Corporate Profile

Corporate Profile
August 2016
Strictly Private & Confidential
Energean at a glance
 Private E&P company with focus in the Med and N. Africa
 The Only Oil & Gas producer in Greece – over 4,000bbls/day
current
 BP offtake agreement – 6 year term
 30 mmbbls 2P Reserves
 28mmbbls 2C Resources with significant upside through EOR/IOR
prospectivity
 New 3D in Prinos in 2015 additional to 2 surveys in 1993 & 1997
 USD200 mm low risk ongoing investment plan to increase
production to 10,000bbls per day – 15 wells- 2 already drilled
 Exploration upside in Western Greece, Egypt and Montenegro
 Experienced Management Team with International Oil Industry
track record
 Low cost producer with stable cashflow from existing production
at low breakeven
 Unparalleled HSE track record with 35 year offshore production
history in environmentally sensitive areas in the Mediterranean
2
Summarized Assets
3
Developed
Producing
•
•
•
Prinos (oil)
100%
Prinos North (oil)
100%
South Kavala (gas) 100%
Undeveloped
•
•
•
Epsilon (oil)
Prinos (oil)
Prinos North (oil)
100%
100%
100%
Exploration
•
•
•
•
•
Prinos
South Kavala
Ioannina
Katakolo
Aitoloakarnania
100%
100%
100%
60%
100%
April 25th, 2016
EGYPT
GREECE
ASSETS
•
West Kom Ombo
MONTENEGRO
•
•
Block 30
Block 26
100%
100%
7-year Operations Plan
GREECE- Development
2015
Prinos
Epsilon
2016
4 wells
1 well
Planning
and design
Preliminary
study and
concept
design
2017
2018
2019
2020
4 wells
4 wells
SIP2
& pipeline
construction
2
wells
5 wells
Prinos North
Side track
Well
GREECE - Exploration
Prinos
Ioannina
Katakolon
3D seismic,
340km2
* Seismic
reprocessing
* FTG survey
* Old seismic
Interpretation
* FTG data
processing &
interpretation
Reprocessing of
3D data
Field development
studies
FDP
preparation
July 21st , 2016
4
4
2D Seismic and data
interpretation
Drill 1st
exploration
deep well
Seismic survey,
processing &
interpretation
EGYPT - Exploration
West KomOmbo
Drill exploration wells
(contingent)
Processing & Interpretation
2
exploration
wells
Design
production
facilities
Install
facilities
Drill
2 ERD
wells
Drill 2nd
exploration
Well
(contingent)
Production
2021
Reserves & Resources
Impressive Reserve Growth-
Strong Reserves & resources position
•
•
Low risk development plan enables fast future resources to reserves conversion
Impressive 2P reserves growth enables rapid production increase
Based on CPR produced by ERC on 30 June 2014
3
5
Prinos operating breakeven
Strong financing support
• Private founding shareholders in management position have
invested over US$80mn highlighting their long-term
commitment to the Company
• One of Energean’s founding shareholders has ownership of
Prime Marine, a global provider of seaborne transportation of
petroleum products and gas, and operator of a fleet of 36
double-hull product/chemical tankers and LPG carriers with
an overall carrying capacity of over 2.4 million deadweight
tons
• Third Point, a US institutional investor with more than
US$12bn under management, made an equity investment of
US$100mn in 2013 through its Third Point Hellenic Recovery
Fund, a fund which is dedicated to investing in Greece
• In May 2016, EBRD extended to Energean a US$ 75 million
financial package to support the company’s growth and
finance energy efficiency investments. This is the first nonfinancial project supported by EBRD in Greece
• In July 2016, EBRD extended additional US$ 20 million
subordinated loan for oil & gas exploration in Greece
6
Unique Operated Positions, Partnered with Blue Chip Players
Off-Take
Agreements
6 year off-take agreement for the entire production of Prinos basin
Technical Service
Agreement
Strategic Technical Partner for oil & gas operation in Greece
Engineering &
Project Mgmt
Drilling Services
Independent
Auditors
Hydrocarbon Reserves & Resources
Financial & Tax audit
Offshore & onshore facility
integrity certification
7
Operations in Greece
Prinos – 100%
1

