Siccar Point Energy

Building a Highly Differentiated Private

Equity Backed E&P Business

September 2017

Introduction

• A well funded, full cycle E&P business focussed on the North Sea

• Experienced management team with strong track records

• Backed by blue chip, long term investors with strong track records of upstream energy

investment

• SPE has built a high quality portfolio:

– Interests in three of the largest UK fields by remaining reserves (Schiehallion, Mariner and

Rosebank)

– Nine additional potential developments of which three are operated

– Circa 400mmboe of discovered resources

– Material high quality West of Shetlands exploration position, where majority of our licences

are operated

– Globally competitive portfolio in a low oil price environment

– No near term decommissioning

– Partnered with the Majors

– Our multi-decade asset portfolio will be one of the longest lasting in the UK

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A highly differentiated business, but what did it take behind the scenes…

2H 2013: Business Case Thinking

• Strong value proposition

– Numerous opportunities – development assets in particular

– Number of failed disposals and capital flight from region to accelerate further disposal needs

– UK one of the most liquid deal markets in the world and Norwegian asset liquidity improving

• Limited competition

– ‘Bear’ market for mid-small UK public quoted E&P companies (46% discount to NAV at time)

– Some PE focus in region but none of scale

• Great opportunity for an experienced team with the right capital structure to build a high quality geographically focussed business

• Build a portfolio of assets where team’s extensive North Sea experience could create value through follow-on investment and reserves growth - ‘buy and build-out’

• Specific pipeline of targeted deals

Equity Raised ($MM) Number of Companies

0-150 3

150-250 4

250-350 1

>350 1

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UK/Norway Focussed PE Companies (Q4 2013)

UK Nor NL 2013 View

N. American Indies Generally retreating to N.A.

Public Int’l Indies Under stock market pressure

Utilities Severely capital constrained

Majors Global mega-project focussed

Local NOCs Continue to invest selectively

Eastern NOCs Entering into parts of market

Private Equity Beginning to move into N. Sea

A great opportunity for a well capitalised business with an experienced team

Source: Lambert Energy Advisory

2014: Fund Raising and NewCo Start-up

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• Firm $500mm initial equity line targeted, not just seed funding, to maximise counterparty engagement

• Working with Blue Water Energy a small number of potential Private Equity funding partners approached

• Blackstone viewed as great partner

– Material capital available and ability to ‘upscale’

– Experienced energy investor

– Fully engaged

• Intensive diligence on business plan and management track record conducted e.g.

– Corporate level metrics (RoE, unit cost benchmarking, reserves/production growth)

– Drilling and project track record

• Negotiations concluded, company legals completed and Newco launched Q3 2014

• Initial team and board build-out completed

• Asset acquisition discussions ongoing in parallel

• Oil price collapses……

Raising equity not for the faint hearted, but fully funded and ready for business!

2015-2016: A ‘Buyers Market’?

• Over 100 opportunities screened

• >70% ruled out quickly – focus on quality

• Oil price volatility and uncertainty impacted deal execution:

– counterparty budget revisions

– unrealistic expectations

– UK deals dropped to historic lows

– write downs and stable oil price outlook key to recent industry deals

• A number of fully diligenced/financed offers made – hold value was the issue (‘no deal’ with anyone typically)

• Proactivity, perseverance and creativity key in our deal delivery:

– Feb 16 – signed deal to acquire interest in giant Mariner field. Closed Aug 16

– Nov 16 – signed deal to acquire OMV’s entire UK business. Closed Jan 17

• SPE’s OMV deal was the largest in the UK since 2012

• Subsequently there have been a number of significant acquisitions in NW Europe including:

– Chysaor/Shell Neptune/Engie

– Ineos/DONG Delek/Ithaca

– CPPIB/Shell Ireland Total/Maersk

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Market uncertainty and our focus on quality extended timeframe, but we delivered…

Source: Lambert Energy Advisory

Investing with Private Equity sponsors

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Sponsor collaboration critical through deal phase to gain both Board and IC support

AcquisitionDetailed diligence

Asset quality

Number of value levers vs

binary risk

Ability to influence delivery

Appropriate level of gearing

Returns –MOIC/IRR

Materiality

Attractiveness of business at

exit

Risks and mitigations

Robustness to downside

price

SPE Portfolio and Near Term Plans

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Mariner, Boatswain, Mariner East

Jade, Jade South, Jackdaw

Tobermory

Bunnehaven

Benbecula

Schiehallion

Rosebank

Cambo

Suilven

Producing

Under development

Discoveries

Key near term activities:Schiehallion onstream May 2017Mariner first production 2018Cambo appraisal well 2018 followed by FIDLyon and Blackrock exploration wells 2018/19Rosebank FID 2019

Lyon well

Blackrock well

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OGA (DECC) in 2015 estimated

c2.6 billion boe are yet to be

found in the Atlantic Margin area

(mid case estimate)

Major new geological plays are

still being found in the basin:• Intra-volcanic sands

• Cretaceous sands against

structural highs

• Basin floor sands

• Fractured basement

With all these new play concepts,

Siccar Point consider that

estimate to now be conservative

SPE is also well positioned in the

other key long-term theme for the

UKCS - Northern North Sea

Heavy Oil

Atlantic Margin – The Future of the UKCS

The Atlantic Margin is forecast to become the main producing area of the UKCS

Source: Wood Mackenzie Upstream Data Tool Q3 2017

The UK Offshore Sector

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SPE 8th in UK Discovered Reserves and Resources

SPE 5th in WoS Discovered

Reserves and Resources

A material player in both the UKCS and West of Shetlands

Source: Wood Mackenzie Pathfinder Q3 2017

SPE’s Long Life PortfolioSource: Wood Mackenzie 1 June 2017

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SPE is poised to become one of the leading revenue generating businesses in the UK

Outlook

Siccar Point Energy is poised to become a

leading UK E&P business

Interests in three of the five largest UK fields by remaining reserves (Schiehallion, Mariner and Rosebank) - two producing by 2018

High-quality long life West of Shetlands portfolio with material upside optionality

Low cost break-even economics and no near-term decommissioning

Significant cash generation from 2018+

Portfolio will produce through to the 2050’s

Committed to the UKCS

Significant future growth options -opportunity for strategic partners

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A highly differentiated and growing business