PDF - Northern Petroleum plc

AGM
June 29th 2011
Northern Petroleum Plc
January 2010
• Geesbrug gas field on-stream for first month of commercial production
• Tiendeveen-1 reaches Total Depth after drilling difficulties. Made ready to test
Slide 2
March 2010
• Northern as Operator
completed 1,520 km² 3D
seismic survey offshore Sicily
paid by Shell
• Zuid Friesland III licence
awarded with 2 gas discoveries
(NAM, Total & Suncor as
partners)
Slide 3
April 2010
• Baxter’s Copse existing oil discovery on new UK onshore permit assessed by RPS to give Northern
2.66 million barrels of 2P reserves
• Nigel Wright joins the Board
Slide 4
June 2010
• Place 11,764,706 shares to raise €11.5 million
• Co-operation Agreement concluded with PGS
Slide 5
July 2010
• New Italian Decree introducing
offshore drilling constraints
affecting Northern less than
Market chatter and Daily Telegraph
article unfortunate headline
suggest. The New regulations
affect inshore waters, but are often
reported as relating to all offshore
or a deepwater drilling ban.
Slide 6
August 2010
• Nigel Wright leaves the Board. Chris Foss resumes previous role.
Slide 7
September 2010
• Brakel gas field starts commercial production.
Slide 8
November 2010
• UK sales efforts discontinue as drilling starts at Markwells Wood
• Operations generally harmonious with local residents
Slide 9
December 2010
• The drilling of the La Tosca prospect is farmed out to Orca Exploration Group Inc
• The Wijk en Aalburg gas field is placed on-stream, Northern’s fourth
Slide 10
January 2011
• Oil discovery at Markwells Wood confirmed.
Commencement of core analysis and development of
acidizing programmes prior to testing
Slide 11
March 2011
• Farmout of seismic programmes
in Southern Adriatic to Azimuth Limited
Slide 12
March 2011
• Drilling operations start of the
Zædyus prospect offshore Guyane
Slide 13
April 2011
• Shell becomes Representivo Unico for Joint Venture offshore West Sicily
Slide 14
May 2011
• 12.6% downgrade of 2P reserves and reduction to 2011 production forecasts for Netherlands.
Company considered well placed to absorb this change and after reassessment of technical factors
continue to develop fields in the Netherlands.
• Reserve base is now 89.44 million barrels oil equivalent
• The Company holds interest in 6 previous gas discoveries in the Netherlands which are currently
outside the reserve evaluation of which 4 have been independently assessed as a combined 52 Bcf
contingent resource to the company
Slide 15
89.4 Millions Barrels at 31st December 2010
Operator 50 Licences/Non Operator 3 Licences
United Kingdom:
10 onshore exploration
and production licences
1 offshore application
2P reserves:
7.0 million boe
100% Oil
Netherlands:
6 onshore production licences
1 offshore production licence
3 onshore exploration licences
6 gas fields in production
2P reserves:
29.3 million boe
Italy:
14 Fully awarded permits
3 Applications contested
20 Applications un-contested
Guyane:
1.25% interest in offshore
licence operated by Tullow
Oil. Shell and Total are
partners. Drilling 300-700
million bbl prospect
2P reserves, 100% Oil;
53.2 million bbls
Prospective resources:
8.4 billion boe identified to date
Large exploration potential
Slide 16
Planned Activities
Farmout of 15% of 2 Permits in Southern Adriatic to Azimuth, plan to acquire a 2D and two 3-D seismic surveys
Working with Shell on a drilling decision/forward plan for offshore west of Sicily fold and thrust belt
Drilling of La Tosca prospect in the Longastrino permit with farmin partner Orca Exploration
Ongoing discussions for the farmout of other permits in Italy
Project with EBN to study West Netherlands Basin shale oil potential
New production well at Geesbrug gas field in Netherlands
Drilling first Papekop oil field production well in Netherlands
Long term test of Ottoland oil well in Netherlands
Workover and field development planning for Woudsend and Oppenhuizen discoveries in Netherlands
Exploration wells on Drenthe III, Utrecht and Oosterwolde licences in Netherlands
Testing Markwells Wood oil discovery
Drilling Havant exploration well
Appraisal/development well at Baxters Copse
Appraisal of Hedge End oil discovery
Slide 17
AGM – Financial Summary
29th June 2011
Northern Petroleum Plc
2010 Financials - Summary
Revenue
Year ended
31 December
Year ended
31 December
2010
2009
€’000
€’000
14,968
5,084
Gross profit
6,697
1,482
EBITDA (i)
5,083
(2,231)
Adjusted EBITDA (ii)
6,475
(174)
(1,155)
(2,151)
(1.3) € cents
(2.9) € cents
Capital expenditure
13,688
29,707
Cash and cash equivalents
21,430
15,002
Loss for the year
Basic loss per share on result for the year
Other working capital
2,466
3,476
Net assets
85,371
73,764
Total Group distributable reserves
54,039
54,769
(i) Earnings before interest (and other finance income and costs), tax, depreciation, depletion, amortisation and write offs of oil and gas assets.
