Serica Energy PLC · LSE:SQZ
Serica Energy — Shareholder Meeting (June 2019)
30 slides from Serica Energy's shareholder meeting presentation, Jun 27, 2019
Slide 1: Serica Energy plc Annual General Meeting
SERICA ENERGY plc ANNUAL GENERAL MEETING NEW IMAGE HERE 27 June 2019
Slide 2: Disclaimer
Disclaimer • This document is personal to the recipient and has been issued by Serica Energy plc • Certain statements, beliefs and opinions in this document, are forward-looking, and is directed only at, in the United Kingdom, qualified investors who are persons (the "Company"). This document does n
Slide 3: Introduction
01 Introduction 3 Serica Energy plc – AGM Presentation – June 2019
Slide 4: Serica Energy
Serica Energy Establishing profile • Serica is a British-based independent upstream oil and gas • Over 80% of our production is natural gas which has company with operations centred on the UK North Sea significant environmental advantages over other fossil where we have a full range of exploration,
Slide 5: 2018: The Start of a New Era for Serica
2018: The Start of a New Era for Serica Spectacular growth during 2018 31 December 2018 68.8 mmboe 25kboe/d $55m 140 31 December 2017 3.1 <2k $34m 7 mmboe boe/d NET 2P RESERVES AVG. NET PRODUCTION CASH AND DEPOSITS EMPLOYEES • Serica has established its position as a safe and reliable operator with
Slide 6: A new team, a positive new culture
Serica Energy A new team, a positive new culture • Serica is an inclusive and supportive employer with strong leadership, encouraging a culture of individual accountability and ethical work practice • In Aberdeen our 140+ team is delivering exceptional performance and building Serica's reputation as
Slide 7: 2018 Financial Results
02 2018 Financial Results 7 Serica Energy plc – AGM Presentation – June 2019
Slide 8: 2018 Highlights
2018 Highlights A year of achievement EARNINGS PER SHARE CASH AND DEPOSITS ACQUISITION 2P RESERVES PRODUCTION DEVELOPMENT +337% +62% 30.11.18 68.8 mmboe >25,000 boe/d ✓ 2018 basic EPS on profit for Total cash balances and The acquisition of BP, Total net 2P reserves have Combined full year productio
Slide 9: Group Income Statement
Group Income Statement 2018 2017 US$000 US$000 Revenue 45,747 31,966 2.5 months production from Erskine and 1 month from BKR Cost of Sales (20,543) (12,668) Mainly operating cost, some Erskine costs reduced during 9.5 month shut-in Gross profit 25,204 19,298 Heavily curtailed Erskine income plus 1 m
Slide 10: 2018 Year End Net 2P Reserves
2018 Year End Net 2P Reserves Independent CPRs show significant reserves upgrade • Erskine net 2P reserves have increased from 3.1 mmboe at the end of 2017 to 5.7 mmboe at 1 Erskine 5.7 mmboe the end of 2018. This revision is due to increased uptime (delivered by the Erskine bypass pipeline) As at 3
Slide 11: Production Assets
03 Production Assets 11 Serica Energy plc – AGM Presentation – June 2019
Slide 12: Net Serica YTD 2019 Production in Excess of 30,000 boe/d
Net Serica YTD 2019 Production in Excess of 30,000 boe/d Strong production during first 6 months of Serica BKR operatorship (all figures net to Serica) Bruce, Keith & Rhum Erskine FY 2018 25,200 boe/d (+9% as of end May 2019) FY 2018 600 boe/d (+421% as of end May 2019) Serica 2019 Full Year Guidanc
Slide 13: 2018/19 Financial Impact of Bruce, Keith and Rhum Transactions
2018/19 Financial Impact of Bruce, Keith and Rhum Transactions COMMODITY PRICES • 2018 commodity prices were strong with oil prices Gas Oil (p/th) (US$/bbl) averaging ~US$72.50/bbl and gas prices ~59p/therm. Serica’s share of BKR production in 45 2018 ~59 ~72.50 2018 (>80% gas) realised more than US
Slide 14: Cash Position
Cash Position Sustained cash build End May 2019 US$112.3million • 31 May cash balances of End March 2019 US$112.3 million represent a Cash, cash equivalents and term deposits US$91.8million US$10.25 million per month increase from our 31 March disclosure of US$91.8 million Year End 2018 US$54.9milli
Slide 15: BKR Transition Completed November 2018
BKR Transition Completed 30 November 2018 114 23 15 BP staff transferred New jobs created New technical authorities 315,000 1.8 million 403 Documents transferred BP project files OMS documents (Operating Management System) 138 31 130 Contracts re-negotiated PLANC IT applications (permits, licences,