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
2
1
3
4



1



2
Energean awarded
Greece, active licenses and ongoing tenders
Last update: 09/06/2016
8
8
Prinos North - 100%
Net 2P Reserves:
3.4 MMstb
Average Daily Production(May): 328 bblpd (*)
One infill well planned
Epsilon – 100%
Net 2P:
15.25 MMstb
Net 2C Reserves:
3.0 MMstb
Full field development plan with unmanned platform tied back
to existing infrastructure
Ioannina – 100%


4,187 km2
Fold Thrust belt with multiple play concepts
3
Aitoloakarnania – 100%



Energean assets
Net 2P Reserves:
12 MMstb
Net 2C Reserves:
24.5 MMstb
Average daily Production (May):3,998 bblpd
Significant recovery potential through infill drilling & EOR
Block awarded on 05/02/2016, not yet signed
4,360 km2
Multiple play concepts
Katakolo – 60%
4




Operator: Energean Oil & Gas
Partner: Trajan Oil & Gas (40%)
545km2 .
Discovered in 1982, commerciality subject to develop.plan
Prinos basin – Operator 100%
Hydrocarbon System
 Early Neocene formed basin – Extensional environment (North Aegean Sea)
 Up to 6 km of Neocene & Quaternary sediments accumulated. Metamorphic basement
 Source: Miocene waxy sapropelic kerogen type II and III – Oil window @ 2800m. Different types
of source rocks produced different quality HC into the basin (sweet & sour gas, sweet & sour
oil, light and heavy oil)
 Trap: Structural & Stratigraphic traps & combinations of both
 Seal: Thick Evaporitic sequence due to Messinian salinity crisis in the Mediterranean area
 Reservoir: Sand rich Turbidites, shallow marine clastics & fan deltas
 Timing: Most of the oil generation & migration occurred after the deposition of the evaporites
and formation of traps
Summary Fiscal terms
•
Tax 25% (20% income tax and 5% regional tax). Tax rate fixed during
the term of the Contract as per ratification by Parliament in 2013
•
Exemption from any general of special taxes, dues, stamp duties,
royalties, ordinary or extraordinary contributions
•
Royalties based on a sliding scale of average daily production as
presented in the following table:
Total
Royalties
Average Daily
Production
0%
Up to 2,500 bbls
3%
From 2,501 to 5,000 bbls
From 5,001 to 10,000
bbls
> 10,001 bbls
6%
10%
Current Fields Overview
Geology
Prinos
Prinos North
Epsilon
Current Recovery
Factor
 Low relief fault bounded
anticline
 Stacked accumulations of
Miocene Age turbiditic
sands
 Four way dip closed
structure with
hydrocarbons trapped in
Miocene stacked turbiditic
sandstones
 Structural/stratigraphic
closure with dip closure
Note (1): Based on CPR dated 30 June 2014.
Source: Company, CPR.
9
STOIIP
 289mmbbls
 38%
 16mmbbls
 24%
 39mmbbls
 1%
Facilities
Wells
Oil
Transportation
 Prinos Delta –
processing platform
 Prinos A, B – wellhead
platforms
 Flare tower
 Total of 54 (including
sidetracks)
 11 currently
producing, 3 water
injectors
 27–30°API
 Under-saturated and
sour with high wax
and asphaltene
content
 From Prinos Complex
to Sigma plant through
existing pipeline
system
 Current producing well
drilled as an ERD tied
to Prinos’ A platform
 One well is currently
on production (since
July 2009)
 Two exploration wells
 17–24°API
 Sour with a high wax
and asphaltene
content
 Extended reach well
from Prinos Complex
 No facilities currently
 One appraisal
extended reach well
 36°API
 Sour
 No transportation
infrastructure
currently
Infrastructure Supports Fast & Low Complexity Resource Monetization
Onshore Infrastructure – Sigma Processing Plant
Onshore Sigma Plant
30,000bbblpd capacity
 Strategic geographic position in the NE Aegean close to all major planned gas
and oil pipelines as well as access to the sea. Connected to the Greek national
gas and electricity grid
 Crude oil desalination, dehydration, stabilization and storage in three floating
roof tanks with storage capacity of 500,000 bbls
 Gas treatment: dehydration, H2S removal and Natural gas liquid recovery
 Residue gas compression and recycling offshore for gas lifting
 Sulphur Plant and storage facilities & sales to neighbouring fertilizer plant
 17 MW Combined Cycle Power Plant with ability to expand
 No Abandonment Liability
Offshore Infrastructure