(ii) In addition to the above, is calculated before share based payments and pre-licence costs.
Northern Petroleum Plc – AGM Resolutions
Slide 19
2010 Financials - Highlights
• The Group achieved record revenues of €15 million;
• Northern made a pre tax loss of €0.02 million for the year, as a consequence of
additional non cash depletion and impairment charges of approximately €3 million;
• The Group made capital investments of €13.7 million to develop its reserves and
resources; and
• At the end of 2010 Northern had €21.4 million of cash, plus €2.4 million of working
capital.
Northern Petroleum Plc – AGM Resolutions
Slide 20
Financials – Current and Forward
• As at 27 June 2011 Northern had €24.5 million of cash;
• The forecasted range for 2011 Group production is now 1,550 to 1,650 boepd;
• Northern expects to make capital investments of approximately €15 million in 2011
developing its reserves and resources; and
• Northern has no external debt, but has the production and reserve base to in due
course obtain debt on appropriate terms.
Northern Petroleum Plc – AGM Resolutions
Slide 21
End of Presentation
29th June 2011
Northern Petroleum Plc
AGM Resolutions
29th June 2011
Northern Petroleum Plc
Resolution 1 - Ordinary
“To receive the report of the Directors and the audited accounts for
the year ended 31 December 2010.”
Northern Petroleum Plc – AGM Resolutions
Slide 24
Resolution 2 - Ordinary
“To re-appoint KPMG Audit Plc as auditors and to authorise the
Directors to fix their remuneration.”
Northern Petroleum Plc – AGM Resolutions
Slide 25
Resolution 3 - Ordinary
“To re-elect A N Brewer (who retires from office in accordance with
Article 108 of the Company's Articles) as a Director of the
Company.”
Northern Petroleum Plc – AGM Resolutions
Slide 26
Resolution 4 - Ordinary
“To authorise the Directors, pursuant to and in accordance with section 551 of
the Companies Act 2006 (the “Act”) to exercise all powers of the Company to
allot ordinary shares in the capital of the Company and grant rights to
subscribe for or convert any security into ordinary shares up to a maximum
aggregate nominal value of £1,162,500 (being approximately 25% of the
Company’s issued share capital as at the date of this notice), provided that
such authority shall expire at the conclusion of the next Annual General
Meeting of the Company, except that the Directors may, before such expiry,
make offers or agreements which would or might require ordinary shares to
be allotted or rights to be granted after such expiry and allot ordinary shares
or grant rights in pursuance of such offers or agreements.”
Northern Petroleum Plc – AGM Resolutions
Slide 27
Resolution 5 - Special
“To authorise the Directors, pursuant to and in accordance with section 570
and 573 of the Act, to allot equity securities (as defined in section 560 of the
Act) for cash as if sub-section 561 of the Act did not apply to the allotment
of equity securities pursuant to the authority conferred on them under
section 551 of the Act up to the aggregate nominal value of £465,000 (being
approximately 10% of the Company’s issued share capital as at the date of
this notice), such power to expire on the earlier of the conclusion of the next
Annual General Meeting of the Company and 15 months after the date of the
resolution (but so as to enable the Company, before the expiry of such
power, to make offers or agreements which would or might require equity
securities to be allotted after such expiry and to enable them to allot equity
securities for cash pursuant to such offers or agreements as if the power
conferred thereby had not expired).”
