partnership presentation (june 2012) · partnership’s control. the partnership’s results of...
TRANSCRIPT
Partnership Presentation
(June 2012)
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Ratio Oil Exploration (1992) Limited Partnership
Disclaimer
Everything stated in this presentation with respect to an analysis of the Partnership’s business is merely a summary. To obtain
a full picture of the Partnership’s business and the risks facing the Partnership, review the Partnership’s Periodical Report as
of December 31 ,2011 ,as filed with the Israeli Securities Authority through the Magna website. The Partnership does not
warrant that the Information is either complete or accurate, nor will bear any liability for any damage and/or losses which
may result from a use of the Information.
Various issues addressed in this presentation, which include forecasts, goals, estimates, assessments and other information pertaining to
future events and/or matters, whose materialization is neither certain nor within the Partnership’s control, including in connection with
data, income forecast, the value of the Partnership, costs of projects, the development and construction thereof etc. are forward-looking
information, as defined in the Securities Law. Such Information is based solely on the Partnership’s subjective assessment, based on facts
and figures concerning the current state of the Partnership’s business, and macro-economic facts and figures, all as are known to the
Partnership on the date of preparation of this presentation. The Partnership does not undertake to update and/or change any such forecast
and/or estimate to reflect events and/or circumstances occurring after the date of preparation of this presentation. The materialization or
non-materialization of the forward-looking information will be affected, inter alia, by risk factors characterizing the Partnership’s
business, as well as by developments in the general environment and outside factors affecting the Partnership’s business, third-party
representations not materializing, delays in the receipt of permits, etc., which cannot be estimated in advance and are beyond the
Partnership’s control. The Partnership’s results of operations may differ materially from the results estimated or implied from the
aforesaid, inter alia due to a change in any one of the foregoing factors.
Disclaimer
This presentation was prepared by Ratio Oil Exploration (1992) – Limited Partnership (the “Partnership”). It is not an offer to buy or
sell securities of the Partnership, nor an invitation to receive such offers, and is designed, as aforesaid, for the provision of information
only. The information used to make the presentation (the “Information”) is given for convenience purposes only and is neither a
basis for the making of any investment decision, nor a recommendation nor an opinion, and is no substitute for the investor’s
discretion.
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The Levant Basin
Exploration Assets
Leviathan Discovery
Gas Commercialization
Partnership’s Goals
Financial Information
Stock Information
The General Partner
Table of Content
Presentation Outline
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The Levant Basin
Eastern Mediterranean Sea
Levant Basin
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Levant Basin
Ratio Oil Exploration assets 5
Source: US Geological Survey (USGS) Fact sheet 2010-3014 , March 2010
Hydrocarbon Potential
Out of a potential of ~ 122 Tcf
only ~ 35 Tcf have been discovered
Levant Basin
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Source: Geology, 2011
by Steinberg, J., Gvirtzman, Z., Folkman, Y., Garfunkel, Z.
The origin and nature
of the rapid Late Tertiary
filling of the Levant basin
Levant Basin
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Levant Basin - Major Discoveries
Leviathan (2010) – ~ 17 TCF, pre-development
Israel:
Mari B (1999) – ~ 1.6 TCF, supplies gas to domestic market
Noa (1999) – 0.15 TCF, under development
Tamar (2008) – 9 TCF, under development
Dalit (2008) - 0.5 TCF, pre-development
: Cyprus
Palestinian Authority
Levant Basin
Dolphin (2011) - 0.1 TCF
Block 12 (2011) – 6.5 TCF, under assessment
Gaza Marine ~ 1.0 TCF
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Ratio Yam
Ratio Yam licenses location
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Ratio Yam Licenses (Rachel, Amit, Hanna, David, Eran) - Chronology
In 2007 the Partnership obtained Ratio Yam preliminary permit (with priority rights).
During 2007-2008 the Partnership teamed up with strategic partners to continue operations
and drill in the Ratio Yam area.
In late 2008 the preliminary permit was converted to five licenses (named the Ratio Yam
licenses). Each license is ~400 km2 and located 110-140 KM west of Haifa, North Israel.
In December 2010, the Partnership announced the Decade’s largest global offshore natural
gas discovery – “Leviathan” gas field.
The Leviathan gas field is located in the Rachel & Amit licenses.
In late 2011 the Partnership announced the discovery of the Dolphin gas field, located in
Hanna license.
Ratio Yam Licenses are valid until June 2013.
The Partnership holds 15% working interest in each of Ratio Yam licenses.
