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Corporate UpdateOil Capital Conference, London
1 February 2018
Disclaimer
Corporate Presentation 2
This presentation may contain forward-looking statements. Forward-looking statements refer to events and conditions which are not historical facts and include, for example, statement concerning our objectives, goals, strategies, future events, futureperformance, capital expenditures, financing needs and business trends.
These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. You should not place undue reliance on these forward-looking statements. Any forward-looking statements are based upon information available to us on the date of this presentation. Actual results may differ materially from those anticipated in these statements.
This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in Solo Oil plc, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.
About Solo: a diverse portfolio of investments
Corporate Presentation 3
CANADA:
Currently dormant Enhanced
Oil Recovery project in Ausable
Field, Ontario
28.6%Ausable,
Ontario
WEST AFRICA:
Strategic investment in Burj
Africa, with applications for
field development projects in
Nigeria
20%Burj Africa
6.5%Horse Hill
UK:
Interests in Weald Basin,
including Horse Hill and licence
award on the Isle of Wight
30%Isle of
Wight
TANZANIA:
Material stake in the prolific
Ruvuma Basin, producing Kiliwani
North gas development on Songo
Songo Island and 15% equity in
Helium One
15%Helium
One
7.55%Kiliwani
North
25%Ruvuma
Basin PSA
Our strategy
Exploration-development-production
Principally focussed on Africa & Europe
Screen numerous opportunities on an annual basis
Typically seek original WI positions between 10-50%
Non-operated but meaningful influence on JV
Seek unique opportunities with an established market
Corporate Presentation 4
Vision
Portfolio approach to mitigate risks and provide access to multiple opportunities
Leverage equity acquired through early stage entry to fund net operating costs
Investment criteria
Mission
Investment highlights
Corporate Presentation 5
Diverse portfolio of assets mitigates
risks and provides multiple catalysts
through active work programs
Significant upside potential from
high-impact exploration assets
Low corporate and
operating cost structure
Proven track record for executing
investment strategy. 5 out of 6 wells
resulted in commercial discoveries
Cash generative
Experience Network
Steady portfolio growth
Corporate Presentation 6
• First gas revenues and cash flow achieved from Kiliwani North-1 in April;
• Ntorya-2 appraisal well spudded in December; and
• Successful testing of Horse Hill-1 oil discovery well with combined rate over 1,600 bopd
• Appraisal well Ntorya-2 successfully drilled and tested at a constrained rate of 17 mmscfd;
• Significant increase to resources estimates as a result of Ntorya-2, to over 1.34 tcf gross discovered gas in place;
• Filed a development plan for the Ntorya Gas Field including an early production scheme; and
• Strategic investment in helium to gain access to a potentially world scale helium project in Tanzania
• Further upgrade to Ntorya resources expected shortly;
• Ntorya-3 appraisal well expected to spud in second quarter;
• Horse Hill long-term production tests anticipated to start shortly; and
• Helium One resource report update planned and potential IPO on ASX around mid-year
Operational & corporate priorities
Corporate Presentation
• Protect investment in existing core assets
• Determine development options for Ntorya
• Obtain a development licence for Ntorya
• Initiate the monetisation of the Ntorya development
• Long-term production testing of Horse Hill-1 well
• Advance the Helium One Rukwa Project through technical work
• Recycle proceeds of Ruvuma monetisation into new and existing opportunities
• Monetisation of the Horse Hill discover by sale or early development
• Drilling of high impact exploration wells on the helium project in Rukwa
• Ntorya EPS on stream and full development significantly advanced
• Horse Hill oil production on stream
• Seek to monetise early stage investment in Helium One
• Continue to evolve portfolio, including progressing IoW and other investments
• Target further new investments as appropriate
7
Ruvuma
Corporate Presentation 8
Three wells drilled to date that all show hydrocarbons, with two flowing at commercial rates
Onshore extension of the world scale offshore gas province in Tanzania and Mozambique
Development licence applied for and a further appraisal well agreed
Major market growth potential with bulk of the infrastructure already in place
Investment case study
Corporate Presentation 9
First well
Likonde-1 drilled:
excellent shows for
residual oil and gas
2010 2011 2014 2015 2016 2017
Second well Ntorya-1 made a gas and
condensate discovery of commercial
interest:
• Gas Flow 20.1 mmscfd through a 1-inch
choke;
• Formation pressure of 5,424 psi; and
• Liquids Production 139 bopd of condensate
at a gas rate of 20 mmscfd
Further
2D seismic acquired
2018 - 2019
CPR by Senergy:
Potential 4.7 tcf of gas within the Ruvuma
project (153 bcf of gas in place for Ntorya 1;
some 70bcf of 2C.) Upgrade of 4 “drillable
targets” accounted for 3 tcf of gas in place
Appraisal well program: NT-2 was
drilled and successfully tested.
