Company Profile Q1 2018
Disclaimer Important Notice Forward-Looking Information Except for statements of historical fact, all statements in this presentation including, without limitation, statements regarding production estimates and future plans and objectives of PLC ( CAP or The Company ) constitute forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves, resources and recoveries; production and operating cost assumptions; development risks and costs; the risk of commodity price fluctuations; political and regulatory risks; and other risks and uncertainties as disclosed under the heading Principal Risks and Risk Management in the 2013 Annual Report issued by CAP on 28 May 2014 and other documents available on the Company s website: www.capenergyplc.com. Furthermore, any forward-looking information is made only as of a certain date and the Company undertakes no obligation to update any forwardlooking information or statements to reflect events or circumstances after the date in which such statement is made or reflect the occurrence of unanticipated events, except as may be required by applicable security laws. New factors emerge from time to time, and it is not possible for management of the Company to predict all of these factors and to assess in advance the impact of each such factor on the Company s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. 2
Overview The Company Focused on exploration and production of conventional hydrocarbons in sub-saharan Africa Dynamic management team with +60 years experience operating in Africa First mover in the prolific MSGBC Basin in 2013 Headquartered in London & regulated in the UK Incorporated in 2005 The Assets Exploration portfolio focused on North-West African Atlantic Margin: 24% interest in Block 1, Guinea-Bissau 27% interest in Block 5B, Guinea-Bissau 44.1% interest in Block Djiffere, Senegal 3
Board & Management Team Lina Haidar Chief Executive Officer Lina has built a successful business portfolio extending across oil and gas, logistics, telecommunications, and real estate. She underpins an MBA from the International University of Monaco with extensive West African, Middle Eastern, and European experience. Lina was responsible for the recapitalisation and restructuring of in 2012. She holds directorships in Global Energy Trade Ltd and Haru Energy Nigeria Ltd. Michael Butler Chief Financial Officer Michael qualified as a Chartered Accountant with leading accountancy firm PwC, where he was in charge of Energy, Technology, and Engineering projects. He brings invaluable expertise to the Board in the areas of Corporate Advisory and Finance, having served as Group Financial Controller to a number of UK listed public companies in addition to his position as Head of Finance at ONE Advisory Group. Pierantonio Tassini Chief Operating Officer A 42 year career with ENI, with a Petroleum Engineering background he has covered a broad variety of roles and responsibilities for the company and in the last 20 years he has held senior commercial and technical roles within the organization based in West Africa representing at shareholder level ENI's interest in several large scale LNG projects. Alexander Haly Non-Executive Director Alexander is the Chief Executive Officer of Petro Services Ltd, which provides and manages offshore support vessels to the oil and gas industry. Mr. Haly has been CEO of Petro since 2006. Petro operates predominantly throughout the West African coast where it is present in several countries. With his knowledge of the West African oil industry Alexander is well positioned to supervise 's assets and programmes in the region. Guy Hustinx Non-Executive Director For the past 31 years Guy has worked for Frank s International N.V., a global oil services company primarily focused on Tubular Running Services and Drilling Optimization Techniques. He recently retired as Vice President of that company s Middle East and Africa Division in order to dedicate his time to. With an Operational and Commercial background his responsibilities involved representing the company at senior level in major Oil and Gas Exploration and Development projects. Guy was also an active member of Frank s New Technology & Intellectual Property Committees. 4
