Investor Presentation • May 27, 2022
Investor Presentation
Open in ViewerOpens in native device viewer
27 May 2022, Eyas Alhomouz (Chairman), Jens Pace (Interim CEO)
This Presentation has been prepared by PetroNor E&P ASA (Company).
This Presentation contains summary information about the Company and its subsidiaries (Company Group) and their activities. The information in this Presentation does not purport to be complete or comprehensive, and does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with the Company's other periodic and continuous disclosure announcements lodged with Oslo Børs, which are available at www.euronext.com/nb/markets/oslo
This Presentation is for information purposes only and is not a prospectus, product disclosure statement or other offer document under Norwegian law or the law of any other jurisdiction. This Presentation is not financial advice, a recommendation to acquire Company shares or accounting, legal or tax advice. It has been prepared without taking into account the objectives, financial or tax situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs and seek such legal, financial and/or taxation advice as they deem necessary or appropriate to their jurisdiction. The Company is not licensed to provide financial product advice in respect of Company shares.
This Presentation contains certain forward looking statements. The words anticipated, expected, projections, forecast, estimates, could, may, target, consider and will and other similar expressions are intended to identify forward looking statements. Forward looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these
statements. This difference may be due to various factors, including, among others: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; the outcome of negotiations, conclusions of economic evaluations and studies; changes in project parameters and returns as plans continue to be refined; future price of oil and gas; drilling risks; political instability; insurrection or war; arbitrary changes in law; delays in obtaining governmental approvals or financing or in the completion of development activities. The forward looking statements in this Presentation speak only as of the date of this Presentation. To the full extent permitted by law, the Company and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions. Nothing in this Presentation will under any circumstances create an implication that there has been no change in the affairs of Company Group since the date of this Presentation.
An investment in the Company shares is subject to investment and other known and unknown risks, some of which are beyond the control of the Company Group. The Company does not guarantee the performance of the Company or any particular rate of return on the performance on the Company Group, nor does it guarantee the repayment of capital from the Company or any particular tax treatment. Due to the widespread Covid-19 virus, the situation is highly volatile implying significant risk on forward looking statements.
This Presentation is not and should not be considered an offer or an invitation to acquire Company shares or any other financial products and does not and will not form any part of any contract for the acquisition of the Company shares. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. Company shares have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in a transaction exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws.
The information in this Presentation relating to hydrocarbon resource estimates for Congo-Brazzaville includes information compiled by AGR Petroleum Services AS ("AGR"). AGR has consented to the inclusion in this Presentation of the matters based on the information in the form and context in which it appears. In addition, this is supplemented with corporate management
estimates for Nigeria and estimates by PetroNor E&P AB for the Guinea Bissau licenses. Further, hydrocarbon resource estimates for The Gambia and Senegal includes information compiled by Dr Adam Law, Geoscience Director of ERC Equipoise Ltd. Dr Law, is a post-graduate in Geology, a Fellow of the Geological Society and a member of the Society of Petroleum Evaluation Engineers. He has 18 years relevant experience in the evaluation of oil and gas fields and exploration acreage, preparation of development plans and assessment of reserves and resources. Dr Law has consented to the inclusion in this Presentation of the matters based on the information in the form and context in which it appears.
The Company's advisers have not authorised, permitted or caused the issue, lodgement, submission, despatch or provision of this Presentation and do not make or purport to make any statement in this Presentation and there is no statement in this Presentation which is based on any statement by the advisers. To the maximum extent permitted by law, the Company, its representatives, advisers and their respective officers, directors, employees, agents or controlling persons (collectively, the Representatives) expressly disclaim all liabilities in respect of, and make no representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this Presentation or in any other documents furnished by the foregoing persons.
Statements made in this Presentation are made only at the date of this Presentation. The information in this Presentation remains subject to change without notice.