Resources increased to 1344 bcf gas in
place with further significant upside in the
license
Solo Oil
25%75%
Aminex(operator)
Expected news flow:
• Competent Persons Report
• NT-3 appraisal well
• 25-year development
licence
• Early production scheme
engineering
• Technical work potentially
including 3D seismic
• Solo assessing options
with regards to monetising
interest in Ruvuma
Ntorya Discovery, Ruvuma
Corporate Presentation 10
Source: AminexSource: Aminex
Ntorya seismic interpretation
Corporate Presentation 11
Source: Aminex
A A’
4 km
A
A’
Arbitrary line through wellsNT-1 – NT-2 – proposed NT-3
Ntorya-3 Ntorya-2 Ntorya-1
Albian reservoir
A material regional source of gas supply
Corporate Presentation 12
Source: Aminex
So far a
~9 fold
increase in
mean GIIP
Mean 153
Mean 466
Mean 1,344
?
Synergy 2015 Resource
Estimate post Ntorya-1
(May 2015)
May 2017 Resource Update
post Ntory-2 success
(April 2017)
Updates In-house
Resource Model
(Sept 2017)
New Independent Resource
Report
(est. Feb 2018)
Ntorya Resource Estimates (bcf)
Source: Aminex
Ready access to markets
Corporate Presentation 13
Liquids in the gas found in the discovery
well NT-1 potentially provides access to
alternate market
Distribution network progressing in order to
satisfy a large domestic demand for natural gas
estimated at over 500 mmscfd
500mmscfd
Large-scale electricity producers, other
industrial users and major population centres to
receive the gas in fast growing economy
Infrastructure – access to market through regional
Chinese built/financed gas pipeline connecting
Mnazi Bay to Dar es Salaam. Operational since
2015, currently below 25% utilisation
Source: Aminex
Rukwa
Corporate Presentation 14
All necessary conditions for world-scale helium project are in place
Technical work continues to support the 100 bcf resource estimate already independently assessed
Engineering studies fully support commercial exploitation
Global supply and demand dynamics are extremely compelling
Helium One
Corporate Presentation 15
Helium One is an
independent specialist
explorer focused on
becoming a major supplier
to the global helium market
Helium One’s Rukwa Project in
Tanzania has independently certified
most likely unrisked prospective
recoverable helium volume of 98.9
billion cubic feet (“bcf”)
First mover advantage into
helium market positions Solo to
capitalise on an anticipated
surge in helium demand and
weak supply fundamentals
Google X Project Loon – “Balloon powered internet
for everyone”
Uses and applications of helium
Corporate Presentation 16
Cryogenics (primarily in medical
applications) is the largest use of the gas
and accounts for around 32% of global
demand
23%
15%
14%11%
9%
6%
6%
5%
3%8%
Cryogenics
Lifting
Electronics
Optical Fiber
Welding
Leak Detection
Analytical
Purging
Diving
Other
Helium use by sector:
Used in infrastructure, such as the Large
Hadron Collider at CERN, which requires 120
tonnes of superfluid helium to maintain its
magnets at their operating temperature and a
further truckload of helium each week to keep it
topped up
Other applications include arc welding,
purging, leak detection, chromatography,
super-conduction, breathing mixtures, heat
transfer, gas lift; and used extensively as a
purge gas in the oxygen/hydrogen propulsion
units used for Space rocketry and nuclear
ICBMs
Source: TechSci Research
Market and demand dynamics
Corporate Presentation 17
Demand growth:
demand for helium has
been growing at around
3% each year and
demand growth
is set to continue
Current global annual
consumption of 6.0
bcf, an industry worth
in excess of US$6
billion per annum
The helium market now faces a
major supply shortfall in the
next few years. Federal Helium
Reserve was down to 20 BCF
by the beginning of 2016.
Recent Saudi action has
reduced Qatari supply
Strong price growth: Price of this
increasingly important, non-
substitutable, resource has
increased by over 95% in the past
decade - average market price of
over US$145/mcf
Currently, crude helium
is worth approximately
30 to 50 times more
than the equivalent
volume of crude
methane
Indexed Commodity Prices
Helium
Gold
Silver
PlatinumOilGas
Source: World Bank Source: USGS
Rukwa helium play
Corporate Presentation 18
Source: Helium One
Substantial technical progress
Corporate Presentation 19
Soil geochemistry with pronounced
micro-seepage associated with mapped
structures
Macro-seeps with 8-10%+ helium associated
with nitrogen correlated to large scale sub-surface
faulting. No hydrocarbon signatures
Seismic mapping using legacy seismic data
being reprocessed to modern standards and
showing structure and direct indications of
subsurface helium
Regional play specifics with a large, old, granitic
pluton and a recent heating event to release
helium into modern reservoirs with adequate cap
rocks
Engineering scoping fully supports economic
development by means of local cryogenic
process and international containerised export
Reprocessed pre-stack migrated data; Rukwa project 2018
Horse Hill
Corporate Presentation 20
Part of a major new resource play in the south of England
High probability that conventional sandstones are commercial for oil production
Naturally fractured Kimmeridge limestones present a massive upside potential
Further testing and drilling will follow in 2018
Sandstone and
naturally fractured
limestone reservoirs
Testing expected to
begin in Autumn
2017
Horse Hill
Corporate Presentation 21
Help to
supply UK
energy
demand
Flow test conducted in 2016 to test the three separate zones at HH-1 (Upper, Lower Kimmeridge Limestones
and Portland Sandstone) record-breaking stable dry oil flow from all zones ~ over 8% of total UK onshore
daily oil production.
