Xtract Resources Plc · LSE:XTR
Xtract Resources — Xtract Energy — Investor Presentation (September 2011)
22 slides from Xtract Resources's investor presentation, September 2011
Slide 1: Company Presentation September 2011
Unlocking Energy Potential Company Presentation September 2011
Slide 2: Disclaimer
Unlocking Energy Potential Disclaimer IMPORTANT NOTICE date hereof, are not necessarily complete and addresses in the United States of America (or contents of this Presentation, including its This presentation and any accompanying are subject to change without notice. No its territories or possessio
Slide 3: Overview
Unlocking Energy Potential Overview 1. Management completing a turnaround of Xtract 2. Clear vision and solid strategy creates a platform for sustainable growth 3. Diverse portfolio of conventional and unconventional core assets 4. Near term operational upside portfolio September 2011 3
Slide 4: Board of Directors
Unlocking Energy Potential Board of Directors Chairman – Dr. George Watkins (ex Chair & MD ConocoPhillips UK) CEO – Peter Moir (30 years experience with Shell; BG Group; Eni) CFO – Alan Hume (Halliburton; Brown & Root; Edison International) NED – Paul Butcher (25 years experience with BP) NED – Jere
Slide 5: Xtract Turnaround
Unlocking Energy Potential Xtract Turnaround • Instigated a strategic review of Xtract business • Rebalanced Xtract’s conventional asset portfolio in line with vision and strategy: – Sold Dutch assets to Chevron for $5m with a royalty of up to 5% on production – Chevron committed to drill an apprais
Slide 6: Vision
Unlocking Energy Potential Vision Build a company focused on unlocking potential and crystallising value through: 1. Use of advanced technology and expertise to reduce uncertainty, simplify complexity and manage risk profile 2. Building relationships with key stakeholders and partners of choice for
Slide 7: Value Spectrum
Unlocking Energy Potential Value Spectrum Explore Appraise Commercialise Develop Produce Enhance Reduce Uncertainty & Simplify Complexity First Oil Value Crystalisation Points 1 Project Sanction Reserves 2 Derisked Enhanced Recovery 3 4 Discovery Sanction Enhancement Value Creation Profile Drill Rea
Slide 8: Drilling of Luna Well: 01/11 Licence Denmark
Unlocking Energy Potential Drilling of Luna Well: 01/11 Licence Denmark • Maersk Resolve to drill Luna • Noreco is Operator – Noreco hold 47% WI & Operator – DK North Sea Fund hold 20% – Company holds 33% • Well Details – Objective to test Rotliegendes play • Resource Potential Net Attributable – Lu
Slide 9: Outside of Central Graben offshore underexplored
Unlocking Energy Potential Outside of Central Graben offshore underexplored 2 wells drilled on initial acreage but testing a different play concept: New prospect, ‘Luna’ 60 15” eastern longitude within new 01/11 licence area ‘Open Door’ Area Central Graben Area Initial 02/05 acreage updip of prolifi
Slide 10: Presence of Rotliegendes Reservoir
Unlocking Energy Potential Presence of Rotliegendes Reservoir Main Rotliegendes Exploration Play Area of Interest Oil Migration Path Initial 02/05 acreage July 2011 10
Slide 11: Location of Licenses, Offset wells and Luna
Unlocking Energy Potential Location of Licenses, Offset wells and Luna New Main Rotliegendes 01/11 acreage Exploration Play Area of Interest Luna Prospect Prospective Resource Range 35mmbbls – 153mmbbls Net to Company Revised 02/05 acreage Initial 02/05 acreage September 2011 11
Slide 12: Drilling of P2-10 Appraisal Well: P2 Block Netherlands
Unlocking Energy Potential Drilling of P2-10 Appraisal Well: P2 Block Netherlands • Noble Byron Wellyver to drill P2-10 • Objective – Appraising the P2-7 discovery – To test commercial hydrocarbon flow rates – Low CO2 discovery from extended reach horizontal well within – Well program duration 100 d
Slide 13: PSDM – The Technology Game Changer
Unlocking Energy Potential PSDM – The Technology Game Changer PSDM is a key seismic technology for improving oil discovery. PSDM accounts for refraction as seismic energy moves across layers and allows interpreter to correctly locate target in sub-surface. PSDM used by Elko to create time and depth
Slide 14: Julia Creek, Queensland, Australia
Unlocking Energy Potential Julia Creek, Queensland, Australia SPE-PRMS potential oil & gas contingent resource: Worley Parsons contracted to best estimate 240mmbbls high estimate 1940 mmbbls provide a technical study on the various technologies which are being used or developed around the world to e
Slide 15: Resources
Unlocking Energy Potential Resources Denmark: License 01/11 & 02/05 (Oil Case Scenario) Xtract net attributable prospective resources (SPE-PRMS) (TRACS Intl.) Low Est. mmbbls Best Est. mmbbls High Est. mmbbls Luna 35 81 153 Lead ‘A’ 212 552 1649 Chalk Channel 36 115 354 Netherlands: Blocks P1 & P2 (
Slide 16: Near term operational upside potential
Unlocking Energy Potential Near term operational upside potential Maersk Resolve rig to drill ‘Luna’ exploration prospect offshore Denmark targeting between 35mmbbls – 153mmbbls net resources attributable to Elko Byron Welliver rig to drill P2-10 appraisal well offshore Netherlands Contracted Worley
Slide 17: The Transaction
Unlocking Energy Potential The Transaction • Xtract acquiring 50% of Elko common shares it does not already own on basis of 7 Xtract ordinary shares for every 1 Elko common share • Plan of Arrangement under Business Corporations Act (Ontario) • Xtract will be re-launched as an enlarged operating com
Slide 18: Summary
Unlocking Energy Potential Summary • Following turnaround of Xtract, the management have a clear vision and strategy to create a platform for sustainable growth • Transparent asset portfolio with significant value enhancement potential • Experienced Board with strong governance ethic • Expertise of
Slide 19: Appendices
Unlocking Energy Potential Appendices September 2011 19
Slide 20: Board of Directors at Re-Admission
Unlocking Energy Potential Board of Directors at Re-Admission Peter Moir is currently chief executive officer of both Elko and Xtract, positions which he has held from January 2009 and July 2010 respectively. From 2002 to 2009 Mr. Moir acted as a consultant to Eni Group of Italy, the operator of the
Slide 21: Board of Directors at Re-Admission
Unlocking Energy Potential Board of Directors at Re-Admission Dr. George Watkins CBE (Chairman) holds a BSc in Mining, a PhD in Geophysics and an MSc in Management. He also holds an honorary degree of Doctor of Engineering DEng from Heriot Watt University. George joined the Conoco Group in 1973 and
Slide 22: Xtract Energy Strong Operational Team
Unlocking Energy Potential Xtract Energy Strong Operational Team Dr. Gordon Parry holds a BSc in geology and a PhD in geophysics and has over 30 years international experience with Shell in geosciences, exploration management, business development and reputation management. Gordon is responsible for
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