Exploration Assets
Exploration Assets
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Ratio Yam Licenses- Partners
Ratio Yam licenses
Leviathan & Dolphin Discoveries
39.66 % 15 %
Noble Energy
(Operator)
Ratio Oil Exploration (1992) LP
22.67 % 22.67 %
Delek Drilling LP
Avner Oil LP
Ratio Yam
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Gal Preliminary Permit
Gal - Location
Gal preliminary permit:
In 2010 the Partnership obtained Gal preliminary permit (with
priority rights).
By July 2011, the Partnership completed the work program, including
3D seismic survey.
In August 2011 the Partnership requested to exercise its priority
right and obtain two licenses, named Neta and Royee, with the
preliminary permit area.
The Partnership currently holds 100% working interest, however
agreed to reduce its interest to 50%-60% by sharing it with various
partners.
The two farm-in marine operator options are Norway based AGR or
US based ATP.
Gal
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Domestic Market
Power Generation sector
- Installed Capacity ~ 12,000 MW.
- Available Installed Capacity during peak load ~ 3.3% (source: 2010 IEC
Statistical Report).
- New Installed Capacity 5,000- 6,000 MW are planned to be erected by IEC
and IPP and reach commercial operations by 2016.
Other sectors
- Conversion of traditional heavy industries to utilize gas.
- Development of new industries which heavily utilize gas.
The Israeli Ministry of Energy & Water forecasts a long term
increase in demand for natural gas for power generation and
industry (approx. 13 BCM in the year 2020 and 15 BCM in the
year 2025). source: The Israeli Ministry of Energy & Water forecasts, April 2012
Commercialization
Natural Gas Commercialization Possibilities
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Export Markets – LNG Supply Side
Forecast for an additional Global LNG demand of 72 mta in 2020, well beyond
the capacity proposed by projects currently in operation (~ 230 mta) and in
construction (~80 mta) and in FID imminent (~ 22 mta).
Source: CITl, LNG Landscape, September 2011
Commercialization
Natural Gas Commercialization Possibilities
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Export Markets – LNG Demand Side
Annual growth in LNG demand forecasted at an increase 6.3% p.a. until 2020.
Significant growth in LNG demand comes from China, Japan, India & Korea.
Chinese LNG growth forecasted to rise from 9.4 mta in 2010 to 55 mta in 2020.
Of the 55 mta of Chinese imports anticipated by 2020, 33 mta are already secured by
firm LNG contracts.
Commercialization
Natural Gas Commercialization Possibilities
Source: CITI, LNG Landscape, September 2011
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Leviathan Gas field – Midstream Alternatives
Onshore LNG facility.
Offshore Floating LNG facility.
Offshore Pipeline.
Midstream Alternatives
Leviathan Development- Midstream
17 Source: Noble Energy, Investor Presentation, November 2011
Continue with E&P operations in its current exploration assets.
Develop and commercialize the Leviathan gas field.
Acquire working interests in additional petroleum rights granted by
the State of Israel.
Take advantage of the data and knowledge gained from recent
activities to further assess additional regional opportunities.
Partnership’s Goals
Partnership’s Goals
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Financial Information
(as of March 31, 2012)
Total assets: USD 110 million.
Liquid assets: USD 40.7 million.
Investment in oil assets: USD 62.6 million.
Partners’ Equity: USD 86.9 million.
Finance
The most successful equity fund
raising in the Tel Aviv Stock
Exchange in 2011
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01/01/2009 01/06/2009 01/11/2009 01/04/2010 01/09/2010 01/02/2011 01/07/2011 01/12/2011 01/05/2012
Tel Aviv Stock Exchange
Information The Partnership unit’s price
2009 – 5/2012
*NIS=100 Agurot
Unit price
Agu
rot
Barclays: 56
UBS: 50
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Tel Aviv Stock Exchange Information
The 6th most tradable security
on the Tel Aviv Stock Exchange
in 2011
Average daily turnover in 2011 : NIS 60 million
NIS
Mil
lion
s
Unit Volume
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The General Partner
Partnership founded in 1992 and first listed in the Tel Aviv Stock
Exchange in 1993.
Managed by solid, professional and experienced individuals.
The founding families, Landau and Rotlevy, have a long-term development and
investment philosophy in the energy sector, along with numerous investments in
other industries.
Geologist team has academic and practical knowledge and extensive experience in
the exploration in the Levant Basin.
General partner
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Thank You
Contact Details:
Ratio Oil Exploration Ltd.
Tel : +972-3-5661338
Fax : +972-3-5661280
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