Two 4-leg oil production platforms & an 8-leg processing platform
One 4-leg unmanned gas production platform
Fully integrated oil & gas pipeline system
Offshore Loading System that can accommodate up to Aframax tankers
Energean Force on main Prinos Complex
32m water depth
Owned Tender Assisted Drilling Rig – Energean Force




Hull dimensions 300 ft.x90ft.x 20 ft. , 2 cranes 140ft. & 135ft.
Operating water depth 13-220m, Max Drilling Well depth at 6,700m
2000HP, capacity 1000kips, 5 engines(diesel) X 1225KW
Accommodation: 110 people
Supply Vessel and Offshore Supply Vessel
Valiant Energy
 Length overall: 65,2m, Draft:7,1m, DWT 1,800 tons
 Able to support any drilling program, participate in fire-fighting, anti-pollution
and rescue operations, collect and treat up to 155 persons on board
Energean Wave
 Length overall: 47,2m, Draft:3,8m
 60 persons.
 25 knots max speed
10
Valiant Energy
Energean Wave
Low Risk Investment Plan
1. Drill 15 development wells in Prinos
(7 in Prinos, 1 in Prinos North, 7 in Epsilon)
1. Install new unmanned platform on Epsilon field
2. Increase production to 10,000 bbls per day
3. Identify new exploration targets from 3D
4. Explore Ioannina and Western Greece
5. Develop Katakolo
6. Develop the first UGS project in Greece
2014-2017: US$ 200 million Investment plan
Prinos Platform Complex – 32 meters water depth
11
New 3D Seismic survey over Prinos – June 2015