Slide 16: Bruce, Keith and Rhum
Bruce, Keith and Rhum Serica has 98% of Bruce, 100% Keith and 50% of Rhum Bruce produces oil and gas from over 20 wells: platform and subsea Under Serica operatorship all wells are currently producing for the Rhum produces gas and is first time since early 2015 a subsea tie-back to Bruce Rhum is cap
Slide 17: Bruce Facilities – Third Party Business
Bruce Facilities – Third Party Business As our key asset, Bruce is the focal point of our team’s deep technical and operational skills. We apply our key business drivers to: • extend life-of-field • increase utilisation of facilities • maximise economic recovery from the area as a whole • bond and r
Slide 18: Erskine Field Flowing at Consistent Rates
Erskine Field Flowing at Consistent Rates A 26km section of the condensate export line from Intervention has delivered Lomond to the CATS Riser Platform has been replaced consistent 2019 net production of The cost to Serica of the bypass pipeline was comparable to 40 days of Serica Erskine field rev
Slide 19: Erskine Reserves Increase
Erskine Reserves Increase Demonstrates the ability of focused operators to add value to mid & late life assets Field in Resulting in Efficiencies significant decline prolong reserves unless action Mitch Comment: life of field upgrade taken Elsewhere we use mmboe rather than mboe The independent CPR
Slide 20: Other UK Operations
04 Other UK Operations A full lifecycle portfolio 20 Serica Energy plc – AGM Presentation – June 2019
Slide 21: Columbus Development (Serica 50%)
Columbus Development (Serica 50%) Project Timeline Mid 2021 Commencement of production expected, following Arran pipeline lay and Shearwater topsides modification Q4 2020 Target drilling of single horizontal production well tied in to Arran-Shearwater pipeline Jun 2019 A COLLABORATIVE PROJECT WITH S
Slide 22: Rowallan: UK Block 22/19c (Serica 15%)
Rowallan: UK Block 22/19c (Serica 15%) Well 22/19c-7 spudded on 30 December 2018 The well targeted the High Temperature and High Pressure Rowallan prospect The well reached a total depth of 4,641m on 3 April 2019 182m section of sandstone and shale was encountered but no hydrocarbons were present 22
Slide 23: Strategy
05 Strategy 23 Serica Energy plc – AGM Presentation – June 2019
Slide 24: The Right Assets in the Right Hands at the Right Time
The Right Assets in the Right Hands at the Right Time Serica’s strategy is to identify and acquire assets where we can add value. This started with the Erskine acquisition completed in 2015 and continued with the 2018 BKR transactions Serica has demonstrated the ability to unlock value by addressing
Slide 25: A Strategy to Deliver Growth
A Strategy to Deliver Growth Leverage team and technology to maximise efficiency • talented, motivated team in place and Aberdeen HQ fully operational • focus on maximising economic recovery of oil & gas • harness technology and creativity to extend life of fields • establish hub strategy for Bruce
Slide 26: Appendix
06 Appendix 26 Serica Energy plc – AGM Presentation – June 2019
Slide 27: Our Board
Our Board Tony Craven Walker Mitch Flegg Neil Pike Executive Chairman Chief Executive Non-executive Director • A leading figure in the British independent oil • Over 35 years’ experience in the upstream oil • Involved in the global petroleum business as a industry since the early 1970s, having start
Slide 28: Our Board
Our Board Ian Vann Trevor Garlick Malcolm Webb Non-executive Director Non-executive Director Non-executive Director • Joined BP in 1976 • Over 35 years’ experience in North Sea • Joined Burmah Oil in 1974 as a legal adviser • Directed and led BP's global exploration Upstream operations and developme
Slide 29: Senior Management Team
Senior Management Team Andy Bell Stephen Lambert Clara Altobell Mike Killeen VP Finance VP Commercial VP Technical VP Operations Danny Fewkes Carol Stewart Fergus Jenkins Group Treasurer Business Manager Manager of Projects 29 Serica Energy plc – AGM Presentation – June 2019
Slide 30: For further information visit www.serica-energy.com
For further information visit www.serica-energy.com or email [email protected] 30 Serica Energy plc – AGM Presentation – June 2019