Petrel Resources Plc · LSE:PET
Petrel Resources — Investor Presentation (August 2007)
24 slides from Petrel Resources's investor presentation, August 2007
Slide 1: Petrel Resources Plc
Petrel Resources Plc August 2007 1 www.petrelresources.com
Slide 2: Contents
Contents • Who we are • Iraq projects • Latest developments • Work program 2 www.petrelresources.com
Slide 3: Why Iraq?
Why Iraq? • World’s largest remaining undeveloped petroleum province • Opportunity for re-developing known fields • Technical costs are the lowest worldwide • Hydrocarbon law allows foreign participation – Approval imminent • Iraq needs help, but few are willing to take the risk. 3 www.petrelresourc
Slide 4: Who we are: background
Petrel Resources Who we are: background • Pure E&P play focused on Southern Iraq • Irish company - listed in London Alternative Investment Market (AIM) • Highly experienced Iraqi and international team • Group seeks to leverage regional expertise to add complementary opportunities in neighbouring co
Slide 5: Petrel chronology
Petrel chronology Technical cooperation Petrel Working agreement agreement signed Established cooperation Established signed to explore Block 6 for Merjan field agreement with Itochu 1997 2002 Oct 2005 Sep 2006 2000 Sept 2005 Jan 2006 Today London AIM EPC contract awarded JV signed with Iraqi Workin
Slide 6: Petrel top organization
Petrel top organization Chairman Dr John Teeling MD David Horgan CFO Director Director James Finn Guy Delbès Stefano Borghi Iraq Country Mgr Director of Projects Project Manager Chief Process Eng. Mahmoud Ahmed Shaun Hennessey Rod McInnes Hany Sadek Senior Geologist Senior Geologist Senior Geologist
Slide 7: Projects in Iraq
Projects in Iraq Block 6 Merjan Halfaya Subba & Luhais www.petrelresources.com 7
Slide 8: Status of projects in Iraq
Status of projects in Iraq • Block 6 (exploration) On hold – reconcile with new law • Merjan field (technical cooperation) Completed 4/2007 • Dhufriya field (technical cooperation) Start 7/2007 • Subba & Luhais (EPC) Under development • Halfaya (re development) Under discussion 8 www.petrelresources
Slide 9: Recent developments affecting Petrel
Recent developments affecting Petrel • Downstream law agreed • Upstream law approved by Cabinet, to be ratified by Parliament during 2007 • Few players willing to work on the ground with current conditions – though solid supplier support continues • Iraqi authorities have asked Petrel to prepare pro
Slide 10: Essence of Iraq upstream hydrocarbon law (draft)
Essence of Iraq upstream hydrocarbon law (draft) • State of the art Hydrocarbon Law – comparable to best international practice • Authority of Ministry of Oil and Federal Government clear in the centre and south of Iraq, where Petrel operates • Production Sharing Agreements one acceptable model • Te
Slide 11: Block 6 (exploration): introduction
Block 6 (exploration): introduction • Block 6 is considered one of the most prospective of the Iraqi Western Desert Blocks – 3 to 5 billion barrel recoverable potential • Large structures identified in Mesozoic (oil-prone) and Paleozoic (gas/condensate prone) Formations • World class exploration opp
Slide 12: Block 6 (exploration): base map
Block 6 (exploration): base map www.petrelresources.com 12
Slide 13: Merjan field (technical cooperation agreement)
Merjan field (technical cooperation agreement) Undeveloped discovery Opportunity to work with the Ministry, learn about Iraq’s regional geology. First official cooperation with Itochu (50% non-operating partner) Objective: Training and transfer of technology to technical personnel Ministry of Oil Pr
Slide 14: Merjan field: basic facts
Merjan field (technical cooperation agreement) Basic facts • Discovered 1983 (undeveloped) • Located near Block 6 • Oil In Place est. 760 million barrel (first estimates) • Well data available • 2D seismic available • Completed 4/2007 14 www.petrelresources.com
Slide 15: Subba & Luhais (EPC contract) project description
Subba & Luhais (EPC contract) Project description • Working this project since 1999. At $197 million contract price, it is the biggest of the oil field development contracts issued so far by the Ministry of Oil. The project is located in Southern Iraq, where security challenges are manageable • Ther
Slide 16: Subba & Luhais facilities (export infrastructure)
Subba & Luhais facilities (export infrastructure) Satellite image 16 www.petrelresources.com
Slide 17: Subba & Luhais EPC contract: new development plan
Subba & Luhais EPC contract New development plan 17 www.petrelresources.com
Slide 18: Subba & Luhais EPC contract: new development plan
Subba & Luhais EPC contract New development plan 18 www.petrelresources.com
Slide 19: Subba & Luhais EPC contract: project time table
Subba & Luhais EPC contract Project time table 19 www.petrelresources.com
Slide 20: Other regional opportunities: Jordan
Other regional opportunities: Jordan • As part of Petrel’s work on Arabian Desert, our staff collected data from Jordan, Syria, and Saudi Arabia. The cooperation of the Jordanian authorities encouraged Petrel to look at the Jordanian side of the Arabian Desert • In January 2005, Petrel signed a MOU
Slide 21: Jordan: East Sawafi block
Jordan: East Sawafi block Exploration • Block size 8750 km2 • Terms of the PSA (60% to 35% share, depending on production) • 15% profits tax • No Parliamentary queries or press criticism. • No security problems • Agreement signed May 2007 www.petrelresources.com 21
Slide 22: Near term priorities for Petrel
Near term priorities for Petrel • Formalise contracts after ratification of Iraqi hydrocarbons law. Confirm Block 6 exploration & development contract under new law. Negotiate development field contract. • Complete the Subba & Luhais EPC (Engineering, Procurement & Supervision of Construction) Proje
Slide 23: Corporate Facts
Corporate Facts • Cash balance: c.$2.5 million (July 2007) + c.$8 million due from SCOP for Subba & Luhais Basic Design • 69m shares in issue – diluted 74m • Current Market Cap. (fully-diluted): £63m, €92m, $124m • >1800 shareholders • 25% institutional share holders; one major Italian institution •
Slide 24: Petrel Resources Plc
Petrel Resources Plc 162 Clontarf Road Dublin 3 Ireland Phone: +353 1 833 2833 Fax: +353 1 833 3505 Email: [email protected] www.petrelresources.com 24 www.petrelresources.com
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