CASH GENERATION BALANCE SHEET EXPLORATION UPSIDE

Transcription

1 CASH GENERATION BALANCE SHEET EXPLORATION UPSIDE FINAL RESULTS PRESENTATION 16 APRIL 2018 JOHN WARDLE NICK HARRISON A Latin American Producer & Explorer 1

2 DISCLAIMER IMPORTANT NOTICE These presentation materials do not constitute or form part of any offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied upon in connection with any contract or commitment whatsoever. No responsibility or liability whatsoever is accepted by any person for any loss howsoever arising from any use of, or in connection with, these presentation materials or their contents or otherwise arising in connection therewith. These presentation materials may contain forward-looking statements relating to the future prospects, developments and strategies of Amerisur Resources plc (the "Company"), which are based on directors' current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Each forward-looking statement speaks only as of the date of the particular statement and, except as required by law or regulations to which the Company is subject, the Company disclaims any obligation to update any such forward-looking statement to reflect future events or developments. 2

3 COMPANY OVERVIEW FOCUSED ON OUR ADVANTAGES 1) EXPLORATION PORTFOLIO Extensive acreage position in the underexplored Putumayo region with up to 14 fully funded exploration and development wells planned in 2018 EXPERIENCED COLOMBIAN OPERATOR * * 2) INFRASTRUCTURE Wholly owned strategic OBA oil transfer line into Ecuador 3) IN-COUNTRY EXPERTISE Experienced in-country team with a strong track record of success 4) BALANCE SHEET AND CASH GENERATION Strong cash position of $41.3m with zero debt and low cost production generating significant cash flow from operations In 2017, opex and transport costs sub $20/bbl - trending lower * Prospective, mid estimate, net to Amerisur 3

4 2017 FINANCIAL RESULTS 2017 PERFORMANCE Average production 4,857 BOPD 3,081 BOPD Exit production 6,951 BOPD 4,071 BOPD Average OBA throughput 4,440 BOPD 1,129 BOPD # production fields Two O One # of wells drilled Seven T Two # of Colombian blocks Eleven Eight Revenue $92.5m $47.2m Net cash flow generated $30m -$3.3m Cash opex and transport $18.6/bbl $24.9/bbl 2P reserves MMBO MMBO 2C resources MMBO - Prospective resources 1,376 MMBO 1,134 MMBO 4

5 $m $m $m $ /bbl FINANCIALS Brought forward cash Jan EBITDA Cashflow Operating netback per barrel ($) Working Tax Asset Capital repayment acquisitions movements 26 Capex Cash at 31 Dec FY 2017 FY 2016 Transport costs Operating costs Operating netbacks Sales Cash operating costs Royalties 2017 EBITDA 2018 CAPEX Transport costs High prices tariff (3. 2) ) G&A costs EBITDA Platanillo N Sands (3 wells) Platanillo (civil works and other) CPO-5 (3 wells) Putumayo 8 (2 wells & civil works) Putumayo 9 (3 wells & civil works) Putumayo 12 (3 wells & civil works) 2018 total capex 5

6 MMBO RESERVES RESERVES YE P reserves 2017 Production EUR Re-mapping CPO-5 Mecaya YE P Platanillo Platanillo Platanillo reserves 6

7 ACQUISTIONS DOWNTURN USED TO STRENGTHEN FOUNDATIONS Cash at year end of $41.3m and a $35m working capital facility agreed in April 2018 Significant increase in resource base at low cost 7

8 STRATEGY DELIVERING SUSTAINABLE GROWTH Growing our low cost production 1 base and OBA throughput 2 Deliver significant reserves growth through the drill bit TO FUND 2018: To increase production through exploration success Production from a minimum of two fields 2018: Drilling of up to 14 fully funded E & A wells Spudding of Pintadillo-1, Miraparriba-1 and Indico-1 to commence in Q2 targeting 26 MMBO of prospective resources 8

9 2018 WORK PROGRAMME 2018 FULLY FUNDED WORK PROGRAMME TARGETING MMBO* TIMING: Putumayo MMBO CPO MMBO Platanillo N Sand MMBO Unrisked prospective resources net to Amerisur, mid estimate Putumayo MMBO Putumayo MMBO BLOCK 2018 Platanillo (civil works) Platanillo N sands (drilling 3 wells) CPO-5 (drilling 3 wells) Q2 Q3 Q4 CAPEX OF $61M Putumayo 12 (3 wells & civil works) $14.4m Putumayo 9 (3 wells & civil works) $19m * Net to Amerisur, prospective resources, mid estimate Platanillo N Sands (3 wells) $11m Platanillo (civil works and other) $2.7m CPO-5 (3 wells) $6m Putumayo 8 (2 wells & civil works) $8.2m Putumayo 8 (drilling 2 wells & civil works) Putumayo 9 (drilling 3 wells & civil works) Putumayo 12 (drilling 3 wells & civil works) The above timing is subject to change, regulatory and permitting approval and drilling success 9

10 OBA CLUSTER PLATANILLO N SAND Platanillo block Working interest 100% Prospective (MMBO)* 37.7 Building of a 3.8 km access road and six well pads, with up to seven wells per pad commenced N Sand anomalies Three-well drilling programme The first well, Pintadillo-1, is one of four such anomalies identified in the central part of block targeting estimated P50 resources of mmbo * Mid estimate 10

