Ithaca Energy Plc · LSE:ITH
Ithaca Energy — Investor Presentation (December 2009)
19 slides from Ithaca Energy's investor presentation, December 2009
Slide 1: December 2009
GITHACA December 2009
Slide 2: Forward Looking Statements
Forward Looking Statements In the Interest of providing potential investors with information regarding the Company, including management’s assessment of the Company’s future plans and operations, certain statements and graphs throughout this presentation are “forward-looking statements” and represen
Slide 3: Exit 2009 - Solid Foundations
Exit 2009 - Solid Foundations Operator of 4 Assets Strong 5,000 bopd Balance Sheet Average No Debt Net Production 5 Core Oil and Gas Assets Established 17.2 mmboe Commercial 2P Reserves Skills (Sproule) Proven Technical Expertise December 2009 3
Slide 4: 2010 - Targets
2010 - Targets Optimise Operations Reduce Maintain Current Opex/bbl Production Increase Increase Free Reserve and Cashflow Asset Base Accretive Acquisitions High Priority December 2009 4
Slide 5: Focused on Production, Drilling and Reserves in 2010
Focused on Production, Drilling and Reserves in 2010 Stella appraisal well drilling and pre-development Beatrice workovers and production enhancements Formal development plan approval of Athena and Carna Additions to production base through possible acquisition(s) Potential for significant
Slide 6: Strong Production Profile Existing Projects
Strong Production Profile 18 Existing Projects Hurricane Hurricane (Ithaca Internal) 16 Harrier Harrier (Ithaca Internal) 14 Athena (Sproule: Year End 2008, Athena adjusted for staged development) 12 Stella Jacky (Sproule: Year End 2008) boepd (‘000) Water Injector Stella Carna 10 (Ithaca Internal)
Slide 7: Focused Portfolio - Underpinning Value
Focused Portfolio - Underpinning Value Beatrice && Jacky Beatrice Jacky Production Hub Production Hub (Oil) (Oil) Athena Hub Athena Hub ‘Solid Production ‘Solid Production Base’ Base’ (Oil) (Oil) ‘Project Launch’ ‘Project Launch’ Nigg Storage Nigg Storage Facility Facility (Oil) (Oil) ‘Sales && 3rd
Slide 8: Stella Development
Stella Development Stella Discovery (Operator - 50.33 % WI*) Feet Planned Appraisal (Q4 2009) } Gas condensate 9,100 Crest Current 2P } Appraisal drilling January 2010 9,350 Reserves Define hydrocarbon composition Appraisal 2 5Y Targeting 3 Define hydrocarbon contact ~650 ft Upside (analogous
Slide 9: Stella Area Plan
Stella Area Plan Elgin Harrier Discovery (Operator - 50.33 % WI*) 29/4b Shearwater 100% } Gas } Joint development with Stella HP Franklin HT 29/5e Reserves audit underway Kessog } Ar 100% ea Courageous Puffin } Gross in place 17 - 59 mmboe (ur) Shallow (Ithaca Internal) 30/6 29/10b Stella Hurric
Slide 10: Athena Development
Athena Development Athena Development (Operated - 22.5 % WI) Example of FPSO proposed for development Rigorous cost review completed } Robust economics } Diligent approach to cost exposure Project launch } Project contracts finalised Q1 2010 } FDP Approval targeted 2010 } First Oil H2 2011 A
Slide 11: Jacky Producer
Jacky Field Jacky Producer N Jacky Water Injector 12/21-2 Injecto ater } Water injection fully operational W r Jacky Well drilled and completed on time and under budget Jacky } 15 - 18,000 bwpd injection support Field } Beatrice / Jacky production currently >14,000 bopd* } Jacky Cumulative oil p
Slide 12: Beatrice Complex Activities
Beatrice Complex Activities Beatrice Bravo } Operations commenced 5th November 2009 } Ensco 80 jack-up rig } Original 28 day work schedule complete Activation of 2nd ESP at B13 ESP replacement at B1 Program extended with additional workover at B11 Hydraulic Workover Unit on } Targeting incre
Slide 13: Carna Discovery
Carna Discovery Gas Discovery (16 % WI) Carna Geological Model N 43/21b-5Z } Carboniferous Sandstone } Structure filled to spill ~1,500 ft gas column Well Tested at 9 mmscfpd } In line with pre drill expectations Carna Operator’s Development Timeline } Subsea tie back to Kilmar likely } FDP
Slide 14: Reserves Growth Potential
Reserves Growth Potential Hurricane Harrier (Initial Assessment) (Initial Assessment) Carna (Initial Assessment) Total 17.2 mmboe Stella Chalk (Initial Assessment) Stella Stella Beatrice Jacky Beatrice (Post Water Injector) Jacky Athena (Updated Costs) Athena End 2008 End 2009 End 2009 Reserves curr
Slide 15: Niche player unlocking value
Niche player unlocking value Track record and demonstrable technical capabilities High quality team } Decisive evaluation and well positioned to seize opportunities } Focused on timeline, cost and delivery Commitment to North Sea } Production, Development and Exploration Operating capacity
Slide 16: Business
Business Hedging - Securing Forward Cashflow } Lock in US$ income (US$ 77 /bbl) from oil sales (204,000 bbls spread evenly over Nov 2009 to Feb 2010) } Fixed US$/£ exchange rate to guarantee £ expenditure (Stella appraisal, Beatrice OPEX) (~1.6 US$/£, down to floor 1.49 US$/£) Income from Nigg F
Slide 17: Poised to deliver significant growth in 2010
Conclusions Strong balance sheet } No debt } No need to raise equity to fund current development projects Growing portfolio of outstanding assets } Maintaining material interest and operatorship Proven track record of delivery } Projects completed on time and on budget Poised to deliver signif
Slide 18: Management Team
Management Team Iain McKendrick Chief Executive Officer 19 yrs oil industry exp, North Sea & Gulf Coast Exploration, production & commercial Previously VP Business Dev & Strategy, Gulf Coast John Woods Lawyer Norman Wood Chief Development Officer Chief Financial Officer 28 yrs of extensive
Slide 19: Board of Directors
Board of Directors CEO and Director Chairman of the Board Iain McKendrick Lawrie Payne Management Oil Executive Director Director Director Frank Jay Zammit John Summers Lawyer Chartered Accountant Wormsbecker Reservoir Engineer Director Director Jack Lee Brad Hurtubise Oil Executive Investment Banke
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