Proactive Investors 21 st August 2014 Lewino-1G2 Frac Lewino-1G2 Results
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. 2
Polish Shale From 3Legs March 2014 Presentation (before fraccing/testing latest well): From our technical analysis of the results to date, and drawing on our experience of a number of North American shale plays, ConocoPhillips believes that, through our holding in Lane Energy Poland, we have some of the best acreage in the Polish Baltic Basin. We have proven that these shales are capable of sustained gas flow. Through our planned exploration programme we have the opportunity to more thoroughly assess the potential commerciality of this prospective acreage. Larry Archibald, Senior VP Exploration at ConocoPhillips What is Mr Archibald thinking now? 3Legs RNS, 14 August 2014: The operations to bring the well into test production have gone very smoothly and we are delighted to see the well has flowed from the beginning without assistance. Picture credit: Twitter (@MrWyattEarp) 3
Poland - Diverse Portfolio Across Many Plays Baltic Basin Targets E.G. LEWINO SHALE FRAC Shale play Permian Basin Targets E.G. SIEKIERKI, RAWICZ Carboniferous unconventional (shale, tight sand) Conventional oil in Zechstein Main Dolomite Conventional oil in the Rotliegendes Sandstone Carpathian Basin E.G. 3-WELL DRILLING PLAN Shallow foredeep oil & gas plays Deep fold belt conventional plays Gross acres Net acres Concessions Baltic Basin 1,396,857 1,200,489 7 Permian Basin 3,100,682 1,671,561 16 Carpathian Basin 1,373,333 518,985 12 TOTAL 5,870,872 3,391,035 35 4
Polish Shale Activity Gdansk W Braniewo S Szcawno 5
Gdansk W Polish Shale Play Attractive combination of porosity, pressure, TOC, clay content and existing fractures 100% equity 220,000 acres Gdansk West GIIP estimate: 12 18 Tcf $25 Bn of gas sales from Gdansk W alone (assumes 2.5 Tcf at $10/mcf) This is from less than 20% of our Polish shale acreage Attractive returns plus additional price upside from condensate 6
Poland - Permian Rotliegendes Production (Siekierki) Deal with Palomar to bring early cash flow Previous tested rates on Siekierki: Poznan East & North Max rate MMscf/d Stable rate MMscf/d Duration of main flow Duration of shut in Trzek-1 7.7 2.5 6 days 15 days Trzek-2ZH 6.9 3.1 15 days 34 days Trzek-3H 7.3 3.5 28 days 43 days Well activity expected in Q4 2014 Most permissions and landowner agreements in place for pipelines and facility 2012 RPS CPR gave 2C resources of 422 Bcf for the full field 7
Poland - Permian Rotliegendes Development (Rawicz Field) Deal with Palomar Natural Resources to bring early cash flow Q4 2014 - Drill & test 1 st highly deviated appraisal well Q1 2015 - Drill & test 2 nd appraisal well Q2 - Q3 2015 - Drill 3 to 5 horizontal development wells P50 net gas to SLE: 13.8 Bcf 1 Rawicz 1 Operator technical estimate 8
Polish Drilling September spud of 3-well programme in Polish Karpaty area and Permian Basin Kęty (gas, sandstone, 4 Bcf) Gierałtowice (gas, sandstone, 4 Bcf) Niwiska (oil, fractured Main Dolomite, 400k bbl) All are inexpensive, shallow (700-1100 m) wells on proven hydrocarbon field trends, expected to flow without stimulation Figures above are mid-case recoverable 9
Morocco Offshore Huge resource potential Sidi Moussa Genel Operated Genel Energy farm out retain 8.5% Significant carry Well spudded August 2014 300+ MMboe recoverable resource potential 3 separate targets Results expected: September October 2014 Photo: www.offshoreneergytoday.com Noble Paul Romano Rig 10
