Hague and London Oil. African Independents Forum. London, UK. May 27, 2015

Transcription

1 Hague and London Oil African Independents Forum London, UK May 27, 2015

2 Disclaimer This document ( Presentation ) and the information contained in it is being provided by Hague And London Oil B.V. (the Company ). 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 and is liable to change. No representation or warranty, express or implied, is made by or on behalf of the Company or any of its shareholders, agents, advisers, officers, directors or employees, as to the accuracy, reliability or completeness of the information or opinions contained herein or in any revision of this document or of any other written or oral information made or to be made available to any interested party or its advisers and, save in the case of fraud, no responsibility or liability is accepted (and all such liability is hereby excluded) for any such information or opinions. No responsibility is accepted by any of them for any errors, misstatements in or omissions from, this Presentation, nor for any direct or consequential loss howsoever arising from any use of, or reliance on, this Presentation or otherwise in connection with it. This Presentation and the information contained herein does not constitute or form any part of an offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe or otherwise acquire, any shares in the Company in any jurisdiction, nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness. Neither this Presentation nor any copy of this Presentation and the information contained therein should be distributed by recipients and, in particular, should not be This Presentation is being supplied to recipients solely for their information and at their request and may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose. Statements in this Presentation regarding the Company s or its management s intentions, beliefs or expectations, or that otherwise speak to future events, are forward-looking statements. Forward-looking statements may be identified by terminology including could, may, will, should, expect, plan, except, project, estimate, predict, anticipate, believes, intends and the negative of these terms or other comparable terminology. Such statements are based on the Company s current expectations and involve a number of risks, uncertainties and assumptions and should not be considered as guarantees of future performance. These statements include, without limitation, statements about the Company s market opportunity, growth strategy, competition, expected exploration and development activities, future acquisitions and investments, the adequacy of the Company s available cash resources and the availability of future cash resources. Future results and developments discussed in these statements (and in particular, but without limitation, on slide 23 of this Presentation) may also be affected by numerous factors and risks beyond the Company s control, including political or economic conditions in areas where the Company operates, trade and regulatory matters, general economic conditions (including currency and commodity prices), and other factors and risks. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake to update, revise or correct any of the forward-looking information. 2

3 Hague and London Oil BV ( HALO ) formed September 2012 by Andrew Cochran Registered in the Netherlands Brief history of HALO Primary office in The Hague and a representative office in London. Funded solely by Management and Insiders Combined with Wessex Exploration Plc in November 2014: HALO brought US$1 million of cash into new entity Andrew Cochran and William Phelps of HALO joined the Wessex Board Name change and share consolidation 40:1 ratio completed The new entity trading on LSE (AIM) as HNL New assets in the Philippines and UK added as part of transaction Stifel (previously Oriel Securities) appointed as new NOMAD & Broker 3

4 HALO today Restructured, strengthened board with global experience: Andrew Cochran and William Phelps joined Malcolm Butler on the Board Other Wessex board members departed New Board additions expected with expansion Technical and Commercial capability: Strong technical team in The Hague analysing data in-house Commercial team screening range of opportunities Building a global portfolio of assets: Current portfolio with a wide range of opportunities; likely to be rationalised Currently pursuing a range of opportunities across the risk and value spectrum The existing portfolio creates a comprehensive database to support growth Access to funding to support growth: Low or no commitment assets in the current portfolio Funded for current commitments in 2015 Investors, carefully, returning to the sector: rifle not shotgun approach 4

5 Portfolio Diversification Small Company, Global Portfolio

6 Potential of African Exploration Attraction of African exploration: Underexplored with a large number of opportunities across risk spectrum Export-driven commercialization by default Nascent but maturing domestic energy markets Advantageous competitive position on a high potential market: Previous experience enables early identification of opportunities Management has experience in negotiations with governments Value expectations have frozen or fallen Opportunities arising from the current environment: Range of distressed sellers of high potential assets Investor appetite may linger to fund lower risk projects Access to oilfield services at lower, and falling, costs Commitments and the cost of these are falling Some basins prematurely abandoned? New seismic and gravity data has been acquired and interpreted Initial wells unsuccessful, only sparse data even if results were encouraging Oil price falls and companies depart 6

