AGM Presentation May 2014

Transcription

1 AGM Presentation May 2014 John Wardle Chief Executive Officer Carlos Martinez General Manager Colombia Fernando Rueda Financial Manager Colombia Sandra Ramirez Human Resources & CSR Coord. Colombia a Latin American Producer and Explorer

2 Disclaimer Important Notice These presentation materials do not constitute or form part of any offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied upon in connection with any contract or commitment whatsoever. No responsibility or liability whatsoever is accepted by any person for any loss howsoever arising from any use of, or in connection with, these presentation materials or their contents or otherwise arising in connection therewith. These presentation materials may contain forward-looking statements relating to the future prospects, developments and strategies of Amerisur Resources plc (the "Company"), which are based on directors' current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Each forward-looking statement speaks only as of the date of the particular statement and, except as required by law or regulations to which the Company is subject, the Company disclaims any obligation to update any such forward-looking statement to reflect future events or developments. 2

3 AMERISUR Certification 2012/13 OSHA 18001:2007 Occupational Health and Safety Management Standard Directed to organizations committed to the safety of its staff and workplace. It is intended to help to control occupational health and safety risks ISO 14001:2004 Environmental Management Standard Designed to strike a balance between maintaining profitability and reducing environmental impacts ISO 9001:2008 Quality Management Standard Focuses on all elements of quality management that a company needs to have an effective system that allows you to manage and improve the quality of their products or services. 3

4 The Year in Focus FINANCIAL Colombia and Paraguay focused, Company with a US$1,090.0 MM (1) market cap Revenue up 301.0% to US$169.2m (2012: US$42.2) Profit before tax up 274.6% to US$75.3m (2012: US$20.1m) Cash position at year end US$71.6m (2012: US 47m) and no debt Platanillo Proven Reserves increase from 12.0 [2012] to 19.8 [2013] Independent Reserves Report as at 31 December 2013 certifying Platanillo field 2P reserves at 32.8 million barrels (2) (1) Market price as of 6 th May 2014 (2) Petrotech December,

5 The Year in Focus Net average production rate for the year 4,730 BOPD OPERATIONAL Total oil production 2012 [ BO] and 2013 [ BO] 6 successful commercial wells during the period for a total of 10 new wells and 3 successful sidetracks in Platanillo 100% success rate. Significant progress of the Put-12 block adjacent to Platanillo in Putumayo Further prospective sands encountered in the Esmeraldas formation at Fenix 5

6 The Year in Focus ON GOING Platanillo-17 became the 12 th successful well in the current campaign and Platanillo-15 now drilling New Vertical Seismic Profile Data acquired during drilling programme strengthened Platanillo field model Good progress on the Ecuador pipeline project in Environmental, Technical and Commercial terms San Pedro 2D Seismic acquisition programme completed 6

7 Company Overview Management Track record of success in the industry Over 100 years experience in South America 150 MMBO+ discovered in Colombia Colombia Producing field Platanillo located in the prolific Putumayo basin Put-12 directly to east of Platanillo (60% working interest) Fenix block (100% working interest), in the Middle Magdalena Basin to the North of Colombia Production of 7,000+ BOPD Pipeline to Ecuador under development 1P field reserves 19.8MMBO, 2P reserves of 32.8 MMBO* Net mean resources of 235 MMBO** Paraguay Transformational potential in Paraguay - Extensive acreage position in Paraguay comprising two E&P and three Prospecting permits Active low cost exploration programme underway 2D acquired, new well Q San Pedro resources 620MMBO** Finances Exploration and development funded from cash flow Pacific Ocean Las Palmas Permit Coronillo Permit Argentina Caribbean Sea Ecuador Bolivia Peru PARAGUAY Espartillar Permit COLOMBIA PLATANILLO PUT-12 Curupayty Permit Venezuela FENIX Brazil San Pedro Permit Brazil *As at 31 December 2013 ** Net Unrisked Management Estimates 7

8 Amerisur in Summary A full cycle E&P company Production Current production of 7,000+ BOPD from the Southern/Central lobe of Platanillo 2013 average production H1 3,715 BOPD H2 5,723 BOPD 13 wells in production with 1 water disposal Field reserves 1P 19.8MMBO, 2P of 32.8MMBO* Ecuadorian export connector will drive down costs and increase volumes Development / Appraisal Exploration Further 7 well drilling campaign planned in Platanillo in 2014 Focus on 2P 1P in 2013 & H Platanillo resources 35MMBO** Conversion of resources to reserves offers additional value uplift N Sand (proven stratigraphic trap) reserves additions by end 2014 Potential to add material reserves at Platanillo Put-12 the same geology but 5 times bigger than Platanillo Mapping currently indicates MMBO** of potential resources Potential game changer well in Paraguay in 2014 San Pedro 460km 2D completed Drilling late MMBO** potential resources *As at 31 December 2013 ** Net Unrisked Management Estimates 8