Morocco Shale Oil First Test First oil produced from bench tests performed on Timahdit oil shale Full-scale development could yield 11,000 bopd for 30 years 11
Ireland: Celtic Sea, Barryroe Field 4.5% NPI Barryroe Field 4.5% Net Profit Interest NPI - No further capital exposure Operator currently further evaluating field: 266 MMbbl 2C recoverable resource (1) NPI valued at $261 million (2) 43 o API premium light quality oil Highly saleable once Providence farm-out completes SLE 4.5% Net Profit Interest in Barryroe field 2C NPV 10 = $261 million (2) Providence Resources July 2013 CPR by NSAI (full field): 1C (MMbbl) 2C (MMbbl) 3C (MMbbl) Base Wealden STOIIP 338 761 1135 Base Wealden recoverable 85 266 511 (1) July 2013 Netherland Sewell & Associates Inc. CPR for Providence Resources (2) Internal SLE pre-tax calculation, based on July 2013 CPR 2C recoverable oil in a successful development 12
Albania - Durresi PSC Significant renewed farm-in interest Durresi Block 3,360 km 2, San Leon Energy 100% Includes appraisal of existing A4-1X discovery Three proven working petroleum systems Attractive porosity (average approaching 20%) Eclipse modelling 10,000 bopd IP rate per well - rapid cost recovery FPSO oil development with associated gas offtake route (through TAP or direct pipeline to Italy) Recoverable (mid-case) Oil (MMstb) Gas (Bcf) Messinian 85 694 Burdigalian 79 265 TOTAL 164 959 13
Actively Managing Portfolio Exited Non-Core Countries: Germany Italy (in process) Slovakia Relinquished all or part of 9 Polish concessions after technical work Reduced net Polish acreage by 680,000 acres (14%) COMPANY TOTAL Gross Net Country Name Acres km 2 Acres km 2 Licences Poland 5,870,872 23,759 3,391,035 13,723 35 Morocco 7,600,439 30,758 3,129,117 12,663 5 Albania 1,037,843 4,200 1,037,843 4,200 1 Ireland 981,009 3,970 126,047 510 7 Spain 704,497 2,851 704,497 2,851 4 Slovakia 603,431 2,442 301,716 1,221 3 16,798,092 67,980 8,690,255 35,168 55 Licences Under Application Spain 1,523,405 6,165 1,523,405 6,165 6 France 2,357,138 9,539 2,357,138 9,539 10 3,880,543 15,704 3,880,543 15,704 16 Grand Total 20,678,634 83,684 12,570,798 50,872 71 If Palomar farm out is included, Polish reduction in 2014 is 1,551,000 net acres (31%) Relinquished Tarfaya oil shale (Morocco), as Timahdit is of significantly higher quality Polish figures assume completion of Block 243 farm-in. Irish licences shown assuming completion of Ardilaun deal 14
Summary Company-maker value addition potential in near-term: Polish shale Morocco offshore Near-term income: Siekierki workovers and new drills Rawicz field development Potential success from Karpaty wells in Poland Sale of Barryroe NPI 15
Contacts Oisín Fanning Executive Chairman oisin@sanleonenergy.com Joel Price Chief Operating Officer jprice@sanleonenergy.com 3300 Lake Drive Citywest Business Camp Dublin 24 Ireland +353 1 291 6292 San Leon Energy plc. offices Ireland United Kingdom Poland 43 Grosvenor Street London, W1K 3HL United Kingdom +44 20 3617 3913 Mokotowska 1 Zebra Tower 00-640, Warsaw Poland +48 22 379 97 00 Nominated Advisor Joint Stockbrokers Westhouse Securities Ltd 1 Angel Court London EC2Y 7HJ Macquarie Capital Advisers Ropemaker Place 28 Ropemaker Street London EC2Y 9HD Fox-Davies Capital Ltd. 1 Tudor Street London EC2Y 0AH FinnCap 60 New Broad Street London EC2M 1JJ 16