Northern Petroleum Plc – AGM Resolutions
Slide 28
Resolution 6 - Special
“To authorise the Company, generally and unconditionally, to make market
purchases (within the meaning of section 693(4) of the Act) pursuant to and
in accordance with section 701 of the Act of fully paid ordinary shares in the
capital of the Company upon and subject to the following conditions but
otherwise unconditionally:
• maximum of 4.65m shares;
• maximum price of 105% of the average of the middle market quotations for
an ordinary share for the five business days immediately preceding the day
on which such ordinary share is contracted to be purchased;
• minimum price shall be the nominal value of such ordinary share; and
• authority to expire earlier of i) next AGM or ii) 15 months.”
Northern Petroleum Plc – AGM Resolutions
Slide 29
The AGM is now closed
Northern Petroleum Plc
Post AGM Presentation
Northern Petroleum Plc
Netherlands: Potential to Increase Production
Producing
Waalwijk
P12
Drenthe IV- Grolloo
Drenthe III – Geesbrug
Brakel
Andel III - Wijk en Aalburg
Reserves under development
Drenthe III - Geesbrug expansion
Papekop
Andel III – Ottoland
Project Development of existing discoveries
Zuid Friesland - Woudsend
- Oppenhuizen
Utrecht – North Ottoland
Andel III – Kerkwijk
Utrecht – Willeskop
Gas
Gas
Gas
Gas
Gas
Exploration Prospects
Oosterwolde
Utrecht – Everdingen South
Utrecht – Meerkerk South
Drenthe III - Lhee
Shale Oil Potential
Gas
Gas
Gas
Gas
Good inventory of new production
projects
Slide 32
Netherlands Gas Prices 2010 - 2011
Slide 33
West Netherlands Basin – unconventional oil shale potential
NuTech Energy Alliance report quote based on the analysis of eight
wells in the Northern operated licences in the West Netherlands Basin
“In further analysing the shale, the histograms comparing the various
aspects of the shale with the Eagle Ford and the Niobrara – two of the
best shales in the US – are so favourable that we consider this to be an
even better quality of shale for production purposes. The hydrocarbon
potential certainly looks to be mostly oil, and with very high porosity and
permeability in the shale by comparison to the US plays.”
Further work is being undertaken to quantify the oil resource potential of
this shale which is present in all the Northern licences in the West
Netherlands Basin; Andel III, Engelen, Waalwijk and Utrecht.
Slide 34
ITALY Prospects, leads and fields distribution
Slide 36
ITALY Prospects, leads and fields distribution
Slide 37
Southern Adriatic – Fields and Prospects
53.16 million barrels of Probable Reserves
in Rovesti and Giove discoveries
Real potential in the exploration upside
estimated at 8.5 billion barrels of oil in
place and 10 TCF of gas in place
Slide 38
Rovesti
Rovesti-1
SSE
NNW
Top Pliocene
Top Messinian
Top Carbonate
Top Jurassic/ dolomites?
Top Triassic?
km2
11.725
Areal extent
based upon ODT
Oil presence in
Rovesti = 2370m
TVDSS
Spill points =
2562m TVDSS,
ODT = 2562m
from log data
Rovesti – In Place volumes & Reserves
•
STOIIP (million of barrels)
•
P90: 144 MMbbls
•
P50: 199 MMbbls
•
P10: 256 MMbbls
•
Mean: 199 MMbbls
• Reserves based upon
a Productivity Index of
1.5 (horizontal wells)
Reserves calculation – Blackwatch Petroleum Services
Giove
•
•
•
•
•
•
•
•
Drilled 1998 Enterprise Oil
Water depth c. 600m
Platform margin build-up
Oligocene to Cretaceous reservoir
Trap located on flank of basin.
Constrained by dip and major basin margin
Tested by Giove-1 and Giove-2
16o API oil
Giove-1
SW
NE
Top Pliocene
Top Carbonate
Top Eocene
Top Cretaceous
Seismic Cross section through Giove Discovery
OWC 1143m
Depth structure map – Top Carbonate sequence
Giove – In Place volumes and Reserves
• STOIIP (Million of barrels)
• P90: 73
• P50: 135
• P10: 218
• Mean 142
Reserves calculation – Blackwatch Petroleum Services
North Sea analogue – Brae Trend
Example of oil trapped on the shelf, against the shelf margin and in the basin
North Sea
Southern Adriatic
Shelf margin
Shelf margin
Rovesti
Brae
Giove
Cygnus
Aquila
Shelf margin
Approximate SAME SCALE
South Brae, Miller Fields – North Sea
16/7a-8
16/7a-10
South Brae Field
16/8b-3
16/8b-2
16/8-1
Miller Field
Depositional model – South Brae field – after C.C.Turner et al
Aquila field (being re-developed by Eni)
SW
NE
Giove
Aquila
Top Pliocene
Top Messinian
Top Carbonate
Top Jurassic/ dolomites?