Shareholder Summary (based on 30,687,306 ordinary shares in issue) Shareholders Percentage (%) Global Energy Trade Ltd * 70.68 Alexander Haly (Director) 3.90 Pierantonio Tassini (Director) 0.86 Guy Hustinx (Director) 0.25 Serge Pereira 4.72 Michael Runtsch 4.72 Philippe Soulier 3.00 Scormining Inc 2.90 Mourad Haidar 2.83 Mineral & Financial Investments Ltd 1.30 Mario De Sa Pereira 0.94 Other Shareholders 3.88 Directors Holding 75.70% Public Holding 24.30% TOTAL 100% * BVI company owned by Alexander Haly (71%) and Lina Haidar (29%) 5
Company Structure Plc 85.7% 100% 100% (affiliate) Sphere Petroleum Corporation BVI Sencap Ltd Omcap Ltd Haru Energy Nigeria Ltd 28% 31.5% 49% Block 1 Guinea-Bissau Block 5B Guinea-Bissau TAOL Senegal Djiffere Ltd [Net to Cap 24%] [Net to Cap 27%] 90% Block Djiffere Senegal [Net to Cap 44.1%] 6
Business Model We are focused on building strategic alliances with our Joint-Venture partners and the local communities in which we operate to promote sustainable, long-term value creation African Technical & Operational Expertise Our Board has a resourceful network in Africa and extensive know-how of operating in the region with over 60 years experience established across 13 sub-saharan countries Strategic, Value-Driven Partnerships CAP Energy Frontier Exploration Focus We are committed to the utmost level of industry Health, Safety, Environment, and Security (HSES) standards and adhere to strict Anti-Bribery & Corruption (ABC) policies Ethical, Responsible Conduct Our team has a pro-active, visionary approach in identifying early value exploration opportunities in new or emerging basins that offer attractive upside potential and high ROI 7
Portfolio Highlights Highly prospective resource base in proven, world-class MSGBC basin BLOCK 1 GUINEA-BISSAU BLOCK 5B GUINEA-BISSAU BLOCK DJIFFERE SENEGAL Shallow water exploration block in 20-100 metres water depth 2D identified P50 950 mmbbls prospective recoverable resources 3D survey scheduled H2 2018 to further delineate existing prospects identified by 2D survey Deepwater exploration block in 200-4,000 metres water depth 3D identified several play types, including SNE analogue Drill-ready prospect contains P50 3.2 billion bbls prospective recoverable resources Shallow water exploration block in <100 metres water depth Adjacent to Sangomar Offshore & Rufisque blocks operated by Cairn Energy Main 2D prospect contains P50 220 mmbbls prospective recoverable resources Significant upside potential Drill-ready Elephant Low cost exploration drilling 8
Regional Overview MSGBC Basin Kosmos Energy/BP Mauritania/Senegal ² BP farms into 6 exploration blocks offshore Mauritania & Senegal first supermajor entry into the basin ² 100% success rate in 6 consecutive wells drilled by Kosmos offshore Mauritania & Senegal Cairn Energy/Woodside Energy Senegal ² SNE-1 is the world s largest discovery in 2014 ² 100% success rate in 9 consecutive E&A wells drilled Marsouin-1 70m net gas pay Tortue-1 15 Tcf gross FAN-1 950 MMbbls STOIIP BEL-1 Positive E&A results Mauritania Yakaar-1 45m net gas pay Ahmeyim-2 78m net gas pay Teranga-1 31m net gas pay Senegal CNOOC AGC (Senegal/Guinea-Bissau) ² CNOOC completes farm-in as operator of Impact Oil s AGC Profond licence offshore Senegal & Guinea-Bissau Total Senegal/Guinea-Conakry ² Total acquires operatorship of 2 deep & ultra-deep exploration blocks offshore Senegal with NOC Petrosen SNE-1 2C 543 mmbbls SNE-2 DST: 8,000 bopd FAN South-1 31 API oil SNE-3 DST: 5,400 bopd Guinea-Bissau ² Technical Evaluation Agreement with NOC ONAP, to study deep & ultra-deep areas offshore Guinea-Conakry Dome Flore 1 billion bbls STOIIP ExxonMobil Mauritania ² ExxonMobil is latest MSGBC entrant: acquired 3 deepwater exploration blocks offshore Mauritania in partnership with NOC SMHP Sinapa 170 MMbbls STOIIP 9
BLOCKS 1 & 5B GUINEA-BISSAU 10
in Guinea-Bissau Why Guinea-Bissau? Guinea-Bissau is eager to emulate the O&G success story of neighbouring Senegal Fiscal terms were revised in 2017 to further incentivise exploration & production activities Guinea-Bissau remains a frontier area with a highly prospective yet underexplored subsurface MSGBC basin is conjugate to the Guyana-Suriname basin in South America, where ExxonMobil s 3 billion barrel Liza field was discovered in 2015 Significant M&A activity on both sides of the Atlantic Margin (by majors such as Total, BP, ExxonMobil and leading independents) further highlights the attractiveness of the MSGBC geology Why Blocks 1 & 5B? Shallow water Block 1 & deepwater Block 5B have different geologies à multi-play entry for CAP Block 1 is geologically analogous to Sinapa discovery in adjacent Block 2 and Dome Flore in AGC à proven existence of a working petroleum system Block 5B has several SNE analogues and is located within the productive SNE play fairway à large, proven oil-bearing Albian/Aptian reservoirs in deepwater area 11
