Savannah Energy Plc · LSE:SAVE
Savannah Energy — Savannah Petroleum — Investor Presentation (July 2016)
22 slides from Savannah Energy's investor presentation, July 2016
Slide 1: Corporate Presentation
Corporate Presentation JULY 2016
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
Slide 3: Corporate Overview
Corporate Overview SAVANNAH PETROLEUM (“SAVANNAH”) Market Statistics Focused around the exploration of the R1/R2 and R3/R4 PSC areas in the Agadem Rift Listing AIM (SAVP) Basin (“ARB”) of South East Niger Listed on the AIM market of the London Stock Exchange with a strong institutional Shares Ou
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 c.50 kbd production capacity 20 kbd current production1 Melut Basin 1,782 mmbbls c.250 kbd max. production capacity Doba Trough Muglad Basin 1,059 mmbbls 2,053 mmbbls c.100 kbd current produc
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+) US$300m signature bonus paid 93 exploration discoveries from 124 exploration wells (i.e. 75% success rate) Over 225 wells drilled in total (i.
Slide 6: ARB Exploration Discovery History
ARB Exploration Discovery History Discovery History by Formation Discovery Formation Alternances Yogou Dual Target Pre-CNPC 2009 2010 2011 2012 2013 2014 Discovery History by Year Discovery Year Core observations: Pre-relinquishment focus on Eocene exploration Each 3D seismic survey area has see
Slide 7: Dataset Evolution: Key Workstreams Completed
Dataset Evolution: Key Workstreams Completed Over 2,200 man days of work has been completed on the project since inception, by a core 10 person technical team Principal workstreams completed over the past year include: Interpretation of core seismic, FTG and magnetic datasets Rock physics an
Slide 8: Simplified ARB Geological Model
Simplified ARB Geological Model EXISTING BASIN PLAY TYPES AND POTENTIAL UPSIDE STYLISED CARTOON OF ARB GEOLOGY To date, oil discoveries in the ARB have been in structural trapping configurations, whereby oil has been trapped across a fault against shale in sandstone reservoirs The principal form
Slide 9: CGG Prospective Resource Update
CGG Prospective Resource Update CGG Robertson (“CGG”) has upgraded its proprietary statistical “yet to find” best estimate mean gross prospective risked resource estimate for Savannah’s Structural play licenses to 2.2bn bbls, from 1.2bn bbls trends This upgrade reflects the incorporation of R3/R
Slide 10: Example Prospect: Damissa
Example Prospect: Damissa Substantial structure with significant resource potential DAMISSA PROSPECT SEISMIC PROFILE Situated within main source kitchen fairway with proven Base Miocene oil accumulations within c.10km (e.g. Imari East) Excellent reservoir potential proven in offset wells Sta
Slide 11: Agadem Area Field Characteristics
Agadem Area Field Characteristics FIELD CHARACTERISTICS EXAMPLE EXPLORATION WELL 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 sulphur content Reservoirs are normally pressured and are thought to typically have porosity levels
Slide 12: Niger Oil & Gas Activity History
Niger Oil & Gas Activity History NUMBER OF WELLS DRILLED1 2D AND 3D SEISMIC ACQUIRED 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 Exploration Appraisal Development Production 2D, km2 3D, km2 Niger has had a developed oil service ind
Slide 13: Oil Export Infrastructure
Oil Export Infrastructure INFRASTRUCTURE ACCESS PLANNED EXPORT PIPELINE ROUTE Under the terms of the R1/R2 and R3/R4 PSCs, the Petroleum Code of Niger and its Implementing Decree, Savannah is entitled to access third party infrastructure Under the terms of the proposed Agadem Region Infrastructu
Slide 14: 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
Slide 15: Appendix – Further Background
Appendix – Further Background 15
Slide 16: 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
Slide 17: 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$28m R3/R4 (60% cost recoverable) Royalties: Profit Oil Cost Oil Oil – 12.5% Gas – 2.5% Cost Oil: Recovery of 100% of capital and operating costs (capped at 70%
Slide 18: Audited Potential Exploration Target List
Audited Potential Exploration Target List Target Name Block Unrisked Mean STOIIP, Unrisked Mean Assessed Risk Factor mmbbls Recoverable (30% RF), mmbbls Damissa R1 310 93 Low Guiwa R1 293 88 Low Jimna R2 271 81 Low Adal R3 160 48 Low Efital R3 152 46 Low Alam R1 148 44 Low Mena R1 134 40 Low Karey R
Slide 19: Niger – Current Licensing Position
Niger – Current Licensing Position License Information Name Principal Owner Nationality 1 R1/R2 Savannah Petroleum British 2 R3/R4 Savannah Petroleum British 9 12 10 3 Aborak International Petroleum Australian 4 Achegour Akata Resources Australian 11 5 Agadem CNPC Chinese 6 Bilma CNPC Chinese 16 4 7
Slide 20: Niger – Key Facts
Niger – Key Facts 2014 population of 19.1m people (59th largest population in the world) Landlocked country in West Africa covering 1,267,000km2 (21st largest country in the world) Terrain mainly desert, with arable land in the South West and South East Former French colony, now boasts a “re
Slide 21: Niger – Key Economic Statistics
Niger – Key Economic Statistics 2000 2005 2010 2014 Population, total (millions) 10.99 13.18 15.89 19.11 Population growth, annual (%) 3.6 3.7 3.8 4.0 GDP (current US$, billions) 1.80 3.41 5.72 8.17 GDP growth, annual (%) (1.4) 4.5 8.4 6.9 Inflation, GDP deflator (annual %) 4.5 6.6 2.6 (0.5) Externa
Slide 22: Corporate Presentation
Savannah Petroleum 40 Bank Street Corporate Presentation London E14 5NR T: +44 (0) 20 3817 9844 [email protected] www.savannah-petroleum.com
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