7 Dynamics of the SE Asian Energy Market Advantageous competitive position on a high potential market: Limited equities offering the UK market exposure to Asian energy market Experience and track record of successful transactions Early visibility of opportunities in the market Good terms and near robust hydrocarbon consumers (oil or gas) The Asian E&P market is highly active in terms of transactions in 2014: New players from Asia entering Sapura Kencana Newfield Exploration(Malaysia) Cepsa (IPIC) Coastal Energy (Thailand) Ophir Energy Salamander Energy (Thailand) Fosun International Roc Oil (Malaysia) Bangchak Petroleum Nido Petroleum (Philippines) Nido Petroleum Otto Energy (Philippines) Aggressive valuations to acquire regional upstream exposure in 2014 $12-40/boe (2P) was paid $21.7/boe (2P) Average ($21.4/boe (2P) Mean) Philippines attracted some of the highest $/2P in SE Asia 7

8 Current Portfolio and Areas of Interest 35% Bournemouth Bay (UK) 50% SADR 1.104% French Guyana 15% SC54A (Philippines) 50% Juan de Nova Current portfolio of interest (HALO) Areas of Interest for New Ventures 8

9 Current Exploration Portfolio Juan de Nova, Mozambique Western Sahara, SADR SC54A, Philippines Area of interest identified 5 year renewal & mutation applications submitted Right to take 50% interest if awarded No commitments in 2015 Assurance Agreements over 3 blocks in SADR Kosmos drilling of Gargaa Prospect, Cap Boujdour in H2 highly significant No commitments in % interest offshore Existing 3D seismic and earlier oil discoveries in shallow water Cost effective development options and exploration potential (3 years to consider) Guyane, Maritime Guyane, Papillon Bournemouth Bay, UK Evaluation and Interpretation of well data (ES) and seismic (Central Area) Potential for one well in 2016 to test Central Area Prospectivity Currently under review Resubmitted application for shallow waters of Guyane, inshore from Maritime Determination & public consultation Currently under review 35% in Licence P2265 (blocks 98/7b, 98/8a and 98/12) Two years to reprocess existing 3D seismic data to pre-stack depth migration 9

10 Corporate Development Ethos Range of high potential opportunities accessible in the near term: A dwell on SE Asia but not exclusively Thorough review of a wide range of assets within a broad spread of geographies Optionality and flexibility preserved; knowledge and experience leveraged Focus on opportunities attracting, or not requiring, new capital: Early stage & limited capital requirements or work obligations Material acreage positions and working interest to fund by new industry partners Production and/or near-term development potential with debt capacity Clear strategy and on-going active portfolio management: Sell or farm out non-core aspects of existing portfolio Rapidly expand from core aspects of existing portfolio Define and establish new core aspects of future portfolio Diversified, full-cycle portfolio of assets with balanced risk profile and capex: Create a balanced portfolio with respect to capital allocation & returns Seek to build a leverage-able portfolio (e.g. available capital is not only equity) Opportunistic, creative and fast-moving in mergers or acquisitions (i.e. Wessex) 10

11 Managing the Opportunity In the current environment only survivors today will thrive later: Access to funding required Minimal, or no, commitments for optionality Low overheads and small team Focus capital on lower risk opportunities Range of risk and maturity in the portfolio Diversified assets spread around the world Actively manage the portfolio, acquisitions and divestitures Committed, experienced management team not lifestyle businesses HALO well positioned to survive current market conditions Experienced board, to be further strengthened Supportive institutional shareholder base Currently screening a wide array of potential assets Focus on risk and cost management in portfolio growth But as some Roman general once said, If you seek peace, plan for war. 11

12 Hague and London Oil Current Portfolio Summary

13 Eastern Atlantic Margin SADR Northwest Africa Overlapping claims complicate full exploitation but promising geology associated with deltaic system The Guelta Block overlaps a prospective area claimed by others; gas and condensate discovered in 2015 Kosmos drilling has demonstrated value in the disputed area A A A A