11 CPO-5 Working interest 30% Acres 492,352 Located to the south of the prolific Llanos 34 block and to the east of the Corcel fields. Work plan: Three-well drilling programme CPO-5 2P Reserves (MMBO)* 1.3 Drilling of Indico-1, targeting an updip section of the Mariposa play on the Lower Sands, planned for H * Net to Amerisur Contingent (MMBO)** 0.77 Prospective (MMBO)** ** Net to Amerisur, mid estimate Followed by the drilling of two further wells Aguila and Sol. The block has 2P reserves of 1.3MMBO Pressure Build Up analysis of Mariposa- 1 indicates that additional perforations may further improve the flow characteristics of the well. This operation is under consideration by the partners Source: Company, Geopark, Parex 11

12 OBA CLUSTER DRILLING OF UP TO 14 FULLY FUNDED WELLS In addition to the drilling at Platanillo and CPO-5 we are targeting: PUTUMAYO-8 Drilling focus: Working interest 50% Acres 102,799 Prospective (MMBO)* Borders Platanillo to the West Two-well drilling programme Miraparriba-1, a directional well to the Miraparriba structure to spud in May PUTUMAYO-12 Working interest 60% Acres 134,509 Prospective (MMBO)* * Net to Amerisur, mid estimate Similar geology to Platanillo Three-well drilling programme Coembu - proximity and similarity to Platanillo Maracaya - Appears to be continuation of Blanca Field in Ecuador Prospect 3 - Trap door structure, large area, potential Stratigraphic component Targeting unrisked mean gross prospective resources of 106 MMBO, 47 MMBO and 82 MMBO respectively To commence in Q PUTUMAYO-9 Working interest 100% Acres 121,453 Prospective (MMBO)* Three-well drilling programme Expected to commence in Q Targeting 30 MMBO 12

13 THE OBA STRATEGIC EXPORT INFRASTRUCTURE OBA AFTER 15 MONTHS OF OPERATIONS, IT HAS PAID FOR ITSELF 5,554 March 2018 average BO 2 MBO transported by Feb 2018, generating a total saving of $20.3m during the 15 th month of operation Throughput increase strategy: Short term strategy successfully delivered 3 rd export pump in Colombia installed increasing export capacity to 28,800 BOPD Cuyabeno January 2018 agreed to increase throughput capacity under agreement with Petroamazonas from 5,000 to 9,000 BOPD once Amerisur has built and commissioned the Chiritza repumping system, Chiritza Next steps: Debottlenecking Cuyabeno pumps, metering Chiritza re-pumping station 13

14 2018 OUTLOOK 1 Drilling of up to 14 fully funded wells 2 Cash generation from production Increasing reserves and resources 3 4 Increasing production Sustainable growth 14

15 APPENDIX 15

16 BUSINESS MODEL A ROBUST AND SELF-SUSTAINABLE BUSINESS MODEL 16

17 BOARD AND MANAGEMENT STRENGTHENED AND REFRESHED BOARD AND MANAGEMENT TEAM Board: Giles Clarke, Chairman John Wardle, CEO Nick Harrison, CFO Alex Snow, SID Stephen Foss, NED Douglas Ellenor, NED Chris Jenkins, NED Dana Coffield, NED In country team: Carlos Martinez Country Manager Johnnie Velasco Operations Manager Fernando Rueda Financial Manager Edgar Herazo Production Manager 17

18 INVESTMENT HIGHLIGHTS FINANCIALLY AND OPERATIONALLY WELL PLACED WITH A CLEAR STRATEGY TO MAXIMISE POTENTIAL OF EXTENSIVE PORTFOLIO AND TO CONTINUE TO DELIVER SHAREHOLDER VALUE Growing Low Cost Production Base focus on Putumayo core assets around OBA Own Strategic Export Infrastructure Extensive Growth Portfolio Robust Financial Position Experienced Board and Management Team Prime position in under explored basin Low cost onshore operation with short lead time from exploration to production Maximise value from producing assets Plan to increase production to 20,000 bopd in the medium term through ongoing development and exploration while growing OBA throughput, diversifying production base Amerisur s OBA pipeline paid for itself in 15 months Provides a reliable, low cost route to commercialisation with technical capacity of 50,000 to support future growth Ability to grow OBA throughput through focused investment 12 blocks covering c.984,000 Ha (gross) predominantly in the prolific Putumayo - proven oil basin with light to heavy oil gradation in excellent reservoirs, big field potential in Colombian terms Exploration portfolio of more than 26 identified prospects targeting 1,376 mmbo of unrisked prospective resources Significant future upside at Platanillo unrisked prospective resources of 37.7 mmbo Up to 14 fully funded wells to the end of 2018 Cash generation and balance sheet strength core values Fully funded work programme at $45 oil and well positioned to pursue organic and inorganic growth continuing to consider acquisitions in Putumayo which have strong strategic fit Debt free balance sheet and cash of $41.3m at year end, positive operating cashflow Experienced and strengthened Board with CEO and management based in Colombia enabling streamlined decision making Extensive experience of operating in country with strong community relations developed over the course of a decade 18