Beacon Energy Plc · LSE:BCE
Beacon Energy — Advance Energy — Investor Presentation (March 2021)
20 slides from Beacon Energy's investor presentation, March 2021
Slide 1: Buffalo Oil Field Farm-in Redevelopment Project
Buffalo Oil Field Farm-in Redevelopment Project March 2021 Dark matter – hidden energy without limits www.advanceplc.com Advance Energy | Buffalo Oil Field Farm-in |
Slide 2: Disclaimer
Disclaimer The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other jurisdiction, and are not being offered or sold, directly or indirectly, within
Slide 3: Disclaimer
Disclaimer The Presentation must not be distributed to, directed at, acted on or relied on in the UK by, persons who are not Relevant Persons. Transmission of the Presentation or related documents to any other person in the UK is unauthorised and may contravene FSMA. Any investment or investment act
Slide 4: Corporate Overview
Corporate Overview Advance Energy is listed on AIM:ADV Rebranded in February 2020 with a new Board & executive team • Accomplished team with over 120 years of experience • Track record - serial delivery of value accretive outcomes • Directors & management own >15% of Company Novel E&P growth strateg
Slide 5: Advance Energy Team
Advance Energy Team Mark Rollins (Non-Executive Chairman) • Commercial, business development & government negotiation • Shell, Clyde Petroleum, ARCO, BG Group plus others • Private equity & start-up experience; broad geographic exposure Leslie Peterkin (Chief Executive Officer) • Petroleum engineer
Slide 6: Buffalo Venture: 1999 to 2004
Buffalo Venture: 1999 to 2004 Advance Energy | Buffalo Oil Field Farm-in |6
Slide 7: Buffalo Farm-in Highlights
Buffalo Farm-in Highlights Non-operated interest in proven oil field, offshore Timor-Leste • Operator Carnarvon Petroleum (ASX:CVN), market capitalisation ±US$ 330 million • RISC* certified Buffalo field, gross 2C contingent resource of 34 MMstb • Potential, gross peak production rate of 40,000 bopd
Slide 8: Economics: RISC Certification – Advance 50%
Economics: RISC Certification – Advance 50% Summary Advance Resource 2C, Net 1C, Net • CPR economics assume a 30,000 bopd MOPU US$ MM @ 50 $/bbl 13* MMstb 6* MMstb • MOPU case recovers 2C resource of 34.3 MMstb Dev. Capex (real, gross) 125 99 • Cashflows from CPR include B-10 carry Cum. Cashflow (ne
Slide 9: Buffalo Field Overview
Buffalo Field Overview History • Originally developed & operated by BHP & Nexen in 1999 • Produced 21 MMstb over 5 years • Achieved a peak rate of 45,000 bopd from only 2 wells • Production shut-in late 2004 at a rate of 4,000 bopd Location • Licence originally located in north-western Australian wa
Slide 10: Timor-Leste: E&P Sector
Timor-Leste: E&P Sector Country Overview • Independent since 2002 • 1.2 million inhabitants • 1 of only 2 Christian countries in SE Asia • IMF: ‘one of the world’s most oil-dependent economies’ • Oil & gas development is exclusively offshore • JPDA maritime border resolved, now Timor-Leste Primary O
Slide 11: B-10 Appraisal Well
B-10 Appraisal Well Objectives • Drill in crestal location to establish oil column up to ~80 m • Vertical well to be drilled in 25 m water depth • Well design will be the same as previous wells • Suspend B-10 as a future producer • Establish optimum development plan Drilling Planning • Aim to secure
Slide 12: Redevelopment Concepts
Redevelopment Concepts Approach • 3-well development • 4-slot wellhead platform (WHP) & leased FPSO, or • Leased MOPU & FSO (adopted by RISC for CPR) Status, Timing & Costs • Location for WHP or MOPU identified • FID early 2022 • Schedule ±18 month from FID to 1st oil • CPR development Capex ±US$125
Slide 13: Funding
Funding Equity Raise • Equity raise of up to US$30 million to fund the transaction in Q1 2021 • Expected to be filled through a mixture of retail & institutional investors • Directors expect to subscribe for up to US$1 million Subscription Agreement: Use of Proceeds • Advance to subscribe for equity
Slide 14: Environment, Social & Governance
Environment, Social & Governance Environmental • Small team, non-operated project & pre-production - present carbon footprint limited • Directors intend to continue developing an appropriate ESG strategy in line with growth ambitions • Focused on monetising existing discoveries, avoiding emissions a
Slide 15: Our Value Proposition
Our Value Proposition Accomplished team with focused strategy and proven track record • Global E&P experience with a track record of value creation • Shareholder alignment with “skin in the game” and further equity participation Transformational transaction providing exceptional short-medium term va
Slide 16: Advisers & Contact Details
Advisers & Contact Details Advance Energy plc Nominated Adviser 55 Athol Street Strand Hanson Douglas Brokers Isle of Man Tennyson Securities IM1 1LA Optiva Securities Limited T +44 (0)1624 681 250 Auditors E [email protected] W www.advanceplc.com Lubbock Fine Registrars Computershare Investor Ser
Slide 17: Buffalo Field CPR: Key Points
Buffalo Field CPR: Key Points Buffalo-1 Discovery Well Production Test • B-1 Ideal Productivity Index (PI) = 120 stb/d/psi • It is considered that a sandface pressure drop (SPD) of 100 psi would give an oil rate of 12,000 bopd • It is considered that 20,000 bopd would be achieved with a SPD of as li
Slide 18: Case Study: Yetagun Field, Myanmar
Case Study: Yetagun Field, Myanmar Leslie Peterkin (LP) joined Premier Oil in Singapore in Q1 1997 • Texaco (Operator) had agreed the sale of its interest in the Yetagun Field to AGIP • Premier Oil was a Yetagun non-operating, joint venture partner • Field development plan had been approved & constr
Slide 19: Indicative Capital Structure
Indicative Capital Structure $15MM Raise $27MM Raise Pre-consolidation shares on issue & to be issued 1,834,503,530 1,834,503,530 Post share consolidation (1 for 10)+ 183,450,353 183,450,353 Current share placing++ 370,370,370 666,666,667 TOTAL SHARES ON ISSUE 553,820,723 850,117,020 Existing warran
Slide 20: Use of Proceeds
Use of Proceeds Minimum Raise Maximum Raise US$’000 US$’000 Gross fundraise amount 15,000 30,000 Less: broker commissions (750) (1,500) Less: costs of RTO (819) (819) Net fundraise amount 13,431 27,681 To be used as follows: Investment into Carnarvon Petroleum Timor 10,000 20,000 Provision for addit