Petrel Resources Plc · LSE:PET
Petrel Resources — Investor Presentation (February 2009)
25 slides from Petrel Resources's investor presentation, February 2009
Slide 1: Petrel Resources Plc
Petrel Resources Plc FEBRUARY 2009 www.petrelresources.com
Slide 2: Contents
Contents • Who we are • Iraq projects • Latest developments • Work programme 2 www.petrelresources.com
Slide 3: Important Notice
Important Notice • This presentation does not constitute or form any part of any offer for sale or solicitation of any offer to buy or subscribe for any securities in Petrel Resources plc nor shall it or any part of it form the basis of, or be relied on in connection with, or act as any inducement t
Slide 4: Why Iraq?
Why Iraq? • World’s largest remaining undeveloped petroleum province • Opportunity for re-developing known fields • Technical costs are the lowest worldwide • Hydrocarbon law allows foreign participation – Whether under existing or expected new law • Iraq needs help, but few are willing to take the
Slide 5: Petrel Resources: Who we are: background
Petrel Resources Who we are: background • Pure Exploration & Production (E&P) play focused on Southern Iraq • Irish company - listed in London Alternative Investment Market (AIM) • Highly experienced Iraqi and international team • Group leverages regional expertise adding complementary opportunities
Slide 6: Petrel chronology
Petrel chronology Technical cooperation Petrel Working agreement agreement signed Established cooperation Established signed to explore Block 6 Iraq for Merjan field agreement with Itochu of Japan 1997 2002 Oct 2005 Sep 2006 1999 2000 Sept 2005 Jan 2006 Today Entered Iraq London AIM EPC contract awa
Slide 7: Petrel top organization
Petrel top organization Chairman John Teeling Finance Director MD Director Director James Finn David Horgan Guy Delbès Stefano Borghi Iraq Country Mgr Director of Projects Project Manager Chief Process Eng. Mahmoud Ahmed Shaun Hennessey Rod McInnes Hany Sadek Senior Geologist Senior Geologist Senior
Slide 8: Projects in Iraq
Projects in Iraq Block 6 Merjan Dhufriya Subba & Luhais 8 www.petrelresources.com
Slide 9: Status of projects in Iraq
Status of projects in Iraq • Block 6 (exploration) Extensive work completed – awaiting new law • Merjan field (technical cooperation) Follow-on 5/2008 • Dhufriya field (technical cooperation) Start 4/2008 • Subba & Luhais (EPC) Under development • Development field Under discussion 9 www.petrelresou
Slide 10: Recent developments affecting Petrel
Recent developments affecting Petrel • Downstream law agreed • Upstream law approved by Cabinet, awaiting ratification by Parliament • If law delayed the Government proposes to negotiate deals under the old law • Only western player working on the ground under current conditions – though solid suppl
Slide 11: Essence of Iraq upstream hydrocarbon law (draft)
Essence of Iraq upstream hydrocarbon law (draft) • State of the Art Law– comparable to best international practice • Indicative contractor production share 20% • Production Sharing Agreements basis for the model • Terms to be negotiated on a field by field basis • 12.5% royalty • Authority of Minist
Slide 12: Block 6 (exploration): introduction
Block 6 (exploration): introduction • Block 6 is considered one of the most prospective of the Iraqi Western Desert Blocks – 3 to 5 billion barrel recoverable potential • Large structures identified in Mesozoic (oil-prone) and Paleozoic (gas/condensate prone) Formations • World class exploration opp
Slide 13: Block 6 (exploration): base map
Block 6 (exploration): base map www.petrelresources.com 13
Slide 14: Merjan field (technical cooperation agreement)
Merjan field (technical cooperation agreement) Undeveloped discovery Opportunity to work with the Ministry, learn about Iraq’s regional geology. First official cooperation with Itochu (50% non-operating partner) Objective: Training and transfer of technology to technical personnel Ministry of Oil Pr
Slide 15: Merjan field: Basic facts
Merjan field (technical cooperation agreement) Basic facts • Discovered 1983 (undeveloped) • Located near Block 6 • Oil In Place est. 760 million barrel (first estimates) • Well data available • 2D seismic available • Completed 4/2007 ongoing follow- up 15 www.petrelresources.com
Slide 16: Subba & Luhais (EPC contract): Project description
Subba & Luhais (EPC contract) Project description • Working this project since 1999. At $197 million contract price, it is the biggest of the oil field development contracts issued so far by the Ministry of Oil. The project is located in Southern Iraq, where security challenges are manageable • Ther
Slide 17: Subba & Luhais facilities (export infrastructure)
Subba & Luhais facilities (export infrastructure) Satellite image 17 www.petrelresources.com
Slide 18: Subba & Luhais EPC contract: New development plan
Subba & Luhais EPC contract New development plan 18 www.petrelresources.com
Slide 19: Subba & Luhais EPC contract: New development plan
Subba & Luhais EPC contract New development plan 19 www.petrelresources.com
Slide 20: Subba & Luhais EPC contract: Project time table
Subba & Luhais EPC contract Project time table 20 www.petrelresources.com
Slide 21: Other regional opportunities: Jordan
Other regional opportunities: Jordan • As part of Petrel’s work on Arabian Desert, our staff collected data from Jordan, Syria, and Saudi Arabia. The cooperation of the Jordanian authorities encouraged Petrel to look at the Jordanian side of the Arabian Desert • In January 2005, Petrel signed a MOU
Slide 22: Jordan: East Safawi block
Jordan: East Safawi block Exploration • Block size 8750 km2 • Terms of the PSA (60% to 35% share, depending on production) • 15% profits tax • No Parliamentary queries or press criticism. • No security problems • Agreement signed May 2007 www.petrelresources.com 22
Slide 23: Near term priorities for Petrel
Near term priorities for Petrel • Formalise contracts after ratification of Iraqi hydrocarbon law or under existing law. Confirm Block 6 exploration & development contract under new law. Negotiate development field contract. • Complete the Subba & Luhais EPC (Engineering, Procurement & Supervision o
Slide 24: Corporate Facts
Corporate Facts • Cash balance: c.$8 million due from SCOP for Subba & Luhais Basic Design • 69m shares in issue – diluted 74m • Current Market Cap. (fully-diluted): £28m, €31.5m, $41.25m • >1800 shareholders • 25% institutional share holders; including Swiss institutions • Broker/NOMAD : Blue Oar 2
Slide 25: Petrel Resources Plc
Petrel Resources Plc 162 Clontarf Road Dublin 3 Ireland Phone: +353 1 833 2833 Fax: +353 1 833 3505 Email: [email protected] www.petrelresources.com www.petrelresources.com
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