CLEAR PATH TO SUSTAINABLE GROWTH

Transcription

1 CLEAR PATH TO SUSTAINABLE GROWTH INVESTOR PRESENTATION FY18 Results APRIL 2019 A Colombian 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 STRONG BALANCE SHEET AND FLEXIBLE SPENDING AMERISUR - A COMPELLING INVESTMENT CASE 1) Debt Free Growth Not Putting Balance Sheet at Risk YE18 Cash $44m; FY19 Capex (~$35m) Funded From Cash/ Cash Flow ($43/bbl net back post royalty in FY18) 2) Colombia Focus Low Cost Onshore Oil, Move Discoveries to Production Deep local insights - CEO based in Bogota (26 years in-country) 3) Strategic Deal with Occidental Petroleum to fund five wells and seismic Industry Endorsement from a big player ($50bn market cap) active in Colombia for decades 4) Active Drilling Programme - up to 10 Exploration/Appraisal wells in 2019 Targeting over 145 MMBO gross prospective resources 5) Shareholder Alignment / Board Renewed Full Compliance with QCA code CEO/Board invested around 1.4m in past 6 months; ~5% management ownership 3

4 EXPLORING PROVEN BASINS WHY COLOMBIA 1) Low Cost, Onshore Oil, in Proven Basins with Established Infrastructure Brent Linked Pricing Six Major Pipelines Connecting to Atlantic and Pacific Markets 2) Political Stability; Business Friendly Invited to become a member of the OECD in May Peace Deal ended conflict with FARC President Duque Elected in 2018 Reinvigorating Colombia s Upstream Sector 3) Established Oil Industry with Competitive Fiscal Terms National Production of 860,000 BOPD over 500,000 BOPD exported; around 400 active fields Stable Fiscal Terms Sliding Scale Royalties; Recent launch of new licensing system for future blocks Mature In-Country Oilfield Services Industry High Standard of Regulatory Oversight 4

5 YEAR END 18 2P RESERVES INCREASED 24% GROWING AND DIVERSIFYING RESERVES BASE 2P Reserves Increases 25.6 MMBO YE18 Field 1P 2P 3P CPO-5 Indico and Mariposa Discoveries Both Producing Llanos Indico Mariposa Platanillo reserves maintained Putumayo Platanillo Mecaya Reserves split 30/70 between Llanos and Putumayo Basins P at YE Production P Reserves 6.9 2P at YE P Reserves Replacement Ratio 343% 2P Reserves life Index >12 years * ** 30% Llanos/70% Putumayo Possible 6.3 Probable 7.8 Proven MMBO YE18 3P Reserves * Calculated based on FY18 2P reserves increase divided by FY18 production ** Calculated based on YE18 2P reserves divided by FY18 production 5

6 ACTIVE EXPLORER 2019 DRILLING PROGRAMME: UP TO 10 EXPL/APP WELLS PLANNED Expl/App Infill Seismic Llanos Basin CPO-5 Up to 6 wells - 3D Putumayo Basin Platanillo - 1 well + 2ST - PUT-8 1 well - 3D PUT-9/ wells - Tacacho - - 2D CPO-5 Terecay - - 2D Drilling plan remains dynamic depending upon results Plat, PUT-8,-9,-12, Tacacho, Terecay COLOMBIA 6

7 MOVING DISCOVERIES ONTO PRODUCTION BLOCK CPO-5 - SURROUNDED BY RECENT MATERIAL DISCOVERIES Working interest 30% CORCEL LLA-34 GARIBAY TIPLE Discovery to Production: Mariposa and Indico discovered in 2017/18, together produce ~8,000 BOPD (gross). Acres 492,352 Mariposa GUATIQUIA CABRESTERO Follow on Opportunities: Discoveries opened up other prospects in the same LS3 play 2P Reserves (MMBO)* Índico LLA-94 CPO-5 LLA-86 Proven Plays: Further play types to be tested through 2019/20 proven by discoveries in surrounding Prospective (MMBO)** 49.3 CPO-10 LLA-66 ONGC Videsh 70% (Op), AMERISUR 30% VALDIVIA-ALMAGRO CPO-11 Discoveries Prospects acreage Nearby Success: CPO-5 is immediately south of the prolific Land Map from ANH, December 2018 LLA-34 block and east of the Corcel and Guatiquia blocks. * Preliminary results of independent reserves report, gross 2P technical reserves at Indico-1X and Mariposa, McDaniel and Associates Consultants Ltd **Mean gross prospective resources associated with the LS3 structural play in the area of Indico and Mariposa which are the targets of upcoming drilling programme, McDaniel and Associates Consultants Ltd 7