9 Price (GBp) Corporate Performance Share Price Performance Last Three Years Jun '12 6 well campaign increased to 8 new wells (south and intermediate northern prospects) and a further 4 wells (northern prospects) 28 Mar '12 2P reserves increase to 7.7 mmbbl 30 May '12 Platanillo-3 reaches 8,250ft; Lower U formation suggests potential for increased oil column 26 Jul '12 MOU with PetroGranada to conduct DD into Fenix contract 10 Oct '12 30 Nov '12 Decision not to pursue PetroGranada farm-in to Fenix $40mm equity placing 18 Mar '13 Platanillo reserves increase from 7.7 mmbbl to 29.9 mmbbl + Platanillo-1 ST1 sidetrack encounters 22ft net pay 16 Jul '13 29 th Dec 13 Platanillo-7 tested 16 Jul '13 3,000+BOPD from U sands Platanillo-12 produced 2,371bbl/d on test from U sands 3 Feb '14 Ave-1 well confirms continuation of Esmeraldas sand bodies 22 Apr '14 FY 2013 Results; Revenue up 301% and Operating Profit up 279% % Volume (mm) -- (0.5)% (39%) (44%) May '11 Aug '11 Nov '11 Jan '12 Apr '12 Jul '12 Oct '12 Jan '13 Apr '13 Jul '13 Oct '13 Jan '14 Apr '14 Financial Summary Amerisur AIM Oil & Gas Brent Crude Colombian Peers (1) Share Price 02 May'14 GBp Week High 6 Jan '14 GBp Week Low 1 Jul '13 GBp Market Cap (2) (US$mm) 1,114.3 Net Cash as of Dec. 13 (US$mm) (71.6) Enterprise Value (US$mm) 1, P (mmboe) 33.4 EV/2P ($/boe) 31.3 Source: Bloomberg (1) Colombian Peers comprise Canacol, Gran Tierra, Pacific Rubiales, Parex Resources, Petrominerales, PetroNova, Petroamerica, Platino Energy and Suroco (2) Options included on treasury share method basis 9

10 Amerisur Colombia Team General Manager Colombia Carlos A. Martinez B. Technical and Operations Manager Administrative and Financial Manager Chief Geologist Production Operations Senior Engineer Drilling and Workover Senior Engineer Safety Manager Social and Environmental Manager Systems engineer Human Resource Coordinator and HSE Accountant Purchasing coordinator Head of Planning Geologist Junior Geologist Production Superintendent Production Operations Junior Engineer Drilling and Workover Junior Engineer Security assistant Coord. corporate social responsibility Coord. Environmental Tax Accountant Assistant accountant Junior Buyer Administrative Assistant Crude Deliveries Logistics Coordinator Camp Chief Engineer Production Supervisors Production Operators Social Worker 46 Direct Employees 220 Direct Contractors Accounting Assistant Joint Account Accounting assistant Auxiliary Accounting Document Assistant reception Services general 10

11 Amerisur Paraguay Team Regional Director Paraguay Victor Valdovinos Technical and Operations Manager Administrative and Financial Manager Geologist Drilling Support [Bogota] Environmental Consultant Logistic Coordinator Public & Media Consultant Supply Coordinator Accountant Legal Support 11 Direct Employees 2 Consultants Administrative Assistant 11

12 Summary Production 12

13 Amerisur in Summary Platanillo Development Progress April 2012 May % Working Interest 11,000Ha 100% Drilling Success to Date Production currently 7,000 7,500 BOPD from U sand Drilled and completed 12 new wells and 3 sidetracks in past 18 months Current Well inventory 14 Producers 1 Water Disposal 7 further wells in API High sales price & demand 1 Oil Producer/Water Disposal (sidetrack) 4 producers plus 2 infill wells 2 producer sidetracks 3 producers drilled Pad-3N Pad-1N Pad-A Pad-5S 1P 2P 3P Prospective resources 35 5 producers 2 additional south wells 1 infill well 1 well on drilling Pad-9S Campo Alegre 13