First 3D campaign using latest technology in
18 years in Greece
390 Km2 coverage
Target to identify stratigraphic traps and
better image the Prinos and Epsilon fields
In accordance with our commitment to the
Government in 2013, we are fully exploring
the Prinos basin
12
Polar Marquis
Ioannina - Operator 100%
Block characteristics
 Large under explored onshore block, area 4,187km2
 Previously licensed by Enterprise – relinquished
after takeover by Shell
 Good evidence for working source rock – good HC
shows and seeps
 Working analogues in Albania and Italy
 Multiple play concepts – shallow and deep
exploration targets identified
 Complex structural setting ‐ geological regime
(thrust fold belt)
 Prospects and leads identified. Potential for large
reserves
1st exploration period: (3 years) Oct.2014- Oct.2017
•
•
•
•
•
•
•
AGG Interpretation- almost completed
2D Seismic reprocessing – Completion H1 2016
Geological surveys- final reports available/ complimentary studies
under way
Assessemnet of Demetra well re-entry: under way
2D seismic acquisition program 2Q-3Q 2017
1st stage of EBR submitted and approved by the Ministry
2nd stage of EBR and Environmental Action Plan for the Seismic
Acquisition Program in progress
€7.9 million commitment
13
Oil System
2nd expl. period: (2 yrs)
Oct.2017- Oct. 2019
Drill 1st Well
€11.5 million
3rd expl. period:(2 yrs)
Oct.2019- Oct. 2021
Summary Fiscal Terms
Drill 2nd Well
3 Exploration periods –
total 7 Years
25 Year Development
term with two 5-year
extensions
Royalty
: 2-20%
Corporate Tax : 25%
€11.5 million
Aitoloakarnania Block – Operator 100%
(awarded – not signed)
Block characteristics
•
•
•
•
•
•
•
Large underexplored block, 4,360 km2
4 wells:
• 37 degrees oil on DST from Triassic evaporites at ~4000m
Ionian Zone thrust potential recognized (leads)
Cretaceous Vigla Fm Source Rocks in outcrops
Sub-evaporite potential reachable (sub-thrust Apulian)
“Deepening” South Tryphos-1 well
Nearby oil seep
1st exploration period: 3 years
•
•
•
•
•
Environmental baseline report
Seismic reprocessing
Geological, Geochemical and Geophysical surveys
Full Tensor Gravity Gradiometry and Aeromagnetic
survey
New Seismic acquisition of 400km of 2D data Pre-drill
€7.23 million
14
2nd expl. period:
2 years
3rd expl. period:
2 years
Drill 1st Well
Drill 2nd Well
(dry hole cost)
(dry hole cost)
€10 million
€10 million
Summary Fiscal Terms
3 Exploration periods –
total 7 Years
25 Year Development term
with two 5-year extensions
Royalty
: 4-20%
Corporate Tax : 25 %
Katakolo – 60% Operator
Block characteristics
 545km2 – offshore / onshore
 2 wells tested: W.KAT‐1 (+1A)in 1981, W.KAT‐2 in
 S.KAT‐1 (1A) well (1981–82) in South Katakolo structure
oil and gas shows from Triassic breccia
 The West Katakolo reservoir is believed to be a dual
porosity system (matrix, fractures and vugs), with an
overlaying gas cap and an underlying aquifer
 Plan to develop the field from onshore with ERD
 Government estimates 6 mmbbls recoverable
1st exploration period: 3/10/2014-2/10/2016 (2years)
•
•
•
Reprocessing of 3D data – on going
Reservoir studies, Interpretation & Petrophysical analysis – on
going
Environmental: EBR completed, ESIA to commence
€0,6 million - completed
15
2nd expl. period: (3years)
3/10/2016-2/10/2019
2017
Drill 1st Well
€15 million
Summary Fiscal Terms
2 Exploration periods –
total 5 Years
25 Year Development term
with two 5-year extensions
Royalty
: 2-20%
Corporate Tax : 25%
Egypt, West Kom Ombo - Operator
Block characteristics
 Limited 2D seismic coverage, 699 km
 20,948 km2 remaining exploration area
 Potential for the development of a rift basin
trend in the block analogous to the Kom
Ombo Basin on the eastern border, which
sources the producing Al Baraka oil field.
Summary Fiscal Terms
1st
exploration period
• 2 wells completed in 2011- obligations
completed
2nd exploration period
• Aeromagnetic survey acquired and results
currently being evaluated
• 400 km new 2D seismic
• 2 new exploration wells
• No financial commitment
Remaining commitment: $6 million
16
Cost oil : 40% Profit oil: 60%
Profit Oil Split
Mbopd %State % Cont.
<10
86
17
10-15
84
16
15-25
85
15
15-25
86
14
MMscf/d %State % Cont.
<150
75
25
150 >
80
20
Montenegro – 100% Operator
(expecting ratification of the Parliament of Montenegro)
Block characteristics
 2 blocks: 4218-30 (275km2) and 4219-26 (63km2)
 Prospectivity offshore Montenegro
 Plio-Pleistocene Biogenic gas
 Lower Tertiary Thermogenic gas
 Mesozoic black oil
The shallow water offshore Montenegro is the NW
extension of the “Kruga” thrust front onshore
Albania, which has been well studied and explored.
1st exploration period: 3 years
• 3D seismic surveys for a total area of 338 km2
• Complete set of Geophysical and Geological
studies
€3 million commitment
17
2nd exploration period: 4 years
• Geophysical and Geological studies necessary
to complete the drilling of mandatory wells
• One mandatory well and 1 optional well to be
drilled targeting a plio-pleistocene play to a
depth no less than 2,800 meters
€15 million - contingent
Summary Fiscal Terms
2 Exploration periods – total 7
Years - extension possible
upon performance of the
mandatory work program or
upon approved program for
reserve verification phase
20 year Production period
since first oil
Corporate Tax: 54%
Exploring a New Area in the East Med
The Mesozoic productive basin in Albania known as the Ionian Zone continues south into Western Greece,
where it is under explored
Rospo Mare 1975
100 MMBO / 1 TCF
JJ-3 Chevron; Oil DST
Shell/Petromana
s - 2014
~200 MMBO
Monti Alpi 1988
220 MMBO / 1 TCF
Patos Marinza
4 - 7 BBOIP
~650 MMBO /
0.5 TCF
~ 6 BBOIP
Tempa Rosa 1989
280 MMBOE EUR
Paxi-1 Esso; Oil DST
Aquilla 1989
30 MMBOE Produced to date
Katakolon
1981
6 MMBO
18
Other Projects
South Kavala Underground Gas Storage
Field Characteristics