Top Triassic?
Aquila field structural setting analogous to Miller field, Viking Graben
Cross-section – After Enterprise Oil Italia
Cygnus Prospect - re-sedimented carbonates as at Aquila
NW
SE
Top Pliocene
Cygnus
Top Messinian
Top Carbonate
Schematic of
turbidite fan
complex
Aquila field
Medusa
discovery
Area of greater erosion
– fan entry point
Erosion of the Top
Carbonate (blue)
indicating sediment entry
points to basin
Giove
Cygnus Prospect
Cygnus prospect – located
down dip of platform margin –
“toe of slope” location.
Seismic character change
beneath “Top Carbonate” and
likely lateral extension
basinwards as at Aquila field
SW
NE
Medusa discovery
Top Pliocene
Top Messinian
Top Carbonate
Cygnus
Top Jurassic/ dolomites?
Top Triassic?
Cygnus Prospect structural setting analogous to Brae fields, Viking Graben
Comparison - Falklands & Adriatic
Sea Lion is a submarine fan, Cygnus prospect and Aquila field are submarines fans
Falklands
Southern Adriatic
Approximate SAME SCALE
Shelf margin
Sea Lion
Rovesti
Giove
Cygnus
Aquila
Source: Rockhopper Exploration
Shelf margin
Southern Adriatic Analogue - Golden Lane - Mexico
Example of oil trapped in carbonates on the shelf, against the shelf margin and in the basin
Data source - IHS
Platform
Golden Lane
Slope and basin
Poza Rica
POZA RICA FIELD
•
STOIIP: 4810 MMbbls
•
Reserves: 2070 MMbbls
•
GIIP: 5502 Bcf
•
Reserves: 3718 Bcf
“The world’s largest
deepwater carbonate field”
Sicily Channel Potential – Prospects, leads and fields
distribution
800 million bbls
in 4 Prospects
600 million bbls
prospect in Liassic
Carbonate
Over 1 Tcf Gas being
developed by Eni
in three discoveries
450 million bbls
prospect in
Triassic Carbonate
Slide 50
Ionian Sea – Prospects, leads and fields distribution
Slide 51
Eastern Po Valley Potential – Prospects, leads and fields
La Tosca
La Tosca – mean 44 bcf
Other 100 bcf
Slide 52
United Kingdom
Production, three oil discoveries plus exploration
Existing Discoveries
PEDL126 Markwells Wood Oil Discovery to be tested Q3 2011
PEDL233 Baxter's Copse Oil Discovery to be drilled 2012
PEDL125 Hedge End Oil Discovery – potential drill site located
Production
PL211 (Horndean) & PEDL 070 (Avington)
Exploration
PEDL155 and PEDL256 Havant Prospect
Slide 53
Guyane
Disputed
Boundary
Boundary
Settled
Slide 54
Guyane
Currently Drilling 300-700 million bbl. Zædyus prospect
Northern has 1.25% interest, Tullow Oil 27.5%, Shell 45%, Total 25%
Also a billion barrel potential in giant Matamata prospect
Slide 55
Planned Activities
Farmout of 15% of 2 Permits in Southern Adriatic to Azimuth, plan to acquire a 2D and two 3-D seismic surveys
Working with Shell on a drilling decision/forward plan for offshore west of Sicily fold and thrust belt
Drilling of La Tosca prospect in the Longastrino permit with farmin partner Orca Exploration
Ongoing discussions for the farmout of other permits in Italy
Project with EBN to study West Netherlands Basin shale oil potential
New production well at Geesbrug gas field in Netherlands
Drilling first Papekop oil field production well in Netherlands
Long term test of Ottoland oil well in Netherlands
Workover and field development planning for Woudsend and Oppenhuizen discoveries in Netherlands
Exploration wells on Drenthe III, Utrecht and Oosterwolde licences in Netherlands
Testing Markwells Wood oil discovery
Drilling Havant exploration well
Appraisal/development well at Baxters Copse
Appraisal of Hedge End oil discovery
Slide 56
End of Post AGM Presentation
Northern Petroleum Plc