Guinea-Bissau: Block 1 Block Company 1, Trace 2 Svenska, FAR 4A 4B 5A 5B 6A 6B 7A Svenska, FAR Bissau Exploration FAR, Svenska, Trace Larsen Oil and Gas Larsen Oil and Gas Supernova Energy Guinea-Bissau 24% interest in Block 1 Operator: Trace Atlantic Oil 7A * Located in AGC (Joint Administration Zone between Senegal & Guinea-Bissau) 7B Sonangol X* Oryx Petroleum Y* Oryx Petroleum Z* CNOOC, Impact Licence Participants Trace Atlantic Oil (operator) Equity Interest Cost Interest 52% 65% 24% 35% Petroguin (NOC) 20% - SPQSC 4% - (*) Licence Summary Operator Location Surface Area Trace Atlantic Oil Limited Coastline in 0-100 metres water depth 4,800 km 2 Seismic Completed 1,300 km 2D survey (vintage) 1,530 km 2D infill survey (2013) 2D reprocessing (2016) Next activities 3D survey (1,000 km 2 ) scheduled H2 2018 (*) carry limited to the 2D and 3D seismic surveys 12
Guinea-Bissau Block 1: Leads / Prospective Resources All leads Prospective Resources MMbbls P10 P50 P90 POS 515 275 77 15.5% Top Clusters: MMbbls (100%) Resources (P50) Priority 1 Clusters Cluster 1 (CN) 79 Cluster 2 (NW) 68 Priority 1 Total 147 Priority 2 Clusters Cluster 3 (SE) 34 Cluster 4 (E) 31 Cluster 5 (SW) 27 Priority 2 Total 92 Top clusters Total 239 50 km Source: Block 1 2D Seismic Interpretation Review, Independent Expert Review, GM&P (Sep 2014 revision) 13
Guinea-Bissau: Block 5B Block Company 1, Trace 2 Svenska, FAR 4A 4B 5A 5B 6A 6B 7A Svenska, FAR Bissau Exploration FAR, Svenska, Trace Larsen Oil and Gas Larsen Oil and Gas Supernova Energy Guinea-Bissau 27% interest in Block 5B Operator: Trace Atlantic Oil * Located in AGC (Joint Administration Zone between Senegal & Guinea-Bissau) 7A 7B Sonangol X* Oryx Petroleum Y* Oryx Petroleum Z* CNOOC, Impact Licence Participants Trace Atlantic Oil (operator) Equity Interest Cost Interest 58.5% 65% Licence Summary Operator Location Surface Area Seismic Completed Next activities 27% 35% Petroguin (NOC) 10% - SPQSC 4.5% - (*) Trace Atlantic Oil Limited Offshore in 200 4,000 metres water depth 5,500 km 2 1,900 km vintage 2D survey 1,530 km new 2D survey (2011) 1,500 km 2D infill survey (2013) 2,871 km 2 3D survey (2014) Drilling of 1 exploration well (*) carry limited to the 2D and 3D seismic surveys 14
Guinea-Bissau Block 5B: Leads / Prospective Resources BFF2 Jurassic S 5 All leads Prospective Resources MMbbls P10 P50 P90 POS 9166 5921 3380 15.5% Top Leads: MMbbls (100%) Lead Formation Resources (P50) Priority 1 Aptian S1 ProDelta 505 Aptian S5 ProDelta 415 Ksup-Sl 1 Slope Turb 407 BFF1 Turbidite 426 BFF 2 Turbidite 286 Priority 1 Total 2,039 BFF1 Aptian S5 Priority 2 Leads Albian S 1 ProDelta 2,688 Jurassic S 5 Reef 318 Priority 2 Total 3,006 Albian S1 Top Leads Total 5,045 Ksup-Sl 1 Aptian S1 Source: Block 5B 2D Seismic Interpretation Review, Independent Expert Review, GM&P (Nov 2014) 15
Block 5B: Geological Analogues Buried hill type structures identified in Block 5B, Guinea-Bissau and Sangomar Deep Block, Senegal (operated by Cairn Energy) Cross-section through Leads Alb_L1, Apt_L4, Kinf_L3 and Jur_L3 (Block 5B) Line 2011-A020 (Block 5B 2D Seismic) (Depth section) Top Albian Top Aptian Top Lower Aptian Top Carbonate Platform (Neocomian) Potential target Source: 2D seismic Interpretation revision, GM&P, Sep 2014 Source: 2D Seismic Interpretation revision, GM&P, Sep 2014 SNE-1 Well, Sangomar Deep Block, Senegal Source: Cairn Energy Plc Preliminary Results Presentation, March 2015 16
Block 5B: Geological Analogues Slope Fans identified in Block 5B, Guinea-Bissau and Sangomar Deep Block, Senegal (operated by Cairn Energy) FAN-1, Sangomar Deep Block 5B, Guinea-Bissau Source: 2D seismic interpretation revision, GM&P, Sep 2014 Analogous Slope Fans Source: 2D seismic interpretation revision, GM&P, Sep 2014 17