South Kavala is an almost depleted, offshore gas field
producing since 1981 (85 % RF; 52 m water depth; GIIP
0.95*109 m3 )
 Turbiditic sandstone; Favg 22%; kavg 100 mD
 Evaporite top seal
 No aquifer
 Dry gas (0.14 mol% CO2)
 Pini 182 bar (current Pres 27bar), Tres 95 °C
 Located next to the Greek gas transportation network
 Ideal candidate for UGS
Gas initially in place
1 BCM
Remaining Gas in reservoir
150 MCM
Working gas
530 X 2 MCM
Max deliverability
9 mcm/day
Max injection
7,5 Mcm/day
Cycles per year
2
Max well-head pressure
180 barg
Number of wells
5
Gas pipeline diameter
30 inch
To be connected with a 32 km pipeline
Kappa platform
South Kavala reservoir
19
Sigma site
Total Investment: €400 million
HSE Mission
To transfer our 34 Years experience of working safely in environmentally sensitive
locations in NE Greece to every area we operate
Kavala and Thasos:
14 blue flags every year
for the last 15 years
Zero accidents in
2013, 2014, 2015
Prinos Production Complex: 18km from Kavala, 7km from Thasos Island
CSR - Strong Relationships with the local communities
Kavala, Donation to the Municipality to cover
pharmaceutical and children’s basic needs for
the refugees stranded in Kavala, February 2016
Kavala, Volunteer Firemen, Donation of
personal protection equipment, August 2015
Kavala, Ambulance Emergency Center: repair of
3 vehicles, June 2014
OUR VISION
is to become a leading independent E&P
company. Our primary objective is to create value for all our
stakeholders and be capable of sustainable economic growth,
by being dynamic and innovative. By adhering to our corporate
principles and values we aspire to be a responsible corporate
citizen and to be recognized as a global champion in
sustainability issues”.
Kavala Special Education Elementary School,
Donation for educational and cultural
purposes , February 2015
21
Kavala, Association for the Visually impaired,
Donation of laptops with special software,
June 2015
Close collaboration with ΤΕΙ KAVALA:
240 hrs of training - 60 hrs of lectures- 12
scholarships for post graduate studies - 70
internships- 40 people employed, in 2007-2016
Management Team
22
Board of Directors
Mathios Rigas - Chairman & Chief Executive Officer

Founding shareholder with a unique combination of Petroleum Engineering background and 20 years of
investment banking and private equity experience, primarily in the oil & gas sector
 Vice President of Shipping, Energy and Project Finance at Chase Manhattan Bank in London raised in excess of
US$5 billion in oil and gas financings
 Chairman of the Greek Society of Petroleum Engineers (SPE)
Panos Benos - Chief Financial Officer
 15 years international experience in the oil & gas sector, both in banking and industry, with a long track record of
upstream financings in emerging markets
 Joined Energean from Standard Chartered Bank, where he worked as a Director in the Oil & Gas team in London
delivered a number of award winning project and acquisition finance deals in Africa, Asia and Middle East.
 Previously worked for ConocoPhillips, where he held positions in European Treasury, North Sea Economics and
International Downstream
Stathis Topouzoglou – Director
•
Founding shareholder of the company and successful entrepreneur with more than 30 years
founding and growing companies in the energy transportation sector
•
Principal Shareholder and CEO of Prime Marine Corporation, a worldwide leading product tanker company with a
fleet of 26 modern product tankers, LPG and Ammonia carriers
•
Investments in the largest Solar Panels manufacturing company in Greece and in developments of Solar parks
experience in
David Bonanno, Director
•
Joined Third Point Hellenic Recovery Fund, L.P. in 2008. His focus is on special situation opportunities in the US
and Europe and is the primary investment professional responsible for all Third Point’s activities in Greece.
•
Previously served as associate in the Private Equity and Distressed Investments Group at Cerberus Capital
Management, L.P. and as analyst in the Restructuring and Reorganization Advisory Group at Rothschild Inc.
Scott Leslie, Director

Scott Leslie joined Third Point in 2009. His primary focus is on equity and credit opportunities in the energy sector.

