Savannah Energy PLC · LSE:SAVE

Savannah Energy — Savannah Petroleum — Investor Presentation (December 2015)

28 slides from Savannah Energy's investor presentation, December 2015

  1. Slide 1: Corporate Presentation

    Corporate Presentation DECEMBER 2015

  2. Slide 2: Disclaimer

    Disclaimer These presentation materials (the “Presentation Materials”) do not constitute or form any part of any offer or invitation or inducement to sell or issue or purchase or subscribe for any shares in Savannah Petroleum plc (“Savannah”) nor shall they or any part of them, or the fact of their

  3. Slide 3: Introduction and Overview

    Introduction and Overview  Savannah Petroleum (“Savannah”) Market Statistics  Focused around the exploration of the R1/R2 and R3/R4 PSC Listing AIM (SAVP) areas in the Agadem Rift Basin (“ARB”) of South East Niger Shares Outstanding 193,341,447  Listed on the AIM market of the London Stock Exchan

  4. Slide 4: Agadem and the Central African Rift System

    Agadem and the Central African Rift System Bongor Trough Agadem Rift Basin 417 mmbbls 975 mmbbls 2P reserves 20 kbd current production 20 kbd current production* Melut Basin 1,782 mmbbls 250 kbd max. production capacity Doba Trough Muglad Basin 1,059 mmbbls 2,053 mmbbls c. 100 kbd current production

  5. Slide 5: ARB Exploration and Activity History

    ARB Exploration and Activity History  Pre-CNPC Era (1975 – 2004)  5 discoveries made from 25 exploration wells (i.e. 20% success rate)  CNPC Era (2008 – 2014)  US$300m signature bonus paid  93 exploration discoveries from 124 exploration wells (i.e. 75% success rate)  Over 225 wells drilled in

  6. Slide 6: ARB Exploration Discovery History (1)

    ARB Exploration Discovery History (1) 2009 2010 2011 Pre- CNPC Wells 2014 2013 2012 2011 2010 2012 2013 2014 2009 * # Pre-CNPC Drilling focuses on prior year 3D CNPC 3D seismic SOURCE: GOVERNMENT OF NIGER, SAVANNAH ESTIMATES 6

  7. Slide 7: ARB Exploration Discovery History (2)

    ARB Exploration Discovery History (2) 2009 2010 2011 Pre- CNPC Alternances (Eo) Sokor Yogou (KU) Yogou Dual Target 2012 2013 2014 _ ^ Stacked Pre-2013 exploration in the classic tilted fault block Eocene play was the principal focus SOURCE: GOVERNMENT OF NIGER, SAVANNAH ESTIMATES 7

  8. Slide 8: Geo-Seismic Cross Section of ARB

    Geo-Seismic Cross Section of ARB Sokor 1 and Yogou are the principal proven target horizons R1 R2 Potential Target Horizons SOURCE: BANG LIU ET AL (2015), GOVERNMENT OF NIGER, SAVANNAH ESTIMATES 8

  9. Slide 9: Agadem Creaming Curve

    Agadem Creaming Curve Cumulative OOIP (mmstb) 4,000 3,500 3,000 2,500 CNPC Entry 2,000 Goumeri Discovery Agadi Discovery (June 2008) Sokor Discovery February 1990 January 1994 October 1982 1,500 1,000 500 0 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 SOURCE:

  10. Slide 10: R1/R2 and R3/R4 Prospectivity

    R1/R2 and R3/R4 Prospectivity  Proven ARB tilted fault block play well understood  Geochemical studies show prevalence of good quality source rocks  Petrophysical studies have found target reservoir rocks to be of good quality at principal target depths  Dry hole analysis identifies seal breach

  11. Slide 11: ARB Stratigraphy

    ARB Stratigraphy Tests & Targets Existing ARB • To end-2014, Shows Discoveries there have been 98 discoveries in the CNPC- operated Agadem PSC 96 • Multiple play types remain un-explored 2 that are active in analogous basins (both 14 within the CARS and elsewhere) Shows Tests/Discoveries SOURCE: LUN

  12. Slide 12: ARB: 2D to 3D Data Improvement

    ARB: 2D to 3D Data Improvement SOURCE: GOVERNMENT OF NIGER, SAVANNAH ESTIMATES 12

  13. Slide 13: Example 3D Prospects

    Example 3D Prospects Prospect 1 extent Prospect 2 extent Base Miocene Madama Yogou E4 Horizon Sokor Shales Prospect 2 10m Contours Depth TVDmsl (m) Prospect 2 Prospect 1 LV Shale Prospect 1 Madama E1 E2 & E3 E4 PSTM Yogou Amplitudes E5 SOURCE: GOVERNMENT OF NIGER, SAVANNAH ESTIMATES 13

  14. Slide 14: Example Deep Play Lead

    Example Deep Play Lead Lead extent SW NE Base Miocene Sokor Shales Yogou Horizon Sokor Alternances Contour interval 10 m Madama Depth TVDmsl (m) Deep Lead Yogou Deep Lead SOURCE: GOVERNMENT OF NIGER, SAVANNAH ESTIMATES 14

