now be drilled and fracced within months 13

14 Summary & Outlook Extensive portfolio of assets/acreage, including both conventional and unconventional High impact exploration, near term commercialisation and Turkish production Cashflow expected to fund group by Q Allows exploitation of considerable Polish and Moroccan potential in an appropriate timescale Near term newsflow from Baltic Basin results from vertical frac and flow drilling of horizontal multi fracced shale well in the same area 14