Prior to joining Third Point, Mr. Leslie was an Associate in the Private Equity division at The Carlyle Group.
Previously, he was an analyst in the Financial Sponsors Group at Credit Suisse, where he focused on leveraged
finance transactions.
.
23
Key management
Dr. Stephen Moore – Group Technical Director

E&P technical professional with 28 years’ experience at Shell, Maersk Oil and Mubadala

Joined Energean from the position of Senior Vice President – Technical at Mubadala where he successfully managed all technical
functions of the company worldwide

Dr. Moore has worked extensively in the FSU, the Middle East, SE Asia and the UK section of the North Sea
James Efstathiou– Exploration Director
•
Exploration Manager / Geoscientist with 35 years of oil industry experience.
•
Previously, Global Exploration Manager at Mubadala, responsible for all captured assets and Exploration New Ventures.
•
Prior to Mubadala, he worked with Statoil and Norsk Hydro gaining a broad range of experience on Middle East
David Donaldson, Well Engineering Manager
• Petroleum engineer with drilling specialization with over 30 years of industry experience
• Joined Energean from the position of Well Engineering manager at Petroceltic, Algeria where he was responsible
for the drilling of 124 land
wells, including the planning, programming, recruitment and delivery of 30 early wells and field infrastructure of tight gas, the HSE
management, Risk Analysis, QA/QC management and cost management.
Previously, he served as drilling engineer in senior positions for BG Group, Shell, Eni and Halliburton
•
Fred Riddiford, Reservoir Engineering Manager
•
•
Reservoir Engineering/ Project Engineering Technical Professional and Senior Manager with almost 40 years’ experience
Previously, he worked in the Petro-Technical Group in Mubadala Petroleum as Vice President Reservoir Engineering (2013-2016) and Director Reservoir
Engineering (2011-2013) in Abu Dhabi.
He has worked with BP for 35 years, his last position being the Technical Manager of the Growth/Technical Directorate (Middle East & South Asia SPU, 20042010), during which he worked on a number of key growth opportunities in these regions.
•
Vassilis Zenios, Project Manager
•
•
•
25 years oil & gas experience, with onshore construction, pipelines and heavy lift installation Contractors.
Joined Energean in 2015, after working with Vesrabar Inc. for 10 years in innovative offshore heavy lift solutions and execution services to
operators, worldwide locations, notably the simultaneous raising of the LIMA field complex platforms and bridges, East Java Sea Indonesia
15 years with Saipem, various worldwide locations performing fast track offshore pipelines and heavy lift projects
Vincent Reboul-Salze, Facilities Engineering Manager
•
•
24
10 years of industry experience, mostly gained at Shell Upstream International.
Joined Energean in 2014, after having served for 3 years as the Lead Process Engineer at Kashagan field Start-Up in Kazakhstan, for Shell/
AGIP KCO. Prior to that, he worked with Shell Upstream development teams, as a Concept Development Engineer supporting New Business
Development and Concept projects. Also worked for 4 years in the Dutch and Southern North Sea production areas (mainly gas fields)
www.energean.com
Head Offices
Athens -Greece
Kavala - Greece
United Kingdom
Cyprus
Egypt
32, Kifissias Ave.
Atrina Center, 17th floor
151 25 Marousi
Tel: +30 210 81 74 200
Fax: +30 210 81 74 299
64006 Nea Karvali
P.O Box 8, Kavala
Greece
Tel: + 30 2510
317201
Fax:+ 30 2510
317204
7B Abbey Road,
NW8 9AA London
UK
Tel: +44 20 7286
36, Vyronos
1506 Nicosia,
Cyprus
Τel: +35 722447444
Fax: +35 722447445
Building 1
Square 1169
Mokarar
Sheraton, Heliopolis
Cairo, Egypt
Tel.+202 22696484
Fax.+202 22696474
e-mail:
info@energean.com
25
6574