14 Colombia Platanillo Drilling Platanillo Development Progress April 2012 May 2014 Central & Northern Lobes Platanillo-7 3,052 BOPD on test Platanillo BOPD on test Platanillo-17 1,527 BOPD on test Not yet drilled High quality 3D seismic map improved by VSP in Platanillo-16 Resources to the North 35MMBO* Partially drilled *Net Unrisked Management Estimates 14

15 Colombia Platanillo Drilling Platanillo Development Progress April 2012 May 2014 Central & Northern Lobes Platanillo-7 3,052 BOPD on test Platanillo BOPD on test Platanillo-17 1,527 BOPD on test Not yet drilled High quality 3D seismic map improved by VSP in Platanillo-16 Resources to the North 35MMBO* Partially drilled 3.9 to 5.0 MM BO additional Potential Reserves *Net Unrisked Management Estimates 15

16 DEPTH [FEET] Platanillo Production Strategy Platanillo Development Progress Increasing Drilling Efficiency TIME (DAYS) Delivering directional wells at US$4.1MM Tested, Completed and on production PLATANILLO 1 PLATANILLO 2 PLATANILLO 3 PLATANILLO 4 PLATANILLO 5 PLATANILLO 9 PLATANILLO 6 PLATANILLO 1-ST1 PLATANILLO 10ST1 PLATANILLO 11 ALEA 1R ST1 PLATANILLO 12 PLATANILLO 2-ST1 PLATANILLO 14 PLATANILLO 7 PLATANILLO 16 PLATANILLO

17 Colombia Platanillo Drilling Platanillo Future Drilling Inventory Future Programme Central zone Three producers successfully drilled 2 further development wells in South 4 Infill wells within central and south lobes Currently designing 3 Border Extension Wells Acquire Plat North 3D H Drilling north of Piñuna river in 2015 Explore additional structures North, West in 2016 Plat North 3D Area 2016? Programme Programme 17

18 (US$mm) Production (bbls) MMBO Platanillo Production Performance Production and Reserve Growth P Reserves 2P Reserves 2013 focus has been on increasing production and converting 2P probable reserves into 1P Proven, Producing Reserves Net Sales (US$mm) Production (bbls)

19 Platanillo Production Strategy Surface Facilities 20,000bbls extra storage completed, additional 10,000bbls underway Pad 9 19

20 Platanillo Production Strategy Surface Facilities 20,000bbls extra storage completed, additional 10,000bbls underway Pad 9 20

21 Platanillo Production Strategy Surface Facilities 20,000bbls extra storage completed, additional 10,000bbls underway Pad 5 21

22 Platanillo Evacuation Strategy Optimising Production: Upside Potential 2013 Situation Unable to produce at full capacity due to limited transportation options Cost of transportation per barrel significant Opportunity Direct connection to Ecuadorian pipeline system is the best alternative 4,000 BOPD reception available at Victor Hugo Ruales (VHR) before facility upgrade Eventual capacity in excess of 25,000 BOPD (sizing for external oil traffic) Will materially reduce transport costs from US$23 to US$5/bbl over 85% of production stream Status Bi-National Agreement has been ratified Ecuadorian documentation submitted and agreed - Formal approval awaited Colombian environmental license process underway 22

23 (US$/bbl) Platanillo Cost and Netback Performance Breaking down the Barrel (net of Royalties & Economic Rights) Improvements to Netback 120 OPERATING NETBACK ECONOMIC RIGHTS Oil in Ecuadorian Line H (US$14/bbl transport saving) FIXED OPERATING COSTS MATERIALS AND SUPPLIES - M & S 100 TRANSPORT AND WATER TREATMENT TRANSPORTATION Maximise Orito/OTA deliveries (US$10/bbl transport saving) Peace dividend, Facilities expansion ,24 50,54 62,93 62,38 69,14 67,20 70,26 Reduce OPEX by US$5/bbl by end Q Expanded facilities, Integration of Platforms ,06 0,73 7,94 31,05 1,44 24,74 12,75 2,61 10,62 10,57 9,97 0,69 1,70 1,88-19,14 1,80-10,36 4,63 3,86 10,43 12,53 0,11 0,06 9,79 1,80-3,57 4,08 4, ê End ê 23