8 DISCOVERED DECEMBER 2018, PRODUCING JANUARY 2019 INDICO DISCOVERY PROVEN RESERVES, FURTHER UPSIDE 1P Reserves (MMBO)* P Reserves (MMBO) P Reserves (MMBO)** 33.3 Material Upside 2019 appraisal drilling has the potential to expand 1P, 2P and 3P reserves No Oil Water Contact Lowest Known Oil covers only 25% of Structural Closure Indico Discovery Highlights 283 feet gross oil column in LS3 sand package, high quality reservoir up to 4,300 md Producing around 5,000 BOPD (gross) on natural flow; Indico-1X 5.9 MMBO estimated EUR McDaniels CPR, Jan 2019 *Gross, certified to LKO ** Gross, assuming OWC at LKO plus 40 feet 8

9 PUTUMAYO - OCCIDENTAL FARM-IN - ACCELERATES PLANS TO UNLOCK >500 MMBO STRATEGIC POSITION IN PUTUMAYO 2m GROSS ACRES, OBA Pipeline ECUADOR OBA Pipeline Connects Putumayo to underutilised Ecuadorean Pipeline Network Putumayo Basin Terecay PUT-14 Mecaya PUT-9 Tacacho PUT MMBO Gross Prospective Resources Industry Endorsement - Occidental $50bn market cap company, active in Colombia for four decades Funding - $93m carry to fund exploration campaign; five fully funded wells and 85% of 878km 2D seismic Utilise OBA OBA pipeline; Final Certification for 3rd Party oil H1/19, 9,000 BOPD min throughput Expanding Footprint Added PUT-14 and Increased interest at PUT-8 9

10 OPPORTUNISTIC ACQUISITIONS ACQUISITION STRATEGY HAS DELIVERED SIGNIFICANT BENEFITS Used balance sheet strength to make accretive acquisitions Established a material resource base over 800MMBO gross prospective resources Pacific E&P Acreage, acquired Mar 2017 for $4.8m, adding 321 MMBO Talisman Acreage, acquired Dec 2016 at zero cost, adding 245.9MMBO Platino Energy, acquired Jan 2016 for $7.6m, adding 190 MMBO Petro Dorado SA, acquired June 2015 for $6m, adding 131.3MMBO AMERISUR HAS CREATED $367M VALUE THROUGH THESE TRANSACTIONS * 33% of total value of tax losses acquired ($57m from Petro Dorado South America, $24m from Platino Energy) ** McDaniel and Associates 10

11 CASH FLOW FUNDED FY18 CASH FLOW BRIDGE ($M) 11

12 RENEWED BOARD, COMPLIANCE WITH QCA GUIDELINES Full compliance with Quoted Companies Alliance Code Website Disclosure New Auditor Appointed Social Investments Implementing UN verified Sustainable Alternative Farming Programmes Investing in Local Education, Recreation and Sustainable Productive Projects Renewed Board Consisting of CEO, CFO and four Non Executive Directors (three appointed in past 12 months) Alignment with Shareholders In last 6 months Directors have bought almost 1.4m stock Management Ownership around 5% 12

13 APPENDIX 13

14 BOARD AND MANAGEMENT ALIGNED TO SHAREHOLDERS Amerisur Resources Directors hold 4.9% of the share capital 1.42m worth of shares purchased by the current Board since May 2018 Director Date Value of shares purchased John Wardle, CEO* January ,000 Dana Coffield, NED January ,000 John Wardle, CEO* November ,000 Giles Clarke, Chairman November ,000 John Wardle, CEO* November ,000,000 Chris Jenkins, NED November ,000 Elodie Grant Goodey, NED November ,000 John Wardle, CEO* May ,000 *Shares purchased by Tracarta Limited, a company in which John Wardle has an interest 14