  15. Slide 15: Intra Yogou Stratigraphic Play Concept

    Intra Yogou Stratigraphic Play Concept Seismic line location • Arrows show updip reflector terminations which may provide stratigraphic trapping configurations in the north eastern part of block R2 • Red arrows may be at equivalent level to sandstones proven in wells in the area • More seismic data

  16. Slide 16: Agadem Area Field Characteristics

    Agadem Area Field Characteristics FIELD CHARACTERISTICS EXPLORATION WELL  Average discovery size is c.10 mmbbls, with no discoveries to date having been greater than 60 mmbbls  Typical discoveries have an API of c.30 degrees, a wax content of > c.12%, a c.20 – 30 degree pour point and a low sulphu

  17. Slide 17: Niger Oil & Gas Activity History

    Niger Oil & Gas Activity History NUMBER OF WELLS DRILLED, 2008 – 20141 2D AND 3D SEISMIC ACQUIRED, 2008 – 2014 50 4,000 40 3,000 30 2,000 20 1,000 10 0 0 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 2 Exploration Appraisal Development Production 2D, km 3D, km Niger has had a

  18. Slide 18: ARB Conceptual Development Solution

    ARB Conceptual Development Solution  Savannah has completed work on a conceptual development solution for potential discoveries on its license areas  “Hub and spoke” concept envisaged:  Cost effective solution, proven elsewhere in ARB  Capable of expansion/replication to incorporate additional p

  19. Slide 19: Oil Export Pipeline Targeted for 2016/17

    Oil Export Pipeline Targeted for 2016/17 OIL EXPORTS TARGETED FOR 2016/17 PLANNED PIPELINE EXPORT ROUTE  CNPC currently sells domestically to the c20kbd capacity Zinder refinery, via the 463km Agadem-Zinder domestic pipeline  The Ministry of Energy and Petroleum has indicated to Savannah that it e

  20. Slide 20: Board and Management

    Board and Management  A geologist by profession Steve is widely recognised as one of the most capable oil and gas executives in the UK Steve Jenkins, Chairman  Previously Founder and CEO of Nautical Petroleum which was sold for £414m to Cairn Energy in Q3 2012  Geologist by profession, currently

  21. Slide 21: Appendix – Further Background

    Appendix – Further Background 21

  22. Slide 22: PSC Phases and Work Programme – R1/R2 vs. R3/R4

    PSC Phases and Work Programme – R1/R2 vs. R3/R4 R1/R2 R3/R4  4 year term  4 year term  Minimum work programme:  Minimum work programme:  2,000km 2D seismic  750km2 3D seismic Phase 1  1,000km2 3D seismic  2 wells  5 wells  50% relinquishment of land at end of phase, excluding land already

  23. Slide 23: Overview of Main PSC Terms

    Overview of Main PSC Terms Net After Royalty  Signature bonus and related expenditure:  US$34m R1/R2 (40% cost recoverable)  US$28m R3/R4 (60% cost recoverable)  Royalties: Profit Oil Cost Oil  Oil – 12.5%  Gas – 2.5%  Cost Oil:  Recovery of 100% of capital and operating costs (capped at 70%

  24. Slide 24: Niger – Current Licensing Position

    Niger – Current Licensing Position License Information Name Principal Owner Nationality 1 R1/R2 Savannah Petroleum British 2 R3/R4 Savannah Petroleum British 9 12 10 3 Aborak International Petroleum Australian 4 Achegour Akata Resources Australian 11 5 Agadem CNPC Chinese 6 Bilma CNPC Chinese 16 4 7

  25. Slide 25: Niger – Key Facts

    Niger – Key Facts  2013 population of 17.8m people (59th largest population in the world)  Landlocked country in West Africa covering 1,267,000km2 (21st largest country in the world)  Terrain mainly desert, with arable land in the South West and South East  Former French colony, now boasts a “re

  26. Slide 26: Niger – Key Economic Statistics (1)

    Niger – Key Economic Statistics (1) 2000 2005 2010 2011 2012 2013 Population, total (millions) 10.99 13.18 15.89 16.51 17.16 17.83 Population growth, annual (%) 3.6 3.7 3.8 3.8 3.8 3.9 GNI, Atlas Method (current US$, billions) 1.91 3.35 5.82 6.11 6.76 7.12 GNI per capita, Atlas method (current US$)

  27. Slide 27: Niger – Key Economic Statistics (2)

    Niger – Key Economic Statistics (2) 100,000 12,000 9 80,000 10,000 8,000 6 60,000 6,000 40,000 4,000 3 20,000 2,000 0 0 0 Niger Africa World Niger Africa World World Africa Niger 2014 GDP (US$BN) 2014 GDP PER CAPITA (US$) 2014 GDP GROWTH RATE (%) 50 5 80 40 4 60 30 3 20 40 2 10 20 1 0 Agriculture Ma

  28. Slide 28: Corporate Presentation

    Corporate Presentation SAVANNAH PETROLEUM

Savannah Petroleum — Investor Presentation (December 2015) on 6ix