24 Platanillo Evacuation Strategy Moving Oil to Point of Sale Ecuadorian System Colombia PLATANILLO ORITO Ecuador 24

25 Platanillo crossing the River Putumayo Pipeline to Ecuador Baseline surveyed by Amerisur 25

26 Summary Exploration 26

27 Colombia Platanillo Drilling Platanillo Future Upside Additional Reservoirs All wells to date produce from the U sands: N Sand Attribute Mapping Oil tested in T, B and N sands Potential oil in M2 sand & M/A limestone T, B are structural traps development 2016 onwards N Sand is a stratigraphic trap appraisal and development 2016 onwards 27

28 Putumayo Basin Platanillo Geology PUTUMAYO BASIN Seals - Villeta and Rumiyaco shales N Sand Reservoirs in Villeta Sands & Carbonates Cretaceous Marine Sediments Source Rocks of Villeta Group Cretaceous Marine Shales 28

29 Colombia Platanillo Drilling Platanillo Summary of Future Upside Lots of running room still to go Area Next Steps Upside Potential U sand Development T sand Development B sand Development N sand Appraisal & Development Appraisal of North Independent Closure Appraisal of subsidiary structures West Northern section 3D seismic Infill and continued extension to the north Dual completion once U sand depletes Aligned with T sand activities Seismic analysis and model refinement Platanillo North 3D seismic and drilling 2016 Await drilling in Put-8 (Q3 2014) Acquisition H Drill 2016 Light oil, good production rates Structural mapping indicates important prize Smaller than T but can be developed with T Estimated greater than 100MMB OOIP potential Potential to add significant reserves Leverage third party exploration 29

30 Putumayo Basin: Put-12 Putumayo Basin: Put-12 Summary COLOMBIA 60% working interest in the contract with Pluspetrol the operator Ecuador Peru Brazil Geology 55,000Ha 5x bigger than Platanillo Similar geology to Platanillio 9 leads on the existing seismic with the potential for 200 to 480MMBO of gross resources Put-12 PLATANILLO PUT-12 Work Plan Consulta Previa still underway 260km new 2D Seismic Q Civil works Q Drill 3 wells on separate structures planned Ecuador 30

31 Putumayo Basin: Put-12 Putumayo Basin: Put-12 Seismic reprocessing of legacy data has much higher quality, more definition, higher frequency content. Strong structural analogues with Platanillo and Ecuadorian fields Platanillo LEAD 4 31

32 Paraguay Overview Paraguay The opening of a new Petroleum province Amerisur has an attractive and dominant acreage position A Basins shared with adjoining petroleum producing regions Repsol YPF President Petroleum A Attractive contractual terms Significant increase in interest and activity serious players PetroPar A A A Drilling activity will increase this year 32

33 Paraguay Overview Paraguay Overview Our work suggests that all necessary conditions are present for a commercial hydrocarbon discovery San Pedro Coronel Oviedo, Lima, Santa Helena and Cary potential reservoirs 460km 2D acquired Bolivia Curupayty Permit 1 exploration well in H Brazil Unrisked Resources 620MMBO Western Blocks (Las Palmas, Coronillo and Espartillar) Yacoraite Fault Traps and Onlap (tilted blocks and stratigraphic) Reprocess 1590 km 2D seismic Las Palmas Permit Coronillo Permit Paraguay San Pedro Permit Curupayty Non Conventional potential in Los Monos thick Devonian Shales Under technical / economic review Argentina Espartillar Permit 33

34 Paraguay Overview Paraguay Overview Yacoraite Onlap according to Gravity Mapping Our play concept is focused on the edges of the basin, where the tilted Palaeozoic fault blocks may create major traps, charged from the downdip central basin kitchens in the Cretaceous source rocks of the Yacoraite group Yacoraite onlap 34

35 Paraguay Overview Paraguay Overview Geo-Seismic Section and Play Concept Argentina Analogue Tilted Palaeozoic Fault Blocks at basin edges Migration Route Hydrocarbon generation in the deeper cretaceous source rocks 35

36 Future Forward Focus Colombia Platanillo Infill and development drilling Pipeline into Ecuador Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Plat North 3D Seismic Northern Lobe and other prospects step-out drilling CPR updated Put-12 Social Consultations Environmental Permitting 2D & 3D seismic Drilling Fenix AVE-1 well drilling Paraguay Geo & Seismic survey West Blocks 2D Seismic San Pedro well 36