1) Congo: PNGF Bis constitutes 6.8 mmbbls of 2C resources in Congo. PetroNor has the right to enter into the PNGF Bis license with net working interest of 23.56% with Perenco as operator. Volumes as of 1 Jan 2022 on PNGF Sud (AGR 6/4/2022); 2) Exploration: Sum Net Unrisked Mean Case Prospective Recoverable Resources, based on ERC Equipoise, net unrisked mean prospective resources (Gambia/Senegal), Company management estimate, SPE Guinea Bissau AB estimate.
| Q1-22 | Q1-21 | 2021 | 2020 | |
|---|---|---|---|---|
| Average daily gross field oil production at PNGF Sud (bopd) |
20,976 | 21,528 | 20,636 | 22,713 |
| Volumes (1,000 bbl) | 234 | 219 | 831 | 994 |
| Average oil selling price (USD/bbl) | 95.3 | 58.7 | 69.3 | 40.9 |
| Revenue from sales of petroleum products1 (USD m) |
22.3 | 12.8 | 57.6 | 40.6 |
| Other revenues (USD m) | 14.1 | 10.1 | 48.9 | 26.9 |
| Total revenue (USD m) | 36.4 | 22.9 | 106.5 | 67.5 |
| Net comprehensive income (USD m) | 11.2 | 4.9 | 20.7 | 10.1 |
| EBITDA (USD m) | 22.8 | 13.7 | 61.9 | 33.8 |
• Non-current assets increase driven by USD 6.8 million spent on PNGF Sud CAPEX during Q1 2022
| Position (USD m) | Mar 2022 | Dec 2021 | Mar 2021 | Dec 2020 |
|---|---|---|---|---|
| Current assets | 44.2 | 51.8 | 31.6 | 27.1 |
| Non-current assets | 80.2 | 73.4 | 52.7 | 51.9 |
| Total assets | 124.4 | 125.2 | 84.3 | 79.0 |
| Current liabilities | 30.9 | 39.2 | 21.4 | 26.4 |
| Non-current liabilities | 16.6 | 20.2 | 28.5 | 30.3 |
| Total liabilities | 47.5 | 59.4 | 49.9 | 56.7 |
| Net Assets | 77.0 | 65.8 | 34.4 | 22.3 |
| Non-controlling interest | 8.8 | 6.5 | 14.5 | 14.4 |
| Net interest bearing debt | 10.6 | 13.1 | 18.9 | 18.9 |
| Cash balance | 15.4 | 31.8 | 19.6 | 27.9 |
2 Bn barrels mature oil asset which came on stream in 1987 with long lived remaining potential
Located in shallow waters (80 100 meters) with significant infrastructure in place
Asset has demonstrated potential to increase production through workovers and infill drilling
1 Consisting of three Production sharing Agreements: Tchibouela II, Tchibeli–Litanzi II and Tchendo II
2 PNGF Sud indirect interest of 16.83% to PetroNor through Hemla E&P Congo's 20% interest
3 Independent competent person's report as of 1 Jan 2022 prepared by AGR 6 Apr 2022
17 wells - 2-year drilling program
| Field | Litanzi | Tchibeli NE |
Tchibeli | Tchendo |
|---|---|---|---|---|
| Target | Infill drilling | Development drilling |
Infill drilling | Infill drilling |
| Producers | 2 | 2 | 2 | 7 |
| Injectors | 2 | 2 | ||
| Gross capex, mill. USD |
~105 | ~90 | ~50 | ~105 8 |
Strong performance from Perenco partnership
Reserves have increased consistently every year since license entry based on production performance and approved infill drilling programmes
1) PNGF Sud indirect interest of 16.83% to PetroNor through Hemla E&P Congo's 20% interest
Expected completion of transaction to enter the OML 113 licence by the end of June
Significant upside potential to be unlocked through new partnership and different technical approach
PetroNor to hold 52% interest in Aje Production SPV and effective Economic Interest of 15.1% and expected to reach 20.2% within 3 years based on projected payout phases.
Aje Production ready to engage as the Technical Service Company for the licence partnership
Re-development can become a significant contributor to the CO2 emission reduction for Nigeria
1) 6.502% participating interest, with 16.255% cost bearing interest, representing an economic interest of 12.1913% in OML 113. Option to pay partly in cash should the PetroNor share price fall below USD 0.13 per share; Future consideration of up to USD 16.67m based on gas production royalty in a success case 10
Regional activity
PetroNor has re-established a strong exploration portfolio
Significant prospect sizes
Low risk stacked targets
Ø Rising production outlook, targeting 5,000 bopd during 2022, in a favourable price environment
Positions PetroNor with the financial capacity and flexibility to:
Execute organic growth strategy
Execute transformational and accretive M&A deals
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.