Guinea-Bissau: Licence Terms BLOCK 1 BLOCK 5B Exploration Stage Duration Extension Commitment Status Stage 1 Feb 2013 Aug 2018 12 months extension granted Stage 2 Aug 2018 Feb 2020 12 months extension granted 500 km 2D Completed 1,500 km 2D shot 250 km 2 3D 3D survey (1,000 km 2 ) planned Q4 2018 Stage 3 Feb 2020 Feb 2022-1 exploration well Subject to 3D results; possible in 2019 Optional Extension Stage Feb 2022 Feb 2024-2 exploration /appraisal wells Exploration Stage Duration Extension Commitment Status Stage 1 Feb 2013 Aug 2015 12 months extension granted Stage 2 Aug 2015 Feb 2019 12 months extension granted Subject to results of first exploratory well; possible in 2021 500 km 2D Completed 3,150 km 2D shot 250 km 2 3D Completed 3D survey (2,871 km 2 ) shot Stage 3 Feb 2019 Feb 2021-1 exploration well Possible 1 well in Q1 2020 Optional Extension Stage Feb 2021 Feb 2023-2 exploration/ appraisal wells Subject to results of exploratory well; possible in H2 2021-2022 18
BLOCK DJIFFERE OFFSHORE SENEGAL 19
in Senegal Why Senegal? Senegal has been host to SNE-1, the largest oil discovery in the world in 2014 (Cairn Energy), and Yakaar-1, the largest gas discovery in the world in 2015 (Kosmos Energy) Oil majors BP, Total, Woodside subsequently joined the hunt for hydrocarbons in Senegal s prospective offshore waters Senegal joined the Extractive Industries Transparency Initiative (EITI) in 2013 and is ranked as the most stable democracy for doing business in Africa (World Bank) Petroleum Code was reformed in 2016 to support transparent development of the O&G industry Why Djiffere? acquired the Djiffere block in early 2014, prior to any viable discoveries or recent wells drilled offshore Senegal à cost efficiencies driven by first mover advantage Djiffere is strategically adjacent to Cairn Energy s Sangomar block in which the giant SNE field development is taking place; first oil by 2022 à near-term development options & tie back to SNE Antelope prospect is located in shallow waters <100 m depth à exploration drilling with jack-up is cost effective in current offshore rig market 20
Senegal: Block Djiffere H Block A B C D E G H I J K Company BP, Kosmos Energy African Petroleum T5 Oil & Gas Tender Group BP, Kosmos Energy Africa Fortesa Africa Fortesa A-Z Petroleum African Petroleum Cairn, Woodside, FAR Senegal 44.1% interest in Block Djiffere Operator: Trace Atlantic Oil B D N O P R Tender Group Cairn, Woodside, FAR, Trace Elenilto Licence Participants Trace Atlantic Oil (operator) Equity Interest Cost Interest 45.9% 51% 44.1% 49% Petrosen (NOC) 10% - Licence Summary Operator Location Surface Area Seismic Completed Next activities TAOL Djiffere Limited Offshore in 0-250 metres water depth 4,459 km 2 3,750 km new 2D survey acquired (2014); processing & interpretation complete 380 km 2 new 3D survey (2015); processing & interpretation complete Drilling of 1 exploration well 21
Block Djiffere: Seismic Main Leads Extensive 2D seismic survey (3,750 km) conducted in 2014 identified: 11 structural leads, the major one is Antelope Prospect; the main level of this prospect (Upper Campanian) is estimated to contain P50 220 MMbbls recoverable Prospective Resources 3D data (380 km 2 ) acquired in 2015 identified: - new Erosional Uncomformity Play, analogous to SNE & its satellite prospects; and - confirmed Antelope prospect structurally & volumetrically. Source: PVE Consulting Ltd Djiffere Farm-Out Brochure for Trace Atlantic Oil Ltd 22
Senegal: Licence Terms Exploration Stage Duration Extension Min. Work Commitment Status BLOCK DJIFFERRE Stage 1 July 2013 July 2015-4,000 km 2D Completed 3,750 km 2D shot Stage 2 TBD 1 - Stage 3 July 2018 2 Jan 2021 - Optional Extension Stage 1 exploration well 1 exploration well Jan 2021 2 July 2021 - To complete work programme of previous Stage - - (1) The effective start date of Stage 2 shall be the date of the decree (usually there is a time gap of several months between the operator s commitment and the issuance of the decree) which has not yet been published but is anticipated by H1 2018. (2) The effective start date of Stage 3 and the Optional Extension Stage shall depend on the actual start date of Stage 2. 23
Contact Head Office Plc 2 nd Floor 20 Berkeley Square London W1J 6EQ W: www.capenergyplc.com E: info@capenergyplc.com T: +44 (0) 207 491 9196 Enquiries Investor Relations Ms. Chanelle George E: chanelle.george@capenergyplc.com 24