14 Juan de Nova East Africa Juan de Nova straddles the African continent and Madagascar. It is down-dip of a proven oil and gas system onshore (the very large heavy oil field: Tsimororo) Post and Syn-Rift Geology extends eastward across the Davy-Walu Ridge: north Mozambique/Comoros Mozambique A A Comoros Similar trends likely exist to the south, north-western Madagascar, with potentially more continental sediment having been deposited there in shallower water A A

15 French Guyana South America Western Atlantic Margin In 2011, the first well drilled by Tullow in the licence successfully proved the twin Atlantic Basin concept by encountering 72m of net oil pay in 3 high quality reservoir intervals at the Zaedyus well. The Zaedyus-2 well commenced drilling in July 2012 and in December 2012 Tullow announced that the well had not encountered commercial hydrocarbons. This was followed by similar results at Priodontes-1 and Cebus-1. The Block has seen >7,000 km sq of 3D seismic acquired and 5 wells have been drilled. The Northwest of the block remains undrilled. The partners are Shell (45% Op.), Tullow (27.5%), Total (25%), Northern (1.396 %) and Wessex (1.104%) The undrilled Northwest of the block is the next likely target for drilling. No drilling activity is currently planned for 2015 while the partners continue to assess the large, and unique, database. Zaedyus proved a working hydrocarbon but was difficult to appraise; the northwest of the block remains prospective. Exxon Liza-1 discovery in Guyana may re-enthuse the industry

16 Cadlao Field SC54A Offshore, Philippines 15% non-operated interest Shallow water, oil discoveries in miocene carbonate reefs Good fiscal terms and large historic sunk cost pool: ca. $120mm Block largely covered by 3D seismic Pagasa Miocene mini-turbidite potential remains un-explored in the area (i.e. Galoc) bopd bopd Oil Well A A Nido Fmn Nido B Field 13 Mmbbls Recovered 200m Oil col Nido A Field 5.2 Mmbbls Recovered 159m Oil col SC14A Nido- 1X1 1,464 Yakal Oil Well Potentially significant Up-dip attic 35m Oil col (off structure) 78-93m Oil col SC54A Nido-1 1,400 Tindalo >134m Oil col A N. Nido-1 V good oil shows? Potentially significant Up-dip pool?owc? A SC54 Nido A and B Oilfields 10 km Custodio N Prospect Lawaan Prospect Kamagong Prospect North Nido-1 Oil shows Yakal Tindalo Oil discoil disc Nido 1X Oil disc 3D Seismic Coverage SC54A Signal Head N B Prospect N.Nido-1East Prospect Signal Head -2 updip Signal Head South A moratorium was granted by the Filipino Department of Energy in August 2014 No drilling is required for 3 years, a drill/drop decision is made in August 2017 If drill decision is made, partners have until August 2018 to drill a single exploration well 16

17 Bournemouth Bay, UK 35% operated interest in Blocks: 98/7b, 97/8a and 98/12 On trend with giant Wytch Farm field & surrounding the Bacton discovery Awarded as a promote license Seismic reprocessing is only commitment, already underway HALO and a consortium of adjacent operators are jointly reprocessing and interpreting all available 3D seismic PSDM being applied to 3D seismic processing Colter Prospect (in adjacent 98/11) extends into HALO blocks; possibly to be drilled in

18 Summary of Opportunities HALO currently holds (or is awaiting confirmation of) assets in: South America Atlantic Margin (French Guyana) Northwest Africa Offshore (SADR) North Sea (UK) East Africa Offshore (Juan de Nova) Southeast Asia Offshore (Philippines) Combined Capital Commitments in the whole portfolio is low 6-figures French Guyana G&G studies SADR G&G studies UK Seismic reprocessing Juab de Nova Re-Application Philippines G&G studies A global portfolio with very limited, or no, committed capex over the next 2 years The global portfolio supports New Ventures in all regions but a dwell on: Africa, Asia Small, dedicated team with low overheads, exploiting the portfolio & New Ventures 18