37 Platanillo CSR Corporate Social Responsibility [ ] 37

38 Summary Summary A Highly Profitable Producer with exciting Upside Track Record Strong track record of success to date Drilling programme has been 100% successful Production capacity targets achieved, logistics improving Cash Generation Strong netbacks and cash generation Further important revenue and value growth Forward programme extensive and cash flow is in excess of CAPEX to fund exploration and development Significant Upside Potential Highly prospective acreage in Colombia and Paraguay Ecuadorian pipeline could allow substantial increase in production Forward Activity Further development in Platanillo Put-12 exploration upcoming first wells in H Paraguay progress value generation 2014 Clear plan ahead virtuous mix Development, appraisal and exploration drilling through 2016 Low risk reserves extensions Infrastructure investment CAPEX 2014 US$ 75MM* * Management Estimate, Unaudited 38

39 Summary Annexes 39

40 Board & Management Board & Management Giles Clarke Chairman John Wardle CEO Name / Position Age Experience Douglas Ellenor Non-Executive Director Successful entrepreneur and Chairman of several private organisations Founded Majestic Wine in 1981, co-founded Pet City in 1990 and co-founded Safestore in 1998 Chairman of the England and Wales Cricket Board 20 years of experience in Colombia, joined Amerisur in 2007 after having worked with BP and Emerald Energy Experienced drilling engineer and has held several senior management positions with oil exploration companies B.Sc. Mining Engineering, PhD Geophysics President Colombo-Britannic Chamber of Commerce Detailed and extensive knowledge of Colombia having acted as CEO of the Shell Companies of Colombia and CEO of Hocol SA, a Colombian E&P Has over 40 years of experience in the E&P industry George Woodcock Non-Executive Director Victor Valdovinos Regional Director South America Nick Harrison Finance Director Nigel Luson Non-Executive Director year career at BP, including a period as Chief Geophysicist of BP Colombia Co-founded and managed various exploration companies in Colombia including Copeco, Expet and Petex Paraguayan lawyer with a Masters degree in Energy and Environmental Law from Tulane University, New Orleans, USA Acted as legal advisor to the United Nations Development Programme and the Minister of the Environment for the Government of Paraguay Served as General Secretary of the City Government of Asuncion Qualified as an Accountant with Arthur Andersen Has held senior positions at Deloitte, Midland Bank (International), Coopers & Lybrand and acted as CFO at Pet City Worked 28 years with Lloyds Banking Group in Europe and the Americas, including 3 years as General Manager in Colombia and subsequently Deputy Director for Latin America Past Chairman of the British & Colombian Chamber of Commerce in London 40

41 Platanillo Reservoir Data and Production Performance Platanillo Reservoir Data and Production Performance POZO UNIDAD ESPESOR NETO DE ARENAS (pies) GROSS (Columna de Aceite)* NET PAY (Pies) INTERVALOS CAÑONEADOS (Pies) ARENISCA U SUP ALEA-1R ST1 ARENISCA U INF ARENISCA T PLATANILLO-2 ST1 ARENISCA U SUP / ARENISCA U INF ARENISCA M PLATANILLO-3 ARENA U SUP ARENA U INF CALIZA B (Arena T Sup.?) ARENISCA T ARENA N ARENISCA M ARENA U SUP PLATANILLO / ARENA U INF CALIZA B (Arena T Sup.?) ARENA N ARENA U SUP PLATANILLO / ARENA U INF ARENA U SUP PLATANILLO-6 ARENA U INF / ARENA T PRUEBA INICIAL (ARENAS U) BOPD Tasa Prueba Vol. Tanque 24hr

42 Platanillo Reservoir Data and Production Performance Platanillo Reservoir Data and Production Performance POZO PLATANILLO-9 PLATANILLO-10 ST1 PLATANILLO-11 PLATANILLO-12 PLATANILLO-14 PLATANILLO-7 UNIDAD ESPESOR NETO DE ARENAS (pies) GROSS (Columna de Aceite)* NET PAY (Pies) INTERVALOS CAÑONEADOS (Pies) ARENA N ARENA U SUP / ARENA U INF ARENA U SUP / ARENA U INF ARENA T ARENA U SUP / ARENA U INF ARENA T ARENA U SUP ARENA U INF ARENA U SUP ARENA U INF ARENA U SUP ARENA U INF ARENA T PRUEBA INICIAL (ARENAS U) BOPD Tasa Prueba Vol. Tanque 24hr PLATANILLO-16 ARENA U INF PLATANILLO-17 ARENA USUP ARENA U INF