Total combined flow rate of 1,688 barrels of oil per day from initial testing
Planning permission granted for long-term testing and further drilling, to start shortly
Planned further extended flow
tests in early 2018 and the
acquisition of 3D seismic data
High quality light, sweet oil
was produced and delivered
to the Esso Fawley refinery
North Sea-like oil rates from an
onshore vertical well. Further
significant flow rate improvements
may be achieved using horizontal
wells
Solo Oil
6.5%
Conclusions
Corporate Presentation 22
Significant momentum and high
activity across all core assets within
Solo’s portfolio
2016 and 2017 saw Solo achieve significant operational and corporate milestones
Enhanced the core value of the portfolio and added significant upside potential
Approaching crucial juncture as Solo seeks to monetise historic investments and realise value
Well positioned for growth with diversified portfolio providing multiple catalysts in the near-medium term
www.solooil.co.uk
The Board of Directors
Corporate Presentation 24
Has over 20 years of senior
commercial management
experience primarily in the oil and
gas and resources sectors. Dan has
worked with several AIM, ASX and
TSX listed companies providing
corporate finance, business
development and corporate
governance advice. He is currently
director of a number of private
companies and is the Solo
representative on the Helium One
board. Dan is a member of the
Chartered Accountants Australia &
New Zealand.
FINANCE DIRECTOR
DAN MALING
A member of the Australian
Institute of Chartered
Accountants, holding senior
financial and management
positions in both publicly listed
and private enterprises in
Australia, Europe and Africa.
Considerable corporate and
international expertise in the oil
and gas and natural resources
sectors. He is currently a Director
of a number of AIM listed
companies including Rare Earth
Minerals Plc, Doriemus Plc, and
Polemos Plc.
NON-EXECUTIVE DIRECTOR
DONALD STRANG
Has a BSc in Geophysics and has
worked in the energy sector for over 39
years, initially with BP plc for 23 years,
before managing the international
operations of Burlington Resources
Inc. Most recently, he was Chairman
and CEO at LGO Energy plc. Prior to
which he founding Vanguard Energy
Group, where he was Chairman and
CEO. As Founder and Chairman of VE
Resources Limited he oversaw the
rapid growth of a company in the oil
services sector, before which he was
CEO at Regal Resources plc. Neil sits
on the Board of Vanguard Energy Ltd
and owns and manages NR Global
Consulting Limited.
NEIL RITSONEXECUTIVE CHAIRMAN
Is a Chartered Engineer with a
BEng (Hons) degree in Mining
Engineering and a MEng in
Petroleum Engineering. He has
over 25 years of experience
working in industry, initially in
mining before moving to petroleum.
He has worked in a variety of
technical and increasingly senior
managerial positions in mid-sized
independent oil companies,
including Enterprise Oil, LASMO,
OMV (UK) Ltd and Afren plc.
NON-EXECUTIVE DIRECTOR
FERGUS JENKINS
Other portfolio investments
• The UKOG led PEDL 331 partnership in which Solo has a 30% interest has commenced discussions with the local planning authorities and expects to seek regulatory consents to appraise the Arreton Main oil discovery in the coming years
• Based on work by the partnership the Arreton-2 well, originally drilled in 1974, but never tested, is now considered to be an oil discovery on the Arreton Main Field. When taken together with the adjacent prospects Xodus has calculated a P50 gross oil in place estimate of 219 mmbbls in conventional reservoirs. Arreton Main is considered by Xodus to contain most likely (P50) contingent resource net to Solo’s interest in PEDL 331 of 4.7 mmbbls
• Solo continues to hold a 28.56% interest in 23,500 acres of petroleum leases in southern Ontario that contain various Ordovician reefalstructures and which host oil, gas and condensate. The operator, Reef Resources Inc., has been unable to raise the necessary capital to continue the development of the Ausable gas condensate field and no alternative funding has so far been found to unlock the potential
• Solo’s management continues to seek ways to advance or monetise the investment made in the Ausable and adjacent Airport fields, and will report progress in due course
• Solo maintains a 20% interest in Burj Petroleum Africa Limited (“Burj Africa”) a company which had applied for various undeveloped fields in the 2014 Nigerian Marginal Fields Bid Round (“Marginal Fields Round”)
• Recent developments in the world oil markets and specific to Nigeria have significantly delayed the issue of new licences under the envisaged Marginal Fields Round. The Company continues to monitor developments in Nigeria and has noted some positive movements in this regard in recent months
Corporate Presentation 25