Reabold Resources Plc · LSE:RBD
Reabold Resources — Investor Presentation (September 2018)
24 slides from Reabold Resources's investor presentation, September 2018
Slide 1: Reabold Resources plc
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Slide 2: Disclaimer
Disclaimer These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company nor shall they or any part of them form the basis of or be relied upon in any manner or for
Slide 3: Introduction: Management, History & Overview
Introduction Management Stephen Williams Sachin Oza • 15 years’ experience in the energy sector • 17 years’ investment experience • Investment analyst focussing on the energy • Investment analyst at M&G Investments from sector at M&G Investments where he worked 2003-2016, covering the Oil & Gas sect
Slide 4: Overview
Overview • AIM listed, upstream oil & gas company • Specific strategy to fund other operators’ appraisal wells • High quality, high return projects • Technically de-risked by previous drilling • Quick cycle times to monetisation • Reabold’s capital unlocks the project allowing near term drilling act
Slide 5: Assets
Assets • Three sets of projects to date: • Gaelic – California conventional • Corallian - 3 key projects in the UK • Danube - Romania appraisal • $374M NPV in current portfolio • 1st well successfully drilled in August 2018 • At least 5 additional wells in 6 month programme • All independent & trans
Slide 6: Reabold Activity – Portfolio Delivery
Reabold Activity – Portfolio Delivery Project Jul 2018 Aug 2018 Sep 2018 Oct 2018 Nov 2018 Dec 2018 Jan 2019 Feb 2019 California - NPV* Workover $10M Four wells on production California – NPV* West Brentwood $25M Successful Discovery California – NPV* Monroe Swell $100M California - NPV* Grizzly Isl
Slide 7: Reabold California
Reabold California • Reabold has the right to earn 50% in 3 licenses in California by drilling 5 wells. • Additional redevelopment programme successfully completed – first oil production announced late July • VG-3 well drilled on West Brentwood and resulted in commercial oil & gas discovery • 2 furt
Slide 8: Reabold California
Reabold California Monroe Swell Monroe Swell; substantial prior production Structure Map • Four existing wells worked over and now back in production • NPV* up to $10M net to Reabold • Drilling summer 2018 and H1’19 • Targeting >4M bbls • NPV* up to $100M net to Reabold West Brentwood; substantial p
Slide 9: Corallian Energy Wick Exploration Well
Corallian Energy Wick Exploration Well • Wick prospect farmed out for full carry following Reabold’s investment in Corallian • 40% interest (with 20% paying interest) in the Wick exploration well: • Upland Resources plc funding 53.33% to earn 40% interest • Corfe Energy Limited funding 20% to earn 1
Slide 10: Corallian Energy Colter Appraisal Well
Corallian Energy Colter Appraisal Well • Fully funded Colter well likely to drill in H2 2018 • Corallian will drill at c.50% equity Wytch Farm position Colter • Colter is a UK oil discovery, initially drilled in 1986 Purbeck • Three historic wells penetrated the Field map of the Colter appraisal wel
Slide 11: Corallian Energy Colter Prospect Economics
Corallian Energy Colter Prospect Economics* Colter Economics Forecast • Cost of initial appraisal well only $4.5m net to Corallian: Fully Funded Net to Corallian Net to RBD Prospective Resources 15MMbbl 5MMbbl Commercial CoS 58% 58% • Colter’s near shore location ensures a Appraisal Well Cost $4.5M
Slide 12: Danube Petroleum Parta, Onshore Romania
Danube Petroleum Parta, Onshore Romania • Reabold has invested £1.5M into Danube Petroleum to earn a 29% stake • Danube is 100% owner of the Parta appraisal programme and 50% owner of the rest of the Licence • Reabold investment funds first well of two well appraisal programme • Proven and stable hy
Slide 13: Danube Petroleum Parta Indicative Economics
Danube Petroleum Parta Indicative Economics** • Very low capex ensures fast payback vs first gas Low Estimate Parta Economics Forecast* • Gas prices in Romania have converged with Net to Danube Net to RBD strong and stable Western European prices Prospective Resources 15.3bcf 4.4bcf Well Cost ($M) $
Slide 14: Further investments
Further investments • Limited window of opportunity to roll out strategy whilst both project entry prices and drilling costs remain low • Several potential projects have been substantially matured – all with near term drilling and highly favourable economics • Projects are technically derisked, have
Slide 15: Strengthening the Board
Strengthening the Board • Two high calibre directors have joined the board in September 2018, bringing vast experience and significant endorsement of the Reabold strategy • Marcos Mozetic • Former Head of Global Exploration for Super Major Repsol • Led Repsol’s transition from consistent underperfor
Slide 16: Summary
Summary • Exploiting market dislocation which offers high quality assets at low valuations • Management has proven execution ability and stimulated industry transactions in invested projects at accretive values • Demonstration of success with the drill bit • Innovative model focused on generating re
Slide 17: Reabold Resources plc
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Slide 18: Appendix
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Slide 19: Industry Backdrop
Industry Backdrop • Market conditions have resulted in low entry prices into high quality, derisked, pre-cash flow projects, which have stalled due to lack of capital • Capital market reticence to invest in the subsector is result of widespread and severe underperformance • E&P companies with good p
Slide 20: Unlocking Value in the E&P Cycle
Unlocking Value in the E&P Cycle Early stage oil & gas companies would normally expect the most dramatic value uplift for a project to occur between first resource discovery and project FID Last several years have seen a dislocation between fundamentals and valuations Reabold allows investors to foc
Slide 21: Reabold Activity – Proven Execution
Reabold Activity – Proven Execution • Reabold fundraises swiftly followed by deployment into projects • This in turn attracts industry capital into projects • Multiple transformational wells in the near term £1.5M investment into Acquisition of Gaelic Corallian Energy (Colter & Wick farmed out to Wi
Slide 22: Corallian Energy Investment
Corallian Energy Investment • Reabold has invested £2.5M into Corallian Energy acquiring a 32.9% equity stake • Corallian acquired UK oil & gas licences in 2015 Rapid Value Creation Following Reabold achieving limited commercial activity prior to Investment Reabold’s investment • Multiple farm out d
Slide 23: Corallian Energy Potential Appraisal Project: Oulton
Corallian Energy Potential Appraisal Project: Oulton • Reabold is now working with Corallian to bring funding partners into its Oulton project • Undeveloped Oulton oil accumulation estimated to contain 20M bbls of oil recoverable with an upside P10 of >50M bbls* • Discovery made in 1974 by Amoco; 3/
Slide 24: Sources
Sources The technical information and resources estimates provided in this presentation in relation to the projects in which Reabold has invested have been extracted from the presentations and technical data provided to Reabold by the operating companies in which Reabold has invested. That data has
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